Kelly Wallace: White House, Capitol Hill update

Kelly Wallace is a CNN White House correspondent. She joined the CNN.com chat room from Washington.

CNN: Good afternoon, Kelly Wallace. Thank you for being with us today.

KELLY WALLACE: Hello and good to be with you.

CNN: As President Bush considers actions or charges against American Taliban fighter John Walker, what are the main criteria and facts on which he is basing his decision?

WALLACE: Senior administration officials say the issue is simple -- that the president asked his team to look at the facts of the case and the law and report back to him, and then he will make a decision. I am told the president has not made up his mind yet, and we just learned from Ari Fleischer, the president's spokesman, at his briefing, that we should not anticipate any decision this week, that nothing is imminent.

We are told nothing has been ruled out including treason, but some in the Justice Department and in the White House Counsel's office, believe treason could be difficult to prove. We also know there is a recommendation out there to charge him with providing material support and resources to terrorists and terrorist organizations -- a charge that could carry a maximum sentence of 15 years to life in prison. But again, we are told no decision yet.

CHAT PARTICIPANT: Didn't Walker void his citizenship by joining a foreign army?

CNN.COM SPECIAL REPORT  CNN NewsPass Video  Agencies reportedly got hijack tips in 1998  MORE STORIES Intelligence intercept led to Buffalo suspects Report cites warnings before 9/11  EXTRA INFORMATION Timeline: Who Knew What and When? Interactive: Terror Investigation Terror Warnings System Most wanted terrorists What looks suspicious? In-Depth: America Remembers In-Depth: Terror on Tape In-Depth: How prepared is your city?  RESOURCES On the Scene: Barbara Starr: Al Qaeda hunt expands? On the Scene: Peter Bergen: Getting al Qaeda to talk

WALLACE: That is a great question, and one of my colleagues actually asked Fleischer this very question during his briefing. The Bush spokesman did not know the answer, so we are now trying to get some answer from the Justice Department. What we do know is that while Walker is in the custody of military personnel, he is being afforded all the rights under the Geneva Convention, which means he can be questioned for military and intelligence matters without the presence of a lawyer. But once he is in the custody of law enforcement officials, his rights as a U.S citizen kick in, meaning he should have access to a lawyer. So, great question. Stay tuned to CNN to provide the answer as soon as we get it.

CHAT PARTICIPANT: I read that the US government will not try Walker under treason but of a lesser charge of helping the enemy. Do you believe this is because of Walker giving up useful information, or of political opposition to trying him under treason?

WALLACE: There is no question that if Walker is providing "useful" information to the U.S. military, that that could play a role in any decision President Bush makes. But again, we are told no decision has been made, and that treason has not been ruled out. As for how the American people feel, looking at unofficial polls CNN has been conducting this day, it looks like most Americans would like to see him tried with treason. So the public, again unofficially, might be supportive of such a move, but this administration has not made its final determination. One official put it this way, the administration wants to take a "tempered but tough" approach. We'll have to see how this one plays out.

CHAT PARTICIPANT: Hi Kelly. Yesterday President Bush went to Congress and announced success in passing the stimulus package. Was his failed attempt to "slam dunk" the package through an embarrassment for him?

WALLACE: The White House would say absolutely not and says the blame, totally rests on the shoulders of Senate Majority Leader Tom Daschle. What we saw yesterday was a bit of political hardball. The president came out, saying there was a deal, when there was no true deal, since the Senate Democratic leadership had not signed on and there were still not the 60 votes needed to overcome any procedural hurdles in the Senate to get a bill to the floor. So senior administration officials believe the president is in a great position and that if the economy does not rebound, he can say he compromised and he tried to get a bill but the Democrats stood in the way. Democrats would say the president was not willing to negotiate enough. Will this matter next year as voters go to the polls to decide the House and Senate races? Most believe that all depends on just how the economy is faring next year.

CHAT PARTICIPANT: Kelly...How much will be invested in getting Osama bin Laden? Is there finite limit?

WALLACE: This administration would say it will devote as much time as it takes and all the resources necessary to find bin Laden. The president has said his resolve is clear, that he and the U.S. military will be committed if it takes a month, a year or years. As for the resource question, there could be a time when the military could be strapped, especially if the campaign takes the military to other parts of the world, but the White House says it won't give up and most Americans probably feel the same way.

CNN: The education bill passed this week, but some critics say it doesn't offer communities enough resources to change the problems that will be exposed through the mandatory testing and accountability. Will this criticism be followed up by future action, or is it likely to fizzle out now that combatting terrorism is so high on the national agenda?

WALLACE: That is another good question. We are likely to see Democrats take up the issue of funding when they come back in January, especially when it comes to funding for special education because Democrats in the end gave up that fight to get a bill out of both chambers of Congress but pledged to take it up next year. So look for continued discussion about the issue, but you raise another good point. The war on terror has pushed issues like education off the front pages. That is likely to be an ongoing battle for lawmakers in the Congress, but Democrats say they will keep pushing and they feel they have some -- at least -- verbal indications from Republicans that they will listen, especially on special education.

CHAT PARTICIPANT: Is the Bush administration planning on doing anything to help the terrible crisis in Argentina?

WALLACE: Another good question. Ari Fleischer, the president's spokesman, issued a statement on Bush's behalf, saying the president is concerned and that he is encouraging Argentina to work with the International Monetary Fund and other international authorities to try and get its fiscal situation in order. Fleischer was asked about any bilateral aid package and gave no indication one was under consideration. We know the U.S. government is in touch with the Argentine goverment and watching the situation closely, but that's the extent of the U.S. involvement at this moment as far as I know.

CHAT PARTICIPANT: Enron and El Paso Natural gas shafted us pretty good out here in California. Do you think President Bush will ever try to fix the situation with Texas energy companies and California. Or has he left us on our own?

WALLACE: So many interesting questions today. I have not heard any change in the administration's position on this issue, and that is the concern of Texas energy companies allegedly overcharging California customers is one that California needs to resolve as it tackles issues such as the effects of deregulating its energy market. We do know the administration has looked into concerns of price gouging and I am not aware of the administration finding any evidence of that.

This White House, as you know, has very close ties to Enron, with many Bush advisers having worked for Enron in the past, and with Kenneth Lay, the chief of Enron, being a strong Bush supporter. With Enron going bankrupt, the White House has been asked about the Bush connections and whether the president thinks an investigation of the company is warranted. On that point, Ari Fleischer, the president's spokesman, says that Bush would support any congressional inquiry into what went wrong at Enron, but that's the extend of what the White House will say about the matter.

CNN: Any closing comments for us today?

WALLACE: My closing comments today-- wishing you all a very Happy Holiday and all the best for 2002. I will be off next week but look forward to resuming our chats after the New Year. Your questions are always terrific and they often give me ideas about stories to follow and questions to ask. So thanks for the questions -- I would say there are two issues to follow over the next week or so -- the hunt for bin Laden and the Walker case. We'll have to see if there any developments on either issue. Beyond that, Happy Holidays once again.

CNN: Thanks for joining us today, Kelly Wallace. Happy holidays to you, too!

Kelly Wallace joined CNN.com Newsroom from Washington, DC. This is an edited transcript of the interview, which took place on Thursday, December 20, 2001.