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Republicans Take Control of Congress; Virginia Gets to Try Sniper Suspects First; Louisiana Senate Seat to Be Determined in December

Aired November 09, 2002 - 10:00   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.


KATE SNOW, CNN CONGRESSIONAL CORRESPONDENT: Welcome to CNN's SATURDAY EDITION where our journalists has the inside scoop about the stories they covered this week. I'm Kate Snow.
Republicans take charge in Congress, and Democrats play the blame game.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: I'm Kelly Arena. The sniper case: Virginia gets the first chance at trials and how a laptop computer could be key evidence.

KATHLEEN HAYS, CNN CORRESPONDENT: I'm Kathleen Hays. We know the election results, but the economic results are harder to read even after the latest interest rate cut.

DANA BASH, CNN CAPITOL HILL PRODUCER: I'm Dana Bash, and if you can't live without politics, the Senate election isn't over.

The Louisiana run-off has another month to go.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: And I'm Kelly Wallace. One big winner on Election Day, George W. Bush. What's the pay off for the president?

We'll be talking about all of these stories. We'll also go to New York to talk to CNN's United Nations' producer, Liz Neisloss, about the Security Council vote on Iraq.

We'll listen to the president's weekly radio address at the end of the hour.

But first, a check of the headlines at CNN's headquarters in Atlanta. Good morning, Renay.

(NEWS ALERT)

SNOW: Renay, thanks.

Republicans are cheering; Democrats are crying. It's the story of the week, obviously. President Bush and the Republicans getting a big win in the elections on Tuesday. Democrats trying to explain it.

This is what I found funny this week. Everyone I talked to, every Democrat I talked to, and every Republican for that matter, had a different explanation for what went wrong for the Democrats on Tuesday. I mean, I heard everything from, "The Democrats didn't have a concerted message. They didn't have one message. They didn't take on the economy well enough. Republicans nationalized the elections; Democrats didn't. Republicans had the tax cut, and Democrats should have attacked the tax cut and didn't."

I mean, I must have gotten, you know, 60 different explanations. One congressman said to me, "You know what, it was all about the Baghdad three." Remember the three congressmen, Democrats who went over the Baghdad? He said, "I think that really hurt us. It made it look like we were all a bunch of liberals."

So I must have heard 60 explanations.

HAYS: But Kate, I think what's tough, is right now it's the battle for the middle. The far right is quiet. The far left is quiet. And now the Democrats have to capture something that the Republicans seemed to have figured out how to get -- the middle of the American voters.

SNOW: Well, that's one thing I've heard, but you also hear Democrats saying, "No, we've got to go far left. We have got to out -- we've got to really look tough now." And so that's the other thing, is that now Democrats are sort of staring at their navels trying to figure out what the heck they do from here.

And it's not very clear, I don't think.

BASH: And there really is a battle between that middle that you're talking about, that the Democrats are trying to get and the left. And some people on the left side of the spectrum say, "The reason why we didn't win is because we didn't get out our base. We didn't excite our -- the Democrats. We didn't give them a reason to vote for Democrats."

And meanwhile, you've got -- I got a lot of e-mails this week from moderate Democrats and phone calls from them saying, "No, that's absolutely wrong. We don't need the liberals taking control of our party. We need to focus on the independent moderate voter. We need to give them a reason to...

SNOW: These are key states in 2004...

ARENA: So does Nancy Pelosi fix this?

I mean, is this the face they want to see?

SNOW: Well, you know there's a big battle going on now in the House. In fact, we have some sound from the House of this battle that's going to sort of "Who's going to be the new face of the Democratic Party?"

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D), CALIFORNIA: On Thursday, November 14, I will have my name place in nomination for House Democratic leader. I will do so with an overwhelming majority of commitments from my colleagues in the House.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

REP. HAROLD FORD, JR. (D), TENNESSEE: Are we willing to accept and embrace something new and different which this candidacy -- my candidacy -- certainly offers, or are we willing to just embrace the status quo?

(END VIDEO CLIP)

SNOW: Harold Ford, Jr., throwing a little bit of a wrench there into the race.

Nancy Pelosi says she's got it all locked up. And just to be clear, this is the House Democratic leadership position. Dick Gephardt announcing this week that he's going to step down so it paves the way for somebody else to take over.

She says she's got a majority of the Democrats committed, but you know, it's the secret ballot next week, so I'm not sure that I want to sit here and say she's absolutely got it locked up.

(CROSSTALK)

ARENA: But every political expert, though, has said that she's got it locked up, so what's Ford's...

(CROSSTALK)

SNOW: Well, he's younger. He's a little more centrist. He's a little more moderate, and actually probably a lot more moderate...

ARENA: Is this such a good platform for him, though, to get his face out there in general?

SNOW: I had a lot of Democrats say some not so kind things to me this week about Harold Ford, Jr., that he just wants to -- you know, he's a media monger, he just wants to get his face out there. He made his announcement on Don Imus's show, for Pete's sake.

I talked to him the other day, though, and he said, "Look, this is legitimate." I really think he thinks that we have to shake up the party, and Nancy Pelosi is the same ole, same ole. She's similar to Dick Gephardt in her approach...

(CROSSTALK)

SNOW: She'd be the highest ranking woman in history...

(CROSSTALK)

SNOW: She would be the highest ranking woman in history if she wins this.

WALLACE: I can tell you, guess how the White House feels about this.

(CROSSTALK)

WALLACE: You can only guess, they are happier than can be...

(CROSSTALK)

WALLACE: They would be thrilled if Nancy Pelosi is the leader of the Democratic party in the House.

SNOW: Because she's viewed as a liberal.

WALLACE: Because she's viewed as a liberal. They think it would really continue to energize the Republican base. You see, this is what the Democrats stand for.

And I'll tell you, a lot of people at the White House, again, they're very pleased for a lot of reasons. But they really have been so kind of surprised about the Democrats. They feel like there were mixed messages coming from the Democrats. They feel like they didn't take advantage enough.

This White House was certainly concerned about the economy. The economy as you know is sputtering along, they were worried -- worried the president could be vulnerable.

BASH: You know, Kelly, I talked to one Democrat on the Hill this week, talking about the economy, and he said, "Look, the minute we decided not to go after President Bush on the tax cut, it made it intellectually impossible for us to come up with an economic plan to go against the president, because we were all over the map. It was impossible to get a coherent message because the president's economic plan is the tax cut, and we can't go after that."

HAYS: But why didn't they attack this whole idea that they had pushed earlier that the tax cut favored wealthy taxpayers too much. I think the mistake they made was saying it was wrong to cut taxes...

(CROSSTALK)

SNOW: Look at some of the senators that they were trying to protect, like Max Cleland in Georgia. He voted for the tax cut.

SNOW: Max Baucus. I mean, they had a lot of Democrats.

BASH: And what's really interesting about that is that even the Democrats from the conservative states who voted for the tax cut were killed by their opponents. Their opponents still ran adds against them, saying -- coming up with all of these little, teeny procedural votes that maybe had a tax provision in it, and adding them all together, saying that, "You know, Senator X voted a million times for tax relief." And it didn't...

ARENA: But, now the pressure is really on, though, right? I mean, it's on the Republicans. They've got control of the presidency, the Congress, governorships... (CROSSTALK)

ARENA: So now they have to put up or shut up, right?

WALLACE: Well, exactly, this, as we'll talk about, too, the president ran against a Democratically controlled Senate, and he tried to fire up his base, saying, "I need more allies in the United States Senate."

Now, he has a Republican Senate, a Republican House. He can't do that in 2004.

SNOW: No more Tom Daschle as the boogeyman.

BASH: One thing to point out is that while we're talking about the House race for the Democratic leader. Tom Daschle in the Senate is fine. We don't think that he's going to have any challengers. I asked him yesterday. He said he does not think that he's going to have any challengers. He's OK.

And of all the conservative states that the Democrats were battling for in the Senate, the one that actually held out with the Democratic incumbent was South Dakota, his own state, where President Bush is very popular.

ARENA: Well, from political change to new developments in the case that captured headlines and frightened millions of people for several, the D.C. sniper. We'll talk about the case when CNN's SATURDAY EDITION comes back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JOHN ASHCROFT, ATTORNEY GENERAL: I have instructed the U.S. Marshall Service to transfer custody of John Allen Muhammed to Prince William County, Virginia, where he has been indited for capital murder, conspiracy to commit murder and using a firearm in the commission of murder.

If convicted of these crimes which he -- with which he is charged, Muhammed could face the death penalty.

(END VIDEO CLIP)

ARENA: Attorney General John Ashcroft this week, announcing that Virginia will have the first trials of the two snipper suspects. The case continues to expand beyond the Washington area. And investigators say they are stacking up more evidence linked to the two suspects to the specific killings.

Evidence is just building across the nation. I mean, you have investigations ongoing now in Louisiana, Tacoma, Washington, Atlanta, Georgia, here of course -- Virginia, Maryland, Tucson, Arizona. It seems that every time you turn around, you have another jurisdiction saying, "Hey, wait a minute, we have an unsolved killing here that we think is related to the snipers."

One source joked to me today. He said, "Yes, you know that every police chief is going through their records saying, 'You know, can we find one of these things and link them to the snipper; clear the docket.'"

BASH: We also heard about this laptop for the first time this week.

ARENA: Yes.

BASH: What kind of evidence is in that? It sounds amazing.

ARENA: The laptop has been described as a virtual treasure trove of information. And what we have been told is that A, there are -- there were maps that were downloaded of the specific area.

BASH: Found in the car?

ARENA: Right, this is the laptop that was found in the vehicle that the two men were arrested in. And it was actually linked to another shooting that happened early September that they were able through this laptop to link it to the shooting, because that -- a handgun was used instead of a rifle in that shooting.

But in any case, they've gone through it. They continue to go through, because there are separate search warrants that are necessary to go through e-mails and stuff. But what they found so far, according to sources, is downloading of maps of specific areas where shootings occurred.

They found actually a blueprint that information about each of the areas and some symbols -- now there have been some reports that describe them as skull and cross bones. I have not had a source tell me that yet.

But what my source said was that there were symbols that seemed to indicate where people were shot dead at various locations. And someone said, "All you need to do basically, hit print on this thing, pull out the evidence, bring it to court and bingo, you've got a conviction."

WALLACE: But do you have any sense of motive? Do they have any sense of what motivated the two? And we all saw this interview that Muhammed's ex-wife had where she believes it might be a crime of the heart, that it was all sort of a way that he eventually wanted to get to kill her and get custody of the children.

ARENA: Nothing definitive that we've heard yet. I mean, obviously, you had these earlier shootings now that they've been linked to, which suggest that it was money, you know, a crime spree. That they were robbing, that they doing it, they took restaurant receipts. They took wallets.

So -- allegedly -- let's remember here these people are not convicted yet. So that would seem to indicate there was a money motive. You obviously do have the letter that was -- the note that was left behind asking for money.

But they have not, at least according to the sources we've spoken to, come out and said, "This is what set us off."

What took these two from just killing for money...

HAYS: Well, what about those two, Kelli, to killing...

ARENA: ... to killing -- right.

HAYS: ... but what have -- have investigators learned about the relationship between the two men? I mean it still seems pretty incredible that a kid would join up with this man, come across he country, and why he would enlist a kid who in some sense partly his sloppiness and his motivation in all of this, helped get them caught?

ARENA: Right, right -- very, lots of speculation. And I won't got there.

But I will tell you what we do know. We do know that Malvo was loving with Muhammed, that he was introduced, at least according to sources, as his son -- "This is my son." That the relationship has been described as controlling relationship. Now there's been speculation across the board as to what that relationship was, and I think until we see it in notes or we have this in a confession, we will really never know exactly what it is.

Now you do know that Malvo, at least according to officials, did have something to say that was considered useful to officials when he was taken from federal custody over to state custody. He was allegedly spoken to for seven hours and provided some information.

When he was first taken in, he didn't say a word, not one word. And some law enforcement sources said, "Well, maybe it's because he called in. He made the phone calls. And he doesn't want his voice recognized. Maybe that's why he's not saying anything."

But they weren't exactly sure. But this time he did have something to say. The lawyer that's now representing him, says, "Well, that was under duress. We don't even know if that's admissible."

HAYS: Has law enforcement learned anything from this? This is so interesting to me about techniques, about technology. Or is it just you say finally, "Dumb luck," solved this case. I mean, going ahead, because I think this really terrorized the nation, because people are worried about some kind of snipper terrorist attack in the future.

ARENA: Right. Well, they did get to put into practice a lot of what was set up after September 11th in terms of cooperation between state and locals and across the board, you will have -- when you have this many people involved, there's always going to be someone griping.

But the overwhelming majority of people that we've spoken to said, "This really did work." And in any case, it's that one tip that leads you. I mean, this wasn't a case of dumb luck. This was them following up, connecting the dots, moving quickly with their local counterparts to get evidence and information and to be able to track these guys down.

BASH: And the fact that they're going to try them in Virginia is obviously extraordinarily significant here.

ARENA: Death penalty.

BASH: Right.

ARENA: Two words, the death penalty. That's what it is.

WALLACE: Can Montgomery County challenge that, though? You know how upset they are. And since most of the killings took place in Montgomery County, many people say, "That is the community mostly affected by it."

Do they have any challenge to get this reversed and have them tried first there?

ARENA: Not that I know of. They were -- they were in federal custody. They have been transferred to Virginia state custody. There has been some talk of getting the venue changed. But getting the venue changed away from the communities that were mostly affected so it would not be Maryland.

(CROSSTALK)

ARENA: It would be very difficult in Virginia to do. You don't usually get judges that are sympathetic to that.

SNOW: But they'd have to move it to California to not, you know -- to not have people who knew...

(LAUGHTER)

There might be a connection there in California.

(CROSSTALK) ARENA: Nothing to laugh at, but it is just astounding to see how these tentacles, how far the tentacles have reached.

SNOW: Well, from building a case against the snipper suspects to building an international case against Iraqi leader Saddam Hussein, how did the United States get its way in the United Nations this week?

We'll talk to CNN producer Liz Neisloss in New York, coming up.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BUSH: The resolution is a disarmament resolution. That's what it is. It's a statement of intent to once and for all disarm Saddam Hussein. He's a threat.

(END VIDEO CLIP)

SNOW: President Bush again emphasizing the importance of the United Nations resolution to force Saddam Hussein to disarm.

CNN's United Nations producer Liz Neisloss has been following that story all week. Liz joins us from New York now -- Liz.

LIZ NEISLOSS, CNN U.N. PRODUCER: Well, it's been an incredible week of very intense -- actually, a few weeks -- leading up to this week's vote. It's been amazing. Arm twisting, high pressure, high stakes diplomacy, but in the end the U.S. really got what it wanted. They wanted a resolution with strict guidelines for the inspectors with some deadlines for Iraq. And they still leave the door open to military action.

And now, Iraq has to decide in seven days whether they'll accept this or not. So...

WALLACE: Liz, it's Kelly. You know, what was the breakthrough? Because, you know, the White House, senior officials were talking about last weekend, Secretary of State Colin Powell was about to walk his daughter down the aisle to be wed. He gets a phone call from the French foreign minister. Can you just see that sight?

(LAUGHTER)

WALLACE: Of all people. And signaling some breakthrough. Still working the phones this week. What is your sense of the breakthrough? And is it a sense that all sides are declaring victory here?

NEISLOSS: Absolutely, all sides are declaring victory, but you really have to say the clear winner is the U.S. From the very beginning, what they wanted was to be able to use military force. They wanted it to be authorized by the U.N. They didn't get that. But they still walk away -- there's a lot of what people are calling "creating ambiguity" in this resolution. They walk away being able to say, "Hey, we can do it if we want to."

France walks away being able to say, "We brought the U.N. into the process." Russia got what they wanted. They U.N. is being brought in.

But in the end, the U.S. was literally going around making sure it could get as much support as it could. They had ambassadors in every capital for Security Council member putting the high pressure on. At the U.N., the pressure was being put on.

And one sort of interesting little anecdote about all of this, the Mauritian ambassador who is -- he represents a very small country, but a Security Council member and a vote the U.S. wanted to get. Anyway, he was at the U.N. telling reporters, "Look, we're still really supporting the French. We still think more changes need to be made." He was saying this all over the weeks up until last week. And suddenly, we don't see the Mauritian ambassador. And the reporters are saying, "Where did the guy go?"

HAYS: What about the Republican victories this week? How much did that weigh in, do you think, in making people think, "You know, Bush has the support any way. He's building momentum." How much of it carried the whole thing forward?

NEISLOSS: Well, I'll tell you all. Let me just finish that other story, just to let you know the Mauritian ambassador was called back to his capital basically and he was scolded by his government. And they said, "Get in line, and you're going to get in line behind the U.S. We get aid from them. We want a visit from President Bush."

And we haven't seen actually the Mauritian since.

(LAUGHTER)

We don't think he's in any danger.

(LAUGHTER)

But he did not appear at the Security Council for the vote.

SNOW: So how about the president and the elections this week, mid-term elections?

Did that really -- did they notice at the U.N. when he has a good day?

NEISLOSS: Well, they do. I mean, you can't help but notice. I mean, Kelly, you know, you could weigh in on this, but every podium he got to, he would say, "If the U.N. doesn't do it, we're going to do it ourselves."

So that message has been clear to the folks at the U.N. Diplomats knew this. But there was talk about what the election would do for Bush. And it would put solid support behind him in the U.S. It would mean, "We mean business, we've said we mean business, and now in the U.S. has all of the support it needs to go ahead." There is not doubt about it.

ARENA: Well, Liz, I'm confused though. What does it take for them to actually go ahead and take some military action? What counts as a violation? I am -- can you tell me, because I have not been able to see it.

NEISLOSS: That is the multi-billion dollar question in this whole game. It really is somewhat open. I think the best way of explaining it after talking to diplomats, ambassadors and the weapons inspectors, is if you remember there was a U.S. chief justice Potter, who trying to define obscenities said, "I'll know it when I see it."

It's really the same standard here. You talk to ambassadors, they say, "It will have to be something serious. It can't just be a violation where let's say someone brings the wrong key to open a factory door. Or one Iraqi doesn't show up on time." They are going to try to make this a very serious process. But of course, we all know everyone will be watching. When Saddam Hussein sneezes, we'll all be interpreting.

BASH: Liz, the one thing that struck me was the fact that Syria was even on board with this. How did that happen? What's the behind- the-scenes story there?

NEISLOSS: Well, it was a very last minute negotiation. It was really not until the day of the vote. In fact, no one knew how they would vote. We thought they would abstain. We never really imagined they would go for a unanimous vote.

In the end though, they didn't want to be isolated. This was a very important vote for them. They say their closest allies on the council really the big powers -- France and Russia -- were going to vote for this resolution, and they would be out there alone.

NEISLOSS: So they got in line.

HAYS: Liz, what you -- is there any buzz in the halls of the U.N. about the likelihood now of Saddam actually complying? I mean, it seems to be the card no one is betting on. What's the handicapping?

NEISLOSS: Well, very few people are willing to bet. He has played his cards very close to the vest and very well, very cagily over the years, you could say.

I think there's a lot of talk about mistakes and imminent war, but hope is really what is, you know, what they're holding on to. And you know, the French ambassador, after the vote yesterday came out and said, "Let's hope. Let's not consider dark scenarios." You know, that's really all they're hanging on to right now.

HAYS: OK. Well, thanks so much to Liz Neisloss for helping us understand the United Nations, what happened there this week.

Uncertainty over Iraq continues to roil the financial world. We're going to talk about that, new interest rates, McDonalds, when CNN's SATURDAY EDITION continues.

But first, this news alert from CNN headquarters in Atlanta.

(NEWS ALERT)

SNOW: Still ahead on CNN's SATURDAY EDITION, how the voting this week sets up President Bush for a reelection run, how voters in Louisiana get another month of campaign ads and soundbites and how fast food wars mean cheaper burgers, but maybe long-term economic indigestion.

Plus, the president's weekly radio address, all coming up on CNN's SATURDAY EDITION.

(COMMERCIAL BREAK) (BEGIN VIDEO CLIP)

BUSH: My economic team came in during very difficult times -- recession, the terrorist attack. There were corporate scandals. We have done a lot to return confidence.

(END VIDEO CLIP)

HAYS: President Bush this week talking up the economy. You know, you might think Wall Street got lots of what it wanted this week -- a Republican victory, lower interest rates and the departure of an unpopular stock market watchdog. And still the market, you know, had a couple of good days. Actually finished the fifth week in a row higher, marginally -- down on Friday.

But stepping back, I think a lot of things cut both way for Wall Street. The Fed cut rates more than expected. People said, "Yeah, that's great." Or is it?

Maybe the economy is weaker than we think. Republican victory, you know, maybe we'll get the tax cuts next year if we need them to help the economy. But maybe we'll get bigger deficits. What is that going to mean for interest rates? And even with Harvey Pitt -- became very unpopular. A lot of people think Harvey shot himself in the foot.

However, they're saying, "Who do we get to replace him, and are we going to get the kind of reform that is needed to really restore investor confidence. There's a lot of things cutting both ways.

ARENA: And then of course, there was the news on McDonalds, which you know, which it just hits you because everybody has been in a McDonalds. Then you think, "How could this company not be doing well?"

HAYS: Isn't it amazing, cutting stores around the world, cutting jobs and cutting prices. They've gotten in a bit of a price war. You know, at first it seemed like a good idea. "We'll offer dollar burgers and dollar fries." But then, you know, Burger King gets into the act.

So now they're in a little bit of a price war.

ARENA: Like the airlines.

HAYS: Like the airlines. And the problem is about cutting prices is great for a consumer, but if you...

ARENA: Yes, I was going to say, people out there are probably pretty happy that they're cutting prices...

(LAUGHTER)

HAYS: But if you work...

(CROSSTALK) HAYS: ... at McDonalds, maybe your boss says you don't get that raise. So they maybe or you lose that job.

So maybe then you don't spend, so if you don't spend then maybe McDonalds or somebody else doesn't get this sales they need. And then when we get in too much of a concerted price war, it's bad. It means the economy is getting weaker. It called deflation. We're hearing a lot about it. In fact, that's why the Fed made the bigger than expected rate cut people say, because they're trying to get ahead of the curve.

ARENA: Well, didn't Greenspan talk about in the minutes though, that he was really worried about lower -- a recession.

HAYS: Well, they skirted around it, but they did say at some point if inflation is too low, it makes it tough for the Fed to do its job. I mean, think about it. If inflation is zero and interest rates are zero...

(CROSSTALK)

HAYS: ... down -- you're going to pay people to take money or something.

WALLACE: Want to go back to the president's economic team. Of course you have that Harvey Pitt announced 9:00 p.m. election night.

SNOW: And see, I want to ask you about that.

Yes, because there's no way that they didn't orchestrate a 9:00 p.m. election night, you know, all of a sudden breaking news -- "Harvey Pitt is leaving."

ARENA: Well, all of the polls were closed at that point.

WALLACE: Exactly, 9:00 p.m. pretty much closed. They say they didn't orchestrate it. But officials do say the word came that Harvey Pitt was thinking about resigning. No one at the White House waved him off.

So clearly, he got the message. He did this. They certainly were hoping this would be buried with all of the other election news.

HAYS: And of course, it was on the front page of the New York Times. It was the front page of the Washington Post.

ARENA: I mean, I saw this thing build momentum. I remember when, you know, when Harvey Pitt was first nominated. I mean, oh, this man was just the second coming for the economy for the Securities and Exchange Commission...

HAYS: Schumer called him, Chuck Schumer, Schumer called him the "Zeus of his field."

ARENA: See.

(LAUGHTER)

HAYS: And then two months later called for his head.

ARENA: Was this just like momentum gone bad or...

HAYS: You know, Harvey Pitt spoke to the Securities Industry Association yesterday in Florida, and he just said, "Boy, you know, it was all political. This is so counterproductive." He still doesn't think he did anything wrong.

ARENA: Well, me the bottom line, what did he do wrong?

Black and white, what did...

HAYS: First of all, he met with accounting firms that were being investigated, way in the beginning, that were going to be under a cloud. And he just thought, "Well, it's OK, I'm just talking to them."

I think the big thing that really shifted the momentum for him was when we had somebody nominated to head the Oversight Accounting Board -- this is going to be the new watchdog, got to be tough, not going to let them get away with anything. John Biggs, everybody said he'll be tough. Supposedly the Republicans said, "Oh, oh, too tough." And Harvey backed down.

And then he -- and so I think that started turning the tide. Then he chooses William Webster, but doesn't bother to tell anybody that William Webster had some questions

(CROSSTALK)

HAYS: But you have to be unimpeachable. Your own -- your credibility, your own integrity. And people don't doubt Harvey's integrity. I think they just doubt his -- well, actuall -- but also his toughness. Will he be tough? A real critic -- I'm not so much of a critic of Harvey Pitt. I think he's an intelligent man. I do think he made some missteps.

But a lot of people felt that he wouldn't be tough enough. And when he backed down on Biggs, when he put Webster in when he had questions over him, a man who had headed the CIA and the FBI, people said, "How can he possibly run this board?"

WALLACE: And one quick question for you, when it comes confidence, consumer confidence, investor confidence, what are you hearing from people on the street about the rest of the economic team? Chief Economic Adviser Lawrence Lindsey, Budget Director Mitch Daniels?

HAYS: You know...

WALLACE: Anyone saying that they should go too?

HAYS: Well, you know, Treasury Secretary Paul O'Neill, you know he's had Bush's support for ever. Wall Street doesn't like him because he speaks his mind. And they -- he's not their kind of guy. They want the princely Robert Rubin, the old investment banker type, right.

Larry Lindsey, I don't think people have such a hot button issue with. I think it's interesting a lot of the press has been quick to jump on that story that now the economic team goes.

But I think -- I'm going to give you a contrarian view. The Republicans just had this great victory, right? These guys helped get through the tax cuts, true? Weren't they important? Didn't they help keep the recession shallow last year? That's what a lot of economists will tell you.

Why get rid of your economic team now when, I think you could argue your economic team is in place? They've done a decent job, and they could continue to do a good job.

WALLACE: That economic team will be smiling hearing that.

(LAUGHTER)

HAYS: Contrarian view.

WALLACE: Contrarian view.

Well, from talk about the economy, to some very upbeat talk in the White House. What did President Bush win on Election Day?

We will have more when CNN's SATURDAY EDITION returns.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BUSH: There is a mandate in any election, and at least in this one, it's the people want something to get done. They want people to work together in Washington, D.C., to pass meaningful legislation which will improve their lives.

(END VIDEO CLIP)

WALLACE: President Bush talking about whether the election results served him up a mandate, a free pass for his agenda at home and overseas.

Maybe one of the most interesting things this week, you guys, is Wednesday, the day after this incredible election, this president making history, winning seats in the House and in the Senate. His party normally loses in the midterm elections.

We had heard there'd be a news conference. Nope, no news conference. The message: No gloating allowed. Let's look gracious. Let's be gracious. Let's let the Democrats do what they want to do. And then, of course, the president came out on Thursday, clearly a very confident President Bush, who now has a Republican Senate and a Republican House, and he clearly put down the gauntlet about what he wants for his agenda.

SNOW: I cannot believe, though, that there wasn't some behind- the-scenes gloating going on.

(LAUGHTER)

Tuesday night, on election night, Senator Lott went over to the White House for dinner. He was supposed to come back to the Hill like after an hour. Three hours later, I was asking his people, "Where is he?" I know that they were there like high five-ing each other, you know, doing a dance or something.

WALLACE: Well, it was, to be fair, a little bit of a nail- biting, as we all know, and you all know, out in the field watching, that they didn't know. I mean, it was up until very late.

And the president, as we know, is someone who goes to bed very early. Brother Jeb -- Jeb Bush wins. That was a very big victory, reelection as governor of Florida. But it was late into the evening. It was about 1:15 in the morning when it was clear Republicans were winning the Senate. And that's when the president was able to...

(CROSSTALK)

BASH: You know, for all the talk about the Republican sweep and this is a big, big victory for George Bush, you know, talking to some Democrats who are definitely licking their wounds, no question about it, talking to some of them on the Hill, they say, "You know, there is a silver lining here, and that is that we still have divided government." Fifty-one to 49 is divided, and the Republicans no longer have Tom Daschle to blame for things anymore. Now the onus is on them, and the Democrats are the flame throwers. And they're not in charge. They don't have the ultimate responsibility.

WALLACE: So they can be, as you said, much more fired up, be the opposing party, and the pressure is now on the president with the Republican Congress to get things done.

(CROSSTALK)

HAYS: Yes, I think, also that one of the knee-jerk reactions is: Oh, now they won big, now they're going to let their attack dogs out. Now they're going to let the right come in and start pushing the agenda.

Are they going to make what a lot of people think would be a political mistake?

WALLACE: No, because -- and they were very concerned about that. I talked to some advisers who said, "Look, we are concerned that if we do really well, that on Wednesday, you'll have every conservative in the Congress saying, 'We're going to do this and that and that.'" And so they very much wanted a disciplined Republican Party. They very much want the president's agenda.

No question they're going to push -- he's going to push his judicial nominees. But he knows he needs to appeal to moderate and swing voters if he wants to be reelected in 2004, so he has a difficult political dance there, getting his agenda passed but appealing to the middle as well.

BASH: Well, Kelly, you know one immediate challenge for the president and for the rest of the political world is some unfinished business of campaign 2002. Louisiana voters get the last word.

More on that when CNN's SATURDAY EDITION returns.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SEN. MARY LANDRIEU (D), LOUISIANA: So we have a congressional race that's in a runoff, and then with our strange situation, we'll just have to go through December. But I'm looking forward to getting up tomorrow morning and hitting it hard again for four more weeks.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

SUZANNE TERRELL (R), LOUISIANA SENATE CANDIDATE: I think what's really nice about being in the runoff is that it goes to show that the people of Louisiana are looking for a change.

(END VIDEO CLIP)

BASH: The two women running against each other in the U.S. Senate runoff in Louisiana, Democrat incumbent Mary Landrieu, and her Republican challenger Suzanne Terrell.

So down Louisiana way, forget a break from TV ads, candidate soundbites and big-name outsiders jetting in for the day.

BASH: It's not over down there, guys. I was down there this week, and I was down there on election night, and we -- first of all, quirk in the election law means that any candidate who does not -- if a candidate doesn't get 50 percent of the vote, there's an automatic runoff.

So the Republicans had their ideas here. They had eight challengers to Mary Landrieu to ensure -- there were eight total. There only four Republicans, just to be clear.

(CROSSTALK)

BASH: Next to impossible to get 50 percent. On Election night, it was clear that Mary Landrieu -- when it became clear that she was only going to get 46 percent, everybody was on pins and needles, watching nationally what was going to happen.

Because if the Senate had ended up 50-50, all eyes, all troops, all money, all everything would've been down in Louisiana, because it would have been a month before we would've known who would have controlled the Senate.

(LAUGHTER)

BASH: Which is exactly why I was there, which is exactly why I was there.

But the interesting thing is that, even though it is not dependent on the control of the Senate, the Republicans still sent people down there. I talked to people who, overnight, were on their way on a plane.

There's still -- there's a little but of a problem because of new campaign finance laws on how they can fund this.

But I also talked to somebody this week who said that they are expecting Dick Cheney down there this week. They're not giving up. Every vote matters.

WALLACE: Well, we know, the president, you know -- he called a number of candidates -- he called -- is it Terrell -- yes, he did call and say, "Any resources you need, you'll have them."

What about the Democrats? Are they sort of looking at this as putting every resource they can to get a one more victory there to help them?

BASH: Absolutely, absolutely. I talked to somebody on that night, just as we found out what was going on, they said, "The calvary is coming. We're all on our way down there." And absolutely, it's still an issue.

And the thing that is kind of an interesting twist on this is, because we have a lame duck session and this Congress is not over yet, Congress is going to come back next week. Mary Landrieu is going to be back in the Senate voting. And the one issue that the president and Trent Lott, the Republican leader, said this week that they will try to push for is homeland security.

And homeland security, a lot of Democrats think -- they don't know for sure -- but really hurt a lot of Democratic incumbents, like Max Cleland in Georgia, triple amputee, who was attacked by his Republican challenger successfully on the issue of homeland security because it was the issue before the Senate for the entire fall.

They're hoping that they can knock off Mary Landrieu with this issue still.

HAYS: Or conversely, it would be interesting if Democrats in the state now said, "Uh oh, look what happened. The Republicans won." And one reason people think Republicans won is because the minority vote wasn't as strong as they had hoped for, right? A lot of people stayed away from the polls that traditionally might have voted for Democrats. Interesting to see if maybe the calvary comes from the other side now.

BASH: Right, well, it definitely could. They're trying to make the point now that the Republicans have the majority, that why would -- the other senator from Louisiana is John Breaux -- and they're saying, "Why would you ever want two Democrats in the minority? We want somebody who could have some power in Washington."

SNOW: We've got to get to my favorite story real quick. When they come back next week, there's going to be a senator who has never been to Washington before. You've been talking...

(CROSSTALK)

BASH: The accidental senator.

SNOW: You've been talking to him?

BASH: The accidental senator, Dean Barkley. He was appointed by -- he's an Independent and appointed by Independent Governor Jesse Ventura from Minnesota to fill the term of Senator Paul Wellstone who we know was killed in a plane crash a couple of weeks ago.

He is a riot. He's coming in -- I talked to him yesterday. He is being courted by both -- everybody because he's an independent and because, right now, the way the Senate is, the Democrats have a one- seat majority in a lame duck...

(CROSSTALK)

SNOW: In this lame duck session, he could...

BASH: ... but if he decides to go with the Republicans, it gives Trent Lott the majority immediately, next week, which means that the president's agenda, Republicans can push it immediately and not just wait until January.

And he said to me, you know, "I'm making up my mind slowly. I'm talking to everybody."

(LAUGHTER)

(CROSSTALK)

BASH: And I said to him, "You know, what's the deciding factor here for you?" He said, "It's just a raw political calculation." He said that to me. He said, "It's just political."

(CROSSTALK)

BASH: No one says that. You know it's true, but you don't say it. He said, "It just depends on what they can offer me and who offers me the best thing." It's pretty funny.

ARENA: Well, here's my favorite story -- the baby.

(LAUGHTER)

When is the baby coming? I want to know, are you even going to be here next week?

SNOW: I'm not going to be here next week, probably won't be here for about five months. So, little baby is here.

People keep telling me they can't tell...

(CROSSTALK)

WALLACE: Most viewers probably have no idea that Kate Snow is pregnant.

ARENA: You're leaving us for five months, and Kelly goes to Jerusalem.

WALLACE: I go to Jerusalem. But I'm hopefully see you from there.

SNOW: For CNN, yes.

WALLACE: Yes...

SNOW: They're telling me we've got to go.

That is our SATURDAY EDITION. Thank you so much to my colleagues. Thank you to watching.

Coming up, CNN's "PEOPLE IN THE NEWS," focuses on Defense Secretary Donald Rumsfeld and National Security Adviser Condoleezza Rice, plus a check on the stories making headlines at this hour.

SNOW: But first, the president's weekly radio address.

BUSH: Good morning.

This was an important week for our country and the world.

This was an important week for our country and for the world. The United Nations Security Council voted for a resolution requiring the Iraqi regime to declare and destroy all weapons of mass destruction or face the consequences.

Here at home, our citizens voted in an election I believe will strengthen our ability to get things done for the American people.

With the United Nations Security Council resolution passed yesterday, the world has now come together to say that the outlaw regime in Iraq will not be permitted to build or possess chemical, biological or nuclear weapons. That is the judgment of the United Nations Security Council. That is the judgment of the United States Congress. And my administration will see to it that the world's judgment is enforced.

The resolution presents the Iraqi regime with a test, a final test. Iraq must now, without delay or negotiations, give up its weapons of mass destruction, welcome full inspections and fundamentally change the approach it has taken for more than a decade.

The regime must allow immediate and unrestricted access to every site, every document and every person identified by inspectors. Iraq can be certain that the old game of cheat and retreat tolerated at other times, will no longer be tolerated.

Any act of delay or defiance will be an additional breach of Iraq's international obligations and a clear signal that the Iraqi regime has once again abandoned the path of voluntary compliance.

If Iraq fails to fully comply with the U.N. resolution, the United States, in coalition with other nations, will disarm Saddam Hussein.

Republicans and Democrats in Congress are strongly supporting our war against terror.

As the current Congress returns to Washington this week, I hope we can act in the same spirit of unity to complete some unfinished business.

The single most important item of unfinished business on Capitol Hill is to create a unified Department of Homeland Security that will vastly improve our ability to protect our borders, our coasts and our communities.

The Senate must pass a bill that will strengthen our ability to protect the American people and preserve the authority every president since John Kennedy has had to act in the interests of national security. Congress needs to send me a bill I can sigh before it adjourns this year.

We also have a responsibility to strengthen the economy so that people can find jobs. One immediate thing Congress can do to help put people to work is to pass legislation so that construction projects can get insurance against terrorism at a reasonable price.

This will spur construction and create thousands of good hard-hat jobs that are now on hold because projects without insurance cannot be built.

Congress must also show fiscal discipline as it passes the appropriations bills. At a time when we are at war, at a time when we need to strengthen our economy, Congress must control wasteful spending while funding the nation's priorities.

American workers deserve action on these important economic issues. Our economy has come out of a recession and is growing. But I'm not satisfied, because I know we can do better. I want the economy to grow at a faster and stronger pace so more Americans can find jobs.

So I will work with our new Congress to pass a growth and jobs package early next year. Our nation has important challenges ahead at home and abroad. And we're determined to build the security and prosperity of America.

Thank you for listening.

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



Sniper Suspects First; Louisiana Senate Seat to Be Determined in December>


Aired November 9, 2002 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KATE SNOW, CNN CONGRESSIONAL CORRESPONDENT: Welcome to CNN's SATURDAY EDITION where our journalists has the inside scoop about the stories they covered this week. I'm Kate Snow.
Republicans take charge in Congress, and Democrats play the blame game.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: I'm Kelly Arena. The sniper case: Virginia gets the first chance at trials and how a laptop computer could be key evidence.

KATHLEEN HAYS, CNN CORRESPONDENT: I'm Kathleen Hays. We know the election results, but the economic results are harder to read even after the latest interest rate cut.

DANA BASH, CNN CAPITOL HILL PRODUCER: I'm Dana Bash, and if you can't live without politics, the Senate election isn't over.

The Louisiana run-off has another month to go.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: And I'm Kelly Wallace. One big winner on Election Day, George W. Bush. What's the pay off for the president?

We'll be talking about all of these stories. We'll also go to New York to talk to CNN's United Nations' producer, Liz Neisloss, about the Security Council vote on Iraq.

We'll listen to the president's weekly radio address at the end of the hour.

But first, a check of the headlines at CNN's headquarters in Atlanta. Good morning, Renay.

(NEWS ALERT)

SNOW: Renay, thanks.

Republicans are cheering; Democrats are crying. It's the story of the week, obviously. President Bush and the Republicans getting a big win in the elections on Tuesday. Democrats trying to explain it.

This is what I found funny this week. Everyone I talked to, every Democrat I talked to, and every Republican for that matter, had a different explanation for what went wrong for the Democrats on Tuesday. I mean, I heard everything from, "The Democrats didn't have a concerted message. They didn't have one message. They didn't take on the economy well enough. Republicans nationalized the elections; Democrats didn't. Republicans had the tax cut, and Democrats should have attacked the tax cut and didn't."

I mean, I must have gotten, you know, 60 different explanations. One congressman said to me, "You know what, it was all about the Baghdad three." Remember the three congressmen, Democrats who went over the Baghdad? He said, "I think that really hurt us. It made it look like we were all a bunch of liberals."

So I must have heard 60 explanations.

HAYS: But Kate, I think what's tough, is right now it's the battle for the middle. The far right is quiet. The far left is quiet. And now the Democrats have to capture something that the Republicans seemed to have figured out how to get -- the middle of the American voters.

SNOW: Well, that's one thing I've heard, but you also hear Democrats saying, "No, we've got to go far left. We have got to out -- we've got to really look tough now." And so that's the other thing, is that now Democrats are sort of staring at their navels trying to figure out what the heck they do from here.

And it's not very clear, I don't think.

BASH: And there really is a battle between that middle that you're talking about, that the Democrats are trying to get and the left. And some people on the left side of the spectrum say, "The reason why we didn't win is because we didn't get out our base. We didn't excite our -- the Democrats. We didn't give them a reason to vote for Democrats."

And meanwhile, you've got -- I got a lot of e-mails this week from moderate Democrats and phone calls from them saying, "No, that's absolutely wrong. We don't need the liberals taking control of our party. We need to focus on the independent moderate voter. We need to give them a reason to...

SNOW: These are key states in 2004...

ARENA: So does Nancy Pelosi fix this?

I mean, is this the face they want to see?

SNOW: Well, you know there's a big battle going on now in the House. In fact, we have some sound from the House of this battle that's going to sort of "Who's going to be the new face of the Democratic Party?"

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D), CALIFORNIA: On Thursday, November 14, I will have my name place in nomination for House Democratic leader. I will do so with an overwhelming majority of commitments from my colleagues in the House.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

REP. HAROLD FORD, JR. (D), TENNESSEE: Are we willing to accept and embrace something new and different which this candidacy -- my candidacy -- certainly offers, or are we willing to just embrace the status quo?

(END VIDEO CLIP)

SNOW: Harold Ford, Jr., throwing a little bit of a wrench there into the race.

Nancy Pelosi says she's got it all locked up. And just to be clear, this is the House Democratic leadership position. Dick Gephardt announcing this week that he's going to step down so it paves the way for somebody else to take over.

She says she's got a majority of the Democrats committed, but you know, it's the secret ballot next week, so I'm not sure that I want to sit here and say she's absolutely got it locked up.

(CROSSTALK)

ARENA: But every political expert, though, has said that she's got it locked up, so what's Ford's...

(CROSSTALK)

SNOW: Well, he's younger. He's a little more centrist. He's a little more moderate, and actually probably a lot more moderate...

ARENA: Is this such a good platform for him, though, to get his face out there in general?

SNOW: I had a lot of Democrats say some not so kind things to me this week about Harold Ford, Jr., that he just wants to -- you know, he's a media monger, he just wants to get his face out there. He made his announcement on Don Imus's show, for Pete's sake.

I talked to him the other day, though, and he said, "Look, this is legitimate." I really think he thinks that we have to shake up the party, and Nancy Pelosi is the same ole, same ole. She's similar to Dick Gephardt in her approach...

(CROSSTALK)

SNOW: She'd be the highest ranking woman in history...

(CROSSTALK)

SNOW: She would be the highest ranking woman in history if she wins this.

WALLACE: I can tell you, guess how the White House feels about this.

(CROSSTALK)

WALLACE: You can only guess, they are happier than can be...

(CROSSTALK)

WALLACE: They would be thrilled if Nancy Pelosi is the leader of the Democratic party in the House.

SNOW: Because she's viewed as a liberal.

WALLACE: Because she's viewed as a liberal. They think it would really continue to energize the Republican base. You see, this is what the Democrats stand for.

And I'll tell you, a lot of people at the White House, again, they're very pleased for a lot of reasons. But they really have been so kind of surprised about the Democrats. They feel like there were mixed messages coming from the Democrats. They feel like they didn't take advantage enough.

This White House was certainly concerned about the economy. The economy as you know is sputtering along, they were worried -- worried the president could be vulnerable.

BASH: You know, Kelly, I talked to one Democrat on the Hill this week, talking about the economy, and he said, "Look, the minute we decided not to go after President Bush on the tax cut, it made it intellectually impossible for us to come up with an economic plan to go against the president, because we were all over the map. It was impossible to get a coherent message because the president's economic plan is the tax cut, and we can't go after that."

HAYS: But why didn't they attack this whole idea that they had pushed earlier that the tax cut favored wealthy taxpayers too much. I think the mistake they made was saying it was wrong to cut taxes...

(CROSSTALK)

SNOW: Look at some of the senators that they were trying to protect, like Max Cleland in Georgia. He voted for the tax cut.

SNOW: Max Baucus. I mean, they had a lot of Democrats.

BASH: And what's really interesting about that is that even the Democrats from the conservative states who voted for the tax cut were killed by their opponents. Their opponents still ran adds against them, saying -- coming up with all of these little, teeny procedural votes that maybe had a tax provision in it, and adding them all together, saying that, "You know, Senator X voted a million times for tax relief." And it didn't...

ARENA: But, now the pressure is really on, though, right? I mean, it's on the Republicans. They've got control of the presidency, the Congress, governorships... (CROSSTALK)

ARENA: So now they have to put up or shut up, right?

WALLACE: Well, exactly, this, as we'll talk about, too, the president ran against a Democratically controlled Senate, and he tried to fire up his base, saying, "I need more allies in the United States Senate."

Now, he has a Republican Senate, a Republican House. He can't do that in 2004.

SNOW: No more Tom Daschle as the boogeyman.

BASH: One thing to point out is that while we're talking about the House race for the Democratic leader. Tom Daschle in the Senate is fine. We don't think that he's going to have any challengers. I asked him yesterday. He said he does not think that he's going to have any challengers. He's OK.

And of all the conservative states that the Democrats were battling for in the Senate, the one that actually held out with the Democratic incumbent was South Dakota, his own state, where President Bush is very popular.

ARENA: Well, from political change to new developments in the case that captured headlines and frightened millions of people for several, the D.C. sniper. We'll talk about the case when CNN's SATURDAY EDITION comes back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JOHN ASHCROFT, ATTORNEY GENERAL: I have instructed the U.S. Marshall Service to transfer custody of John Allen Muhammed to Prince William County, Virginia, where he has been indited for capital murder, conspiracy to commit murder and using a firearm in the commission of murder.

If convicted of these crimes which he -- with which he is charged, Muhammed could face the death penalty.

(END VIDEO CLIP)

ARENA: Attorney General John Ashcroft this week, announcing that Virginia will have the first trials of the two snipper suspects. The case continues to expand beyond the Washington area. And investigators say they are stacking up more evidence linked to the two suspects to the specific killings.

Evidence is just building across the nation. I mean, you have investigations ongoing now in Louisiana, Tacoma, Washington, Atlanta, Georgia, here of course -- Virginia, Maryland, Tucson, Arizona. It seems that every time you turn around, you have another jurisdiction saying, "Hey, wait a minute, we have an unsolved killing here that we think is related to the snipers."

One source joked to me today. He said, "Yes, you know that every police chief is going through their records saying, 'You know, can we find one of these things and link them to the snipper; clear the docket.'"

BASH: We also heard about this laptop for the first time this week.

ARENA: Yes.

BASH: What kind of evidence is in that? It sounds amazing.

ARENA: The laptop has been described as a virtual treasure trove of information. And what we have been told is that A, there are -- there were maps that were downloaded of the specific area.

BASH: Found in the car?

ARENA: Right, this is the laptop that was found in the vehicle that the two men were arrested in. And it was actually linked to another shooting that happened early September that they were able through this laptop to link it to the shooting, because that -- a handgun was used instead of a rifle in that shooting.

But in any case, they've gone through it. They continue to go through, because there are separate search warrants that are necessary to go through e-mails and stuff. But what they found so far, according to sources, is downloading of maps of specific areas where shootings occurred.

They found actually a blueprint that information about each of the areas and some symbols -- now there have been some reports that describe them as skull and cross bones. I have not had a source tell me that yet.

But what my source said was that there were symbols that seemed to indicate where people were shot dead at various locations. And someone said, "All you need to do basically, hit print on this thing, pull out the evidence, bring it to court and bingo, you've got a conviction."

WALLACE: But do you have any sense of motive? Do they have any sense of what motivated the two? And we all saw this interview that Muhammed's ex-wife had where she believes it might be a crime of the heart, that it was all sort of a way that he eventually wanted to get to kill her and get custody of the children.

ARENA: Nothing definitive that we've heard yet. I mean, obviously, you had these earlier shootings now that they've been linked to, which suggest that it was money, you know, a crime spree. That they were robbing, that they doing it, they took restaurant receipts. They took wallets.

So -- allegedly -- let's remember here these people are not convicted yet. So that would seem to indicate there was a money motive. You obviously do have the letter that was -- the note that was left behind asking for money.

But they have not, at least according to the sources we've spoken to, come out and said, "This is what set us off."

What took these two from just killing for money...

HAYS: Well, what about those two, Kelli, to killing...

ARENA: ... to killing -- right.

HAYS: ... but what have -- have investigators learned about the relationship between the two men? I mean it still seems pretty incredible that a kid would join up with this man, come across he country, and why he would enlist a kid who in some sense partly his sloppiness and his motivation in all of this, helped get them caught?

ARENA: Right, right -- very, lots of speculation. And I won't got there.

But I will tell you what we do know. We do know that Malvo was loving with Muhammed, that he was introduced, at least according to sources, as his son -- "This is my son." That the relationship has been described as controlling relationship. Now there's been speculation across the board as to what that relationship was, and I think until we see it in notes or we have this in a confession, we will really never know exactly what it is.

Now you do know that Malvo, at least according to officials, did have something to say that was considered useful to officials when he was taken from federal custody over to state custody. He was allegedly spoken to for seven hours and provided some information.

When he was first taken in, he didn't say a word, not one word. And some law enforcement sources said, "Well, maybe it's because he called in. He made the phone calls. And he doesn't want his voice recognized. Maybe that's why he's not saying anything."

But they weren't exactly sure. But this time he did have something to say. The lawyer that's now representing him, says, "Well, that was under duress. We don't even know if that's admissible."

HAYS: Has law enforcement learned anything from this? This is so interesting to me about techniques, about technology. Or is it just you say finally, "Dumb luck," solved this case. I mean, going ahead, because I think this really terrorized the nation, because people are worried about some kind of snipper terrorist attack in the future.

ARENA: Right. Well, they did get to put into practice a lot of what was set up after September 11th in terms of cooperation between state and locals and across the board, you will have -- when you have this many people involved, there's always going to be someone griping.

But the overwhelming majority of people that we've spoken to said, "This really did work." And in any case, it's that one tip that leads you. I mean, this wasn't a case of dumb luck. This was them following up, connecting the dots, moving quickly with their local counterparts to get evidence and information and to be able to track these guys down.

BASH: And the fact that they're going to try them in Virginia is obviously extraordinarily significant here.

ARENA: Death penalty.

BASH: Right.

ARENA: Two words, the death penalty. That's what it is.

WALLACE: Can Montgomery County challenge that, though? You know how upset they are. And since most of the killings took place in Montgomery County, many people say, "That is the community mostly affected by it."

Do they have any challenge to get this reversed and have them tried first there?

ARENA: Not that I know of. They were -- they were in federal custody. They have been transferred to Virginia state custody. There has been some talk of getting the venue changed. But getting the venue changed away from the communities that were mostly affected so it would not be Maryland.

(CROSSTALK)

ARENA: It would be very difficult in Virginia to do. You don't usually get judges that are sympathetic to that.

SNOW: But they'd have to move it to California to not, you know -- to not have people who knew...

(LAUGHTER)

There might be a connection there in California.

(CROSSTALK) ARENA: Nothing to laugh at, but it is just astounding to see how these tentacles, how far the tentacles have reached.

SNOW: Well, from building a case against the snipper suspects to building an international case against Iraqi leader Saddam Hussein, how did the United States get its way in the United Nations this week?

We'll talk to CNN producer Liz Neisloss in New York, coming up.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BUSH: The resolution is a disarmament resolution. That's what it is. It's a statement of intent to once and for all disarm Saddam Hussein. He's a threat.

(END VIDEO CLIP)

SNOW: President Bush again emphasizing the importance of the United Nations resolution to force Saddam Hussein to disarm.

CNN's United Nations producer Liz Neisloss has been following that story all week. Liz joins us from New York now -- Liz.

LIZ NEISLOSS, CNN U.N. PRODUCER: Well, it's been an incredible week of very intense -- actually, a few weeks -- leading up to this week's vote. It's been amazing. Arm twisting, high pressure, high stakes diplomacy, but in the end the U.S. really got what it wanted. They wanted a resolution with strict guidelines for the inspectors with some deadlines for Iraq. And they still leave the door open to military action.

And now, Iraq has to decide in seven days whether they'll accept this or not. So...

WALLACE: Liz, it's Kelly. You know, what was the breakthrough? Because, you know, the White House, senior officials were talking about last weekend, Secretary of State Colin Powell was about to walk his daughter down the aisle to be wed. He gets a phone call from the French foreign minister. Can you just see that sight?

(LAUGHTER)

WALLACE: Of all people. And signaling some breakthrough. Still working the phones this week. What is your sense of the breakthrough? And is it a sense that all sides are declaring victory here?

NEISLOSS: Absolutely, all sides are declaring victory, but you really have to say the clear winner is the U.S. From the very beginning, what they wanted was to be able to use military force. They wanted it to be authorized by the U.N. They didn't get that. But they still walk away -- there's a lot of what people are calling "creating ambiguity" in this resolution. They walk away being able to say, "Hey, we can do it if we want to."

France walks away being able to say, "We brought the U.N. into the process." Russia got what they wanted. They U.N. is being brought in.

But in the end, the U.S. was literally going around making sure it could get as much support as it could. They had ambassadors in every capital for Security Council member putting the high pressure on. At the U.N., the pressure was being put on.

And one sort of interesting little anecdote about all of this, the Mauritian ambassador who is -- he represents a very small country, but a Security Council member and a vote the U.S. wanted to get. Anyway, he was at the U.N. telling reporters, "Look, we're still really supporting the French. We still think more changes need to be made." He was saying this all over the weeks up until last week. And suddenly, we don't see the Mauritian ambassador. And the reporters are saying, "Where did the guy go?"

HAYS: What about the Republican victories this week? How much did that weigh in, do you think, in making people think, "You know, Bush has the support any way. He's building momentum." How much of it carried the whole thing forward?

NEISLOSS: Well, I'll tell you all. Let me just finish that other story, just to let you know the Mauritian ambassador was called back to his capital basically and he was scolded by his government. And they said, "Get in line, and you're going to get in line behind the U.S. We get aid from them. We want a visit from President Bush."

And we haven't seen actually the Mauritian since.

(LAUGHTER)

We don't think he's in any danger.

(LAUGHTER)

But he did not appear at the Security Council for the vote.

SNOW: So how about the president and the elections this week, mid-term elections?

Did that really -- did they notice at the U.N. when he has a good day?

NEISLOSS: Well, they do. I mean, you can't help but notice. I mean, Kelly, you know, you could weigh in on this, but every podium he got to, he would say, "If the U.N. doesn't do it, we're going to do it ourselves."

So that message has been clear to the folks at the U.N. Diplomats knew this. But there was talk about what the election would do for Bush. And it would put solid support behind him in the U.S. It would mean, "We mean business, we've said we mean business, and now in the U.S. has all of the support it needs to go ahead." There is not doubt about it.

ARENA: Well, Liz, I'm confused though. What does it take for them to actually go ahead and take some military action? What counts as a violation? I am -- can you tell me, because I have not been able to see it.

NEISLOSS: That is the multi-billion dollar question in this whole game. It really is somewhat open. I think the best way of explaining it after talking to diplomats, ambassadors and the weapons inspectors, is if you remember there was a U.S. chief justice Potter, who trying to define obscenities said, "I'll know it when I see it."

It's really the same standard here. You talk to ambassadors, they say, "It will have to be something serious. It can't just be a violation where let's say someone brings the wrong key to open a factory door. Or one Iraqi doesn't show up on time." They are going to try to make this a very serious process. But of course, we all know everyone will be watching. When Saddam Hussein sneezes, we'll all be interpreting.

BASH: Liz, the one thing that struck me was the fact that Syria was even on board with this. How did that happen? What's the behind- the-scenes story there?

NEISLOSS: Well, it was a very last minute negotiation. It was really not until the day of the vote. In fact, no one knew how they would vote. We thought they would abstain. We never really imagined they would go for a unanimous vote.

In the end though, they didn't want to be isolated. This was a very important vote for them. They say their closest allies on the council really the big powers -- France and Russia -- were going to vote for this resolution, and they would be out there alone.

NEISLOSS: So they got in line.

HAYS: Liz, what you -- is there any buzz in the halls of the U.N. about the likelihood now of Saddam actually complying? I mean, it seems to be the card no one is betting on. What's the handicapping?

NEISLOSS: Well, very few people are willing to bet. He has played his cards very close to the vest and very well, very cagily over the years, you could say.

I think there's a lot of talk about mistakes and imminent war, but hope is really what is, you know, what they're holding on to. And you know, the French ambassador, after the vote yesterday came out and said, "Let's hope. Let's not consider dark scenarios." You know, that's really all they're hanging on to right now.

HAYS: OK. Well, thanks so much to Liz Neisloss for helping us understand the United Nations, what happened there this week.

Uncertainty over Iraq continues to roil the financial world. We're going to talk about that, new interest rates, McDonalds, when CNN's SATURDAY EDITION continues.

But first, this news alert from CNN headquarters in Atlanta.

(NEWS ALERT)

SNOW: Still ahead on CNN's SATURDAY EDITION, how the voting this week sets up President Bush for a reelection run, how voters in Louisiana get another month of campaign ads and soundbites and how fast food wars mean cheaper burgers, but maybe long-term economic indigestion.

Plus, the president's weekly radio address, all coming up on CNN's SATURDAY EDITION.

(COMMERCIAL BREAK) (BEGIN VIDEO CLIP)

BUSH: My economic team came in during very difficult times -- recession, the terrorist attack. There were corporate scandals. We have done a lot to return confidence.

(END VIDEO CLIP)

HAYS: President Bush this week talking up the economy. You know, you might think Wall Street got lots of what it wanted this week -- a Republican victory, lower interest rates and the departure of an unpopular stock market watchdog. And still the market, you know, had a couple of good days. Actually finished the fifth week in a row higher, marginally -- down on Friday.

But stepping back, I think a lot of things cut both way for Wall Street. The Fed cut rates more than expected. People said, "Yeah, that's great." Or is it?

Maybe the economy is weaker than we think. Republican victory, you know, maybe we'll get the tax cuts next year if we need them to help the economy. But maybe we'll get bigger deficits. What is that going to mean for interest rates? And even with Harvey Pitt -- became very unpopular. A lot of people think Harvey shot himself in the foot.

However, they're saying, "Who do we get to replace him, and are we going to get the kind of reform that is needed to really restore investor confidence. There's a lot of things cutting both ways.

ARENA: And then of course, there was the news on McDonalds, which you know, which it just hits you because everybody has been in a McDonalds. Then you think, "How could this company not be doing well?"

HAYS: Isn't it amazing, cutting stores around the world, cutting jobs and cutting prices. They've gotten in a bit of a price war. You know, at first it seemed like a good idea. "We'll offer dollar burgers and dollar fries." But then, you know, Burger King gets into the act.

So now they're in a little bit of a price war.

ARENA: Like the airlines.

HAYS: Like the airlines. And the problem is about cutting prices is great for a consumer, but if you...

ARENA: Yes, I was going to say, people out there are probably pretty happy that they're cutting prices...

(LAUGHTER)

HAYS: But if you work...

(CROSSTALK) HAYS: ... at McDonalds, maybe your boss says you don't get that raise. So they maybe or you lose that job.

So maybe then you don't spend, so if you don't spend then maybe McDonalds or somebody else doesn't get this sales they need. And then when we get in too much of a concerted price war, it's bad. It means the economy is getting weaker. It called deflation. We're hearing a lot about it. In fact, that's why the Fed made the bigger than expected rate cut people say, because they're trying to get ahead of the curve.

ARENA: Well, didn't Greenspan talk about in the minutes though, that he was really worried about lower -- a recession.

HAYS: Well, they skirted around it, but they did say at some point if inflation is too low, it makes it tough for the Fed to do its job. I mean, think about it. If inflation is zero and interest rates are zero...

(CROSSTALK)

HAYS: ... down -- you're going to pay people to take money or something.

WALLACE: Want to go back to the president's economic team. Of course you have that Harvey Pitt announced 9:00 p.m. election night.

SNOW: And see, I want to ask you about that.

Yes, because there's no way that they didn't orchestrate a 9:00 p.m. election night, you know, all of a sudden breaking news -- "Harvey Pitt is leaving."

ARENA: Well, all of the polls were closed at that point.

WALLACE: Exactly, 9:00 p.m. pretty much closed. They say they didn't orchestrate it. But officials do say the word came that Harvey Pitt was thinking about resigning. No one at the White House waved him off.

So clearly, he got the message. He did this. They certainly were hoping this would be buried with all of the other election news.

HAYS: And of course, it was on the front page of the New York Times. It was the front page of the Washington Post.

ARENA: I mean, I saw this thing build momentum. I remember when, you know, when Harvey Pitt was first nominated. I mean, oh, this man was just the second coming for the economy for the Securities and Exchange Commission...

HAYS: Schumer called him, Chuck Schumer, Schumer called him the "Zeus of his field."

ARENA: See.

(LAUGHTER)

HAYS: And then two months later called for his head.

ARENA: Was this just like momentum gone bad or...

HAYS: You know, Harvey Pitt spoke to the Securities Industry Association yesterday in Florida, and he just said, "Boy, you know, it was all political. This is so counterproductive." He still doesn't think he did anything wrong.

ARENA: Well, me the bottom line, what did he do wrong?

Black and white, what did...

HAYS: First of all, he met with accounting firms that were being investigated, way in the beginning, that were going to be under a cloud. And he just thought, "Well, it's OK, I'm just talking to them."

I think the big thing that really shifted the momentum for him was when we had somebody nominated to head the Oversight Accounting Board -- this is going to be the new watchdog, got to be tough, not going to let them get away with anything. John Biggs, everybody said he'll be tough. Supposedly the Republicans said, "Oh, oh, too tough." And Harvey backed down.

And then he -- and so I think that started turning the tide. Then he chooses William Webster, but doesn't bother to tell anybody that William Webster had some questions

(CROSSTALK)

HAYS: But you have to be unimpeachable. Your own -- your credibility, your own integrity. And people don't doubt Harvey's integrity. I think they just doubt his -- well, actuall -- but also his toughness. Will he be tough? A real critic -- I'm not so much of a critic of Harvey Pitt. I think he's an intelligent man. I do think he made some missteps.

But a lot of people felt that he wouldn't be tough enough. And when he backed down on Biggs, when he put Webster in when he had questions over him, a man who had headed the CIA and the FBI, people said, "How can he possibly run this board?"

WALLACE: And one quick question for you, when it comes confidence, consumer confidence, investor confidence, what are you hearing from people on the street about the rest of the economic team? Chief Economic Adviser Lawrence Lindsey, Budget Director Mitch Daniels?

HAYS: You know...

WALLACE: Anyone saying that they should go too?

HAYS: Well, you know, Treasury Secretary Paul O'Neill, you know he's had Bush's support for ever. Wall Street doesn't like him because he speaks his mind. And they -- he's not their kind of guy. They want the princely Robert Rubin, the old investment banker type, right.

Larry Lindsey, I don't think people have such a hot button issue with. I think it's interesting a lot of the press has been quick to jump on that story that now the economic team goes.

But I think -- I'm going to give you a contrarian view. The Republicans just had this great victory, right? These guys helped get through the tax cuts, true? Weren't they important? Didn't they help keep the recession shallow last year? That's what a lot of economists will tell you.

Why get rid of your economic team now when, I think you could argue your economic team is in place? They've done a decent job, and they could continue to do a good job.

WALLACE: That economic team will be smiling hearing that.

(LAUGHTER)

HAYS: Contrarian view.

WALLACE: Contrarian view.

Well, from talk about the economy, to some very upbeat talk in the White House. What did President Bush win on Election Day?

We will have more when CNN's SATURDAY EDITION returns.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BUSH: There is a mandate in any election, and at least in this one, it's the people want something to get done. They want people to work together in Washington, D.C., to pass meaningful legislation which will improve their lives.

(END VIDEO CLIP)

WALLACE: President Bush talking about whether the election results served him up a mandate, a free pass for his agenda at home and overseas.

Maybe one of the most interesting things this week, you guys, is Wednesday, the day after this incredible election, this president making history, winning seats in the House and in the Senate. His party normally loses in the midterm elections.

We had heard there'd be a news conference. Nope, no news conference. The message: No gloating allowed. Let's look gracious. Let's be gracious. Let's let the Democrats do what they want to do. And then, of course, the president came out on Thursday, clearly a very confident President Bush, who now has a Republican Senate and a Republican House, and he clearly put down the gauntlet about what he wants for his agenda.

SNOW: I cannot believe, though, that there wasn't some behind- the-scenes gloating going on.

(LAUGHTER)

Tuesday night, on election night, Senator Lott went over to the White House for dinner. He was supposed to come back to the Hill like after an hour. Three hours later, I was asking his people, "Where is he?" I know that they were there like high five-ing each other, you know, doing a dance or something.

WALLACE: Well, it was, to be fair, a little bit of a nail- biting, as we all know, and you all know, out in the field watching, that they didn't know. I mean, it was up until very late.

And the president, as we know, is someone who goes to bed very early. Brother Jeb -- Jeb Bush wins. That was a very big victory, reelection as governor of Florida. But it was late into the evening. It was about 1:15 in the morning when it was clear Republicans were winning the Senate. And that's when the president was able to...

(CROSSTALK)

BASH: You know, for all the talk about the Republican sweep and this is a big, big victory for George Bush, you know, talking to some Democrats who are definitely licking their wounds, no question about it, talking to some of them on the Hill, they say, "You know, there is a silver lining here, and that is that we still have divided government." Fifty-one to 49 is divided, and the Republicans no longer have Tom Daschle to blame for things anymore. Now the onus is on them, and the Democrats are the flame throwers. And they're not in charge. They don't have the ultimate responsibility.

WALLACE: So they can be, as you said, much more fired up, be the opposing party, and the pressure is now on the president with the Republican Congress to get things done.

(CROSSTALK)

HAYS: Yes, I think, also that one of the knee-jerk reactions is: Oh, now they won big, now they're going to let their attack dogs out. Now they're going to let the right come in and start pushing the agenda.

Are they going to make what a lot of people think would be a political mistake?

WALLACE: No, because -- and they were very concerned about that. I talked to some advisers who said, "Look, we are concerned that if we do really well, that on Wednesday, you'll have every conservative in the Congress saying, 'We're going to do this and that and that.'" And so they very much wanted a disciplined Republican Party. They very much want the president's agenda.

No question they're going to push -- he's going to push his judicial nominees. But he knows he needs to appeal to moderate and swing voters if he wants to be reelected in 2004, so he has a difficult political dance there, getting his agenda passed but appealing to the middle as well.

BASH: Well, Kelly, you know one immediate challenge for the president and for the rest of the political world is some unfinished business of campaign 2002. Louisiana voters get the last word.

More on that when CNN's SATURDAY EDITION returns.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SEN. MARY LANDRIEU (D), LOUISIANA: So we have a congressional race that's in a runoff, and then with our strange situation, we'll just have to go through December. But I'm looking forward to getting up tomorrow morning and hitting it hard again for four more weeks.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

SUZANNE TERRELL (R), LOUISIANA SENATE CANDIDATE: I think what's really nice about being in the runoff is that it goes to show that the people of Louisiana are looking for a change.

(END VIDEO CLIP)

BASH: The two women running against each other in the U.S. Senate runoff in Louisiana, Democrat incumbent Mary Landrieu, and her Republican challenger Suzanne Terrell.

So down Louisiana way, forget a break from TV ads, candidate soundbites and big-name outsiders jetting in for the day.

BASH: It's not over down there, guys. I was down there this week, and I was down there on election night, and we -- first of all, quirk in the election law means that any candidate who does not -- if a candidate doesn't get 50 percent of the vote, there's an automatic runoff.

So the Republicans had their ideas here. They had eight challengers to Mary Landrieu to ensure -- there were eight total. There only four Republicans, just to be clear.

(CROSSTALK)

BASH: Next to impossible to get 50 percent. On Election night, it was clear that Mary Landrieu -- when it became clear that she was only going to get 46 percent, everybody was on pins and needles, watching nationally what was going to happen.

Because if the Senate had ended up 50-50, all eyes, all troops, all money, all everything would've been down in Louisiana, because it would have been a month before we would've known who would have controlled the Senate.

(LAUGHTER)

BASH: Which is exactly why I was there, which is exactly why I was there.

But the interesting thing is that, even though it is not dependent on the control of the Senate, the Republicans still sent people down there. I talked to people who, overnight, were on their way on a plane.

There's still -- there's a little but of a problem because of new campaign finance laws on how they can fund this.

But I also talked to somebody this week who said that they are expecting Dick Cheney down there this week. They're not giving up. Every vote matters.

WALLACE: Well, we know, the president, you know -- he called a number of candidates -- he called -- is it Terrell -- yes, he did call and say, "Any resources you need, you'll have them."

What about the Democrats? Are they sort of looking at this as putting every resource they can to get a one more victory there to help them?

BASH: Absolutely, absolutely. I talked to somebody on that night, just as we found out what was going on, they said, "The calvary is coming. We're all on our way down there." And absolutely, it's still an issue.

And the thing that is kind of an interesting twist on this is, because we have a lame duck session and this Congress is not over yet, Congress is going to come back next week. Mary Landrieu is going to be back in the Senate voting. And the one issue that the president and Trent Lott, the Republican leader, said this week that they will try to push for is homeland security.

And homeland security, a lot of Democrats think -- they don't know for sure -- but really hurt a lot of Democratic incumbents, like Max Cleland in Georgia, triple amputee, who was attacked by his Republican challenger successfully on the issue of homeland security because it was the issue before the Senate for the entire fall.

They're hoping that they can knock off Mary Landrieu with this issue still.

HAYS: Or conversely, it would be interesting if Democrats in the state now said, "Uh oh, look what happened. The Republicans won." And one reason people think Republicans won is because the minority vote wasn't as strong as they had hoped for, right? A lot of people stayed away from the polls that traditionally might have voted for Democrats. Interesting to see if maybe the calvary comes from the other side now.

BASH: Right, well, it definitely could. They're trying to make the point now that the Republicans have the majority, that why would -- the other senator from Louisiana is John Breaux -- and they're saying, "Why would you ever want two Democrats in the minority? We want somebody who could have some power in Washington."

SNOW: We've got to get to my favorite story real quick. When they come back next week, there's going to be a senator who has never been to Washington before. You've been talking...

(CROSSTALK)

BASH: The accidental senator.

SNOW: You've been talking to him?

BASH: The accidental senator, Dean Barkley. He was appointed by -- he's an Independent and appointed by Independent Governor Jesse Ventura from Minnesota to fill the term of Senator Paul Wellstone who we know was killed in a plane crash a couple of weeks ago.

He is a riot. He's coming in -- I talked to him yesterday. He is being courted by both -- everybody because he's an independent and because, right now, the way the Senate is, the Democrats have a one- seat majority in a lame duck...

(CROSSTALK)

SNOW: In this lame duck session, he could...

BASH: ... but if he decides to go with the Republicans, it gives Trent Lott the majority immediately, next week, which means that the president's agenda, Republicans can push it immediately and not just wait until January.

And he said to me, you know, "I'm making up my mind slowly. I'm talking to everybody."

(LAUGHTER)

(CROSSTALK)

BASH: And I said to him, "You know, what's the deciding factor here for you?" He said, "It's just a raw political calculation." He said that to me. He said, "It's just political."

(CROSSTALK)

BASH: No one says that. You know it's true, but you don't say it. He said, "It just depends on what they can offer me and who offers me the best thing." It's pretty funny.

ARENA: Well, here's my favorite story -- the baby.

(LAUGHTER)

When is the baby coming? I want to know, are you even going to be here next week?

SNOW: I'm not going to be here next week, probably won't be here for about five months. So, little baby is here.

People keep telling me they can't tell...

(CROSSTALK)

WALLACE: Most viewers probably have no idea that Kate Snow is pregnant.

ARENA: You're leaving us for five months, and Kelly goes to Jerusalem.

WALLACE: I go to Jerusalem. But I'm hopefully see you from there.

SNOW: For CNN, yes.

WALLACE: Yes...

SNOW: They're telling me we've got to go.

That is our SATURDAY EDITION. Thank you so much to my colleagues. Thank you to watching.

Coming up, CNN's "PEOPLE IN THE NEWS," focuses on Defense Secretary Donald Rumsfeld and National Security Adviser Condoleezza Rice, plus a check on the stories making headlines at this hour.

SNOW: But first, the president's weekly radio address.

BUSH: Good morning.

This was an important week for our country and the world.

This was an important week for our country and for the world. The United Nations Security Council voted for a resolution requiring the Iraqi regime to declare and destroy all weapons of mass destruction or face the consequences.

Here at home, our citizens voted in an election I believe will strengthen our ability to get things done for the American people.

With the United Nations Security Council resolution passed yesterday, the world has now come together to say that the outlaw regime in Iraq will not be permitted to build or possess chemical, biological or nuclear weapons. That is the judgment of the United Nations Security Council. That is the judgment of the United States Congress. And my administration will see to it that the world's judgment is enforced.

The resolution presents the Iraqi regime with a test, a final test. Iraq must now, without delay or negotiations, give up its weapons of mass destruction, welcome full inspections and fundamentally change the approach it has taken for more than a decade.

The regime must allow immediate and unrestricted access to every site, every document and every person identified by inspectors. Iraq can be certain that the old game of cheat and retreat tolerated at other times, will no longer be tolerated.

Any act of delay or defiance will be an additional breach of Iraq's international obligations and a clear signal that the Iraqi regime has once again abandoned the path of voluntary compliance.

If Iraq fails to fully comply with the U.N. resolution, the United States, in coalition with other nations, will disarm Saddam Hussein.

Republicans and Democrats in Congress are strongly supporting our war against terror.

As the current Congress returns to Washington this week, I hope we can act in the same spirit of unity to complete some unfinished business.

The single most important item of unfinished business on Capitol Hill is to create a unified Department of Homeland Security that will vastly improve our ability to protect our borders, our coasts and our communities.

The Senate must pass a bill that will strengthen our ability to protect the American people and preserve the authority every president since John Kennedy has had to act in the interests of national security. Congress needs to send me a bill I can sigh before it adjourns this year.

We also have a responsibility to strengthen the economy so that people can find jobs. One immediate thing Congress can do to help put people to work is to pass legislation so that construction projects can get insurance against terrorism at a reasonable price.

This will spur construction and create thousands of good hard-hat jobs that are now on hold because projects without insurance cannot be built.

Congress must also show fiscal discipline as it passes the appropriations bills. At a time when we are at war, at a time when we need to strengthen our economy, Congress must control wasteful spending while funding the nation's priorities.

American workers deserve action on these important economic issues. Our economy has come out of a recession and is growing. But I'm not satisfied, because I know we can do better. I want the economy to grow at a faster and stronger pace so more Americans can find jobs.

So I will work with our new Congress to pass a growth and jobs package early next year. Our nation has important challenges ahead at home and abroad. And we're determined to build the security and prosperity of America.

Thank you for listening.

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Sniper Suspects First; Louisiana Senate Seat to Be Determined in December>