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Biden vs. Bush over More Iraq Troops; President Bush Prepares To Announce Next Moves in War Strategy; Iran Says U.S. Faces Consequences After Iranians Arrested In Iraq; New Polls From Battleground States Suggest Both Parties Are In For A Ride In 2008; Feisal Al-Istrabadi Interview; Arnold Schwarzenegger Recovering From Leg Surgery

Aired December 26, 2006 - 16:00   ET

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

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: To our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Standing by, CNN reporters across the United States and around the world to bring you today's top stories.

HENRY: Happening now, the final legal world word on Saddam Hussein's death sentence. An Iraqi appeals court gives the go ahead for his hanging in a matter of days. We'll have a live report and reaction from Baghdad.

MALVEAUX: The Bush White House is marking two very different milestones. The court decision on Saddam Hussein's execution and a U.S. troop death toll nearing 3,000. We're with the president in Texas right now.

HENRY: And Obama mania keeps growing. Does the rising Democratic star have Hillary Clinton running scared? This hour, eye- catching polls from two critical presidential battlegrounds. Wolf Blitzer is off today. I'm Ed Henry.

MALVEAUX: And I am Suzanne Malveaux and you're in THE SITUATION ROOM.

Within the next month, perhaps any day now, Saddam Hussein is slated to pay the ultimate price for his deadly rule of Iraq: his life.

HENRY: It's a welcome turn of events for President Bush as he prepares to announce his next moves in a war that's costing more American lives every day. Our White House correspondent Elaine Quijano is with the president in Crawford, Texas. Our congressional correspondent Dana Bash also standing by. But first to CNN's Ryan Chilcote in Baghdad. Ryan, we know the window opens tomorrow for the possibility of the execution to start. Is there any sense that it's eminent?

RYAN CHILCOTE, CNN CORRESPONDENT: There is a sense that it's imminent. What we heard today was from the appellate chamber, the appellate chamber deciding to uphold up the earlier verdict and the earlier sentencing Saddam Hussein to death.

This effectively is the end of the appeals process for Saddam Hussein and it clears the way for him to be put to death. According to Iraqi law, he now has to be put to death as someone who has been condemned to death within 30 days.

Now the Iraqi judge said that the window for the hanging begins tomorrow and ends on January 27th. According to international law, the Iraqi government could grant a stay of the execution. However, that appears to be highly unlikely. The Iraqi prime minister has already gone on the record saying that he thinks that Saddam Hussein should be hanged by the end of the year. Ed and Suzanne?

HENRY: Ryan, do you also have a sense, is there any sense on the ground about how Iraqis, average Iraqis feel about whether or not this will increase anger towards the United States mission?

CHILCOTE: A little too early to say. The decision was announced just a few hours ago. But what we have seen is early indications that this will definitely upset some people. There is a portion of the insurgency, for example, that is still loyal to Saddam Hussein. They are expected to carry out acts of violence in the Iraqi capital. There is talk that there might be a curfew to try and quell that kind of violence. On the other hand, you might see some acts of celebration, maybe some celebratory gunfire by people celebrating this verdict, the upholding of the verdict and the sentencing to death -- Ed?

MALVEAUX: Ryan, how public is this going to be? Do we expect it's going to be televised? Do we know those details yet?

CHILCOTE: We just don't know. According to Iraqi law, it is supposed to be a public execution, but that could mean that it's just attended by several witnesses, people from the Iraqi government, from the Iraqi judiciary, perhaps his defense team, maybe some other people brought in, perhaps journalists.

But it could be very public in the sense that it may be videotaped, we understand, and that video could be disseminated. As far as we understand, the Iraqi government really is of two minds on this.

On the one hand, it wants to show the execution to A, confirm that it is, indeed, executing Saddam. And B, provide some historical justice, if you will, for the people that suffered under Saddam.

On the other hand, it would like to do this perhaps secretly. The argument there that it doesn't want to appear barbaric and it doesn't want to incite any violence that it doesn't need to. Ed and Suzanne?

MALVEAUX: Good points, Ryan -- Ryan Chilcote, thank you very much.

HENRY: Now let's get White House reaction to the ruling on Saddam Hussein. MALVEAUX: Mr. Bush is at his ranch at Crawford, Texas on a working vacation that includes efforts to retool his Iraq strategy. Our White House correspondent Elaine Quijano is with the president in Texas. Elaine, I know that we probably won't see the president at least until Thursday, but there was some sort of briefing aboard Air Force One today?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: That's right. And the White House essentially saying that it's pleased with this decision by the Iraqi court, certainly as you might expect. And it comes of course as President Bush is continuing his deliberations over what to do next over his Iraq policy and what changes need to be made.

Now the president will continue that process of deliberating from his ranch in Crawford, Texas. He arrived here in Texas earlier this afternoon, along with the first lady and her mother. White House deputy press secretary Scott Stanzel did talk to reporters aboard Air Force One, telling them the Iraqis deserve praise for using the institutions of democracy to pursue justice and said, quote, "Today marks an important milestone. in the Iraqi people's efforts to replace the rule of a tyrant with the rule of law. Saddam Hussein has received due process and legal rights that he denied the Iraqi people for so long. So this is an important day for the Iraqi people."

Now, despite acknowledging missteps in the course of the Iraq war, President Bush has steadfastly maintained all along that he believes he did the right thing by removing Saddam Hussein from power. Nevertheless, with Democrats of course set to take control of Congress, the political pressure certainly is intensifying for President Bush to change course when it comes to Iraq.

The consultations though for now are continuing over the weekend. He met with his new Defense Secretary Robert Gates just back from Iraq and then on Thursday, he will be convening the full national security council, his national security council team to talk about the various Iraq options. But aides say no major decisions to come out of that. They describe it simply as further consultations. And of course, Suzanne and Ed, we expect the president to make some sort of announcement in his speech about his Iraq policy early in the new year. Suzanne and Ed?

MALVEAUX: And Elaine, do we have any sense of whether the Bush administration prefers to have some sort of public hanging of Saddam Hussein? If they think it make any difference to the Iraqi people or even to the American people?

QUIJANO: You know, I haven't had a chance to ask them. Obviously, this news just developing today. But it's interesting because it's certainly a delicate position for this White House. On the one hand while they are expressing the fact that they are pleased to see the Iraqis have carried out justice when it comes to the sentence for Saddam Hussein and upholding that, at the same time they are mindful that there are, in fact, Saddam loyalists who are still out there and might, indeed, cause problems if, in fact, this execution goes through and televising that might only exacerbate the problem. But certainly sort of a difficult situation for this White House as it's approaching a political solution as well. Obviously, it's a difficult situation for this president. Not wanting to essentially gloat at a time when there is so much political pressure on him to change course in Iraq.

MALVEAUX: Good point, Elaine. Thanks so much, enjoy your time at Crawford.

HENRY: Three U.S. soldiers were killed by a roadside bomb in Iraq today. It brings the total U.S. death toll since the start of the war to 2,977, surpassing the number of victims killed in the 9/11 attacks.

For some perspective on the impending milestone of 3,000 deaths in this war, look at these figures from four previous U.S. conflicts. There were 405,399 American deaths in World War II. In the Korean War, 36,576 U.S. deaths, 58,209 deaths during the Vietnam War. And in the Persian Gulf War, there were 382 U.S. deaths. All of those numbers are from the Pentagon and the "Associated Press."

MALVEAUX: A leading Democrat is coming out swinging today at the president's Iraq policy and the changes that may be in the works.

HENRY: Senator Joe Biden, the incoming chairman of the Senate Foreign Relations Committee and a likely presidential contender. Let's bring in our congressional correspondent Dana Bash. Dana, what is the incoming chairman saying today?

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well Ed, as you well know, one of the leading ideas the president is considering is to change course in Iraq is a temporary troop surge, sending some additional 30,000 U.S. forces in with the hope of quelling the violence. But Democratic Senator Joe Biden held a conference call with reporters this morning to say he staunchly opposes the idea and will fight the president if he decides to increase troop levels in Iraq. He called it absolutely the wrong strategy.

(BEGIN VIDEO CLIP)

SEN. JOE BIDEN (D), DELAWARE: 20,000 to 30,000 troops, we did that before, three times. We did it as recently as this summer. And here's why it doesn't work. Our troops go in, they clear neighborhoods, the bad guys leave. We can't stay long enough, then we leave, put in Iraqis, the Iraqis are infiltrated. The bad guys come back in and everything breaks out all over again.

(END VIDEO CLIP)

BASH: Now the president has promised to reach out to Congress as he makes his decision. But Biden, like other Democrats, says he hasn't heard from the White House lately and the incoming Senate foreign relations chairman and presidential candidate did announce three weeks of hearings on Iraq starting January 9th and has asked Secretary of State Condoleezza Rice to testify. She said yes, but not until the president announces his new plan. Rice told Biden she doesn't know when in January that will be. Ed?

HENRY: Now Dana, we know that most Democrats, like Biden, oppose a surge in troops in Iraq. But not everybody is on board.

BASH: That's right. In fact, I was with incoming Senate majority leader Harry Reid in his hometown of Searchlight, Nevada last week. He had made some news suggesting he actually supports the troop surge and still does, but only if it's part of a larger strategy that brings troops home.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D), NEVADA: If the president came to us, the Congress, and said, look, I need to increase the number of troops there for a few weeks, but here is what we're going to do. We're going to get out of there within a year. I think a lot of people would say, that's OK, but just for a troop buildup, no one wants that.

(END VIDEO CLIP)

BASH: Now Reid also says he thinks it's clear there are serious concerns among military commanders about the idea of a troop surge and so his position is becoming a bit more nuanced.

A top aide says if Reid finds out military leaders are opposed to adding U.S. troops, but they're overruled by the White House, Reid will then join other Democrats in calling that idea a non-starter -- Ed and Suzanne.

HENRY: Thanks. Dana Bash, our congressional correspondent. Thanks for that report.

MALVEAUX: On the ground in Iraq today, at least 20 people were killed and 35 wounded in the latest car bomb attack in Baghdad. It happened outside of the most revered mosque for Sunnis in Iraq in the southern city of Basra.

British and Iraqi soldiers are on alert a day after they raided a police station where they suspected rogue officers of planning to kill 76 prisoners. British commanders say a number of detainees showed signs of torture.

A former Iraqi cabinet minister who escaped from a Baghdad prison this month now is said to be in Jordan. Ayham al-Samaraie had been serving time for corruption. Jordan's prime minister says he arrived in Amman on a U.S. plane, a claim denied by the U.S. embassy in Baghdad.

HENRY: In Iran today there's new anger at the United States after American forces detained Iranian officials during a recent visit to Iraq.

MALVEAUX: CNN's Aneesh Raman is reporting for us from Tehran.

(BEGIN VIDEOTAPE) ANEESH RAMAN, CNN CORRESPONDENT: Ed and Suzanne, Iran says the U.S. now faces, quote "uncomfortable consequences" after Iranians were arrested in Iraq last week. They've called these arrests not justified. Two of those arrested were Iranian diplomats, they've been released. The other two, Iranian security personnel, part of the country's revolutionary guard, are still in custody.

Now coalition forces have long said that Iran continues to arm, fund, and train militia groups in Iraq. If evidence they've seized on the security personnel uphold that link, Iran will undoubtedly face increased pressure to try to fix the situation in Iraq.

But if no evidence exists, expect Iran to ratchet up its defiant statements against the United States and its defiance against the international community.

This is a very sensitive issue at a very sensitive time. Keep in mind, Iran has spent this past year rising as a dominant political force in the Middle East with its influence in Lebanon, the Palestinian areas, and Iraq. Iran is eager to see the U.S. out of the Middle East as a dominant player and replaced by Tehran.

Ed and Suzanne.

MALVEAUX: Aneesh, thank you very much out of Tehran.

HENRY: Jack Cafferty is off today. But coming up, how would a Barack Obama presidential campaign play in Iowa and New Hampshire? We will show you some poll numbers that may be giving Hillary Clinton and other top Democrats the jitters.

MALVEAUX: Also ahead, the accident-prone governor of California. We'll have the latest on Arnold Schwarzenegger's surgery.

HENRY: Plus, more on our top story -- when are Iraqi officials likely to hang Saddam Hussein? We'll ask Iraqi's deputy ambassador to the United Nations. You're in the SITUATION ROOM.

(COMMERCIAL BREAK)

MALVEAUX: Every four years, the road to the White House leads through Iowa and New Hampshire.

HENRY: New polls from those critical early battlegrounds suggest both parties and their presidential hopefuls are in for quite a ride in 2008, including a couple of senators named Obama and Clinton.

Let's bring in our senior political analyst Bill Schneider. Bill, what are these polls telling us?

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: What they show us Ed, is a Barack Obama surge. In polls taken earlier this year, John Edwards was running first among Iowa Democratic caucus voters and now -- Edwards and Obama tied for first place in Iowa. Bad news for Tom Vilsack, he's the governor, and he's running third. he's got to carry Iowa to survive. Also, bad news for Hillary Clinton -- she is running fourth among Iowa Democrats at just 10 percent.

Now Iowa has always looked like a problem for Senator Clinton but she had been leading in New Hampshire and now Clinton's lead among New Hampshire Democrats is just one point. Breathing down her neck -- Senator Obama who visited New Hampshire this month where he spoke to sellout crowds and got a bonanza of media attention.

Edwards is running third in New Hampshire. Non-candidate Al Gore fourth. John Kerry who won both contests in 2004 is now in single digits in both states.

So what's Obama got going for him? He's the only new face among the top Democratic contenders and his message of inclusiveness seems to be finding a powerful response.

MALVEAUX: So Bill, tell us what we're seeing on the Republican side? What are the polls showing there?

SCHNEIDER: Another hot race Suzanne. John McCain one point ahead of Rudy Giuliani among Iowa Republicans, with Romney and Gingrich in single digits -- lower in the race. Giuliani one point ahead of McCain among New Hampshire Republicans.

Big problem for McCain. McCain burst onto the national scene by beating George W. Bush in New Hampshire in 2000. He has to carry New Hampshire next time, but Giuliani now poses a powerful challenge. Giuliani has the same thing going for him as Obama does, he's a new face for his party.

HENRY: Now Bill, I know these polls are way early but political junkies like you need your fix. What about the head-to-head match ups? When you look at Democrats on one side, Republicans on the other. How does Obama square off against others?

SCHNEIDER: Well, you know Iowa and New Hampshire are both battleground states in November and the polls show Obama the strongest Democrat in both states. In both, the Illinois senator narrowly leads McCain and Giuliani.

Senator Clinton narrowly trails McCain and Giuliani in both states. That's another thing Obama has going for him -- the belief that Senator Clinton might be tougher to elect -- Ed, Suzanne.

HENRY: All right Bill. Bill Schneider, our senior political analyst.

Now, Carol Costello joins us from New York with a closer look at some other stories makes news.

CAROL COSTELLO, CNN ANCHOR: Hi Ed and Suzanne and hello to all of you.

The U.N. Security Council holding an emergency meeting regarding the mounting conflict in Somalia. Fierce fighting between Somali Islamics and an interim government forces backed by Ethiopia has been going on for the past week. Ethiopia says it's halfway to victory and could seize the Somalis Mogadishu stronghold within days.

The U.S. military is considering opening its door wider to non- Americans. It's an effort to counter a struggle to meet recruitment goals. Pentagon officials say ideas like overseas recruiting stations and faster tracks to citizenship are under consideration.

The military under pressure from the White House to find ways to bring in more manpower. Last week, President Bush called for a plan for the first significant increases in overall ground forces since the Cold War.

A pair of civil rights group have filed suit against a Dallas, Texas suburb for a new law making it a crime to rent property to illegal immigrants. The ACLU and the Mexican-American Legal Defense and Education Fund said today the statue violates Federal law and forces landlords to act as immigration officers. The measure was passed in November, it takes effect on January 12th.

And a Spanish doctor says he has met with Fidel Castro and the Cuban leader does not have cancer. The physician from Madrid, a specialist in general surgery, gave reporters his assessment after consulting with Castro's medical team today.

He did not provide any specifics about the 80-year-old Castro's illness, but said he is doing "fantastically well," and that's a quote.

CNN's Karl Penhaul is in Havana and will have a full report in the next hour of THE SITUATION ROOM. That's at 5:00 p.m. Eastern. That's a look at the headlines right now.

Back to you, Ed and Suzanne.

MALVEAUX: Looking forward to those reports. Carol, thank you very much.

And still ahead, will President Bush's new course in Iraq be more of the same old thing? We'll consider what lies ahead and how the new Democratic majority may pounce.

HENRY: And James Brown wasn't just the godfather of soul. Had he powerful influence of people in the political world, as well as the music industry. We will talk to the Reverend Al Sharpton about his longtime friendship with the late singer. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

MALVEAUX: You're in THE SITUATION ROOM, where new pictures and information are arriving all the time.

HENRY: Happening now, an Iraqi appeals court upholds Saddam Hussein's death sentence. The former Iraqi leader's hanging now is scheduled to take place within the next 30 days. The Bush administration is calling that court ruling an important milestone. The president is at his ranch in Texas right now rethinking his strategy on Iraq. He'll meet Thursday with his national security team.

MALVEAUX: And California Governor Around Schwarzenegger underwent surgery today on the leg he broke during a holiday skiing accident. We'll have live update on his condition ahead. Wolf Blitzer is off today. I'm Suzanne Malveaux.

HENRY: And I'm Ed Henry. You're in THE SITUATION ROOM.

It's quiet in Washington now, but the new session of Congress is just around the corner. Can a Bush White House and Pelosi/Reid Congress get anything done? And what about the war in Iraq?

MALVEAUX: Joining us now for today's "Strategy Session" are Democratic strategist Donna Brazile and Terry Jeffrey, editor of "Human Events."

I want to start off with you, Terry, first of all. A quote from Senator Jack Reed. This is about Bush, the Iraq policy. He says, look, "I don't think President Bush has given up the sort of sloganizing and simplistic view of what's happening there. I think the American people's message was deep concern about Iraq, deep skepticism about his policies and what they want is a resolution of Iraq.

Are we just hearing the same old rhetoric from the president, and what are we going to get in two weeks?

TERRY JEFFREY, EDITOR, "HUMAN EVENTS": Well, I think we're hearing the same rhetoric from Senator Reed, but I think it's pretty obvious that since the election the president has been carefully reconsidering his strategy in Iraq.

He's gotten input from everybody from outgoing Secretary of Defense Donald Rumsfeld to the Iraq Study Group, Democratic members of the Congress to his new defense secretary, Robert Gates, who has been over to Iraq and back.

I think what the president is going to come out with is going to be his best-considered policy. I think it's going to be sincere and I think that Senator Reed and other Democrats in Congress better be ready to support it if it's realistic.

MALVEAUX: But, you know, what we're seeing here, Terry, and what we're listening to is the president's language. It seems as if he is talking about bipartisanship, that he's reframing the debate and he's not talking about changes in Iraq policy.

JEFFREY: Well, I think there are going to be serious changes in Iraq policy. I don't think there's any question about that. What exact form they're going to take we're not going to know until the president comes out and lays them out for us.

HENRY: Donna, do you think the pressure is building on the president? What are you expecting to hear from him?

DONNA BRAZILE, DEMOCRATIC STRATEGIST: Absolutely. Look, Senator Reed has been over to Iraq on numerous occasions. He's come back, he's written the president, he's said to the president like many other Democrats and many Republicans that it's time for a new direction.

We don't know what the president's plan -- and we hear all of these options. They're floating so many trial balloons but at the end of the day, what Democrats will hold this president to and what the Republicans should have is a game plan for victory so that we can bring our troops home in 2007.

HENRY: I want to ask you, Donna. There was something -- a column written by Dick Polman in the "Philadelphia Inquirer" Sunday where he said, quote, "The Democrats' biggest challenge as they prepare to take power on Capitol Hill is to eradicate the wimp label that, fairly or not, has dogged them since the '70s. They have to show they can protect us better than the GOP."

So there is pressure on you as well to prove you're not a wimp.

BRAZILE: Well, look, first of all, I don't know of too many wimps in the Democratic Party, but be it as it may, I think what Democrats have to prove to the American people is that we have a strategy, that the president has carefully considered all of these different options and we finally have a game plan to bring our troops home, to successfully turn the Army and the military forces to the Iraqis and to begin the reconstruction effort.

We also need political reconciliation. And I think if the Democrats can help the president come up with a strategy, the country will be better off.

MALVEAUX: I don't know too many people who accuse Donna of being a wimp. I'll tell you that...

BRAZILE: A diva, but not a wimp.

(CROSSTALK)

MALVEAUX: A diva but -- I'll take that.

Now, very interesting numbers here coming from a battleground key state, of course, Iowa, the last two elections here. Taking a look at these polls here, first, Senator Hillary Clinton losing to John McCain here.

We've got McCain 43 percent with this general election match up to Clinton's 37 percent. And then you take a look at the next number here. This is Senator Obama who is beating McCain here. Obama with 42 percent and McCain with 39 percent.

So, Terry, to you, I mean, who is the candidate who the Republicans are most concerned about who they need to beat? Is it Obama, is it Hillary or is it somebody who we don't even know yet? JEFFREY: Quite frankly, I think both Hillary and Obama have the problem of being too far left for middle America. Barack Obama has been able to win in Illinois which is the most liberal Midwest state, but Iowa is a swing state. It went for Gore in 2000, came back to Bush for 2004. It's a very narrowly divided state.

The fact that Hillary Clinton is trailing in your poll among Democrats in the Iowa caucus I think is very bad news for Hillary. But if Democrats think Obama can actually be the candidate who can reach into the red states and win in the south and the Midwest for Democrats, I think they're mistaken.

HENRY: Let me jump in there, because a poll you're citing there -- another part of this poll does have Senator John Edwards on the Democratic side at 22 percent, Obama at 22, Vilsack, the outgoing -- the former governor of Iowa -- and then Senator Hillary Clinton at 10 percent. She's fourth. I want to point out in New Hampshire poll, she is slightly leading Obama, however.

But, Donna, isn't this something that Senator Clinton has to pay attention to? I know it's early. It's a couple of years out but Obama is gaining and he's rising.

BRAZILE: Well, first of all, let's assume that John Edwards gets into the race this week. He is leading currently among many of the polls that have been taken in Iowa. I still believe that this race is so early.

But Barack Obama and Hillary, they have received so much free press over the last couple of months, cover stories in "Time" and "Newsweek." I'm not surprised that they're doing quite well.

But let's not rule out some of the asterisks, and I'm referring to the Joe Biden, the Dodds, the Clarks and many of the other interesting individuals who will also seek the nomination.

JEFFREY: But you know what? The trick for the Democrats is to get someone who is liberal enough to win the Democratic nomination but not so liberal that they can't win southern and Midwestern states. And the candidates that looked like they had a potential of doing that -- Evan Bayh from Indiana, Mark Warner from Virginia -- they're already out of the race. So I think the Democrats don't look as strong right now as they might have for 2008.

HENRY: Good point, Donna. How do you, from a strategy perspective -- some of the centrist Democrats are getting out of the this race. It looks like it's tilting to the left, number one. And, number two, from a strategy standpoint, we know Senator Obama is in Hawaii, vacationing, thinking about getting in.

What would you advise him, from a strategy standpoint, to convert this sort of rock star fame into actual on-the-ground campaigning?

BRAZILE: Well, first of all, I wouldn't rule out Hillary Clinton as a centrist, because she is a centrist. She is somebody that has shown during her years in the Senate that she can work with Republicans, sponsored many pieces of legislation that actually got through the Senate with people like Lindsey Graham. They are not liberal.

So, I do believe that we will have not just liberals, but conservatives and moderate Democrats who will be able to appeal to Southerners, Midwesterners, and, of course, those individuals in the West right now, where Democrats are making a lot...

(CROSSTALK)

HENRY: What about Obama? What does he need to do while he's in Hawaii? What does he need to be thinking about? What does he need to do now?

BRAZILE: Well, first of all, I would hope that, with Michelle at his side, he makes this decision, that he can actually spend some time away from his family. This is a very tough, grueling decision. It's a marathon. He has two small children. He's very concerned about the amount of time he will be spending away from them.

He also must be concerned about the amount of time, as Evan Bayh, that he will be spending away from the United States Senate. But, clearly, Barack Obama is someone that should not be ruled out just because he is from the state where Lincoln hailed from.

JEFFREY: Apart from his -- apart from his far-left record, particularly in the Illinois legislature, which people aren't familiar with yet, Obama needs to establish himself as someone who can be a credible commander in chief, who can run the United States in a war on terror. We have problems in Iraq. He hasn't done that yet. He needs to find a way to convince Americans he can.

BRAZILE: Well, he will -- I'm sure, during the primary process, he will be rounded out. And you will get a chance to hear his experience in foreign affairs and some other national issues that he hasn't had an opportunity to talk about.

MALVEAUX: Terry, quick question for you. And we will probably ask Reverend Al Sharpton this question, as well.

But, clearly, Al Sharpton was the last person who was perhaps a serious African-American candidate in the presidential race. What do you think about Barack Obama? Do you think the country is ready for a black president?

JEFFREY: You know, I, frankly, think that the majority of Americans aren't just ready for a black president. They would positively like to see one.

I think Barack's real handicap is that he is to the left of the American people. I think that a conservative Republican African- American would have a better chance of being elected a president than a liberal Democrat as the first black president.

MALVEAUX: Got a name?

JEFFREY: I think the American people are hungry. They are hungry for a candidate. And Condoleezza Rice last week said, America is ready. The polls suggest America is ready. If Barack is ready to run, I believe he will get tremendous support from blacks, as well as whites.

HENRY: Thank you very much, Terry Jeffrey...

BRAZILE: Thank you.

HENRY: ... Donna Brazile.

And, for the record, no, I didn't say you're a wimp.

BRAZILE: No, no, no.

(LAUGHTER)

(CROSSTALK)

HENRY: I don't want to get in trouble with you.

BRAZILE: And Al Sharpton will still have the best hairstyle, now that James Brown is no longer with us.

(LAUGHTER)

HENRY: All right, thank you both very much.

Up next: The countdown begins to Saddam Hussein's execution. We will get the latest from Iraq's deputy ambassador to the United Nations. He joins us here in THE SITUATION ROOM.

MALVEAUX: And California Governor Schwarzenegger is on the mend, after breaking his leg on the slopes -- a live report coming up.

(COMMERCIAL BREAK)

HENRY: An Iraqi appeals court today sealed Saddam Hussein's fate by upholding the ousted Iraqi leader's death sentence.

MALVEAUX: There's now a 30-day window for Hussein to be sent to the gallows.

Joining us now, Iraq's deputy ambassador to the United Nations, Feisal Al-Istrabadi.

Mr. Istrabadi, if I could start off by telling you, there is a statement from the Iraqi prime minister, Nouri al-Maliki. He made this, saying, "I expect the execution to happen before the end of this year."

It's a statement that he made back in November. How likely is that to be reality here? We are seeing the clock tick. And, tomorrow, we have got just about a week left to make that happen. Is that possible?

FEISAL AL-ISTRABADI, IRAQI DEPUTY AMBASSADOR TO UNITED NATIONS: Well, the matter, of course, is in the hands of the judiciary. So, really, it's up to the courts to determine how these things should be carried out.

I mean, so, it's not entirely clear to me that that will, in fact, occur. It may.

As you have been correctly pointing out, there is, under Iraqi law, a 30-day window, once the appellate chamber rules, which it has now done, in which to carry out execution of sentence.

So, whether it can be done before, or should be done, or will be done before the end of the year remains to be seen, really, at this point.

MALVEAUX: And what do you know as to how it would be carried out, the execution itself? Would it be televised? Is that something that the government is pushing for? And do you think that that's a good idea?

AL-ISTRABADI: Well, I don't think there's any clear direction from the -- to begin with. The execution is in Iraq. It's execution by hanging, number one.

I don't know that any decision has been made. There is a provision in Iraqi law that the execution is public, although that does not necessarily mean -- I mean, it can be public in the sense that there may be witnesses to the event.

Whether it's done in a more public, you know, sort of generally more public way than that or not remains to be seen. I think some of these details have yet to be worked out, frankly.

HENRY: Now, Mr. Ambassador, I want to read you a statement from Saddam Hussein's chief lawyer.

He told "The New York Times," Khalil Dulaimi -- quote -- "Saddam knows a sentence has been issued from Washington. And, if there is an even greater punishment than the death sentence, he will get it."

My question is, is there a sense in Iraq, do you think, that the Bush administration has been behind this, and that this may somehow spark even more violence?

AL-ISTRABADI: Unfortunately, Saddam Hussein's lawyers have chosen to make a political defense, perhaps because they know they have no defense on the law. They have no factual defense.

This is a man who has been convicted of causing the murders of 180 some people in Dujail, including authorizing the execution of 8- year-olds. He admitted that he authorized the execution of 8-year- olds in this Dujail case.

So, I am not surprised at the vituperation from his defense counsel. They have been fairly inadequate and inept, in my judgment as a lawyer, my opinion as a lawyer, in their actual handling of the defense. They have failed to mount any sort of serious defense, perhaps because they know that neither on the facts nor on the law do they may well know that they don't have a defense.

HENRY: So, because of that...

(CROSSTALK)

AL-ISTRABADI: So, they -- so, they have engaged -- so, they have engaged. I don't mean that they are personally inept.

I mean that they are simply not able to amount a credible defense to someone accused of the crimes that Saddam Hussein is accused of, and the fact that he stood up in court -- and I was watching it live as it was unfolding -- and took responsibility for the acts that were done during his presidency in this case.

So, it may be -- I'm not suggesting that they are not competent lawyers. I'm suggesting that they didn't have a competent defense to offer. And, so, they have engaged in this sort of vituperation and really over-the-top statement-making. And, at the end of the day, that's all they have left.

HENRY: So, because of that, and because of the vicious crimes by Saddam Hussein, do you think that, on the flip side, this could help President Bush, as he prepares to try to chart a new course in Iraq, to bring this back in the forefront, the crimes of Saddam Hussein, maybe helping to justify the U.S. mission in Iraq?

AL-ISTRABADI: Look, the -- whether -- the sentence of Saddam Hussein, I think, is not the point. The fact of the matter is that he was a brutal tyrant, who history will show is responsible for the deaths of two million Iraqis in a reign of terror over us, in which he ruled over us for 25 years.

His removal was a legal and moral good. We are better off without Saddam Hussein. We have hope for the future, notwithstanding the difficulties that we have. I really would like to see Saddam Hussein become a part of the past, which he is, a part of hopefully soon-to-be-forgotten past, as we rebuild our country.

HENRY: Thank you very much, Ambassador Feisal Istrabadi. We really appreciate your time today.

AL-ISTRABADI: It's my pleasure. Thank you.

HENRY: And coming up: According to his public schedule, Governor Mitt Romney has been almost everywhere, besides his home state, in 2006 -- this as he inches his way toward a presidential announcement.

MALVEAUX: And Senator John McCain has gone green, lending his name to an unlikely cause. Has he taken the Al Gore position on global warming?

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

MALVEAUX: Here's a look at some of the "Hot Shots" coming up from our friends at the Associated Press, pictures likely to be in your newspaper tomorrow.

HENRY: In Moscow, Russian President Vladimir Putin gives candy to children at an ice-skating rink.

MALVEAUX: In China, swimmers carry a decorated portrait of Mao Zedong along the bank of the Yangtze River. The late former Chinese leader was born 113 years ago today.

HENRY: And, in Costa Rica, Angelina Jolie and Brad Pitt send Christmas Day with Colombian refugees.

MALVEAUX: And here's Frosty the Snowman, Afghanistan-style. A police officer in Kabul poses with a well-armed snowman.

HENRY: And that's this hour's "Hot Shots," pictures often worth 1,000 words.

OK. So, we -- right now, in early 2008, Democratic presidential contenders are going to go new distances to compete for their party's nomination, all the way out west to Nevada.

Our congressional correspondent Dana Bash was there recently to get a firsthand look at the state's growing political clout.

(BEGIN VIDEOTAPE)

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): In the valley beneath Nevada's Mormon Mountains, it's no surprise to find a cowboy.

TOM COLLINS, CHAIRMAN, NEVADA DEMOCRATIC PARTY: These are roping calves. These are rodeo calves.

BASH: But this cowboy may surprise you.

COLLINS: I'm the state chairman of the Democratic Party. I'm a lifetime union member. I'm a journeyman lineman by trade. And I'm also a cowboy. I'm a life member of the National Rifle Association. And I raise cattle.

BASH: There are actually a lot of Democrats like Collins in Nevada and across the increasingly competitive Mountain West.

COLLINS: I grow a few cows and some sheep.

BASH: And forcing presidential candidates to appeal to them is one reason Democrats moved up Nevada's 2008 caucus, wedging it between the traditional kickoff states of Iowa and New Hampshire.

COLLINS: If the candidates running for president can come to Nevada and learn the issues in Nevada, they will know the issues of eight or nine of the Western states.

BASH: Things like public land use and water conservation -- most people don't think of this as Nevada. They think of this, Las Vegas. And Democrats from Iowa and New Hampshire, furious at the party for disrupting what they call their sacred tradition, warn, presidential candidates will get sidetracked by local issues, like gaming.

But State Senator Maggie Carlton, who's also a waitress on the strip, says an earlier Nevada caucus will highlight issues vital to organized labor and struggling workers.

MAGGIE CARLTON (D), NEVADA STATE SENATOR: We don't do 9:00 to 5:00 in Las Vegas. But the working-class-type thing, the shift worker, those -- those types of questions, the more basic kitchen- table-type politics.

BASH: And, put simply, Nevada looks different than Iowa and New Hampshire. These hotel trainees represent a huge untapped Hispanic population Democrats are wrestling Republicans for nationally.

Iowa's Hispanic population is just 3.5 percent, New Hampshire's, 2.1 percent, Nevada's, 22.8 percent.

STEVEN HORSFORD (D), NEVADA STATE SENATOR: We have rich diversity in Nevada. And working people should have more of a stake in how our presidential nominee is selected.

BASH (on camera): This is a place known for its high stakes and extraordinary shows. But there are some doubts Nevada is up to the challenge of organizing and administering a caucus.

In 2004, it had just 17 sites, and now plans 1,000. An Iowa veteran said that's like pulling off 1,000 weddings all at the same time.

(voice-over): And not the vaguest, "I do," drive-through kind of wedding either.

Party chairman Collins insists they have hired experienced caucus hands, and says, in the end, Democratic presidential candidates will benefit from learning more about this long-ignored region, and will even find a familiar symbol...

COLLINS: Let them come pet Jezebel (ph).

BASH: ... in an unfamiliar place..

COLLINS: She's a sweetheart.

BASH: Dana Bash, CNN, Logandale, Nevada.

(END VIDEOTAPE)

HENRY: And now more on the race to 2008 on our "Political Radar" this Tuesday. Details are emerging about Republican Mitt Romney's presidential campaign plans. The Associated Press reports, the outgoing Massachusetts governor will file paperwork for a presidential exploratory committee as early as January 2. And AP quotes a top adviser as saying Romney will officially declare his candidacy as early as the week of January 8.

Now, Romney's White House ambitions apparently have kept him away from his day job -- "The Boston Globe" reporting that the governor has spent all or part of 212 days outside of Massachusetts this past year.

MALVEAUX: Another Republican presidential prospect is seeing green.

Senator John McCain reportedly has signed a letter for the Environmental Defense Action Fund, emphasizing the group's support for his bill that would place a national cap on global warming pollution. "The Washington Times" reports, the Environmental Defense Fund is using the McCain letter as part of its effort to get donations.

HENRY: And a special honor for incoming House Speaker Nancy Pelosi -- Baltimore Mayor Martin O'Malley plans to formerly rename the 200 block of Albemarle Street in Little Italy in Baltimore to Via Nancy D'Alesandro Pelosi.

Pelosi, who was born and raised in Baltimore, will become the first female speaker of the House when she takes the gavel on January 4.

And please remember, for the latest political news at any time, check out the Political Ticker at CNN.com/ticker.

Now, former Democratic vice presidential nominee John Edwards is widely expected to announce his run for the White House this week in New Orleans. And there are new clues to the former senator's political aspirations online.

MALVEAUX: Let's bring in our Internet reporter, Jacki Schechner -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Suzanne, we have been keeping an eye on John Edwards' political action committee Web site since mid-November, when he made the announcement right here on THE SITUATION ROOM that something new and exciting and interesting might be coming to this space.

Now, we haven't seen any presidential campaign announcement yet, but Edwards did send out an e-mail this weekend, telling people he was ready to take events to the next level. He also asked people to e- mail back their input to the address readytochangeAmerica.com.

Now, that is not his political action campaign Web site. If you go to that address, it gives you a schedule of his upcoming events and appearances.

Now, you can't easily get to that from his actual political action committee Web site. And this may suggest that he is separating out the two. The Federal Election Committee -- Commission, rather -- requires that there is a firm distinction between his political action committee and his presidential campaign, if there is one.

Now, the schedule is not easily found, obviously, on his Web site. But you can find it easily on his MySpace account. John Edwards is very active on the Internet, online, in social networking communities like this one. He has got more than 6,000 friends, obviously reaching out to a younger voter.

And we spoke to a spokeswoman for him today. And she says that Edwards is very seriously considering running for president. That's all that she would give us, and encouraged us to continue to stay tuned -- Suzanne.

MALVEAUX: Oh, thanks, Jacki. We will be looking out for that later in the week as well.

Coming up: James Brown, the godfather of soul. We will look back on the life of a legend with someone who knew him very well, Reverend Al Sharpton. That is in the next hour.

HENRY: And the Governator goes under the knife, after breaking his leg skiing. We will get a live report on how long he will be out of action.

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MALVEAUX: Carol Costello joins us now in New York with a closer look at other stories making news -- Carol.

COSTELLO: High, Suzanne and Ed.

Hello to all of you.

Pakistan is answering criticism that it does next to nothing to stop al Qaeda and the Taliban. The defense? A fence and land mines. Pakistan plans to run the fence and plant the bombs along parts of its rugged frontier border with Afghanistan. Afghanistan quickly objected. Relations between the border nations have soured of late.

The Afghans contend that militants operate from sanctuaries inside Pakistan, and cross back and forth between the two countries.

Thieves who ruptured a gas pipeline are blamed for triggering a massive explosion, one that killed more than 200 people in Nigeria today. The pipeline erupted into a blazing tower of fire, as scavengers in a poor neighborhood in Lagos collected the fuel. It was the latest oil industry disaster to strike Africa's biggest petroleum producer. Earlier this year, 150 people died in a similar explosion, also in Lagos.

A pair of strong earthquakes off southwest Taiwan triggered tsunami warnings today, but, apparently, no tsunamis. The first quake measured a magnitude 7.1. The second was a 7. Despite the warnings geologists, say, this time, a tsunami was unlikely. The earthquake struck on the second anniversary of the quake and tsunamis that swept southern Asia, killing an estimated 230,000 people.

That's a look at the headlines right now -- Suzanne and Ed.

HENRY: Thanks, Carol. Happy holidays.

Still to come: Governor Schwarzenegger runs into trouble in Sun Valley, and has a date with a surgeon because of it. We will fill you in with all the details.

MALVEAUX: And a clean bill of health for Cuban leader Fidel Castro? That after an international house call. We will get a report from Havana.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

MALVEAUX: California governor Arnold Schwarzenegger is recovering from surgery to repair his broken leg. The governor's right leg snapped in an Idaho skiing accident over the weekend.

HENRY: CNN's Ted Rowlands joins us from Santa Monica with more.

How are you, Ted?

TED ROWLANDS, CNN CORRESPONDENT: Great, Ed and Suzanne. Thank you.

We just got word about -- a few hours ago, in a statement, that the X-rays look -- quote -- "great" from the surgeon that performed surgery on Governor Arnold Schwarzenegger. And he has been cleared to assume his duties as governor, as he recuperates in a hospital room from his broken leg.

(BEGIN VIDEOTAPE)

ROWLANDS (voice-over): This is where California Governor Schwarzenegger is believed to have undergone surgery this morning, Saint John's Medical Center, near Los Angeles, doctors fixing his right thigh bone, which was broken in a skiing accident Saturday in Sun Valley, Idaho, where Schwarzenegger and his family are regulars each winter.

The operation, described as relatively common, according to the surgeon, involved attaching orthopedic cables and screws to the femur. The governor is expected to stay in the hospital three days for observation. Doctors say he will be on crutches for a while. Full recovery is expected to take about eight weeks.

Schwarzenegger was put under general anesthesia for the operation. During that time, California Lieutenant Governor Cruz Bustamante assumed the role of acting governor.

Schwarzenegger is no stranger at Saint John's Medical Center. He was treated here this past January, after a motorcycle accident, getting 15 stitches in his upper lip. He also had surgery here in 2003 to repair a rotator cuff he injured while filming "Terminator 3."

(END VIDEOTAPE)

HENRY: And the governor is scheduled to be sworn in for his second term next week. Those ceremonies, the inauguration ceremonies, are expected to go on as planned. But Arnold Schwarzenegger may be on crutches -- Suzanne and Ed.

MALVEAUX: Well, thanks, Ted.

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