[Carol Lin, Cnn Correspondent:] Welcome to CNN LIVE SUNDAY. Here's what's happening right now in the news. A class photo was one of the last orders of business today at the APEC summit in Santiago, Chile. Chile called off a state dinner in President Bush's honor after the U.S. Secret Service insisted on security measures the Chileans found excessive. Iraq has set January 30th as the day for national elections And that puts U.S. and Iraqi military forces on a collision course with insurgents who are determined to stop the vote. Members of Congress are outraged at a spending bill that lets two committee chairman see tax returns of every American. The Senate has already removed the offending language but the House has yet to act. We are going to have a full report coming up in just a few minutes. I'm Carol Lin, and welcome to CNN LIVE SUNDAY. Straight ahead, are you safe flying out of Los Angeles international airport? Well, I'm going to be talking to a correspondent who went undercover to expose big security lapses at that airport. And it's a find that could rewrite history in North America. New evidence of when the first humans really did arrive here, the amazing discovery straight ahead. Right now we are going to start in Santiago Chile, where President Bush spent the weekend talking about global trade, but mostly global security. His talks at the summit of Pacific Rim nations ranged from the nuclear ambitions of Iran and North Korea to illegal immigration along the U.S.Mexican border. You are looking at a live picture of the presidential palace in Santiago, Chile, where at any moment now, we are going to be hearing from the president as he will be making his last remarks on this very important summit and perhaps even taking questioning from reporters. We are going to take that event live as soon as the president arrives. Of course there was plenty to talk about when it comes to trade and jobs for people living in 21 nations that ring the Pacific Ocean. Our senior White House correspondent John King spent the weekend in Chile. He joins me now from Santiago, John?
[John King, Sr. White House Correspondent:] Hello to you, Carol. It's been quite an interesting day and an interesting weekend. This the president's first international trip since winning re-election and if you look at the issues agenda the president discussed, it is proof that he quickly wants to turn attention to many issues that were either taken off the shelf or put a bit on the back burner, because of all the focus on the war in Iraq, the global war on terrorism and the campaign itself in the United States. As you noted, we're waiting to hear from the president. He is with President Ricardo Lagos of Chile. Mr. Bush having a bilateral meeting with his Chilean counterpart after the 21 member APEC summit here in Santiago this weekend. Mr. Bush before that meeting, the bilateral meeting, a quick handshake. Reporters were allowed in for that and Mr. Bush also had a review of the troops outside the presidential palace here in Chile. So we will hear from the leaders any minute now. It will be interesting to hear the president's perspective on this trip. You noted the issues, the nuclear standoff with North Korea. Those talks have been stalled for five months in part because North Korea simply wanted to wait to see if Senator John Kerry won the election, because he, as opposed to President Bush, said he was open to direct negotiations with North Korea. Mr. Bush says he will not do that. He will talk to North Korea only if China, Russia, South Korea and Japan are also at the table. Mr. Bush leaves this summit optimistic. Those talks will resume soon because of pressure from those other nations on North Korea. You mentioned Iran's nuclear program, the president discussing that with some of his counterparts here as well and in a meeting this morning, he promised President Vicente Fox of Mexico would move ahead on immigration reform. That is an issue that could put the president at odds with key conservative members of his own party in the House of Representatives. So remember just after the election, the president said he had political capital from his victory and he planned on spending it. He could be spending it, Carol, if everything he said here carries through to when he returns in Washington partly on a fight with members of his own political party. Carol?
[Lin:] All right. John, we're waiting for the president to speak. I want to ask you quickly about a scuffle that happened between the president's Secret Service agent and Chilean security guards where the president actually, it appeared, came to the rescue of one of his Secret Service agents.
[King:] A remarkable bit of role reversal you might call it. The president going into a crowd, into a little commotion to pull through a man who is paid of course to protect the president of the United States. That happened last night. U.S. initials say there have been a number of what they are calling security misunderstandings with their Chilean counterparts. Mr. Bush was posing for photographs just after entering an event site for a dinner and a social event, a cultural event but as he was walking away, he noticed a commotion at the door, and he noticed at the center of that commotion was his lead agent who was supposed to be protecting him, his body man if you will in the lingo of the Secret Service. So Mr. Bush went into the crowd himself, reaching through to grab his agent and pull him through. Pretty remarkable sight, the president of the United States if you will walking into the middle of a bit of a scuffle in the doorway to get his agent through. Now tonight, we have another example of security issues. There was to be a more formal social dinner after the meeting with President Lagos, some 250 people initially invited to that dinner. Because the Chileans would not agree to have metal detectors to scan every person coming into that dinner, the Secret Service objected. They won't let the president in a room without that security measure. So the dinner tonight, which will be after this news conference we're about to see, has been scaled back to about 20 people instead of 250 people, a working dinner now the White House is calling it. They say it won't affect relations with Chile, but they do say there have been a number of shall we call them security snafus, Carol.
[Lin:] All right. Yes, a very unusual picture indeed. Thank you very much John. You'll be standing by as we wait for President Bush and the Chilean president to come to the microphones to make their final remarks and take questions from reporters. So as soon as that happens, we are going to take that live, keeping an eye on that. We want to go quickly back to Washington right now where a huge spending bill to keep the government running is on hold. The U.S. Senate refuses to send it to President Bush because it would give a couple of lawmakers get this, permission to look at absolutely anyone's tax forms. Kathleen Koch explains. Kathleen.
[Kathleen Koch, Cnn Correspondent:] The controversial provision is buried in the 1,000 page spending bill. It's one of a few surprises lawmakers discovered this weekend.
[Unidentified Male:] I hesitate to lift it. I think it's an OSHA violation.
[Koch:] House lawmakers had less than 12 hours to look over the $388 billion spending bill.
[Unidentified Male:] Have you read this document?
[Koch:] So few did. Senators were stunned to discover a provision giving two committee chairman broad access to income tax returns.
[Unidentified Male:] It's a very troubling position that will potentially take away American taxpayers' rights to privacy. I would suggest that we can talk a great deal about this section, but it will never become law.
[Koch:] A top house Democrat implied the measure was Nixonian, calling it a quote, Saturday night massacre on the privacy of American taxpayers. The Senate Appropriations Committee chairman denied responsibility.
[Unidentified Male:] It came strictly from a staff request. You're right, it's absolutely a mistake. I apologize to the Senate.
[Koch:] Senators voted to drop the provision and
[Sen. Dianne Feinstein  California:] This is somebody's innovative thinking how they could get their minions into taxes of individuals who might be political opponents or who might come up against them in some way.
[Koch:] Some lawmakers were also angered by another unexpected measure, making it easier for health care providers to decline to provide abortion services or referrals.
[Rep. Nancy Pilosi,  Minority Leader:] An extraordinary sneak attack on women's rights in a disgraceful display of ideology over health.
[Unidentified Male:] This provision is meant to protect health care entities from discrimination because they choose not to provide abortion services.
[Koch:] Senate leaders agreed to schedule a vote soon to reexamine the abortion measure. Many lawmakers, including Republicans worry what the tax return incident says about how Congress works. SEN. JOHN Mc
[Cain  Arizona:] If there's ever a graphic example of the broken system that we now have that certainly has to be it.
[Koch:] While Democrats look at both measures and worry about the coming session.
[Unidentified Male:] The real question is are we going to govern in a bipartisan way or is a small group, mainly in the House of Representatives on the hard right going to call the shots?
[Koch:] The spending bill is on hold. Congress had to rush a stopgap measure all the way to Santiago Chile for the president to sign otherwise the government would have run out of money to operate at midnight. Carol.
[Lin:] All right. Thanks very much, Kathleen. Right now we want to move on to Iraq. Almost two weeks after the battle of Falluja began, the focus now is keeping the peace. We're getting a new snapshot of operation new dawn. The military says U.S. forces detained more than 1400 people during the offensive. Four hundred of them were later deemed noncombatants and released. Another 100 are being let go today. U.S. troops though are still fighting pockets of resistance in Falluja, but some are preparing to leave the city now that it is mostly secured. For them it's a time to reflect on the mission. CNN's Jane Arraf reports.
[Jane Arraf, Cnn Correspondent:] For some of the American troops in Falluja, a celebration. The heavy armor in the battle, the army's task force 22 and its soldiers are going back to their bases. For this occasion only, courtesy of the Marines they fought with, for the first time in months they get a beer.
[Unidentified Soldier:] It tastes a lot better because, it was like we deserve this way more than any other beer we've ever drank.
[Arraf:] The task force commander raises a toast to the army's four men killed and others wounded in battle and another for the Marines and other troops remaining.
[Unidentified Soldier:] We got easy part. All we had to do is go in and kick somebody's butt. Those guys have got to put a city back together and bring the civilians back.
[Arraf:] The soldiers included gunners, tankers, artillery men. They fired almost 1,000 rounds of artillery, the most in a battle for a city since Vietnam, clearing the way for Marines to spread throughout the city. [on-camera]: This was the most intense combat most of these soldiers have ever seen. But even though the high intensity conflict is over, some of the biggest challenges for Falluja are still ahead. [voice-over]: Marine officials at a post-battle briefing said the speed of the fight exceeded their wildest expectations. They said, though, with 60,000 buildings in Falluja, each of them able to hold weapons or insurgents, there's no definite timetable for the Marines to leave or citizens to return. A civil affairs official said the Iraqi government using U.S. money was speeding ahead with plans to reconstruct the heavily damaged city. The Army troops just days from returning to their home base and months from going home to their stations in Germany, were celebrating finishing their role in the fight.
[Unidentified Soldier:] Drinking to the United States.
[Arraf:] Sergeant first class Brit Kimbell held a puppy he rescued from the rubble in a neighborhood long ago abandoned by civilians, the dogs were among the few living things.
[Sgt. First Class Brit Kimbell:] We was coming out a bunker, about ready to throw a fragmentation grenade in there. Got a little closer, realized there was nothing in there, looked a little closer and the puppy's in there
[Arraf:] They named her Falluja. Not something that would go over well with city residents, but for these soldiers a symbol of survival and hope through the devastation. Jane Arraf, CNN, near Falluja.
[Lin:] For Americans it was November 2nd. Now Iraqis know when they will go to the polls. It's January 30th. That is the date set for the elections that will determine the Iraqi national assembly, a Kurdish assembly and 18 provincial governing councils. It will be Iraq's first democratic election in decades. Interim Prime Minister Ayad Allawi says he is pleased by the development. And also another big step forward for Iraq. Major economic powers have agreed to forgive most of the money it owes them. The so- called Paris club of 19 creditor nations will write off 80 percent of the almost $39 billion in debt. Now live to Santiago, Chile, where President Bush is speaking with reporters.
[Question:] President Bush, good afternoon, China has a close rapprochement with Latin America, a lot of investment in this region. In your second presidency, are you going to do anything so you don't lose your influence in this region? And second, many business people are worried if you're going to be doing anything about the fiscal deficit in your country during your second term.
[Bush:] Today we heard from Hu Jintao about the phenomenal growth rates that he expects for his economy and it's positive. I think it's helpful for there to be universal prosperity. China represents great opportunities for Chile and the United States and we look forward to working with China. We've done a lot of trade with China, and we want to continue to have good trading relations with china. We got a lot of trade in the hemisphere. We got a free trade agreement with Chile and NAFTA is a strong driver for prosperity in our own neighborhood and we'll continue to advance free trade throughout this hemisphere. I frankly don't view a trade China's actions and the actions of the United States as zero-sum. I view it as a positive development. Secondly, at the meeting today, people expressed concern about the value of the U.S. dollar. And I reiterated the fact that my government has a strong dollar policy. And the best way to affect those who watch the dollar's value is to make a commitment to deal with our short-term and long-term deficits. As far as our short-term deficit goes, I present a budget that continues us on the path of reducing our deficit in half over a five- year period of time. We're in the fourth year first year of it. We finished the first year of a five-year period to reduce the deficit in half. Congress is working on a on the appropriations bill that meets those targets. I look forward to signing it when they come back and finally finish the package in early December. A long-term deficit issue really relates to unfunded liabilities when it comes to Social Security and Medicare. In the recent campaign I made it clear that I think it's very important for us to address those long-term, unfunded liabilities. For example, in Social Security, I talked about the need for personal savings accounts for younger workers as a part of a solution. Frankly, the Chilean model serves as a good example for those who are going to be writing the law in the United States. And so my commitment to the international world is that we'll deal with a short-term deficit and the long-term unfunded liabilities, so that people can then take a look at our dollar in terms of fiscal austerity in Washington.
[Unidentified Male:] The first question from the American press will come from Finley Lewis of Copley News Service.
[Question:] Thank you, Mr. President. Your administration recently received a letter from 21 or 22 members of the House, raising skeptical questions about your guest worker program. Now you met with President Fox earlier today and I'm wondering how much, specifically how much political capital that you're so proud of that you're going to spend on trying to overcome the built in resistance to that plan? And specifically, what kind of steps are you proposing to take to sell it to the Congress?
[Bush:] Finley, I am proud of my political capital. That's what you get when you win an election. And in the course of that election, I talked about immigration reform. I think it's important for our country to recognize that people are coming to our country to do jobs that Americans won't do. And therefore, I think a program that recognizes the desire of some to come to America to work and the desire of some in America to employ them makes sense. It makes sense and not only for our economy, it makes sense for border security. We'd much rather have security guards chasing down terrorists or drug runners or drug smugglers than people coming to work. And so therefore, I think a guest worker program is important and I look forward to working with Congress on it. You know, I get letters all the time from people that are trying to steer me one way or the other when it comes to legislation, but I'm going to move forward. In the letter, I noticed that they said well, this is because they're objecting to the program because it's an amnesty program. It's not an amnesty program. It's a worker program. It's a program that recognizes however, that if somebody wants to become a citizen in the United States, they can get in line with the people who have done so legally. I think it's necessary. I think it's an important piece of legislation and I look forward to working it. You asked me what my tactics are. I'm going to find supporters on the Hill and move it. President Lagos didn't agree with my decision and I respect that. He's still my friend. Secondly, whether people agree with my decision or not, there are two things that they got to agree with. One, the world is better off with Saddam Hussein not in power. And secondly, it is important to succeed in Iraq. It's important to develop a democracy there. I fully recognize some do not believe that the democracy can take hold in Iraq. I strongly disagree. I believe not only democracy can take hold in Iraq, I believe a democracy will take hold in Iraq. I notice today that the elections are on schedule for June [sic] 30th. Think how far that society has come, from the days of mass grave and torture chambers to the day in which they're going to be voting for a president. Prime Minister Allawi, the current leader of Iraq is a strong, capable democrat. He believes in the possibilities of the people of Iraq and he knows that a free society will unleash those possibilities. And so the United States of America will stay the course and we will complete the task. We'll help Iraq develop a democracy and the world will be better off for it. Free societies don't attack each other. Democracies listen to the aspirations of their people, not feed hatred and resentment and future terrorists. And what we're doing is the right thing in Iraq. And history will prove it right.
[Unidentified Male:] Mark Silva from the "Chicago Tribune."
[Question:] Thank you, Mr. President. With the intelligence reform bill apparently failing, how confident are you that Secretary Rumsfeld is not partly responsible for that? Is there something more you personally could have done and what does this say about your ability to achieve your own legislative agenda in the next two years?
[Bush:] I was disappointed that the bill didn't pass. I thought it was going to pass up until the last minute. And so I look forward to going back to Washington to work with the interested parties to get it passed because I understand they're going to come back into session to see if they can't get the bill passed. And I look forward to working with members of the Senate and the House to get it passed. It's very clear I wanted the bill passed. I talked to key members of the House as did my vice president and we'll continue working with them and hopefully we can get a bill done. I saw the speakers today said that the matter wasn't complete. It wasn't over. It wasn't final, but we have a chance to get a bill. And therefore, when I get home, I'm looking forward to working it. Thank you, sir.
[Lin:] All right, President Bush and President Lagos of Chile shaking hands, agreeing to disagree on some matters at the APEC summit. They did talk about trade that was on the table, but primarily the discussions were about what the countries could do together about Iran's nuclear program, but more specifically about what they can do together about North Korea's developing nuclear program. We are going to be following these events very closely as President Bush wraps up the APEC summit there and then he makes his way onto Colombia, I believe, is where he's off to next and then on to the Crawford ranch. But now want I just want to let you know, we're gathering our facts here. We have some breaking news on the fallout from the Pacers, Detroit Piston's brawl. Some penalties have been handed out. They are some of the stiffest penalties the NBA league has ever issued on a group of players. We're going to have that story for you right after a quick break.