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AMERICAN MORNING

Presidential Address Discussion; Former Saddam Hussein Regime Members Released; Israel's Sharon Recovering from Mild Stroke; Bush's Wiretap Authorizations Prove Controversial

Aired December 19, 2005 - 07:00   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody I'm Soledad O'Brien.
Primetime politics for President Bush, but will his latest message on Iraq change the way people are viewing the mission? We're going to take you live to the White House ahead.

RICK SANCHEZ, CNN ANCHOR: And I'm Rick Sanchez, Miles O'Brien on off today. Vice President Cheney in Afghanistan for an historic moment for after a surprise stop, as well, in Iraq.

O'BRIEN: And Israeli Ariel Sharon is working from the hospital this morning. He had a stroke. We're going to get a live update on his condition on this AMERICAN MORNING.

Good morning. Welcome, everybody. Lots to get to, lots to talk about with President Bush, let's get to it. A different setting, different style for the president. He spoke from the Oval Office last night and admitted that the war in Iraq is more difficult than expected. He says, though, that progress is being made and that the U.S. is winning. Elaine Quijano is live for us from the White House.

Good morning, Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Good morning to you Soledad. That's right, this was President Bush's first Oval Office address since he announced the start of the U.S. led invasion in Iraq nearly three years ago. And this speech, last night, coming on the heels of the historic parliamentary elections in Iraq.

In his address, the president responded and reached out directly to war critics, saying while he's heard their disagreement he believes the only options before the country are victory or defeat. Now, more than 2,100 U.S. Military personnel dead since the war began, the president also said he understood the consequences of his decisions.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I know that some of my decisions have led to terrible loss, and not one of those decisions has been taken lightly. I know this war is controversial. Yet, being your president requires doing what I believe is right and accepting the consequences.

(END VIDEO CLIP) QUIJANO: While the president did try to strike a more humble tone in his remarks, he remained firm on the issue of not setting a timeframe for the withdrawal of U.S. forces in Iraq. As the president has said many times before, he said he believes to do so would undermine all of the work in Iraq and the progress that he says has been achieved so far. Now, the president also repeating that he believes to do so would also hurt U.S. morale and send the message that America does not keep his word.

Now, the president's speech happened against the backdrop of a stunning acknowledgment on Saturday when the president delivered his radio address live that in the months after 9/11, that the president authorized the National Security Agency to intercept international calls and e-mails without a court warrant. It's an issue, certainly, that has raised some serious questions, Soledad, here in Washington.

O'BRIEN: Let's get back to the speech for one moment, Elaine. And we're going to be talking more about that wiretapping issue ahead this morning. But much has been made about the president's tone and actually in each and every speech, it sounds like he's getting more and more conciliatory. Do you think that's fair to say?

QUIJANO: I think so and what's interesting, though, is, of course, this is an administration that has been criticized many times in the past for painting too rosy a picture, say some of the situation on the ground in Iraq, this certainly an attempt to diffuse some of that criticism.

The president trying to paint what some say is a more realistic view of not only the progress, the difficulties, though, that they're facing now, but even some of the way that the U.S. has had to deal with some of the problems in previous months and years in that conflict -- Soledad.

O'BRIEN: Elaine Quijano at the White House for us. Elaine, thanks. Coming up, in the next couple of minutes we're going to talk with democratic Senator Jack Reed about Iraq and the president's speech, as well -- Rick.

SANCHEZ: In Iraq, the U.S. Military releasing eight former members of Saddam Hussein's regime. Now, some were once considered high value detainees. Aneesh Raman is live in Baghdad; he's following this for us. Aneesh, What can you tell us about these guys?

ANEESH RAMAN, CNN BAGHDAD CORRESPONDENT: Well Rick, the U.S. military announcing the news today the release took place on sad. We do not know exactly who the eight high level detainees were, how high up they were in Saddam's regime. The military simply saying they are no longer under investigation and no cause, still, to keep them in custody, but again this could be significant news, depending upon exactly who these people are -- Rick.

SANCHEZ: Said last night this would be a turning point for Iraq. Talking, of course, about the elections last week that were considered successful by most. Is that the feeling there from people living in Iraq as well? RAMAN: Well, I think no one on the ground is as definitive as saying that this is a turning point but everyone here, at least those we've spoken to have said this is a chance and it is laced with incredible potential. The Iraqis in millions went out to the polls and they expect vary basic things out of the government to come. They want the security situation dealt with, they want basic services guarantee, the want economic development.

And so, while there is a great amount of faith, amount of faith in this new government, it will be incumbent upon whoever emerges as the county's prime minister to capitalize on that, on the momentum and on the Iraqi society really giving this a chance. So that is why 2006 is going to be a critical year here -- Rick.

SANCHEZ: And the backdrop, some new violence this morning?

RAMAN: There was a car bomb has detonated in the capitol, killing five, another car bomb wounding five. We saw the security measures the country was under a lock down in around the elections. Those security measures have eased and seeing a return of the violence.

But again, the thought is that the election will, if nothing else, divide the insurgency from the Saddam loyalists, we'll soon see Sunni politicians as entering into the political fray, away from the Jihadist, the Abu Musab al-Zarkawi Judaists who are here waging their own battle -- Rick.

SANCHEZ: Aneesh Raman reporting to us from Baghdad. Meanwhile, Vice President Dick Cheney making a stop in Afghanistan, this morning. He's in Kabul to see Afghanistan open its first popularly elected parliament in three decades.

Before arriving in Afghanistan, the vice president made a surprise stop in Iraq as well. Mr. Cheney met with Iraq's president and the U.S. Ambassador there. He also stopped to inspect Iraqi and U.S. troops in the field, speaking later at an air base. The vice president touched on the topic on everyone's mind: Troop withdrawals in Iraq.

(BEGIN VIDEO CLIP)

DICK CHENEY, U.S. VICE PRESIDENT: And on behalf of the president, I assure you, any decisions about troop levels will be driven by the conditions on the ground and the judgment of our commanders, not by artificial timeline set by politicians in Washington, D.C.

(END VIDEO CLIP)

SANCHEZ: By the way, the vice president's next stop is Islamabad, Pakistan. While there, he will check on relief efforts for earthquake victims, and then on to Oman, Saudi Arabia and finally on to Egypt. Soledad over to you.

O'BRIEN: Thank you. Well, democrats and republicans want justification for eavesdropping on U.S. citizens without a court warrant. President Bush says the wiretaps are necessary for national security.

(BEGIN VIDEO CLIP)

BUSH: This authorization is a vital tool in our war against the terrorists. It is critical to saving American lives. The American people expect me to do everything in my power under our laws and constitution to protect them and their civil liberties and that is exactly what I will continue to do so long as I'm the president of the United States.

(END VIDEO CLIP)

O'BRIEN: Democratic leaders in the House are calling for an independent investigation on Sunday, democrat Senator Russ Feingold spoke to Wolf Blitzer on CNN's "LATE EDITION" cautioning the administration is going too far.

(BEGIN VIDEO CLIP)

SEN. RUSS FEINGOLD (D), WISCONSIN: The efforts that were made with regard to wiretapping gives me every reason to believe that this administration is exploiting all of the laws that it can and now making up its own laws now. I believe that this is an abusive situation.

(END VIDEO CLIP)

O'BRIEN: "LATE EDITION" with Wolf Blitzer airs on Sundays at 11:00 a.m. Eastern. A little bit later this morning we're gong to talk to Attorney General Alberto Gonzales about these wiretaps, that's coming up right at the half hour.

More tests are being done this morning on the ailing Israeli Prime Minister Ariel Sharon. The 77-year-old is still hospitalized after a mild stroke that he suffered late on Sunday.

CNN's John Vause is live for us in Jerusalem.

John, good morning to you. Just how is the prime minister doing?

JOHN VAUSE, CNN CORRESPONDENT: Good morning, Soledad. We're expecting to hear more detail in the coming few moments when the doctors here Hadassah hold a news conference. They've been short very on specifics about the prime minister's condition. We have heard from doctors that the prime minister has continued to improve throughout the day that he is up and around walking and talking and joking with those around him.

His aides say he is still very much in charge of the country, he is running the day-to-day affairs meeting with his military attache and having a briefing from the government's secretary, that kind of thing, but still very vague on the specifics about Mr. Sharon's health -- Soledad.

O'BRIEN: Let's talk about his health in the past. He certainly has suffered from his fair share of serious health problems.

VAUSE: Well, in fact, Soledad, a lot of Ariel Sharon's health problems have never been made public. The only thing we could find in the last couple of years was a case of kidney stones. Whenever asked about his health, he's joked about it, he's never released his medical records. He said that would cause ill health for his political opponents.

He said that longevity runs in his family. He's point to his aunt who lived until she was well into her 90s, but he has never every got into the specifics of his health. And obviously he is obviously overweight, he his in 70s, about to be 78 in February, so there is a great deal of concern, right now, about the precise condition that Ariel Sharon is in -- Soledad.

O'BRIEN: Might be a little bit of spin there. All right, John Vause for us this morning. John, thanks for the update -- Rick.

SANCHEZ: Let's face it. This week is when people really are going to start to gear up and go shopping. And that's why they need to know what weather they're going to have out there because they are hitting it big, today. Bonnie Schneider's joining us at the CNN Center with the very latest on this.

What can they expect out there, Bonnie?

(WEATHER REPORT)

O'BRIEN: But that's OK, Coply Place is indoors it won't matter how cold it gets! You can keep shopping without any break. All right Bonnie thanks.

SANCHEZ: That's pretty good, actually, isn't it?

O'BRIEN: Anything indoors at that point.

Still to come, a controversy over wiretaps. Is it legal for the government to eavesdrop on phone calls? Attorney General Alberto Gonzales is going to answer that question coming up in a few minutes.

SANCHEZ: So, President Bush takes what some might call a humble tone on his speech in Iraq. Are democrats buying it? Well, I'm going to ask one. We'll have a senator here with us in just a bit.

O'BRIEN: Then a fugitive accused of sexual assault nabbed after seven weeks on the run. We're going to talk, this morning, to the people who helped catch him. That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: President Bush has certainly taken on the critics of the war before, so what was different in last night's speech? Let's listen.

(BEGIN VIDEO CLIP) BUSH: My fellow citizens, not only can we win the war in Iraq, we are winning the war in Iraq. It is also important for every American to understand the consequences of pulling out of Iraq before our work is done. We would abandon our Iraqi friends and signal to the world that America cannot be trusted to keep its word.

(END VIDEOTAPE)

O'BRIEN: Many people said it was a more consolatory tone from the president. Senator Jack Reed is a democrat from Rhode Island. He's in the Capitol this morning.

Nice to see you, Senator. Thanks for talking with us.

JACK REED (D), RHODE ISLAND: Good morning, Soledad.

O'BRIEN: So, what did you make of the speech. I know not long ago, last time we talked, you said you wanted candid information from the president. Did you get it?

REED: Well, the president is being, I think, much more forthcoming when he describes the intelligence problems and the faulty intelligence that (UNINTELLIGIBLE) this operation. But, what is still missing is, I think, a very much more realistic appreciation for the American people. The challenges ahead of helping them construct a government help them reform their economy and the cost to us over the next several years in trying to salvage a worthwhile outcome from what, to date, has been a very complicated and very dangerous situation for our soldiers in Iraq.

O'BRIEN: Here, listen to a little bit more of what the president had to say. He talked about three aspects of the strategy. Let's listen.

(BEGIN VIDEO CLIP)

BUSH: In three aspects of our strategy, security, democracy, and reconstruction, we have learned from our experiences and fix what had has not worked. We will continue to listen to honest criticism and make every change that will help us complete the mission.

(END VIDEO CLIP)

O'BRIEN: Do you think overall the four speeches had gone any distance to explain and laying out the "plan for victory?" I use that in quotes.

REED: Well, I think what the president has done is laid out the concepts which we all agree, it can't be strictly a military victory it has to be a combination of military/security together with economic reconstruction and political progress. And in fact, there has been some progress with respect to, particularly, the electoral aspects of Iraq.

But, the reconstructive efforts, the economic reform, the creating institutions that will make sure that these changes are not reversible; those are the things still in doubt. And I think the president tends to be overly optimistic when he talks about the future, although again, I think as many people recognize, he's being morning forthcoming about the intelligence failures, particularly which prompted or at least assisted in this operation.

O'BRIEN: So when he says "not only can we win the war in Iraq, we are winning the war in Iraq," you disagree?

REED: Well, I think it's very difficult to gauge our position, because we are definitely winning the military aspect of this. There's no way that any insurgent force or terrorists can defeat our forces in Iraq.

But the real question, and I think it's on the minds of our military leaders, are we doing those other things that will make sure that the progress we've seen, and there has been progress -- the president is right to point to areas of progress, but is that progress irreversible? Are we, in a way, going forward in such a way that the stability of Iraq will be assured? That's still, I think, an open question and that's what, I think, concerns the majority of Americans at this point.

REED: That speech that we're talking about followed on the heels of the president's radio address where he said he is authorized, in fact, to use wiretaps and listen in without a court order on citizens and their communications. Let's listen to a little bit of what the president had to say.

(BEGIN VIDEO CLIP)

BUSH: The weeks following the terrorist attacks on our nation, I authorized the National Security Agency, consistent with U.S. law and the Constitution, to intercept the international communications of people with known links to Al Qaeda and related terrorist organizations.

(END VIDEO CLIP)

O'BRIEN: He says it's consistent with U.S. law, others disagree. Where do you stand?

REED: Well, I think we have to look very carefully at that, Soledad. My sense is that the president doesn't have the authority to create laws himself. That's something that we should have to look at, I hope we do undertake a quick, thorough investigation.

And frankly, if the president feels that there are any sort of ambiguity about his ability to do these things, he should of, I think, come to the Congress and asked for that authority. We quickly grant to him after 9/11, I think he would have gotten essentially what he would of asked for, particularly if he could make the case, as he suggests now, that this is of grave interest to the national security.

O'BRIEN: Democrats, I know, have asked for an independent review. Do you think you're going to get one? REED: I hope so. This is an issue that's very disturbing, particularly in the context of the Patriot Act at the moment. I think the American people understand the president is very serious about defending the country, but he has to be equally serious about protecting the Constitution. That's his responsibility also.

O'BRIEN: Senator Jack Reed is a democrat from Rhode Island talking with us this morning. Nice to see you Senator. Thanks for being with us.

REED: Thank you, Soledad.

O'BRIEN: Ahead this morning, we're gong to be talking to the attorney general, Alberto Gonzales, about that wiretapping issue. That's this morning -- Rick.

SANCHEZ: Andy's joining us now. He's going to be breaking down some numbers. Speaking of numbers, there will for -- from now on there will only be one perfect team in sports and that was the 1972 Miami Dolphins, just for the record.

ANDY SERWER, "FORTUNE" MAGAZINE: Yeah, your hometown team.

SANCHEZ: Did you notice Indianapolis lost this week?

SERWER: Yes, I did and I notice that you noticed.

Gasoline prices are on the move. Where will they go in 2006? We'll get to that next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: "King Kong" box office royalty, but off to a pretty slow start as far as industry watchers are concerned. The movie raked in $50 million over the weekend, some say about $40 million short of the expectation of the experts.

Now, contrast that with the cowboys and love drama, "Brokeback Mountain." That film's gotten huge critical feedback, also seven Golden Globe nominations. "Brokeback" had a weekend take of $2.5 million playing in 69 theaters. "King Kong" opened in more than 3,500 theaters, so if you break it down, do the math, "Brokeback" outperformed "King Kong" better than 2-1. I'm not the business guy, but I know that's bad for the makers of "King Kong."

SANCHEZ: You know, it's about expectations, right? I mean, gas prices, for example, people are going around saying gas prices are really low right now. Well, they're not low compared to a year and a half ago. Andy Serwer is joining us now to talk about gas prices?

SERWER: That's right. Yeah, and movies a little bit, but maybe later on. We're going to stick with gas prices no for now. Up eight cents over the past couple of weeks, we're at $2.21 is your new national average for regular unleaded. You can see it right here. And of course way down from the Katrina high, but up significantly from a year ago at $1.81. That's what you're talking about. A lot of people want to know why is gas prices -- why are they going up because the price of oil has sort of stabilized at $58 a barrel.

Well, there's a couple of reasons. No. 1, milder weather, people driving more, that increases demand, that makes the price go up a little bit. But more significantly, new regulation set to take effect at the beginning of the next year making gasoline more environmentally friendly. That makes the price go up and many are anticipating that that is already pushing the price up.

Here's the national map -- the national map. Salt Lake is your low for gasoline below $2. You throw in Honolulu, and look at the lower 48. and Chicago has very pricey gasoline. One forecaster saying, by the way, look for gas prices to be around $2.70 heading into June and July. So, that's not great news there and not good for the economy and not good for us, right?

SANCHEZ: It's always interesting to find out how little of that is being used for pay for the gas and how much of it is everything else, right?

SERWER: There's taxes and there's marketing and those are two big costs in the equation.

SANCHEZ: So you like "king Kong" too?

SERWER: You know, I don't know if I'm going to see it. I haven't seen it. I'm not sure. I don't think I'm going to see the cowboy movie either, though.

SANCHEZ: Do you know how it ends in "King Kong?"

SERWER: The cowboy movie, I'm not sure how the cowboy movie ends.

SANCHEZ: No, "King Kong?"

SERWER: I know how the "King Kong" movie ends, yes. That's the problem.

SANCHEZ: Maybe the reason not to watch?

SERWER: Yes.

SANCHEZ: Still to come. An Irish rock star and two tech tycoons. Great alliteration there. They are the Persons of the Year. We're going to talk to a "Time" editor about this decision and why some say it was a safe choice, or was it? Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Get the latest news every morning in your e-mail. Sign up for AMERICAN MORNING quick news at CNN.com/am. Ahead, this morning we're going to be talking to the nation's attorney general, Alberto Gonzales, and ask him if he thinks anything that was done illegally as the president went around the courts in order to eavesdrop and the wiretapping of American citizens. The president making a rare address to the nation on the radio, we're going to talk about that, ahead this morning. Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

Announcer: you're watching AMERICAN MORNING with Soledad O'Brien and Miles O'Brien.

(END VIDEOTAPE)

O'BRIEN: Good morning. Welcome, everybody. As Bonnie said, nice day for shopping. Six shopping days left in New York. Well, everywhere, really.

SANCHEZ: And I'm not miles O'Brien, by the way. He's more of a techy than I am.

O'BRIEN: No, he's on vacation and we are grateful that you're here helping us out.

Well, it's wonderful to be here.

O'BRIEN: We spend a lot of holidays together, haven't we?

SANCHEZ: We certainly do.

O'BRIEN: Let's get right to some of the stories making news this morning. Carol has that. Good morning.

CAROL COSTELLO, CNN CORRESPONDENT: I say good morning to all of you. President bush says not yet, he says leaving Iraq now would be a bad decision. The president calling on his critics for more patience in 17 minute primetime address.

(BEGIN VIDEO CLIP)

BUSH: To retreat before victory would be an act of recklessness and dishonor, and I will not allow it.

(END VIDEO CLIP)

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