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CNN Wolf Blitzer Reports

Schwarzenegger to Discuss Transition, Policy Goals

Aired October 08, 2003 - 17:00   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.


WOLF BLITZER, CNN ANCHOR: Thanks very much.
It's happening right now. We're standing by to hear this hour from Arnold Schwarzenegger. California's Governor-elect will hold his first news conference after his lopsided victory last night.

CNN, of course, will have live coverage. Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): A recall...

GOV. GRAY DAVIS (D), CALIFORNIA: It's time for someone else to serve.

BLITZER: A curtain call and a call to action.

GOVERNOR-ELECT ARNOLD SCHWARZENEGGER (R), CALIFORNIA: Shall we rebuild our state together or shall we fight amongst ourselves?

BLITZER: An actor takes on his toughest role, what role will she play?

MARIA SHRIVER, WIFE OF ARNOLD SCHWARZENEGGER: I wouldn't be standing here if this man weren't an A+ human being.

BLITZER: I'll talk politics and more with comedian and author David Brenner.

Looking for the leaker, the FBI has some questions for the White House.

What's bugging Philadelphia's mayor?

JOHN F. STREET, PHILADELPHIA MAYOR: It's a very deep matter of concern for me.

BLITZER: As Roy Horn fights for his life another tiger (UNINTELLIGIBLE) on its trainer.

UNIDENTIFIED MALE: She's in a lot of pain but in good spirits.

(END VIDEOTAPE) BLITZER: It's Wednesday, October 08, 2003. Hello from Los Angeles I'm Wolf Blitzer reporting. It's the talk of the state and the nation today, California's unprecedented political shakeup and this hour we'll hear directly from the state's new Governor-elect Arnold Schwarzenegger.

He's scheduled to hold a news conference in about 45 minutes. It will be the first time we've heard from him since his dramatic election victory last night and, of course, we'll carry his remarks live.

Plus, we have reporters up and down the state covering the recall and its aftermath. Our National Correspondent Frank Buckley is with the Schwarzenegger campaign here in Los Angeles. He's standing by for the news conference.

And, CNN's Miguel Marquez he's in the state capitol, Sacramento, with a look at what happens next.

We'll get to them shortly but first how the recall went down.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): On this day after the historic recall, the ramifications of California's political earthquake were beginning to sink in. Arnold Schwarzenegger, a 56-year-old immigrant from Austria, is now governor-elect. Even his Democratic political adversaries were promising to give him a chance despite the bitterness of the campaign.

ART TORRES, CHAIRMAN, CALIF. DEMOCRATIC PARTY: It's going to be a tough road ahead but I think the people have spoken and now it's time to govern.

BLITZER: Governor Gray Davis was recalled decisively, 55 to 45 percent. Schwarzenegger easily won the second question on the ballot with more than 3.5 million votes of 48 percent.

Democratic Lieutenant Governor Cruz Bustamante trailed with just under 2.5 million votes or 32 percent. Republican State Senator Tom McClintock emerged with barely a million votes or 13 percent.

Most observers say Schwarzenegger's performance at the one debate he participated in was a turning point, convincing Californians to vote against Davis and for the actor-turned-politician.

DUF SUNDHEIM, CALIFORNIA GOP CHAIRMAN: It wasn't until the debate that the two were joined and people understood that it was OK to let Davis go because they had enough confidence in Schwarzenegger and that's when it came together.

BLITZER: Schwarzenegger had a powerful ally in his wife, Maria Shriver, the long time NBC News correspondent and a Kennedy. She was joined by her mother and father, Eunice and Sergeant Shriver, and her brothers and other relatives on the victory stage. Her uncle, Democratic Senator Edward Kennedy issued a statement congratulating California's next governor and first lady. He said he looked forward to working with Schwarzenegger on many issues.

"The Kennedy family" the Senator said "has its own big tent policy."

President Bush also called the governor-elect.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: The president said to the governor-elect that he was proud of the race he ran and that he looked forward to working with him.

(END VIDEOTAPE)

BLITZER: And this note, President Bush will be here in California next week. He's expected to meet with the governor-elect at that time.

In the meantime, Arnold Schwarzenegger himself and the man he's replacing are expressing similar sentiments as far as what they want to do as far as cooperation is concerned. In their speeches last night, both spoke of cooperation and inclusion.

(BEGIN VIDEO CLIP)

DAVIS: And I pledge to Mr. Schwarzenegger tonight the full cooperation of my administration during the transition. We want to let the new governor know what the challenges are, what the status is of various issues in Sacramento. We will do that just as Governor Wilson did for me. That's an obligation of one governor to the next. We are going to do it.

SCHWARZENEGGER: I will reach out to Republicans, to Democrats, and Independents to those who supported the recall and those who did not, those who supported me today and those who did not. I want to reach out to everybody, the young and old, rich and poor, people of all religions, all colors and all nationalities. I want to be the governor for the people. I want to represent everybody.

(END VIDEO CLIP)

BLITZER: And we're standing by to hear from the Governor-elect Arnold Schwarzenegger this hour. We will, of course, have live coverage.

In the meantime our National Correspondent Frank Buckley is with the Schwarzenegger campaign here in Los Angeles - Frank.

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Wolf, Arnold Schwarzenegger said to appear her in the ballroom at the Century Plaza Hotel in about 40 minutes. He will officially announce that David Dreier is going to head up the transition team and there is a great deal of work to do in a very short period of time. This governor-elect could be sworn in as late as Thanksgiving Day. It could come even earlier. One of the first things that will be on the agenda for this transition team and for the new governor will be to present a budget that has to be in place presented by January 10.

Someone who's been very busy for the past several weeks covering the campaign or, at least, speaking on behalf of the campaign is Karen Hanretty and she is now going to be very - even busier for the next few weeks in this transition period.

We're talking about the budget. One of the first things that Mr. Schwarzenegger has said he will do is to eliminate the car tax. That will put you another $4 billion in the hole. What can you tell us about the budget process and where Governor-elect Schwarzenegger is in that?

KAREN HANRETTY, SCHWARZENEGGER SPOKESWOMAN: Well, look, one of the first things he will do is bring in an independent team of auditors to really look into where are we at the budget process, what waste is out there, what can we cut?

But you know I think the other thing that will be essential that Arnold will do, he will rekindle the investment community in California so that we can create more jobs, improve the business climate immediately, look at the regulations that are really burdening businesses in California.

You know it's not about if we eliminate a tax where do we get that revenue? It's about creating more revenue by creating more jobs in the state of California.

BUCKLEY: What about the fact that you have a Republican governor? All of the other statewide offices are Democrat, both houses of the legislature controlled by Democrats. What's your sense of how that cooperation will take place?

HANRETTY: You know Arnold has really demonstrated his leadership in bipartisan support. You know in 2002 he passed Prop 49 which was an after school initiative. He received wide bipartisan support and I believe that he is going to be able to go to the legislature, work cooperatively and really engage members of the legislature unlike the past governor.

BUCKLEY: All right, Karen Hanretty thanks very much. We'll see if it works out that way. I'm told that this morning Arnold Schwarzenegger has been huddled with aides talking about exactly what model the transition team will take and how it does its hiring, how it formulates its policy. We expect to hear more on that coming up in just about 40 minutes from now - Wolf.

BLITZER: We'll, of course, have that live. Thanks very much Frank Buckley for that.

So, who voted to toss out Gray Davis? Here's a breakdown out this afternoon from the California secretary of state's office. The majority of the state's 58 counties voted in favor of the recall. In fact, only 15 counties opposed it, most of them along the coast among them the state's largest county, Los Angeles, and all the counties making up the San Francisco Bay area.

Winning the election may prove to be easier for Arnold Schwarzenegger than what lies ahead, a tough transition in a very short time frame.

CNN's Miguel Marquez is in Sacramento. That's the state capital and he has more - Miguel.

MIGUEL MARQUEZ, CNN CORRESPONDENT: And a short time frame, Wolf, is going to complicate things when you pile on a budget that's already being written and constitutionally has to be in legislators' hands by January 10. Normally, a governor has about 60 days of transition period. This time it's about 30. Here's how it's supposed to work.

(BEGIN VIDEOTAPE)

MARQUEZ (voice-over): California's 58 counties will have 28 days to canvass or count the vote. This includes counting absentee ballots, write-ins and doing a randomized manual hand count of a small sample of ballots.

All the county registrars then have seven days to report the count to their boards of supervisors. Then, California's secretary of state has four more days to certify those numbers. Finally, the swearing in, it's winner's choice, one to ten days at the most to take the oath of office.

(END VIDEOTAPE)

MARQUEZ: And the California secretary of state says in the last 33 elections the counties and the secretary have taken all 39 days to count and certify the vote.

So if Mr. Schwarzenegger wants just one day before being sworn in that would make him sworn in on November 16 and if he wants the full ten days that's November 25 - Wolf.

BLITZER: A big inauguration coming up in Sacramento, thanks Miguel very much.

Out here they like to say as California goes so goes the nation but will the Golden State start a recall trend? Most states provide for the impeachment of a governor but only 18 have actual recall provisions and of those six apply only in cases of specific wrongdoing.

California also has the lowest threshold for signatures requiring only 12 percent of those who voted in the last election. By comparison Kansas requires 40 percent.

Here's your chance to weigh in on the story. Our web question of the day is this. "Which Arnold Schwarzenegger do you like best, bodybuilder, movie star, politician"? You can vote right now. Go to my web page cnn.com/wolf. We'll have the results later this hour.

And you can -- while you're there I'd love to hear directly from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

The Bush administration is launching a public relations offensive to answer critics of its Iraq policy. The president and top officials are taking their case across the country and overseas.

The opening salvo came today in a speech by the National Security Adviser Dr. Condoleezza Rice. Let's go live to our CNN Senior White House Correspondent John King - John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Wolf, the administration cast this new public relations offensive or new strategy offensive as a way to bring to light and perhaps some news media coverage to what it says is considerable progress in Iraq. Critics, though, say this is proof to them that this administration is very much on the defensive.

You noted Condoleeza Rice, you see her here in Chicago, took the lead today in a speech to the Chicago Council on Foreign Relations. She defended the president's post-war policy.

She said the daily lives of the Iraqi citizens are getting better by the day and indeed by the hour. But she also took a great deal of time in this speech to defend the president's decision to go to war in the first place.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: This was an international outlaw who had been allowed to remain too long and when you let a threat fester you eventually pay a price for it. You either have an option of dealing with it now or dealing with it later and this president decided to deal with it now.

(END VIDEO CLIP)

KING: Striking the administration still making the case for going to war to begin with five months plus a week after this dramatic made-for-TV moment on the deck of an aircraft carrier, the president appearing there to deliver a speech in which and one of the signs summarized it best. He said mission accomplished the president saying back then five months ago that major combat operations were over.

But since that speech a number of setbacks for the administration, 91 Americans killed in action in Iraq, the failure to win support in the U.N. Security Council for a new resolution, questions and criticism in Congress over the $20 billion the president wants for reconstruction efforts in Iraq and polls showing that half of the American people now doubt that it was worth going to war to begin with so the administration mounting this new offensive.

You will see more speeches like the one today from Dr. Rice, speeches from the president and the vice president as well and, in an attempt to get around what it believes to be much too skeptical a national news media interviews of the president and vice president and other senior officials with local media outlets also on the strategy - Wolf.

BLITZER: A major PR campaign. John thanks very much.

The U.S.-led coalition in Iraq today announced the arrest of a former Iraqi general said to have ties to Saddam Hussein and to those financing anti-coalition activities. In all, 112 people were arrested in the weekend raids near the Syrian border. The U.S. military says the area has been a crossing point for fighters seeking to enter Iraq.

Shouting slogans more than 2,000 Shiite Muslims marched through the streets of Baghdad in a second day of protests triggered by the arrest of a Shiite cleric. The imam and several other people were arrested Monday. They're accused of keeping weapons in a mosque.

We're awaiting live comments this hour from California's Governor-elect Arnold Schwarzenegger. We'll have those for you when they begin.

Also the woman behind the man, a closer look at Maria Shriver's role in her husband's election and the Kennedy family connection, plus this...

STREET: You know you'd like to think that you have a certain amount of privacy in your own office and when you don't you feel violated.

BLITZER: Who's bugging the mayor of Philadelphia? A listening device is discovered in his office. Now Democrats demand an explanation from the FBI.

And will the show ever go on? We'll hear word from Roy Horn's doctors, an update on his condition. That's just ahead.

(COMMERCIAL BREAK)

BLITZER: Britney bashing, Maryland's first lady makes some harsh remarks about the pop princess. You'll hear them here on WOLF BLITZER REPORTS. Stay with us.

(COMMERCIAL BREAK)

BLITZER: You're looking at a live picture at the ballroom, the Century Plaza Hotel, Century City, Los Angeles. We're standing by. We're awaiting the Governor-elect of California Arnold Schwarzenegger. He'll be walking in answering reporters' questions, the first time since his dramatic victory last night. CNN will have live coverage. That's coming up this hour.

In the meantime, though, there's other important news we're following. Let's turn to that leak that blew the cover of a CIA operative. Government sources tell CNN the FBI will start interviewing White House officials, in fact anytime now. Let's go live to our Justice Correspondent Kelli Arena - Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: That's right, Wolf, but the White House interviews will not be the first to be conducted. The FBI has already been busy interviewing some of the key players.

(BEGIN VIDEOTAPE)

ARENA (voice-over): Government sources tell CNN former Ambassador Joe Wilson, his wife a covert CIA operative, and the reporter who revealed her identity have all been interviewed by the FBI. So, too, have several CIA officials, the next stop the White House.

MCCLELLAN: There are people inside and outside this administration that can help get to the bottom of this and if people have information they ought to talk to the Department of Justice about it.

ARENA: White House Counsel Alberto Gonzales and lawyers in his office are busy sifting through documents provided by White House staff that could be relevant to the investigation and some of that information is expected to be handed over to the Justice Department by week's end.

MCCLELLAN: We're moving quickly. We want to rule out any information going to them very soon.

ARENA: Sources close to the investigation say the list of people who may have been the source of the leak keeps growing prompting the FBI's Washington field office to assign more agents to the investigation and one senior official tells CNN the FBI does not expect to complete the probe by year's end.

A former FBI official who used to head leak investigations says they are often unwieldy.

STEVE POMERANTZ, FORMER FBI OFFICIAL: Lots of times you start off these investigations with a belief that the universe of potential leakers is small only to be confronted early on with the reality that there are many, many more people that knew the information.

ARENA: And that's why almost all leak investigations are closed without ever naming a suspect.

REP. PORTER GOSS (R), INTELLIGENCE CHMN.: The success rate on finding people who leak is very, very, very small. Now, there's a difference between willful leakers, as we all know, and inadvertent leakers.

(END VIDEOTAPE)

ARENA: While Republicans are saying a crime may not even have been committed, Democrats are again on the offensive. The Democratic National Committee urging activists to e-mail Republicans and demand a special counsel be appointed to head the leak investigation instead of John Ashcroft - Wolf.

BLITZER: CNN's Kelli Arena in Washington, Kelli thanks very much.

Not far away from Washington in Philadelphia a shocking story, something's bugging the mayor of Philadelphia. The Democrat John Street is in the middle of a reelection rematch against a Republican rival and the FBI says a listening device found in the mayor's office is not connected to the campaign but that's all its saying at least for now.

Let's go live to Walt Hunter of CNN affiliate KYW in Philadelphia - Walt.

WALT HUNTER, KYW CORRESPONDENT: Well, Wolf, sources say when that bug was found in the mayor's office yesterday it didn't go to the police crime lab as you might expect.

Instead, Philadelphia Police turned it right over to the FBI and they now have it in their offices here. Sources say that's the clearest evidence yet that the FBI are the ones who put it there in the first place.

(BEGIN VIDEO CLIP)

SYLVESTER JOHNSON, PHILADELPHIA POLICE COMMISSIONER: Before we start I'm telling you right now I am not discussing the mayor's office under no circumstances. Any questions that pertain to the mayor's office are going to have to be answered by the Federal Bureau of Investigation.

HUNTER (voice-over): Police commissioner Sylvester Johnson made it clear any questions about the bug found in Mayor Street's office should go straight to the FBI's Philadelphia office.

JOHNSON: I turned it over to the FBI. I have no further comments about that investigation.

HUNTER: But neither the FBI nor the U.S. attorney would comment on whether the highly-sophisticated listening device was, in fact, part of a federal probe inside City Hall.

UNIDENTIFIED MALE: Well, I'm aware there's been a great deal of media speculation. I've certainly been watching it as well but I know that yesterday as well that the FBI came down and actually made a comment and spoke on behalf of the Department of Justice. At this point in time I think I'm going to let that comment stand.

HUNTER: The mayor who maintains he has done absolutely nothing wrong says he knows of no reason why any federal agency should be planting bugs in his office and there's now growing pressure on the FBI to explain why it happened.

GOV. ED RENDELL (D), PENNSYLVANIA: The mayor says that he's been told through sources that he is not the target of an investigation. If that is true then the FBI owes that explanation not only to the mayor but to the people of Philadelphia.

(END VIDEOTAPE)

HUNTER: And joining the governor of Pennsylvania in the call for the FBI here to break their silence, Senator Arlen Specter, senior member of the Judiciary Committee in the Senate. So far no word from the FBI, no confirmation on just what the bug was about.

Live in Philadelphia for CNN, Walt Hunter - back to you, Wolf.

BLITZER: Thanks very much, Walt, for that report.

And this note, we're waiting for Arnold Schwarzenegger to speak live this hour. You're looking at a live picture. He's going to have a news conference here in Los Angeles. We'll bring it to you live once it begins.

We'll also share more about the woman behind the candidate. She's a wife, a journalist and don't forget this she's also a Kennedy.

Kobe Bryant heads back to the mountains of Colorado. This time it's no vacation.

And, a Senator's wife snatched from her home and robbed, a mysterious crime connection, we'll have details. Stay with us.

(COMMERCIAL BREAK)

BLITZER: You want to see how Arnold Schwarzenegger is feeling, what he's saying, how he's doing on this day after he's elected governor of California? You will shortly. You see the news media. They're getting ready for a news conference here in Los Angeles. We'll bring it to you live once it begins. That is expected to begin very, very shortly.

In the meantime there's a new development in the abduction of the wife of U.S. Senator Judd Gregg. Police in Fairfax County, Virginia, that's just outside Washington, D.C. now say Kathleen Gregg's abduction yesterday is linked to two other incidents. Gregg was released unharmed.

CNN's Patty Davis is over at police headquarters in Fairfax County and she has more - Patty.

PATTY DAVIS, CNN CORRESPONDENT: Well, Wolf, police are looking for two men in a stolen silver Chevy Monte Carlo and they say those are the two men that abducted Kathleen Gregg.

(BEGIN VIDEOTAPE)

DAVIS (voice-over): Fairfax County detectives canvassed the neighborhood where Kathleen Gregg was abducted handing out leaflets with pictures of one of the suspects.

UNIDENTIFIED FEMALE: Do you want me to post this up? UNIDENTIFIED FEMALE: Yes. If you would post it, I'll give you a couple and you can leave them here for any of your customers that come in.

UNIDENTIFIED FEMALE: OK.

DAVIS: So far no sign of the two men who confronted Gregg inside the McLean, Virginia home she shares with her husband New Hampshire Senator Judd Gregg and forced to withdraw money at a nearby bank. But police say they do have several promising leads and are learning more about Mrs. Gregg's ordeal.

UNIDENTIFIED MALE: Once she arrived home she was there. A short while later she was confronted by the suspects.

DAVIS: Senator Gregg's chief of staff told the "Manchester Union Leader" that Mrs. Gregg told her captors: "I can get you money if you take me to the bank."

(END VIDEOTAPE)

DAVIS: Now, police believe the same two men in the same car are responsible for two other incidents over the past several days. Now just within the past hour Arlington Virginia Police have released a sketch, they say it's of a man who tried to force his way into another woman's home on Monday.

Now she has also identified the man seen in the surveillance video in the bank that Gregg was forced to go to and withdraw that money as that man's accomplice, so a possible break in this case for detectives - Wolf.

BLITZER: Patty Davis with the latest on this case thanks very much.

And shifting gears to a less serious matter but one involving another wife of an elected official. Kendal Ehrlich the wife of Maryland Governor Robert Ehrlich says a comment she made about singer Britney Spears was an inadvertent figure of speech.

It happened when Mrs. Erlich spoke at a domestic violence prevention conference last week and accused Spears of exaggerating the importance of sex for young girls. A radio station discovered the remark and played an audio tape of it on air.

(BEGIN AUDIO TAPE)

KENDAL EHRLICH, WIFE OF MARYLAND GOVERNOR: You know I really if I had an opportunity to shoot Britney Spears I think I would. You know, I - I hate to say that but you know I, you know, like I said I'm raising a boy. And I think oh my goodness. What would I do if I had a daughter who is seeing and seeing these images and seeing that and have peer pressure"?

(END AUDIO TAPE) BLITZER: Spears' record label issued a response saying that Mrs. Ehrlich shot herself in the foot by promoting violence at a domestic violence prevention conference.

We're awaiting live comments this hour from California's Governor-Elect Arnold Schwarzenegger. We'll bring them to you live once they begin.

Also this -- standing by her man. The impact Maria Shriver had on her husband's election and the Kennedy family connection.

California recall humor, I'll talk live with the comedian David Brenner. He's got a new book out.

And Kobe Bryant on the eve of his court hearing in his sexual assault case. We'll go live to Eagle, Colorado.

A lot of news coming up. Stay with us.

(COMMERCIAL BREAK)

BLITZER: We're standing by to hear from Arnold Schwarzenegger, the governor-elect of California. He's about to have a news conference. We'll bring it to you live.

Stay with us.

(COMMERCIAL BREAK)

ANNOUNCER: This is a special edition of WOLF BLITZER REPORTS. Live from Los Angeles, the California recall.

BLITZER: Welcome back to CNN.

It's happening this hour, live remarks from the California governor-elect,Arnold Schwarzenegger. We'll bring those to you once he begins.

First, though, let's have a quick check of the latest headlines.

(NEWSBREAK)

BLITZER: And this just in from CNN Pentagon correspondent Barbara Starr -- the U.S. military is preparing to file initial charges against U.S. Army Captain James Yee, the Islamic chaplain, who's been held for almost a month on suspicion of espionage and aiding the enemy. Military officials say that charges may be filed within the next few days to demonstrate that the case is progressing.

Yee is in custody in Charleston, South Carolina. He was arrested for allegedly carrying classified material after returning to the United States from Guantanamo Bay, where he served as a chaplain to Taliban and al Qaeda suspects at a U.S. detention center there.

We're standing by for a news conference by the California governor-elect, Arnold Schwarzenegger. That's coming up soon. While we wait, though, more on the woman who was a driving force in his campaign to become the governor of California. We're learning through a spokesperson that Maria Shriver will indeed return to work at NBC News as a correspondent, although no date has been set.

Our national correspondent Frank Buckley once again is joining us, More now on the California first lady to be -- Frank.

BUCKLEY: Well, Wolf, it's no secret that Maria Shriver didn't want Arnold Schwarzenegger to run for governor in the first place. But once he decided to move forward anyway, in true Kennedy spirit, Maria Shriver, who is the daughter of Eunice Kennedy-Shriver and Sargent Shriver put herself on 150 percent into this goal of getting her husband elected.

(BEGIN VIDEOTAPE)

MARIA SHRIVER, ARNOLD SCHWARZENEGGER'S WIFE: The man I know and the man I love, Arnold Schwarzenegger.

BUCKLEY (voice-over): Maria Shriver was Schwarzenegger's biggest supporter during the campaign appearing at his side....

SHRIVER: Hi, how are you? I'm Maria Shriver.

BUCKLEY: ...and hitting the road on her own, working women to increase support among female voters.

SHRIVER: I wouldn't be standing here if this man weren't an A- plus human being. I wouldn't be taking my time, I wouldn't have left my job that I love, OK? I wouldn't have done any of this if I didn't believe in this man.

BUCKLEY: Shriver took a leave from her job as a correspondent for NBC News to campaign for her husband. This niece of Jack Kennedy also took leave of her family's deep Democrat traditions to campaign for a Republican.

SHRIVER: When I started going out with him back in 1977, people could not understand this relationship. I'm sure there are some who still kind of raise their eyebrows and I said, Hello? Have you looked at the body, OK? I am no fool.

BUCKLEY: Shriver friend Greg Payne says Shriver has moderated Schwarzenegger's political views.

GREG PAYNE, SHRIVER FRIEND: It seems to be that her ideology has kind of spilled over and affected him. And I -- my own view is without that type of softening, I don't think that Arnold Schwarzenegger would be the credible candidate that he is.

BUCKLEY: Shriver has been Schwarzenegger's staunchest defender against allegations that he groped women or worse.

SHRIVER: I believe he's handled himself in this situation in the best possible manner. He apologized, and that's courageous. BUCKLEY: Now Schwarzenegger and Shriver are embarking on a new phase, as a political power couple to rival any in the Kennedy-Shriver family past or present.

UNIDENTIFIED MALE: There's a real role model for Arnold and Maria's marriage in the marriage of Eunice and Sargent Shriver. I think she really is an important part of his life, not only as a support but as an adviser.

BUCKLEY: Friends say it's likely that Shriver will be an active first lady.

PAYNE: I think she will also go out to the various neighborhoods that feel as though they've not been connected and try to be, as glib as it might seem, you know, to be the first lady of the people, so to speak.

(END VIDEOTAPE)

BUCKLEY: And as you mentioned, Wolf, NBC saying that Maria Shriver is expected back at work at some point.

But there's also this one tantalizing question that's out there. Given Maria Shriver's family's legacy of public service, will she, herself, some day run for public office? Of course for now, it's her husband. Arnold Schwarzenegger and as you know, we're now awaiting the arrival of Arnold Schwarzenegger, the governor-elect, here at the Century Plaza Hotel where he will outline his transition team and how he will begin the process of moving into the governor's office here in California -- Wolf.

BLITZER: Thanks very much, Frank Buckley. We'll have those live comments once the governor-elect walks into that room where you are.

Joining us now from New York to talk about the recall and the Schwarzenegger win, the comedian David Brenner. He's also the author of a brand new book entitled "I Think There's a Terrorist in My Soup."

I guess I got to start by asking you, David, what does that title mean?

DAVID BRENNER, COMEDIAN: Well, I got the title, you know, when I was talking about the alert systems, you know, all the different colors, you know, fuchsia, pink, it's up to yellow, it's purple with an orange dot in it. And Americans are totally confused and they're panicking.

I mean, you see Americans around the country, like, going to a mall and saying, you know, Oh, a midget. He's going to blow up, you know? We don't know what we're looking for. So I said, we're getting to a point where someday, I'm going to be surprised if you're sitting in a restaurant and you hear someone say, Waiter, I think there's a terrorist in my soup. So I came up with that idea for the title.

BLITZER: You got to have a little laughter, even in dark moment.

What do you make...

BRENNER: Of course.

BLITZER: What do you make, David, of this election here in California?

BRENNER: Well, I was a little worried there with the scandals. I happen to know -- I know Arnold. He's a good guy. And people often confuse the two of us.

But I thought that the scandal -- there was a rumor that during the '70s, Arnold Schwarzenegger experimented with diction and that could have thrown him right out of the race.

BLITZER: You know, despite his accent, despite the fact that he came from Austria, he did very, very well.

This whole intersection between Hollywood and politics -- this is not all that unusual nowadays, but it's still -- I guess people appreciate it here in California perhaps more than other place around the country.

BRENNER: Well, I think, you know, you have people from all walks of life become governors and senators and presidents. And in California, it's almost a one industry town and one industry state. And what is it? It's entertainment. So they go for entertainers.

And I think of -- entertainers can become politicians. I would like to see a lot of politicians leave office and become actors. I really would love that.

BLITZER: Well, maybe they can become comedians, although I don't think you have much to worry about on that -- on that score.

BRENNER: No, there aren't too many funny guys in Washington, are there?

BLITZER: No there's not. I can testify -- I can personally testify to that. We'll leave the humor to others.

But what do you make generally right now, though, of the whole situation as far as presidential politics and your business, humor?

BRENNER: Well, I think we're having a field day. And when you have a president who's been the butt of jokes, you know, for a long time and then you have 15 candidates ranging -- they run the gamut of insanity and ridiculousness, and this is perfect for comedians. I mean it's a field day.

And that's the same -- you know, the worse things get, the more they need us. And you can tell because comedy is so popular on television, movies -- I pack 'em in wherever I play. That's because times are bad. I'm waiting for the day when we don't need professional comedians, when I'm unemployed. When I join the 3.5 million new unemployed Americans. BLITZER: David Brenner, one of the funniest guys out there. I'm sure the book is hysterical. We all need a good laugh once in a while. Thanks very much, David,f or joining us.

BRENNER: Thank you, Wolf.

BLITZER: And California's Governor-Elect Arnold Schwarzenegger about to speak. We'll bring you his comments live. He's going to be answering reporters' questions in that room. You're looking at that live picture.

Also this -- Kobe Bryant's off the court and back to the courtroom.

And friend or foe?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's never the animal's fault. It's just -- just bad timing.

No.

(END VIDEO CLIP)

BLITZER: Bad timing and serious injuries after a tiger turns on a trainer, this time in a cage. We'll get to all of that.

First, a quick look at some other news making headlines "Around the World."

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Car bomb attack. A Jeep packed with explosives blew up in Colombia's capital, killing at least six people and wounding a dozen others. Among the dead, two police officers who approached the Jeep just before it explode. No one has claimed responsibility.

One man, one orbit. China says all systems are go for its first manned space flight. Chinese news reports say liftoff is set for next Wednesday. The plan calls for a single astronaut to make a 90-minute orbit of Earth before landing.

Brain power. Americans Peter Agre and Roderick MacKinnon are this year's winners of the Nobel Prize in chemistry. They studied how cell walls work. And the Nobel Prize in economics goes to American Robert Engle and Briton Clive Granger. They researched the timing behind economic development.

Thousands of Danes deliver a very vocal approval of Crown Prince Frederick's engagement to a commoner from Australia, Mary Donaldson. Despite repeated calls from the crowd, the couple refused to kiss each other. Their wedding is set for next May in Copenhagen.

Big as the Ritz? One of the largest diamonds ever to be auctioned will go under the hammer this month in Geneva, Switzerland. Weighing 103 carats, this rock is expected to demand up to $6 million.

Rock legend. British rocker David Bowie's new "Reality" world tour. First stop, Copenhagen. His new album, "Reality," is No. 1 in Denmark. Over the next seven months, the 56-year-old singer will belt out his tunes in 17 countries, including classics like "Ashes to Ashes," Space Odyssey," and "Let's Dance."

And that's our look "Around the World."

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Remember, we're standing by to hear from Arnold Schwarzenegger. He's having a news conference momentarily. We'll go there live once he begins.

In the meantime, Kobe Bryant is arriving in Colorado today for a court hearing in the sexual assault case. The NBA star is flying in from Hawaii, where his team, the Los Angeles Lakers, is holding preseason training.

CNN national correspondent Gary Tuchman is in Eagle, Colorado, with a preview of tomorrow's hearing -- Gary.

GRAY TUCHMAN, CNN CORRESPONDENT: Wolf, hello to you.

Tomorrow is the day where evidence is released publicly in this case for the very first time, maybe. And we say maybe because Kobe Bryant's attorneys could waive this preliminary hearing. They could cancel it up until the very last second. More on that in just a minute.

As you said, Wolf, Kobe Bryant has been in Hawaii for training camp. The NBA season starts in a few weeks. He arrived Friday, telling reporters he's terrified, that he has good days and bad days, but not specifically discussing this case. His coach, Phil Jackson, says he is flying here to Colorado today. However no sign of Kobe Bryant just yet.

Now Bryant has been in this court house behind me before. Two months ago, he came here for an initial appearance in court, a very brief hearing, to set up this preliminary hearing. The whole purpose of the preliminary hearing -- to decide if there's enough evidence that there's probable cause for Kobe Bryant to continue along in the legal process to have a trial.

Now, the defense has said they want the woman to be here. They want a chance to question her. The judge has said no to that. The defense has said they want it be closed to the news media. The judge says he'll make a decision whether it should be closed, all of it or some of it, before the hearing begins tomorrow.

Wolf, back to you.

BLITZER: All right, Gary, I want to interrupt because Arnold Schwarzenegger has just walked into the Century Plaza Hotel to start talking and answering reporters' questions.

(INTERRUPTED BY CNN COVERAGE OF LIVE EVENT)

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







Aired October 8, 2003 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: Thanks very much.
It's happening right now. We're standing by to hear this hour from Arnold Schwarzenegger. California's Governor-elect will hold his first news conference after his lopsided victory last night.

CNN, of course, will have live coverage. Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): A recall...

GOV. GRAY DAVIS (D), CALIFORNIA: It's time for someone else to serve.

BLITZER: A curtain call and a call to action.

GOVERNOR-ELECT ARNOLD SCHWARZENEGGER (R), CALIFORNIA: Shall we rebuild our state together or shall we fight amongst ourselves?

BLITZER: An actor takes on his toughest role, what role will she play?

MARIA SHRIVER, WIFE OF ARNOLD SCHWARZENEGGER: I wouldn't be standing here if this man weren't an A+ human being.

BLITZER: I'll talk politics and more with comedian and author David Brenner.

Looking for the leaker, the FBI has some questions for the White House.

What's bugging Philadelphia's mayor?

JOHN F. STREET, PHILADELPHIA MAYOR: It's a very deep matter of concern for me.

BLITZER: As Roy Horn fights for his life another tiger (UNINTELLIGIBLE) on its trainer.

UNIDENTIFIED MALE: She's in a lot of pain but in good spirits.

(END VIDEOTAPE) BLITZER: It's Wednesday, October 08, 2003. Hello from Los Angeles I'm Wolf Blitzer reporting. It's the talk of the state and the nation today, California's unprecedented political shakeup and this hour we'll hear directly from the state's new Governor-elect Arnold Schwarzenegger.

He's scheduled to hold a news conference in about 45 minutes. It will be the first time we've heard from him since his dramatic election victory last night and, of course, we'll carry his remarks live.

Plus, we have reporters up and down the state covering the recall and its aftermath. Our National Correspondent Frank Buckley is with the Schwarzenegger campaign here in Los Angeles. He's standing by for the news conference.

And, CNN's Miguel Marquez he's in the state capitol, Sacramento, with a look at what happens next.

We'll get to them shortly but first how the recall went down.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): On this day after the historic recall, the ramifications of California's political earthquake were beginning to sink in. Arnold Schwarzenegger, a 56-year-old immigrant from Austria, is now governor-elect. Even his Democratic political adversaries were promising to give him a chance despite the bitterness of the campaign.

ART TORRES, CHAIRMAN, CALIF. DEMOCRATIC PARTY: It's going to be a tough road ahead but I think the people have spoken and now it's time to govern.

BLITZER: Governor Gray Davis was recalled decisively, 55 to 45 percent. Schwarzenegger easily won the second question on the ballot with more than 3.5 million votes of 48 percent.

Democratic Lieutenant Governor Cruz Bustamante trailed with just under 2.5 million votes or 32 percent. Republican State Senator Tom McClintock emerged with barely a million votes or 13 percent.

Most observers say Schwarzenegger's performance at the one debate he participated in was a turning point, convincing Californians to vote against Davis and for the actor-turned-politician.

DUF SUNDHEIM, CALIFORNIA GOP CHAIRMAN: It wasn't until the debate that the two were joined and people understood that it was OK to let Davis go because they had enough confidence in Schwarzenegger and that's when it came together.

BLITZER: Schwarzenegger had a powerful ally in his wife, Maria Shriver, the long time NBC News correspondent and a Kennedy. She was joined by her mother and father, Eunice and Sergeant Shriver, and her brothers and other relatives on the victory stage. Her uncle, Democratic Senator Edward Kennedy issued a statement congratulating California's next governor and first lady. He said he looked forward to working with Schwarzenegger on many issues.

"The Kennedy family" the Senator said "has its own big tent policy."

President Bush also called the governor-elect.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: The president said to the governor-elect that he was proud of the race he ran and that he looked forward to working with him.

(END VIDEOTAPE)

BLITZER: And this note, President Bush will be here in California next week. He's expected to meet with the governor-elect at that time.

In the meantime, Arnold Schwarzenegger himself and the man he's replacing are expressing similar sentiments as far as what they want to do as far as cooperation is concerned. In their speeches last night, both spoke of cooperation and inclusion.

(BEGIN VIDEO CLIP)

DAVIS: And I pledge to Mr. Schwarzenegger tonight the full cooperation of my administration during the transition. We want to let the new governor know what the challenges are, what the status is of various issues in Sacramento. We will do that just as Governor Wilson did for me. That's an obligation of one governor to the next. We are going to do it.

SCHWARZENEGGER: I will reach out to Republicans, to Democrats, and Independents to those who supported the recall and those who did not, those who supported me today and those who did not. I want to reach out to everybody, the young and old, rich and poor, people of all religions, all colors and all nationalities. I want to be the governor for the people. I want to represent everybody.

(END VIDEO CLIP)

BLITZER: And we're standing by to hear from the Governor-elect Arnold Schwarzenegger this hour. We will, of course, have live coverage.

In the meantime our National Correspondent Frank Buckley is with the Schwarzenegger campaign here in Los Angeles - Frank.

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Wolf, Arnold Schwarzenegger said to appear her in the ballroom at the Century Plaza Hotel in about 40 minutes. He will officially announce that David Dreier is going to head up the transition team and there is a great deal of work to do in a very short period of time. This governor-elect could be sworn in as late as Thanksgiving Day. It could come even earlier. One of the first things that will be on the agenda for this transition team and for the new governor will be to present a budget that has to be in place presented by January 10.

Someone who's been very busy for the past several weeks covering the campaign or, at least, speaking on behalf of the campaign is Karen Hanretty and she is now going to be very - even busier for the next few weeks in this transition period.

We're talking about the budget. One of the first things that Mr. Schwarzenegger has said he will do is to eliminate the car tax. That will put you another $4 billion in the hole. What can you tell us about the budget process and where Governor-elect Schwarzenegger is in that?

KAREN HANRETTY, SCHWARZENEGGER SPOKESWOMAN: Well, look, one of the first things he will do is bring in an independent team of auditors to really look into where are we at the budget process, what waste is out there, what can we cut?

But you know I think the other thing that will be essential that Arnold will do, he will rekindle the investment community in California so that we can create more jobs, improve the business climate immediately, look at the regulations that are really burdening businesses in California.

You know it's not about if we eliminate a tax where do we get that revenue? It's about creating more revenue by creating more jobs in the state of California.

BUCKLEY: What about the fact that you have a Republican governor? All of the other statewide offices are Democrat, both houses of the legislature controlled by Democrats. What's your sense of how that cooperation will take place?

HANRETTY: You know Arnold has really demonstrated his leadership in bipartisan support. You know in 2002 he passed Prop 49 which was an after school initiative. He received wide bipartisan support and I believe that he is going to be able to go to the legislature, work cooperatively and really engage members of the legislature unlike the past governor.

BUCKLEY: All right, Karen Hanretty thanks very much. We'll see if it works out that way. I'm told that this morning Arnold Schwarzenegger has been huddled with aides talking about exactly what model the transition team will take and how it does its hiring, how it formulates its policy. We expect to hear more on that coming up in just about 40 minutes from now - Wolf.

BLITZER: We'll, of course, have that live. Thanks very much Frank Buckley for that.

So, who voted to toss out Gray Davis? Here's a breakdown out this afternoon from the California secretary of state's office. The majority of the state's 58 counties voted in favor of the recall. In fact, only 15 counties opposed it, most of them along the coast among them the state's largest county, Los Angeles, and all the counties making up the San Francisco Bay area.

Winning the election may prove to be easier for Arnold Schwarzenegger than what lies ahead, a tough transition in a very short time frame.

CNN's Miguel Marquez is in Sacramento. That's the state capital and he has more - Miguel.

MIGUEL MARQUEZ, CNN CORRESPONDENT: And a short time frame, Wolf, is going to complicate things when you pile on a budget that's already being written and constitutionally has to be in legislators' hands by January 10. Normally, a governor has about 60 days of transition period. This time it's about 30. Here's how it's supposed to work.

(BEGIN VIDEOTAPE)

MARQUEZ (voice-over): California's 58 counties will have 28 days to canvass or count the vote. This includes counting absentee ballots, write-ins and doing a randomized manual hand count of a small sample of ballots.

All the county registrars then have seven days to report the count to their boards of supervisors. Then, California's secretary of state has four more days to certify those numbers. Finally, the swearing in, it's winner's choice, one to ten days at the most to take the oath of office.

(END VIDEOTAPE)

MARQUEZ: And the California secretary of state says in the last 33 elections the counties and the secretary have taken all 39 days to count and certify the vote.

So if Mr. Schwarzenegger wants just one day before being sworn in that would make him sworn in on November 16 and if he wants the full ten days that's November 25 - Wolf.

BLITZER: A big inauguration coming up in Sacramento, thanks Miguel very much.

Out here they like to say as California goes so goes the nation but will the Golden State start a recall trend? Most states provide for the impeachment of a governor but only 18 have actual recall provisions and of those six apply only in cases of specific wrongdoing.

California also has the lowest threshold for signatures requiring only 12 percent of those who voted in the last election. By comparison Kansas requires 40 percent.

Here's your chance to weigh in on the story. Our web question of the day is this. "Which Arnold Schwarzenegger do you like best, bodybuilder, movie star, politician"? You can vote right now. Go to my web page cnn.com/wolf. We'll have the results later this hour.

And you can -- while you're there I'd love to hear directly from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

The Bush administration is launching a public relations offensive to answer critics of its Iraq policy. The president and top officials are taking their case across the country and overseas.

The opening salvo came today in a speech by the National Security Adviser Dr. Condoleezza Rice. Let's go live to our CNN Senior White House Correspondent John King - John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Wolf, the administration cast this new public relations offensive or new strategy offensive as a way to bring to light and perhaps some news media coverage to what it says is considerable progress in Iraq. Critics, though, say this is proof to them that this administration is very much on the defensive.

You noted Condoleeza Rice, you see her here in Chicago, took the lead today in a speech to the Chicago Council on Foreign Relations. She defended the president's post-war policy.

She said the daily lives of the Iraqi citizens are getting better by the day and indeed by the hour. But she also took a great deal of time in this speech to defend the president's decision to go to war in the first place.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: This was an international outlaw who had been allowed to remain too long and when you let a threat fester you eventually pay a price for it. You either have an option of dealing with it now or dealing with it later and this president decided to deal with it now.

(END VIDEO CLIP)

KING: Striking the administration still making the case for going to war to begin with five months plus a week after this dramatic made-for-TV moment on the deck of an aircraft carrier, the president appearing there to deliver a speech in which and one of the signs summarized it best. He said mission accomplished the president saying back then five months ago that major combat operations were over.

But since that speech a number of setbacks for the administration, 91 Americans killed in action in Iraq, the failure to win support in the U.N. Security Council for a new resolution, questions and criticism in Congress over the $20 billion the president wants for reconstruction efforts in Iraq and polls showing that half of the American people now doubt that it was worth going to war to begin with so the administration mounting this new offensive.

You will see more speeches like the one today from Dr. Rice, speeches from the president and the vice president as well and, in an attempt to get around what it believes to be much too skeptical a national news media interviews of the president and vice president and other senior officials with local media outlets also on the strategy - Wolf.

BLITZER: A major PR campaign. John thanks very much.

The U.S.-led coalition in Iraq today announced the arrest of a former Iraqi general said to have ties to Saddam Hussein and to those financing anti-coalition activities. In all, 112 people were arrested in the weekend raids near the Syrian border. The U.S. military says the area has been a crossing point for fighters seeking to enter Iraq.

Shouting slogans more than 2,000 Shiite Muslims marched through the streets of Baghdad in a second day of protests triggered by the arrest of a Shiite cleric. The imam and several other people were arrested Monday. They're accused of keeping weapons in a mosque.

We're awaiting live comments this hour from California's Governor-elect Arnold Schwarzenegger. We'll have those for you when they begin.

Also the woman behind the man, a closer look at Maria Shriver's role in her husband's election and the Kennedy family connection, plus this...

STREET: You know you'd like to think that you have a certain amount of privacy in your own office and when you don't you feel violated.

BLITZER: Who's bugging the mayor of Philadelphia? A listening device is discovered in his office. Now Democrats demand an explanation from the FBI.

And will the show ever go on? We'll hear word from Roy Horn's doctors, an update on his condition. That's just ahead.

(COMMERCIAL BREAK)

BLITZER: Britney bashing, Maryland's first lady makes some harsh remarks about the pop princess. You'll hear them here on WOLF BLITZER REPORTS. Stay with us.

(COMMERCIAL BREAK)

BLITZER: You're looking at a live picture at the ballroom, the Century Plaza Hotel, Century City, Los Angeles. We're standing by. We're awaiting the Governor-elect of California Arnold Schwarzenegger. He'll be walking in answering reporters' questions, the first time since his dramatic victory last night. CNN will have live coverage. That's coming up this hour.

In the meantime, though, there's other important news we're following. Let's turn to that leak that blew the cover of a CIA operative. Government sources tell CNN the FBI will start interviewing White House officials, in fact anytime now. Let's go live to our Justice Correspondent Kelli Arena - Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: That's right, Wolf, but the White House interviews will not be the first to be conducted. The FBI has already been busy interviewing some of the key players.

(BEGIN VIDEOTAPE)

ARENA (voice-over): Government sources tell CNN former Ambassador Joe Wilson, his wife a covert CIA operative, and the reporter who revealed her identity have all been interviewed by the FBI. So, too, have several CIA officials, the next stop the White House.

MCCLELLAN: There are people inside and outside this administration that can help get to the bottom of this and if people have information they ought to talk to the Department of Justice about it.

ARENA: White House Counsel Alberto Gonzales and lawyers in his office are busy sifting through documents provided by White House staff that could be relevant to the investigation and some of that information is expected to be handed over to the Justice Department by week's end.

MCCLELLAN: We're moving quickly. We want to rule out any information going to them very soon.

ARENA: Sources close to the investigation say the list of people who may have been the source of the leak keeps growing prompting the FBI's Washington field office to assign more agents to the investigation and one senior official tells CNN the FBI does not expect to complete the probe by year's end.

A former FBI official who used to head leak investigations says they are often unwieldy.

STEVE POMERANTZ, FORMER FBI OFFICIAL: Lots of times you start off these investigations with a belief that the universe of potential leakers is small only to be confronted early on with the reality that there are many, many more people that knew the information.

ARENA: And that's why almost all leak investigations are closed without ever naming a suspect.

REP. PORTER GOSS (R), INTELLIGENCE CHMN.: The success rate on finding people who leak is very, very, very small. Now, there's a difference between willful leakers, as we all know, and inadvertent leakers.

(END VIDEOTAPE)

ARENA: While Republicans are saying a crime may not even have been committed, Democrats are again on the offensive. The Democratic National Committee urging activists to e-mail Republicans and demand a special counsel be appointed to head the leak investigation instead of John Ashcroft - Wolf.

BLITZER: CNN's Kelli Arena in Washington, Kelli thanks very much.

Not far away from Washington in Philadelphia a shocking story, something's bugging the mayor of Philadelphia. The Democrat John Street is in the middle of a reelection rematch against a Republican rival and the FBI says a listening device found in the mayor's office is not connected to the campaign but that's all its saying at least for now.

Let's go live to Walt Hunter of CNN affiliate KYW in Philadelphia - Walt.

WALT HUNTER, KYW CORRESPONDENT: Well, Wolf, sources say when that bug was found in the mayor's office yesterday it didn't go to the police crime lab as you might expect.

Instead, Philadelphia Police turned it right over to the FBI and they now have it in their offices here. Sources say that's the clearest evidence yet that the FBI are the ones who put it there in the first place.

(BEGIN VIDEO CLIP)

SYLVESTER JOHNSON, PHILADELPHIA POLICE COMMISSIONER: Before we start I'm telling you right now I am not discussing the mayor's office under no circumstances. Any questions that pertain to the mayor's office are going to have to be answered by the Federal Bureau of Investigation.

HUNTER (voice-over): Police commissioner Sylvester Johnson made it clear any questions about the bug found in Mayor Street's office should go straight to the FBI's Philadelphia office.

JOHNSON: I turned it over to the FBI. I have no further comments about that investigation.

HUNTER: But neither the FBI nor the U.S. attorney would comment on whether the highly-sophisticated listening device was, in fact, part of a federal probe inside City Hall.

UNIDENTIFIED MALE: Well, I'm aware there's been a great deal of media speculation. I've certainly been watching it as well but I know that yesterday as well that the FBI came down and actually made a comment and spoke on behalf of the Department of Justice. At this point in time I think I'm going to let that comment stand.

HUNTER: The mayor who maintains he has done absolutely nothing wrong says he knows of no reason why any federal agency should be planting bugs in his office and there's now growing pressure on the FBI to explain why it happened.

GOV. ED RENDELL (D), PENNSYLVANIA: The mayor says that he's been told through sources that he is not the target of an investigation. If that is true then the FBI owes that explanation not only to the mayor but to the people of Philadelphia.

(END VIDEOTAPE)

HUNTER: And joining the governor of Pennsylvania in the call for the FBI here to break their silence, Senator Arlen Specter, senior member of the Judiciary Committee in the Senate. So far no word from the FBI, no confirmation on just what the bug was about.

Live in Philadelphia for CNN, Walt Hunter - back to you, Wolf.

BLITZER: Thanks very much, Walt, for that report.

And this note, we're waiting for Arnold Schwarzenegger to speak live this hour. You're looking at a live picture. He's going to have a news conference here in Los Angeles. We'll bring it to you live once it begins.

We'll also share more about the woman behind the candidate. She's a wife, a journalist and don't forget this she's also a Kennedy.

Kobe Bryant heads back to the mountains of Colorado. This time it's no vacation.

And, a Senator's wife snatched from her home and robbed, a mysterious crime connection, we'll have details. Stay with us.

(COMMERCIAL BREAK)

BLITZER: You want to see how Arnold Schwarzenegger is feeling, what he's saying, how he's doing on this day after he's elected governor of California? You will shortly. You see the news media. They're getting ready for a news conference here in Los Angeles. We'll bring it to you live once it begins. That is expected to begin very, very shortly.

In the meantime there's a new development in the abduction of the wife of U.S. Senator Judd Gregg. Police in Fairfax County, Virginia, that's just outside Washington, D.C. now say Kathleen Gregg's abduction yesterday is linked to two other incidents. Gregg was released unharmed.

CNN's Patty Davis is over at police headquarters in Fairfax County and she has more - Patty.

PATTY DAVIS, CNN CORRESPONDENT: Well, Wolf, police are looking for two men in a stolen silver Chevy Monte Carlo and they say those are the two men that abducted Kathleen Gregg.

(BEGIN VIDEOTAPE)

DAVIS (voice-over): Fairfax County detectives canvassed the neighborhood where Kathleen Gregg was abducted handing out leaflets with pictures of one of the suspects.

UNIDENTIFIED FEMALE: Do you want me to post this up? UNIDENTIFIED FEMALE: Yes. If you would post it, I'll give you a couple and you can leave them here for any of your customers that come in.

UNIDENTIFIED FEMALE: OK.

DAVIS: So far no sign of the two men who confronted Gregg inside the McLean, Virginia home she shares with her husband New Hampshire Senator Judd Gregg and forced to withdraw money at a nearby bank. But police say they do have several promising leads and are learning more about Mrs. Gregg's ordeal.

UNIDENTIFIED MALE: Once she arrived home she was there. A short while later she was confronted by the suspects.

DAVIS: Senator Gregg's chief of staff told the "Manchester Union Leader" that Mrs. Gregg told her captors: "I can get you money if you take me to the bank."

(END VIDEOTAPE)

DAVIS: Now, police believe the same two men in the same car are responsible for two other incidents over the past several days. Now just within the past hour Arlington Virginia Police have released a sketch, they say it's of a man who tried to force his way into another woman's home on Monday.

Now she has also identified the man seen in the surveillance video in the bank that Gregg was forced to go to and withdraw that money as that man's accomplice, so a possible break in this case for detectives - Wolf.

BLITZER: Patty Davis with the latest on this case thanks very much.

And shifting gears to a less serious matter but one involving another wife of an elected official. Kendal Ehrlich the wife of Maryland Governor Robert Ehrlich says a comment she made about singer Britney Spears was an inadvertent figure of speech.

It happened when Mrs. Erlich spoke at a domestic violence prevention conference last week and accused Spears of exaggerating the importance of sex for young girls. A radio station discovered the remark and played an audio tape of it on air.

(BEGIN AUDIO TAPE)

KENDAL EHRLICH, WIFE OF MARYLAND GOVERNOR: You know I really if I had an opportunity to shoot Britney Spears I think I would. You know, I - I hate to say that but you know I, you know, like I said I'm raising a boy. And I think oh my goodness. What would I do if I had a daughter who is seeing and seeing these images and seeing that and have peer pressure"?

(END AUDIO TAPE) BLITZER: Spears' record label issued a response saying that Mrs. Ehrlich shot herself in the foot by promoting violence at a domestic violence prevention conference.

We're awaiting live comments this hour from California's Governor-Elect Arnold Schwarzenegger. We'll bring them to you live once they begin.

Also this -- standing by her man. The impact Maria Shriver had on her husband's election and the Kennedy family connection.

California recall humor, I'll talk live with the comedian David Brenner. He's got a new book out.

And Kobe Bryant on the eve of his court hearing in his sexual assault case. We'll go live to Eagle, Colorado.

A lot of news coming up. Stay with us.

(COMMERCIAL BREAK)

BLITZER: We're standing by to hear from Arnold Schwarzenegger, the governor-elect of California. He's about to have a news conference. We'll bring it to you live.

Stay with us.

(COMMERCIAL BREAK)

ANNOUNCER: This is a special edition of WOLF BLITZER REPORTS. Live from Los Angeles, the California recall.

BLITZER: Welcome back to CNN.

It's happening this hour, live remarks from the California governor-elect,Arnold Schwarzenegger. We'll bring those to you once he begins.

First, though, let's have a quick check of the latest headlines.

(NEWSBREAK)

BLITZER: And this just in from CNN Pentagon correspondent Barbara Starr -- the U.S. military is preparing to file initial charges against U.S. Army Captain James Yee, the Islamic chaplain, who's been held for almost a month on suspicion of espionage and aiding the enemy. Military officials say that charges may be filed within the next few days to demonstrate that the case is progressing.

Yee is in custody in Charleston, South Carolina. He was arrested for allegedly carrying classified material after returning to the United States from Guantanamo Bay, where he served as a chaplain to Taliban and al Qaeda suspects at a U.S. detention center there.

We're standing by for a news conference by the California governor-elect, Arnold Schwarzenegger. That's coming up soon. While we wait, though, more on the woman who was a driving force in his campaign to become the governor of California. We're learning through a spokesperson that Maria Shriver will indeed return to work at NBC News as a correspondent, although no date has been set.

Our national correspondent Frank Buckley once again is joining us, More now on the California first lady to be -- Frank.

BUCKLEY: Well, Wolf, it's no secret that Maria Shriver didn't want Arnold Schwarzenegger to run for governor in the first place. But once he decided to move forward anyway, in true Kennedy spirit, Maria Shriver, who is the daughter of Eunice Kennedy-Shriver and Sargent Shriver put herself on 150 percent into this goal of getting her husband elected.

(BEGIN VIDEOTAPE)

MARIA SHRIVER, ARNOLD SCHWARZENEGGER'S WIFE: The man I know and the man I love, Arnold Schwarzenegger.

BUCKLEY (voice-over): Maria Shriver was Schwarzenegger's biggest supporter during the campaign appearing at his side....

SHRIVER: Hi, how are you? I'm Maria Shriver.

BUCKLEY: ...and hitting the road on her own, working women to increase support among female voters.

SHRIVER: I wouldn't be standing here if this man weren't an A- plus human being. I wouldn't be taking my time, I wouldn't have left my job that I love, OK? I wouldn't have done any of this if I didn't believe in this man.

BUCKLEY: Shriver took a leave from her job as a correspondent for NBC News to campaign for her husband. This niece of Jack Kennedy also took leave of her family's deep Democrat traditions to campaign for a Republican.

SHRIVER: When I started going out with him back in 1977, people could not understand this relationship. I'm sure there are some who still kind of raise their eyebrows and I said, Hello? Have you looked at the body, OK? I am no fool.

BUCKLEY: Shriver friend Greg Payne says Shriver has moderated Schwarzenegger's political views.

GREG PAYNE, SHRIVER FRIEND: It seems to be that her ideology has kind of spilled over and affected him. And I -- my own view is without that type of softening, I don't think that Arnold Schwarzenegger would be the credible candidate that he is.

BUCKLEY: Shriver has been Schwarzenegger's staunchest defender against allegations that he groped women or worse.

SHRIVER: I believe he's handled himself in this situation in the best possible manner. He apologized, and that's courageous. BUCKLEY: Now Schwarzenegger and Shriver are embarking on a new phase, as a political power couple to rival any in the Kennedy-Shriver family past or present.

UNIDENTIFIED MALE: There's a real role model for Arnold and Maria's marriage in the marriage of Eunice and Sargent Shriver. I think she really is an important part of his life, not only as a support but as an adviser.

BUCKLEY: Friends say it's likely that Shriver will be an active first lady.

PAYNE: I think she will also go out to the various neighborhoods that feel as though they've not been connected and try to be, as glib as it might seem, you know, to be the first lady of the people, so to speak.

(END VIDEOTAPE)

BUCKLEY: And as you mentioned, Wolf, NBC saying that Maria Shriver is expected back at work at some point.

But there's also this one tantalizing question that's out there. Given Maria Shriver's family's legacy of public service, will she, herself, some day run for public office? Of course for now, it's her husband. Arnold Schwarzenegger and as you know, we're now awaiting the arrival of Arnold Schwarzenegger, the governor-elect, here at the Century Plaza Hotel where he will outline his transition team and how he will begin the process of moving into the governor's office here in California -- Wolf.

BLITZER: Thanks very much, Frank Buckley. We'll have those live comments once the governor-elect walks into that room where you are.

Joining us now from New York to talk about the recall and the Schwarzenegger win, the comedian David Brenner. He's also the author of a brand new book entitled "I Think There's a Terrorist in My Soup."

I guess I got to start by asking you, David, what does that title mean?

DAVID BRENNER, COMEDIAN: Well, I got the title, you know, when I was talking about the alert systems, you know, all the different colors, you know, fuchsia, pink, it's up to yellow, it's purple with an orange dot in it. And Americans are totally confused and they're panicking.

I mean, you see Americans around the country, like, going to a mall and saying, you know, Oh, a midget. He's going to blow up, you know? We don't know what we're looking for. So I said, we're getting to a point where someday, I'm going to be surprised if you're sitting in a restaurant and you hear someone say, Waiter, I think there's a terrorist in my soup. So I came up with that idea for the title.

BLITZER: You got to have a little laughter, even in dark moment.

What do you make...

BRENNER: Of course.

BLITZER: What do you make, David, of this election here in California?

BRENNER: Well, I was a little worried there with the scandals. I happen to know -- I know Arnold. He's a good guy. And people often confuse the two of us.

But I thought that the scandal -- there was a rumor that during the '70s, Arnold Schwarzenegger experimented with diction and that could have thrown him right out of the race.

BLITZER: You know, despite his accent, despite the fact that he came from Austria, he did very, very well.

This whole intersection between Hollywood and politics -- this is not all that unusual nowadays, but it's still -- I guess people appreciate it here in California perhaps more than other place around the country.

BRENNER: Well, I think, you know, you have people from all walks of life become governors and senators and presidents. And in California, it's almost a one industry town and one industry state. And what is it? It's entertainment. So they go for entertainers.

And I think of -- entertainers can become politicians. I would like to see a lot of politicians leave office and become actors. I really would love that.

BLITZER: Well, maybe they can become comedians, although I don't think you have much to worry about on that -- on that score.

BRENNER: No, there aren't too many funny guys in Washington, are there?

BLITZER: No there's not. I can testify -- I can personally testify to that. We'll leave the humor to others.

But what do you make generally right now, though, of the whole situation as far as presidential politics and your business, humor?

BRENNER: Well, I think we're having a field day. And when you have a president who's been the butt of jokes, you know, for a long time and then you have 15 candidates ranging -- they run the gamut of insanity and ridiculousness, and this is perfect for comedians. I mean it's a field day.

And that's the same -- you know, the worse things get, the more they need us. And you can tell because comedy is so popular on television, movies -- I pack 'em in wherever I play. That's because times are bad. I'm waiting for the day when we don't need professional comedians, when I'm unemployed. When I join the 3.5 million new unemployed Americans. BLITZER: David Brenner, one of the funniest guys out there. I'm sure the book is hysterical. We all need a good laugh once in a while. Thanks very much, David,f or joining us.

BRENNER: Thank you, Wolf.

BLITZER: And California's Governor-Elect Arnold Schwarzenegger about to speak. We'll bring you his comments live. He's going to be answering reporters' questions in that room. You're looking at that live picture.

Also this -- Kobe Bryant's off the court and back to the courtroom.

And friend or foe?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's never the animal's fault. It's just -- just bad timing.

No.

(END VIDEO CLIP)

BLITZER: Bad timing and serious injuries after a tiger turns on a trainer, this time in a cage. We'll get to all of that.

First, a quick look at some other news making headlines "Around the World."

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Car bomb attack. A Jeep packed with explosives blew up in Colombia's capital, killing at least six people and wounding a dozen others. Among the dead, two police officers who approached the Jeep just before it explode. No one has claimed responsibility.

One man, one orbit. China says all systems are go for its first manned space flight. Chinese news reports say liftoff is set for next Wednesday. The plan calls for a single astronaut to make a 90-minute orbit of Earth before landing.

Brain power. Americans Peter Agre and Roderick MacKinnon are this year's winners of the Nobel Prize in chemistry. They studied how cell walls work. And the Nobel Prize in economics goes to American Robert Engle and Briton Clive Granger. They researched the timing behind economic development.

Thousands of Danes deliver a very vocal approval of Crown Prince Frederick's engagement to a commoner from Australia, Mary Donaldson. Despite repeated calls from the crowd, the couple refused to kiss each other. Their wedding is set for next May in Copenhagen.

Big as the Ritz? One of the largest diamonds ever to be auctioned will go under the hammer this month in Geneva, Switzerland. Weighing 103 carats, this rock is expected to demand up to $6 million.

Rock legend. British rocker David Bowie's new "Reality" world tour. First stop, Copenhagen. His new album, "Reality," is No. 1 in Denmark. Over the next seven months, the 56-year-old singer will belt out his tunes in 17 countries, including classics like "Ashes to Ashes," Space Odyssey," and "Let's Dance."

And that's our look "Around the World."

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Remember, we're standing by to hear from Arnold Schwarzenegger. He's having a news conference momentarily. We'll go there live once he begins.

In the meantime, Kobe Bryant is arriving in Colorado today for a court hearing in the sexual assault case. The NBA star is flying in from Hawaii, where his team, the Los Angeles Lakers, is holding preseason training.

CNN national correspondent Gary Tuchman is in Eagle, Colorado, with a preview of tomorrow's hearing -- Gary.

GRAY TUCHMAN, CNN CORRESPONDENT: Wolf, hello to you.

Tomorrow is the day where evidence is released publicly in this case for the very first time, maybe. And we say maybe because Kobe Bryant's attorneys could waive this preliminary hearing. They could cancel it up until the very last second. More on that in just a minute.

As you said, Wolf, Kobe Bryant has been in Hawaii for training camp. The NBA season starts in a few weeks. He arrived Friday, telling reporters he's terrified, that he has good days and bad days, but not specifically discussing this case. His coach, Phil Jackson, says he is flying here to Colorado today. However no sign of Kobe Bryant just yet.

Now Bryant has been in this court house behind me before. Two months ago, he came here for an initial appearance in court, a very brief hearing, to set up this preliminary hearing. The whole purpose of the preliminary hearing -- to decide if there's enough evidence that there's probable cause for Kobe Bryant to continue along in the legal process to have a trial.

Now, the defense has said they want the woman to be here. They want a chance to question her. The judge has said no to that. The defense has said they want it be closed to the news media. The judge says he'll make a decision whether it should be closed, all of it or some of it, before the hearing begins tomorrow.

Wolf, back to you.

BLITZER: All right, Gary, I want to interrupt because Arnold Schwarzenegger has just walked into the Century Plaza Hotel to start talking and answering reporters' questions.

(INTERRUPTED BY CNN COVERAGE OF LIVE EVENT)

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