[Wolf Blitzer, Cnn Anchor:] And to our viewers, you're in THE SITUATION ROOM. Happening now, President Obama steps up the pressure urging Congressional leaders to quickly pass his economic recovery plan. He wants almost a trillion dollars. Will he give a little to get a lot? He admits Al Qaeda has bases in his country, so how does he feel about the Obama administration's first missile strikes in Pakistan? My exclusive interview with the former president of Pakistan, Pervez Musharraf. That's coming up. And he got strong backing from women in the November election and named half a dozen to cabinet level posts. Now some say President Obama isn't showing enough appreciation. I'm Wolf Blitzer. You're in THE SITUATION ROOM. The arm twisting begins over President Obama's massive rescue plan for the U.S. economy. The president today called an urgent meeting of Congressional leaders, trying to ease doubts about his nearly one trillion dollar stimulus package. Let's go straight to our senior White House correspondent, Ed Henry the president making it clear, Ed, he wants quick action.
[Ed Henry, Cnn Congressional Correspondent:] That's right, Wolf. He's demanding urgent action because, his aides say, they think this financial crisis is going to get worse before it gets better. And that's why he called in leaders from both parties for the first time of his presidency, urging them to get to work on this $825 billion recovery plan. Mr. Obama acknowledged that Democrats and Republicans don't agree on everything, including the price tag, some of the details about the tax cuts, for example. But he expressed a lot of optimism that this could get passed and signed into law by mid- February.
[Barack Obama, President Of The United States:] I know that it is a heavy lift to do something as substantial as we're doing right now. I recognize that there are still some differences around the table and between the administration and members of Congress about particular details on the plan. But what I think unifies this group is recognition that we are experiencing an unprecedented, perhaps, economic crisis that has to be dealt with and dealt with rapidly.
[Henry:] Now, here's the back story, though. The White House was very careful today to make sure that was the only video you saw of the president today sort of ending his first week on a bipartisan high note, working with Republicans as well as Democrats. Meanwhile, just in the last hour, they twice called in the press pool of reporters, saying there was going to be some sort of an event with the president signing something. The reporters waited and waited and they never got called in. Meanwhile, White House aides came out and said privately, behind closed doors without cameras, the president signed an executive order overturning this Bush policy that basically prevented international family planning groups from promoting abortion as an option. So what they did was they kept television cameras out from showing him sort of a partisan move, signing this executive order, because that would have stepped on his message about the economy and working with Republicans. This other move, this executive order he just signed in the last half hour, is something that is outraging to Republicans. So it's interesting to see how this White House, very early in the first week, is being very careful to manage this message Wolf.
[Blitzer:] Interesting stuff. Ed Henry, thanks very much. President Obama has vowed to go after Al Qaeda and the Taliban. Now, the first missile strikes of his administration have been launched in tribal areas of Pakistan. Seventeen people were killed today in those two strikes. Pakistani officials say they came from U.S. drones. Let's get reaction right now. My exclusive interview with the former Pakistani president, Pervez Musharraf. Are you are you comfortable that the U.S. is continuing, in the Obama administration, the same strategy of launching strikes against targets in Pakistan?
[Pervez Musharraf, Former Pakistani President:] Well, nobody in Pakistan is comfortable with the strikes across the border. There is no doubt in that. Public opinion is very much against it. But as far as this issue of the new president, President Obama, having taken over and this continuing, but I have always been saying that policies don't change with personalities.
[Blitzer:] But you understand why the U.S. is interested in locating and going after these Al Qaeda or Taliban suspected targets inside Pakistan? You understand the U.S. interest in this particular point?
[Musharraf:] Yes, we understand the interest of fighting militants, fighting terrorists, fighting the foreigners in the Pakistani territory is common. It's common with Pakistan. It is in Pakistan's interest that we hit militant targets.
[Blitzer:] Here's what President Obama said in his inaugural address. Listen to this.
[Obama:] To the Muslim world, we seek a new way forward based on mutual interests and respect. For those leaders around the globe who seek to sow conflict or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. To those... ...to those who claim to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history. But that we will extend a hand if you are willing to unclench your fists.
[Blitzer:] That was his message to the Muslim world. What's your message, President Musharraf, to President Obama?
[Musharraf:] Well, I would like to really get involved in giving a message to President Obama. He understands best for himself for the next four years what he wants to do. And I'm not here to really advise him. But certainly the Muslim world expects justice because it is these political uncertainties, political injustices which which are spawning terrorism and extremism. So I hope that he addresses the core issue of resolving political disputes involving all the Muslim almost all political disputes involving different countries.
[Blitzer:] He said this week, the new president of the United States, that Pakistan and Afghanistan, in his words, "represent an urgent global security threat and is now the central front on the war on terror." Why is it that? Why is it that the terror threat emanating from your country, Pakistan, has apparently increased over the several past several years?
[Musharraf:] Well, I you know, now I would like to correct this. First of all, let nobody correct Pakistan with Afghanistan. Pakistan is a very established country. It has institutes functioning. It has a strong military. It has a strong bureaucracy. It has a political system. It has democracy functioning and a democracy in place. So, therefore, we should not to equate Pakistan with Afghanistan. And the second point I want to make is to say that terrorism is emanating from Pakistan terrorism, Pakistan is a victim of terrorism. Terrorism came emanated from Afghanistan because of Mujahedeen and militant Taliban are all products of Afghanistan. It is only support that they get from Pakistan. So let's be very clear where terrorism is originating from. We are the victims and we need to be helped to address the issue of terrorism and extremism within our area.
[Blitzer:] But as you know, only...
[Musharraf:] ...and that is what we are trying to do.
[Blitzer:] ...only this week one of his first decisions, his decision and the new secretary of State, Hillary Clinton's, decision, was to name a special enjoy, the former U.S. ambassador to the U.N., Richard Holbrooke, as a special enjoy to Afghanistan and Pakistan to deal with this problem. You say that these are two different problems, but apparently a lot of people think it's part of the same problem.
[Musharraf:] No, it is the same it is the same problem. I'm not saying that they are two different problems. But we must understand where it emanates from. Where is the problem? The problem lies basically in Afghanistan. And Pakistan has side effects of that. And there is support yes, indeed, there is the
[Blitzer:] But you acknowledge that there are Al Qaeda and Taliban bases now...
[Musharraf:] Yes.
[Blitzer:] ...established in Pakistan?
[Musharraf:] Yes. Yes.
[Blitzer:] All right...
[Musharraf:] Yes, indeed, there are bases. In the mountains, al Qaeda is there. I've been always saying that. And everyone knows it.
[Blitzer:] Only last October, in one of the presidential debates, then candidate Obama said this. Listen to what he said.
[Obama:] If we have Osama bin Laden in our sights and the Pakistani government is unable or unwilling to take them out, then I think that we have to act and we will take him out. We will kill bin Laden. We will crush Al Qaeda. That has to be our biggest national security priority.
[Blitzer:] Why hasn't bin Laden been found yet?
[Musharraf:] I mean, I would like to ask the United States why he hasn't been found. They have their intelligence. There are you have more intelligence capability. I would like to ask the United States why Mullah Omar has not been found, who is the leader of all the Taliban in Afghanistan. I mean there are issues. These are well-known issues. This is a mountainous terrain, inaccessible. Yes, indeed, there are sanctuaries. Yes, indeed, there is maybe support and harboring him, people sympathetic toward them. So all of this combined, it makes the task difficult. And there's no doubt about it.
[Blitzer:] Let me read to you a paragraph from a new book that's just been published in the United States by "The New York Times" writer David Sanger. The book is entitled, "The Inheritance." And I'm going to read to you what he writes. "President Bush's reliance on President Musharraf to wage the war for him turned out to be one of the biggest misjudgments of this war on terror. Bush would eventually come to realize that Pakistani president commanded forces that were not only unwilling to take on al Qaeda and the Taliban in Pakistani territory, but were incapable of doing so." That's a serious indictment, President Musharraf, of your administration. I wonder if you'd want to respond to that.
[Musharraf:] I don't agree with the statement at all. This is by a person who doesn't understand the realities. Look at what has gone we have gone through over the last eight, nine years. This very army has suffered 1,500 casualties. This very army has apprehended more than 600 Al Qaeda people. This very army has fought the Taliban in North Waziristan, South Waziristan, in by all agencies. So and I, as a person, has suffered suicide attacks on me on my person. Now telling such an army, such an intelligence organization and such an individual that we didn't have our hearts and minds in the fight against terrorism can only be said by a person who is totally divorced from realities.
[Blitzer:] Because they there is a suggestion out there and you've heard it often that there are elements inside the Pakistani military, but especially inside the Pakistani intelligence services, that are sympathetic to the Taliban and Al Qaeda.
[Musharraf:] Now, let me let it be really clear to to everyone that the in Pakistan, if we need to strengthen the global war on terror, we need to strengthen the army and the intelligence organization of Pakistan. And they are doing a good job. It is only the detractors, those who want to weaken Pakistan, who try to cast aspersions on these two organizations. It weakens the global war on terror. And I have said it very clearly in the beginning let us not confuse strategy with tactics.
[Blitzer:] The former Pakistani leader also had some very, very blunt comments on U.S. aid to his country.
[Musharraf:] If you want to ask me to thank you for the $10 billion, well thank you very much. But I am telling you the realities.
[Blitzer:] Coming up, you're going to hear what President Musharraf's full explanation is why he says U.S. aid to Pakistan isn't all that it's cracked up to be. The rest of my exclusive interview that's coming up right here in THE SITUATION ROOM. But first, I want to check in with Jack Cafferty once again for "The Cafferty File" Jack.
[Jack Cafferty, Cnn Anchor:] President Obama proclaimed that the United States will actively and aggressively seek lasting peace between Israel and the Palestinians. Every president says that. Last month, Israel launched an attack on Gaza that lasted three weeks, destroying buildings and claiming lives. A unilateral cease- fire was reached last week and President Obama has now urged Israel to open its borders with Gaza. The new president also announced that George Mitchell will serve as a special enjoy for the Middle East peace process under Secretary of State Hillary Clinton. Mitchell's credentials include negotiating a cease-fire in Northern Ireland in 1998 no small accomplishment that. This is yet another break from the Bush administration, which avoided appointing someone to that post of special Mideast envoy. Former secretary of State, Condoleezza Rice, did negotiate a deal for open border crossings to Gaza back in 2005, but Israel has often closed those crossing because of security concerns. Israeli officials say they will not open the border with Gaza if it in any way strengthens or legitimizes Hamas. So here's the question and we've asked it before and I have a hunch we'll probably ask it again, but it's worth asking: How should the Obama administration approach achieving peace in the Middle East something that has been elusive, to say the least? Go to CNN.comcaffertyfile and you can post a comment on my blog Wolf.
[Blitzer:] It would be great if the new administration could do something about this. And we can only hope, Jack. Thanks very much. The rest of my interview with Pakistan's president that's coming up. It's revealing. Also, he's a president surrounded by women, so why do some women's groups say Barack Obama isn't showing them enough respect? And President Clinton used to stay up late. President Bush was known for his early to bed schedule. How Barack Obama how his schedule will impact his presidency. Stay with us. You're in THE SITUATION ROOM.