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CNN Sunday Morning

Bush Monitors Developments in Iraq, North Korea

Aired January 05, 2003 - 09:06   ET

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

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


HEIDI COLLINS, CNN ANCHOR: The showdown with Iraq is just one of the issues facing the president as he returns to the White House today from his Texas ranch. The economy and North Korea are also high on his agenda. White House correspondent Suzanne Malveaux is joining us now with details. Suzanne, the president has a big economic speech planned this week. We've been hearing a lot about it. What's your best guess as to how he'll lay out this plan?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, actually, we have quite a bit of information on that from our sources. We know that on Tuesday is when he's going to formally unveil the plan, and Monday is when he's going to talk about the details before his cabinet members.

What we understand, what we're being told, it's going to be about $600 billion over the next 10 years. It's going to include some tax breaks for businesses as well as some tax cuts for individuals that was slated for 2004 that will kick in 2003.

Also a very controversial plan, it's the tax cut on stock dividends. That is something Democrats have already criticized the president about, saying that they do not believe that it will really effectively jump-start the economy. They also say that it only really benefits the wealthiest Americans.

But the Bush administration says that there is a bit for everybody here to benefit. There's going to be an extension of unemployment benefits. They're also saying to expect some federal dollars for states that are strapped for cash.

We expect what's going to happen over the weeks to come, is that cabinet members are going to be fanning out, actually trying to sell this economic package. We also know that the president's new economic adviser, Stephen Friedman, as well as the vice president, are going to head to Wall Street to try to sell this to them as well. But as you know, Heidi, it's going to be an uphill battle. Quite a bit of controversy already before this plan has even been formally introduced.

COLLINS: Indeed. Well, let's talk about the two big international situations now, Suzanne, the ongoing weapons hunt in Iraq and, of course, tensions with North Korea. Starting with North Korea on this one.

MALVEAUX: Well, here's what we expect in the next couple of days. What's going to happen are high level talks at the State Department that's involving Assistant Secretary of State for East Asian Affairs James Kelly. He's going to be talking with representatives from Japan and South Korea. All of this is the administration's push to use diplomatic and economic means to try to get Pyongyang to give up its nuclear ambitions. We expect that South Korea is going to come up with some sort of compromise plan. We don't have the details on that, but the administration has been very clear that it's not going to negotiate with North Korea until there's some proof that it's willing to give up its nuclear weapons.

And on the side when it comes to Iraq, we saw President Bush just days ago at Fort Hood, Texas, before the troops, again emphasizing that the end game is near for Saddam Hussein. Very critical decisions that need to be made in the next couple of weeks. Whether or not the administration is going to use military action, that is something that the president, he says, has not yet decided. They are still waiting for those inspectors to go back to the U.N. Security Council. That deadline is January 27 to see what they come up with, what they report before they decide what they are going to do next.

But you can bet, Heidi, these next couple of weeks, next couple of months are going to be very important.

COLLINS: Suzanne Malveaux, reporting from the White House this morning. Thank you.

MALVEAUX: Thank you.

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






Aired January 5, 2003 - 09:06   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: The showdown with Iraq is just one of the issues facing the president as he returns to the White House today from his Texas ranch. The economy and North Korea are also high on his agenda. White House correspondent Suzanne Malveaux is joining us now with details. Suzanne, the president has a big economic speech planned this week. We've been hearing a lot about it. What's your best guess as to how he'll lay out this plan?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, actually, we have quite a bit of information on that from our sources. We know that on Tuesday is when he's going to formally unveil the plan, and Monday is when he's going to talk about the details before his cabinet members.

What we understand, what we're being told, it's going to be about $600 billion over the next 10 years. It's going to include some tax breaks for businesses as well as some tax cuts for individuals that was slated for 2004 that will kick in 2003.

Also a very controversial plan, it's the tax cut on stock dividends. That is something Democrats have already criticized the president about, saying that they do not believe that it will really effectively jump-start the economy. They also say that it only really benefits the wealthiest Americans.

But the Bush administration says that there is a bit for everybody here to benefit. There's going to be an extension of unemployment benefits. They're also saying to expect some federal dollars for states that are strapped for cash.

We expect what's going to happen over the weeks to come, is that cabinet members are going to be fanning out, actually trying to sell this economic package. We also know that the president's new economic adviser, Stephen Friedman, as well as the vice president, are going to head to Wall Street to try to sell this to them as well. But as you know, Heidi, it's going to be an uphill battle. Quite a bit of controversy already before this plan has even been formally introduced.

COLLINS: Indeed. Well, let's talk about the two big international situations now, Suzanne, the ongoing weapons hunt in Iraq and, of course, tensions with North Korea. Starting with North Korea on this one.

MALVEAUX: Well, here's what we expect in the next couple of days. What's going to happen are high level talks at the State Department that's involving Assistant Secretary of State for East Asian Affairs James Kelly. He's going to be talking with representatives from Japan and South Korea. All of this is the administration's push to use diplomatic and economic means to try to get Pyongyang to give up its nuclear ambitions. We expect that South Korea is going to come up with some sort of compromise plan. We don't have the details on that, but the administration has been very clear that it's not going to negotiate with North Korea until there's some proof that it's willing to give up its nuclear weapons.

And on the side when it comes to Iraq, we saw President Bush just days ago at Fort Hood, Texas, before the troops, again emphasizing that the end game is near for Saddam Hussein. Very critical decisions that need to be made in the next couple of weeks. Whether or not the administration is going to use military action, that is something that the president, he says, has not yet decided. They are still waiting for those inspectors to go back to the U.N. Security Council. That deadline is January 27 to see what they come up with, what they report before they decide what they are going to do next.

But you can bet, Heidi, these next couple of weeks, next couple of months are going to be very important.

COLLINS: Suzanne Malveaux, reporting from the White House this morning. Thank you.

MALVEAUX: Thank you.

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