[Wolf Blitzer, Cnn Anchor:] You're in THE SITUATION ROOM. Happening now, breaking news. Under intense pressure, Egypt's Hosni Mubarak makes an extraordinary announcement, saying he will hand over power when his term is up in September. But for so many Egyptians on the streets of Cairo and Alexandria, that's not soon enough. An extraordinary shift by the Obama administration, which urged President Mubarak to make a public pledge to his people that he wouldn't run for president again. And a monster storm brings snow, ice, brutal cold from New Mexico to Maine. Thirty states facing warnings. Thousands of flights already canceled. We've got the latest on this life-threatening event. We want to welcome our viewers in the United States and around the world. I'm Wolf Blitzer. You're in
[The Situation Room. Announcer:] This is CNN Breaking News.
[Blitzer:] Let's begin with the breaking news this hour. Egyptians erupting after hearing President Hosni Mubarak announce he will not be a candidate in the next election. Mubarak's broadcast statement follows intense pressure from his people to simply step down in what they called a "march of millions", countless thousands took to the streets today demanding change. But Mubarak also felt that heat from the Obama administration, sources telling us the White House made clear at the highest levels that it wanted Mubarak to publicly promise he wouldn't run for reelection. CNN's John King, David Gergen, and Gloria Borger, they're all standing by, but let's go to Anderson Cooper. He's joining us now from Cairo with the latest. Anderson, a lot of folks thought that Mubarak's statement was simply too little, too late.
[Cooper:] Dr. ElBaradei, what is your reaction to President Mubarak's address tonight?
[Mohamed Elbaradei, Nobel Peace Prize Laureate:] Well, Anderson, this is clearly an act of deception. It is a person who doesn't want to let go, a dictator who doesn't want to listen to the clear voice of the people. Anderson, you are in Cairo. You have seen what the city looks like, what the people want. And to continuously try to play tricks, he is unfortunately going to extend the agony here for another six to seven months. He has continued to polarize the country. He continues to get people even more angry and could resort to violence. Whoever gave him that advice gave him absolutely the wrong advice. He just has to let go. And not only is going at best to be a lame-duck person; he's going to be a dead man walking. And I don't really understand what is behind that, other than a further six, seven months of instability, rather than the ground for a new regime.
[Cooper:] That was Mohamed ElBaradei. And I will have more of that conversation tonight on 360, Wolf. But it's interesting. I'm a few blocks now from Liberation Square, and you can hear people still shouting out, shouting into the night, very angry at reaction to what President Mubarak had to say.
[Blitzer:] Anderson, we're awaiting President Obama. He's getting ready to address the nation on the situation in Egypt, having met much of today with his top national security advisers. From the conversations you have had all day and the past couple of days what do you think they want to hear President Obama say?
[Cooper:] Well, look, the people we're hearing from most are protesters who have a very clear message, which is nothing short of President Mubarak stepping down immediately will be acceptable. That's the message we hear from Dr. ElBaradei, from Muslim Brotherhood, from other groups as well. They say you can't have a transition to democracy while Hosni Mubarak is in power. There are still people in prison. There are people who have been killed in the last eight days, some 300 people, according to the U.N. There are people, large numbers of people who have been arrested, that the idea that, you know, that there's a Parliament here which is completely subservient to the whims of President Mubarak, so you cannot have a transition to democracy. They want President Mubarak that is the first step, for him to leave, and then they want to have some sort of caretaker government that will transition to democracy to free and fair elections down the road.
[Blitzer:] And they're promising that they're going to not only continue these demonstrations, but they're going to become even more assertive in their demands tomorrow, the next day, certainly on Friday, which is a day of prayer in the Muslim world. They have already made those declarations. Is that what you're hearing?
[Cooper:] They certainly have. It remains to be seen, though, whether a statement by President Mubarak tonight does satisfy some people in Egypt. There are large numbers of people who maybe are not protesting and large numbers of people who we haven't heard from, some of whom may still support President Mubarak, at least his regime, some of whom simply are frightened by the notion of instability and want the idea that he will be leaving down the road is enough for them. It will satisfy their desire for change, even if it's eight months from now. So it remains to be seen whether this will weaken the momentum that the protests have had and have been building over the last eight days. We'll certainly be looking for that tomorrow. We will certainly stay in close touch with you, Anderson. Anderson will have a lot more obviously 10:00 p.m. Eastern on "ANDERSON COOPER 360" live from Cairo. It's an extraordinary shift in policy for the White House. Can this U.S. pressure on President Mubarak help ease tensions in Egypt? In a taped statement broadcast just a little while ago, President Mubarak said he will finish out his first finish out his term working for the reforms that the protesters are demanding.
[Hosni Mubarak, Egyptian President:] I have spent enough time in serving Egypt, and I am now careful to conclude my work for Egypt by presenting Egypt to the next government in a constitutional way which will protect Egypt.
[Blitzer:] Let's bring in CNN's John King, our senior political analysts Gloria Borger and David Gergen. John, first to you. Based on your reporting, what you're hearing at the White House, what's going on over there? What can we expect the president of the United States we're waiting to hear his remarks what are you hearing he's going to tell us?
[John King, Cnn Anchor:] It will be fascinating to hear exactly what the president says. Because this is not everything they wanted, Wolf, and yet, at the White House they believe it's a significant step in the right direction. Because a President Mubarak who was stubbornly trying to cling to power just days ago has at least now, A., not only said he Would not run in the next election, but, B., said he would work with the Parliament on speeding up the election. And what you just heard from Mohamed ElBaradei in that interview with Anderson is quite significant. The White House had hoped President Mubarak would agree to leave soon after a transitional government took place. They still think that is a possibility down the road. But what they had hoped is that this is largely a revolution without a face. And they thought perhaps Mr. ElBaradei with his history as the diplomat might step in and say OK not good enough, but at least we can start a negotiation now. His decision to flatly say no negotiation, not good enough, obviously complicates the situation and puts even more pressure on the United States to answer the big question, what next?
[Blitzer:] Yes, because at least in my mind, the street, the Arab street in Cairo, David, senses weakness on the part of President Mubarak. And they don't want to stop. If he would have done this a week or so ago, maybe even a few days ago, it might have worked. But now it's too late.
[David Gergen, Cnn Senior Political Analyst:] I think that's right, Wolf. And President Obama clearly is not playing this just for the street protesters. He's balancing it off against America's national security interests as he sees them. And that is he doesn't want to precipitously pull the rug out from a person who has been an ally of the United States in the region for 30 years. Because that would send a signal to every other ruler of every other country, you get a few protesters out there, you got protesters going and we're going to turn against you. So he's trying to avoid that, but in the process he's not communicating, he's not showing the kind of solidarity with the protesters and the people who are going to be really are taking charge in Egypt for the future and I think he's got himself in a real dilemma. He essentially has nudged Mubarak. And what the protesters wanted him to do was to shove Mubarak.
[Blitzer:] And it's interesting, Gloria, he sent Frank Wisner, a former U.S. ambassador to Egypt, as a special enjoy, someone who is well known in Egypt, well known to President Mubarak and the entire military and political establish there. And he went in to see President Mubarak today with a message from President Obama. I'm not sure what that message was, but he's a tough guy, Wisner, and he probably delivered it with diplomacy but also with force.
[Gloria Borger, Cnn Senior Political Analyst:] Well, but I think it was probably the nudge rather than the shove, as David was talking about. I also believe that the White House would really have rather seen some kind of caretaker government or some kind of transitional government, some notion of that, so that perhaps Mr. ElBaradei could help out with a transition. He's a known figure to Barack Obama. The State Department has reached out to him. But you heard his response from Anderson Cooper, saying that this was a deception, so that's not going to work. What I was told by an administration source is and I think this jibes with what David is saying, is that, look, they do not want to get too far out in front of the events on the ground. And there is some sense that this could still continue to unravel, and you may well end up with some sort of transition or caretaker government, but we will have to wait to see what Barack Obama says in a few minutes.
[Blitzer:] And when he speaks, John, it's going to be fascinating. Because he's got a domestic American audience. He has got an international audience who will be watching here on CNN International as well, but he's got an audience in Egypt that he's going to be addressing. And this is going to have to be a carefully crafted statement on his part.
[King:] And he has and you're right, Wolf. He has an audience in Egypt. He has the current government and the future leaders, those people on the street of Egypt listening to him. He also has the Jordanian government, another longtime U.S. ally that reshuffled its deck today that has a sense of the jitters, not on the level of Egypt, but a sense of the jitters. He has an Israeli government looking around wondering what is going on in the neighborhood and how much worried do they need to be, and then he has everyone else in the region, including people who frankly do not hope the United States comes out looking good here like Iran and others who will stir this up. And so the president has to deal with the people in the streets of Egypt, his longtime ally in Hosni Mubarak. But he also has to deal with, Wolf, a neighborhood you know very well. It is perhaps the most complicated, the most dicey neighborhood in the world.
[Blitzer:] Yes. I know... Very quickly, David.
[Gergen:] Sure. I'm surprised he's speaking. I'm not sure what he can do to help in this situation.
[Borger:] Right. Absolutely. I totally agree with that. I was sort of stunned he was going to come out right now.
[Blitzer:] Well, it's going to be momentarily, we're told. We will go to the White House and hear what he has to say. I would like you guys to stand by. We will get your reaction and assessment, analysis once we hear from the president. I want to bring in Jack, though, right now. He's got "The Cafferty File." Jack, this is an historic moment in the Middle East right now.
[Jack Cafferty, Cnn Anchor:] The question this hour is: Should the U.S. withhold any of the $1.5 billion in annual financial aid that we give to Egypt? Deaddin writes from California: "As an American of Egyptian descent, I think that the U.S. should withhold all aid until elections are called, elections that are inclusive of all parties and all candidates interested in running. By withholding the aid, you will see the fastest results." Michael in New Mexico: "No. We have to honor our treaties and other agreements with Egypt. We need to use their airspace, the Suez Canal. What is the cost of peaceful relations? A billion and a half in financial aid is a bargain for what we get in return. And considering that Egypt uses that money to buy U.S. military equipment from us, it really isn't aid at all." Karen in Missouri says: "Living in Egypt for four years as an American, being a part of an Egyptian family and their culture, I know that Egyptians view any support given to Egypt and its people as a positive reflection on the U.S. To take away that aid would be regarded as a lack of direct support to the people of Egypt. To use the aid as a punishment would only hurt the people and our image in that country." Mike writes: "Just as sports, hamburgers and french fries are a given in our country, bartering is as strong in most if not all the Middle East countries. The art of the deal is manifest in all negotiations, especially Mideast politics. Putting pressure on the military's income stream will transfer up the political chain from the Egyptian military leadership to Mubarak. It will ultimately define who really has the power in Egypt. Their military is more likely to make a better deal with Mubarak then any U.S. attempt to reason a new paradigm. We need to learn how to play their brand of hardball, in which friendship takes a side seat when push comes to become shove." Steve writes: "If funds should be withheld from Egypt until a democracy is formed there, then funds should be withheld from Israel until a two-state solution is found and there is peace with the Palestinians. The double-standard should not apply yet again." And Paul writes: "Stop all foreign aid altogether. Please show me the logic of paying out huge sums to anyone when the U.S. is broke and has to borrow the money, absolute madness." If you want to read more on this, you go to my blog, CNN.comcaffertyfile.
[Blitzer:] Will do, Jack. Thank you. Remember, we're standing by to hear from President Obama. He's getting ready to address the nation, indeed the world on the situation in Egypt. His remarks live here in THE SITUATION ROOM coming up. Also, escape from Egypt. Americans who fled the chaos tell us what it took to get out of the country. And countless Egyptians took to the streets today. We're taking you right into the middle of the "March of Millions," as it's called. Plus, a monstrous storm across the United States. We're going to Oklahoma, where the National Guard has now been sent out to rescue motorists.