Alberto Gonzales Expected to Replace John Ashcroft; Deadly Violence Breaks out in Other Parts of Iraq
WOLF BLITZER, CNN ANCHOR: Unfolding this hour, little resistance in Falluja. But American forces facing potentially a wider war and even greater dangers. Iraqi troops uncover grisly evidence of terrorist atrocities. We are live on the story. Also, we now know who will replace Yasser Arafat. His foreign minister explains the succession and talks about which American officials might attend the funeral. My news-making interview with Nabil Sha'ath. That's coming up. And last letters home. A tribute to American forces in Iraq and their fallen comrades' ultimate sacrifice. A busy hour ahead. First, some headlines, though, "Now in the News." Evacuations begin in the Ivory Coast. The first of thousands of foreign nationals were flown out today to escape the chaos in the capital, Abidjan. Locals are harassing French peacekeeping troops. They accuse the French of plotting a coup d'etats. Alan Greenspan arrives at the Fed for another expected hike in short-term interest rates. Economists say the federal funds rate is likely to rise a quarter of one point for the fourth time since June. They say recent job gains and lower oil prices removed potential barriers to Greenspan's push to keep a lid on inflation. And a 50-something mom says she is feeling terrific after giving birth to twins. That's baby boy Gian (ph) and his sister, Francesca (ph), both are one day old. At age 56, almost 57, Aleta St. James is the oldest known American to bare twin children. Congratulations to her. President Bush has picked who he wants to replace John Ashcroft. A senior administration official tells CNN the White House counsel, Alberto Gonzales, has been chosen to be the nation's top law enforcement official. Our White House correspondent, Suzanne Malveaux, joining us now live with more details -- Suzanne.</s>SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, of course it's not official until it's official, but we have been told expect an announcement as early as this afternoon. That pick, of course, White House counsel Alberto Gonzales from several sources, congressional and administration sources. This is significant because he would be the first Hispanic to hold the post. Also, of course, this is a man that the president trusts and knows well back from the days in Texas. Senior administration officials say, of course, the president wanted to fill this position rather quickly, that it is a big job to do. But he believes that Gonzales can fill those shoes. Now, this is an appointment that comes after Attorney General John Ashcroft announced his resignation just yesterday. This was something that came and in the form of a handwritten note, about five pages or so, on election night. But we are told that the president didn't actually make -- or accept that resignation until later on in the week. That he thought it over at Camp David. As you know, Ashcroft, of course, at times, a very controversial figure because of the Patriot Act. As some people say, he has rolled back some of the civil liberties that's enjoyed by Americans. Alberto Gonzales is one of those people that perhaps mirrors Ashcroft's thinking and his philosophy, but at the same time is considered perhaps less of a conservative. He initially was considered for a post, perhaps a Supreme Court nomination post, but it was considered that he would have a hard time. There are some moderates -- moderate Republicans who believe that he is just too liberal for that job -- Wolf.</s>BLITZER: Suzanne, any word on who might replace Don Evans as the commerce secretary?</s>MALVEAUX: We are hearing Mercer Reynolds. And he is the one, as you know, of course, who raised the millions and millions of dollars for President Bush in his campaign this time around.</s>BLITZER: And finally, any other people about to leave the government? New faces coming in? What else are we hearing on changes as the second term is about to begin?</s>MALVEAUX: Well, certainly, Wolf, you know, there is a lot of speculation about Secretary of State Colin Powell, a lot of speculation about National Security Adviser Condoleezza Rice. We expect to get some news about that in the days and weeks to come. But, of course, the president saying that, look, if you plan on leaving and leaving soon, you need to tell Chief of Staff Andy Card by Thursday. So we expect that we're going to get some news on all of those cabinet members fairly shortly.</s>BLITZER: Well, is there a possibility -- are you suggesting that Condoleezza Rice might be leaving without getting another job, like secretary of state or secretary of defense, if those cabinet positions open up?</s>MALVEAUX: Certainly not suggesting that she would be leaving. Sources say that, of course, she has had some desire to go back to California. But there are other sources that say perhaps that secretary of state position is open for her. But that has not yet been confirmed.</s>BLITZER: Suzanne Malveaux at the White House. Thank you very much. The United States is winning the fight for Falluja. That's the word from U.S. military officials. But deadly violence has broken out again in other parts of Iraq. A curfew is now in effect in the northern city of Mosul, where U.S. forces fought gun battles earlier today. Fierce fighting also occurred in Ramadi and Baghdad. And the Iraqi interim prime minister, Ayad Allawi, has had close relatives kidnapped. We have extensive coverage. We'll start in Falluja, where we are also getting word now of a grisly discovery by advancing allied forces. CNN's Karl Penhaul is in Falluja. He's joining us live with more. Karl, what do we know?</s>KARL PENHAUL, CNN CORRESPONDENT: Good evening, Wolf. Over the last few moments, a press conference has just ended with Iraqi commanders on the ground, and also U.S. commanders on the ground. Major General Jassim, he's the head of the Iraqi forces fighting for Falluja. He's told us that both his forces and U.S. forces on the ground there in the last few hours during house-to-house searches have found what he describes as slaughterhouses used to kill some of those foreign and Iraqi hostages that have been taken over the last months in the country. In the discovery, he also says some of the black pajama-style uniforms have been found, along with many CDs recording some of those grisly beheadings and other killings. Also, we understand from Major General Jassim a list of some of the victims. He didn't at this stage, though, disclose what names are on those lists and which international hostages may be on the list and may have been beheaded in those houses. Investigations, though, continuing there to look at the evidence that has been found. Of course, some of those beheadings have been linked to the al- Zarqawi group in the past, but the word is from Major General Jassim that at this stage there has been no sign of Zarqawi in the city. He hasn't figured on the radars at this stage. But Major General Jassim went on to say that the fight for Falluja isn't only about hunting down Zarqawi, but getting rid of insurgents from that city. Now, also in this press conference, we heard from General Sattler. He's the commanding general of the 1st Marine Expeditionary Force, and he has told us at this stage that the insurgent fighters inside of Falluja no longer have communication among themselves or any coordination among themselves. He does say, though, that the resistance is continuing, but he has described those as pockets of resistance. In addition, he's categorized coalition casualties as light -- Wolf.</s>BLITZER: Karl, what do we know about the kidnapping of relatives of the interim prime minister, Ayad Allawi, with threats to kill them if the assault on Falluja continues?</s>PENHAUL: We understand from Iraqi authorities that that twin kidnapping occurred in Baghdad this morning. Armed men broke into the house of a cousin of Prime Minister Allawi. He's a 75-year-old man. Allawi's cousin, his daughter-in-law was also kidnapped. In the course of this afternoon, though, we have spoken to the prime minister's spokesman, and he says that this is a "terrorist act," in his words. He also says that Prime Minister Allawi's resolve will not be dented, the resolve to continue the fight for Falluja, to finish this fight for Falluja. That despite threats from the kidnapping group who identified itself as Ansar al-Jihad, to behead those hostages in 48 hours if the offensive in Falluja does not come to a halt - Wolf.</s>BLITZER: Karl Penhaul reporting for us from Falluja. Thank you, Karl, very much. We'll move on to another major story we're following. From Ramallah to Paris, around the world, Palestinians are focused on what may be Yasser Arafat's final hours. Plans for a state funeral and his burial now in the works. CNN's Fionnuala Sweeney once again outside the Paris hospital where Arafat remains gravely ill, in a coma. Fionnuala, what is the latest?</s>FIONNUALA SWEENEY, CNN CORRESPONDENT: Indeed, Wolf. He remains gravely ill, as you say, in a very deep coma. Earlier, we heard from the Palestinian envoy to Paris, Leila Shahid, for the first time in more than a week. She came out earlier speaking to reporters, saying that Yasser Arafat was still in that coma and struggling for his life.</s>LEILA SHAHID, PLO REPRESENTATIVE FROM FRANCE: President Arafat is still in the same situation, in deep coma, in a very critical state, with the best doctors possible in this Percy hospital that have been now for 12 days trying their best to save him. I can't tell you more than that. I can only tell you that he is critical, but that he is still alive and he's fighting as much as he can. And his heart is still beating and beating well, because he's struggling. But whether he can make is very difficult to say at this moment.</s>SWEENEY: Well, also here at the hospital today has been a senior Islamic cleric from the West Bank and Gaza, Shaikh Tasir al-Tammimi (ph). He spent an hour and a half by Yasser Arafat's bedside reading verses from the Koran to him. He reportedly saw a shoulder move and is convinced that, while Yasser Arafat remains alive, there is no need for euthanasia, which, in any case, is also forbidden under Islamic law. And one other thing to note, Wolf. We also heard from a hospital spokesman today who said there would be no further official update on Yasser Arafat's medical condition until his situation changes -- Wolf.</s>BLITZER: Fionnuala Sweeney reporting for us from the Percy military hospital in Paris. Thank you, Fionnuala, very much. We'll have more on Yasser Arafat's condition and the overall situation in the Middle East. That's coming up. I'll speak with the foreign minister of the Palestinian Authority, Nabil Sha'ath. That comes up next. Also ahead...</s>UNIDENTIFIED FEMALE: Thee minute that I opened this letter and read it, my heart sank.</s>BLITZER: ... a new documentary chronicling the last letters home for some of America's bravest military personnel. I will speak live with the film's producer. That's coming up later this hour. Stay with us.