PBS NewsHour; February 15, 2011 7:00pm-8:00pm EST

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Woodruff: GOOD EVENING. I'M JUDY WOODRUFF. PRESIDENT OBAMA MADE THE CASE TODAY FOR HIS 2012 BUDGET, AND CALLED ON BOTH PARTIES TO PREPARE FOR TOUGH DECISIONS ABOUT SOCIAL SECURITY, MEDICARE AND MEDICAID.

>> Ifill: AND I'M GWEN IFILL. ON THE NEWSHOUR TONIGHT, ON CAPITOL HILL, REPUBLICANS CALLED FOR SLASHING THIS YEAR'S SPENDING. DAVID CHALIAN WALKS US THROUGH THE POLITICS OF TODAY'S DEBATE.

>> Woodruff: AND WE TALK TO FRESHMAN SENATOR AND TEA PARTY LEADER RAND PAUL, WHO SAYS NEITHER PARTY IS GOING FAR ENOUGH.

>> I DON'T THINK WE'RE ON A PATH TOWARDS BALANCING THE BUDGET. WE'RE NOT A PATH TOWARDS REDUCING THE DEBT. WE'RE ON A PATH TOWARDS EXPLODING THE DEBT ON BOTH SIDES, DEMOCRAT AND REPUBLICAN.

>> Ifill: THEN, WE LOOK AT THE RIPPLE EFFECT FROM EGYPT'S UPRISING, AS PROTESTERS TAKE TO THE STREETS IN BAHRAIN AND YEMEN.

>> Woodruff: JEFFREY BROWN ZEROES IN ON THE MOVES BY THE GOVERNMENT OF IRAN TO CRACK DOWN ON DEMONSTRATORS.

>> Ifill: BETTY ANN BOWSER TELLS THE STORY OF A COLORADO CLINIC HELPING DIABETES PATIENTS STAVE OFF THE DEVASTATING CONSEQUENCES OF THE DISEASE.

>> WE'RE WINNING THE WAR BECAUSE WE SEE LESS LONG-TERM COMPLICATIONS HAPPENING. WE HAVE FEWER PATIENTS ENDING UP WITH DIABETES CAUSED BLINDNESS OR

>> Woodruff: AND KWAME HOLMAN REPORTS ON TODAY'S MEDAL OF FREEDOM CEREMONY, HONORING 15 PEOPLE WITH THE NATION'S HIGHEST CIVILIAN AWARD. THAT'S ALL AHEAD ON TONIGHT'S NEWSHOUR.

>> OIL COMPANIES CAN MAKE A DIFFERENCE.

>> WE HAVE THE CHANCE TO KEEP PEOPLE HEALTHY AND IMPROVE SCHOOLS.

>> IN OUR COMMUNITIES.

>> IN ANGOLA, CHEVRON HELPS TRAIN ENGINEERS, TEACHERS AND FARMERS. THIS IS NOT JUST GOOD BUSINESS. I'M HOPEFUL ABOUT MY COUNTRY'S FUTURE.

>> IT'S MY COUNTRY'S FUTURE.

>> YOU CAN'T MANUFACTURE PRIDE, BUT PRIDE BUILDS GREAT CARS. AND YOU'LL FIND IT IN THE PEOPLE AT TOYOTA, ALL ACROSS AMERICA. PACIFIC LIFE-- THE POWER TO HELP YOU SUCCEED.

>> AND BY BNSF RAILWAY. THE WILLIAM AND FLORA HEWLETT FOUNDATION, WORKING TO SOLVE SOCIAL AND ENVIRONMENTAL PROBLEMS AT HOME AND AROUND THE WORLD. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU.

>> Woodruff: THE BUDGET BATTLES OF WASHINGTON HEATED UP TODAY, AT THE WHITE HOUSE AND ON THE FLOOR OF THE HOUSE. PRESIDENT OBAMA CALLED HIS FIRST FORMAL NEWS CONFERENCE OF THE YEAR TO ADDRESS THE ISSUE. FOR THE SECOND DAY IN A ROW, THE PRESIDENT SPOKE UP FOR HIS NEW $3.7 TRILLION BUDGET BLUEPRINT FOR 2012. THE PLAN DOES NOT INCLUDE THE SWEEPING RECOMMENDATIONS OF HIS DEFICIT COMMISSION. INSTEAD, HE CALLS FOR NEGOTIATING "TOUGH CHOICES" WITH REPUBLICANS.

>> MY GOAL HERE IS TO ACTUALLY SOLVE THE PROBLEM. IT'S NOT TO GET A... A GOOD HEADLINE ON THE FIRST DAY. MY GOAL IS... IS THAT, A YEAR FROM NOW OR TWO YEARS FROM NOW, PEOPLE WILL LOOK BACK AND SAY, "YOU KNOW WHAT? WE ACTUALLY STARTED MAKING PROGRESS ON THIS ISSUE."

>> Woodruff: THE OBAMA BUDGET PROJECTS A RECORD DEFICIT OF MORE THAN $1.6 TRILLION THIS YEAR. THE RED INK WOULD TOP $7 TRILLION OVER THE NEXT TEN YEARS. THE PLAN RELIES ON A PARTIAL FREEZE ON DOMESTIC PROGRAMS, SOME TAX INCREASES, AND REDUCED WAR SPENDING TO KEEP THE DEFICIT FROM BEING EVEN LARGER. THE PRESIDENT SAID HE FEELS THE PAIN THOSE MEASURES WOULD CAUSE, BUT EXPRESSED OPTIMISM ABOUT GETTING A DEAL THAT'S GOOD FOR THE COUNTRY.

>> MY HOPE IS THAT WHAT'S DIFFERENT THIS TIME IS... IS WE HAVE AN ADULT CONVERSATION WHERE EVERYBODY SAYS, "HERE'S WHAT... HERE'S WHAT'S IMPORTANT AND HERE'S HOW WE'RE GOING TO PAY FOR IT." NOW, THERE ARE GOING TO BE SOME SIGNIFICANT DISAGREEMENTS ABOUT WHAT PEOPLE THINK IS IMPORTANT, AND... AND THAT'S HOW DEMOCRACY SHOULD WORK. AND, YOU KNOW, AT THE MARGINS, I THINK THAT, YOU KNOW, I'LL END UP HAVING TO COMPROMISE ON SOME THINGS. HOPEFULLY, OTHERS WILL HAVE THAT SAME SPIRIT.

>> Woodruff: BUT REPUBLICANS CHARGED THE PRESIDENT FAILED TO ADDRESS THE REAL ISSUES. TENNESSEE NATOR LAMAR ALEXANDER.

>> THERE'S ONLY ONE PERSON IN OUR COUNTRY WHO CAN, BETTER THAN EVERYBODY ELSE, SEE AN URGENT NEED, DEVELOP A STRATEGY TO DEAL WITH THAT NEED, AND PERSUADE HALF THE PEOPLE HE'S RIGHT, AND THAT'S THE PRESIDENT OF THE UNITED STATES. WE DO NOT HAVE A MORE URGENT NEED THAN REINING IN THE FEDERAL DEFICIT. WE ARE, RIGHT NOW, DISCUSSING WHAT TO DO WITH ABOUT 12% OF THE DEFICIT. AND THAT'S IMPORTANT. BUT THE PRESIDENT MISSED THE OPPORTUNITY IN HIS STATE OF THE UNION ADDRESS. HE'S MISSED THE OPPORTUNITY IN HIS BUDGET. HE HAS AN OPPORTUNITY NOW, AND THE NATION HAS AN URGENT NEED FOR HIM TO CHALLENGE US ALL ACROSS THE BUDGET.

>> Woodruff: THE TOUGHEST CHALLENGE OF ALL MAY BE THE BURGEONING COSTS OF MEDICARE, MEDICAID, AND SOCIAL SECURITY. MR. OBAMA DID NOT ADDRESS ENTITLEMENTS COMPREHENSIVELY IN HIS BUDGET, BUT HE INSISTED TODAY HE WANTS ACTION.

>> I'M CONFIDENT WE CAN GET SOCIAL SECURITY DONE, IN THE SAME WAY THAT RONALD REAGAN AND TIP O'NEILL WERE ABLE TO GET IT DONE-- BY PARTIES COMING TOGETHER, MAKING SOME MODEST ADJUSTMENTS. I THINK WE CAN AVOID SLASHING BENEFITS, AND I THINK WE CAN MAKE IT STABLE AND STRONGER FOR NOT ONLY THIS GENERATION, BUT FOR THE NEXT GENERATION. MEDICARE AND MEDICAID ARE HUGE PROBLEMS, BECAUSE HEALTH CARE COSTS ARE RISING EVEN AS THE POPULATION'S GETTING OLDER. AND SO WHAT I'VE SAID IS THAT I AM PREPARED TO WORK WITH DEMOCRATS AND REPUBLICANS TO START DEALING WITH THAT IN A SERIOUS WAY.

>> Woodruff: MEANWHILE, THE REPUBLICAN-CONTROLLED HOUSE MOVED AHEAD TODAY ON MAJOR SPENDING CUTS IN THE CURRENT FISCAL YEAR. THE G.O.P. PLAN BEING DEBATED WOULD CUT $61 BILLION FROM HUNDREDS OF PROGRAMS, ROUGHLY A 14% REDUCTION. REPUBLICAN CONGRESSMAN DAVID DREIER OF CALIFORNIA SAID IT'S TIME FOR URGENT ACTION.

>> IF WE DON'T GET OUR FISCAL HOUSE IN ORDER AND BRING ABOUT DRAMATIC SPENDING CUTS, OUR FUTURE IS VERY MUCH IN QUESTION. IF WE DON'T BRING ABOUT THESE KINDS OF SPENDING CUTS, WE ARE GOING TO BE PASSING ON TO FUTURE GENERATIONS A RESPONSIBILITY THAT THEY DO NOT DESERVE TO HAVE. THAT'S WHY IT'S UP TO US TO DO OUR JOB AND MAKE SURE WE GET OUR FISCAL HOUSE IN ORDER.

>> Woodruff: THE REPUBLICAN PROPOSAL WOULD MAKE DEEP CUTS IN PROGRAMS THAT FEED THE POOR, PROVIDE JOB TRAINING, AND CLEAN THE GREAT LAKES. AND IT WOULD ELIMINATE THE CORPORATION FOR PUBLIC BROADCASTING AND AMERICORPS. DEMOCRATS, LIKE DAVID CICILLINE OF RHODE ISLAND, WARNED THE CUTS WILL DO FAR MORE HARM THAN GOOD.

>> THE REPUBLICANS ARE MOVING FORWARD WITH A DANGEROUS SPENDING BILL, ONE THAT CONTINUES TO GIVE REWARDS TO THE RICH, AND LITERALLY GUTS THE INITIATIVES MOST MEANINGFUL TO MIDDLE CLASS FAMILIES. SIMPLY PUT, THE REPUBLICANS' SPENDING BILL IS IRRESPONSIBLE AND TONE DEAF TO THE NEEDS OF A HEALING NATION.

>> Woodruff: BUT HOUSE SPEAKER JOHN BOEHNER WAS UNAPOLOGETIC ABOUT THE DRIVE TO CUT SPENDING AND THE SIZE OF GOVERNMENT.

>> OVER THE LAST TWO YEARS, SINCE PRESIDENT OBAMA HAS TAKEN OFFICE, THE FEDERAL GOVERNMENT HAS ADDED 200,000 NEW FEDERAL JOBS, AND IF SOME OF THOSE JOBS ARE LOST IN THIS, SO BE IT.

>> Woodruff: A VOTE ON THE HOUSE REPUBLICAN SPENDING PROPOSALS IS EXPECTED ON THURSDAY. LATE TODAY, A WHITE HOUSE STATEMENT WARNED THE REPUBLICAN BILL WOULD UNDERMINE "CORE GOVERNMENT FUNCTIONS," AND IT SAID IF THE MEASURE IS NOT CHANGED, "THE PRESIDENT WILL VETO THE BILL". FOR MORE ON THE POLITICS OF ALL THIS, WE TURN TO OUR POLITICAL EDITOR, DAVID CHALIAN. SO, DAVID, THE WHITE HOUSE MAKING THE STATEMENT THEY'RE GOING TO VETO IT. BUT WHY ARE THEY SAYING THIS WHEN JUST ABOUT EVERYBODY EXPECTS THE SENATE WHEN THEY GET AHOLD OF THIS BUDGET BILL THEY'RE GOING TO MAKE BIG CHANGES.

>> WHAT COMES OUT OF THE HOUSE WILL NOT BE WHAT LANDS ON THE PRESIDENT'S DESK. HE NEEDED TO ISSUE THIS VETO THREAT WHICH IS PRETTY MUCH AS YOU'RE DESCRIBING IT AN IDLE VETO THREAT BECAUSE HE HAD TO BUCK UP HIS TROOPS IN THE HOUSE. THE DEMOCRATS IN THE HOUSE THAT ARE FIGHTING AGAINST THIS. I FOUND IT PRETTY INTERESTING HE DIDN'T ISSUE THAT VETO THREAT DURING HIS NEWS CONFERENCE ON CAMERA FOR US ALL TO PLAY BECAUSE HE WANTS TO LOOK LIKE HE'S TOUGH ON CUTTING THE BUDGET SO THEY DID IT ON A PAPER STATEMENT LATER IN THE DAY.

>> Woodruff: JUST BEFORE THAT WE HEARD FROM SPEAKER BOEHNER MAKING THE STATEMENT THAT-- AND WE KNOW REPUBLICANS TALK ALL THE TIME ABOUT THEY WANT TO CREATE JOBS. BUT HE MADE IT CLEAR THAT IF THOSE ARE GOVERNMENT JOBS THEY'RE EXPENDABLE. IS THAT THE WIDELY HELD REPUBLICAN VIEW?

>> WELL, REPUBLICANS HAVE MADE IT VERY CLEAR THROUGHOUT THE CAMPAIGN LAST FALL AND SINCE THEY'VE TAKEN POWER IN THE HOUSE THAT THEY DO BELIEVE THAT THE FEDERAL GOVERNMENT IS BLOATED AND THEY WANT TO SHRINK THE SIZE OF IT. DEMOCRATS OF COURSE SEIZED ON THAT COMMENT TODAY. NANCY PELOSI THE LEADER OF THE DEMOCRATS WENT TO THE FLOOR TO RAIL AGAINST IT, THAT EVERY JOB SHOULD BE PROTECTED WHETHER IT'S GOVERNMENT OR PRIVATE SECTOR. BUT THE REPUBLICANS HAVE SAID ALL ALONG THAT THEY WANT TO SHRINK THE SIZE OF THE FEDERAL GOVERNMENT. THAT MEANS MAYBE LOSING SOME FEDERAL GOVERNMENT JOBS.

>> Woodruff: BACK TO WHAT THE PRESIDENT WAS SAYING IN HIS NEWS CONFERENCE TODAY HE IS MAKING THE ARGUMENT TWO DAYS IN A ROW THAT HE'S NOT TAKING ON THE ENTITLEMENTS, SOCIAL SECURITY, MEDICARE AND MEDICAID BECAUSE HE WANTS TO WAIT UNTIL EVERYBODY CAN SIT DOWN AT THE TABLE, DEMOCRATS AND REPUBLICANS, AND TALK ABOUT IT LIKE ADULTS. IS THAT A POSITION THAT IS COMFORTABLE FOR THE WHITE HOUSE TO BE IN?

>> WELL, THE WHITE HOUSE DOESN'T MIND LOOKING LIKE IT'S TAKING ON A TOUGH ISSUE, WILLING TO DISCUSS IT, SAYING WE HAVE A FRAMEWORK FOR DISCUSSION SO I DON'T THINK THEY'RE UNCOMFORTABLE ALTHOUGH THEY'RE TAKING THEIR HITS ON IT, EVEN FRIENDLY EDITORIAL PAGES LIKE THE "NEW YORK TIMES" EDITORIAL PAGE CRITICIZED THE OBAMA BUDGET FOR NOT DEALING WITH THOSE ISSUES. THE REPUBLICANS, OF COURSE, ARE SAYING THAT THIS IS A LACK OF LEADERSHIP. YOU HEARD LAMAR ALEXANDER SAY THAT. THE PRESIDENT SAYING, HEY, WE HAVE TO GET IN THE BOAT AT THE SAME TIME. I SPOKE TO A REPUBLICAN AIDE ON CAPITOL HILL SAYING WE HAVE TO JUMP INTO THE POOL AT THE SAME TIME. NOBODY WANTS TO BE THAT FIRST PERSON IN BECAUSE THEY'RE AFRAID THERE WILL BE DEMAGOGING AGAINST WHAT THEY PRESENT. I DO THINK THAT THE PRESIDENT IS VERY COMFORTABLE AND VERY HAPPY WITH LOOKING LIKE HE'S CALLING FOR THIS ADULT CONVERSATION ON THIS VERY IMPORTANT ISSUE. AND IF IT MEANS HE TAKES HIS LUMPS A LITTLE BIT FOR NOT GETTING OUT THERE BY HIMSELF THAT'S OKAY AS LONG AS HE THINKS HE'S MOVING THE BALL DOWN THE FIELD LATER ON WITH NEGOTIATIONS.

>> Woodruff: MEANWHILE, DAVID, HE'S SAYING THAT HE IS MAKING TOUGH CHOICES. YOU KNOW, THIS ARGUMENT THAT HE HASN'T TAKEN ON THE ENTITLEMENTS, HE'S SAYING BUT I'M CUTTING THINGS LIKE HOME HEATING FOR POOR FAMILIES. WE'RE TAKING ON CLEAN WATER. CLEAN AIR. WE'RE CUTTING THESE PROGRAMS. HE'S NOT GETTING A LOT OF PUSHBACK FROM THE DEMOCRATIC SIDE OR IS HE?

>> HE'S GETTING SOME. YOU HEARD HIM TODAY IN THE NEWS CONFERENCE REFER TO IT AS GRUMBLING IN HIS OWN PARTY. THIS, THE WHITE HOUSE REALLY LOVES. THEY WANT TO LOOK LIKE THEY ARE MAKING TOUGH CUTS ABOUT PROGRAMS THAT THE PRESIDENT AND HIS PARTY CARE VERY MUCH ABOUT, THAT HE'S GOING AGAINST HIS OWN PARTY BECAUSE THAT'S A REAL APPEAL TO INDEPENDENT VOTERS IN THE MIDDLE TRYING TO SHOW THAT YOU CAN DO THE TOUGH THING. I THINK WHAT'S WORKING TO THE PRESIDENT'S ADVANTAGE AND IN TALK TO GO SOME WHITE HOUSE AIDES I THINK THEY HAVE THIS SENSE TOO. IS THE BILL THAT IS ON THE FLOOR IN THE HOUSE RIGHT NOW ABOUT THIS YEAR'S SPENDING CUTS, THE DEMOCRATS ARE SO FOCUSED ON PUSHING BACK ON THAT PUSH BY REPUBLICANS TO CUT $100 BILLION OUT OF THIS YEAR THAT THEY'RE NOT AS FOCUSED ON THE THINGS THAT THEY'RE NOT THRILLED WITH IN THE PRESIDENT'S BUDGET BUT YOU CAN ONLY PICK ONE FIGHT AT A TIME.

>> JUST VERY QUICKLY SPEAKING OF THAT THIS YEAR'S FISCAL BUDGET THERE'S ONLY A COUPLE OF WEEKS LEFT. IS THERE A POSSIBILITY THEY'RE NOT GOING TO WORK THIS OUT?

>> THAT RUNS OUT MARCH 4. THIS IS THE FUNDING OF THE GOVERNMENT. THIS MORNING THE HOUSE BUDGET COMMITTEE CHAIRMAN PAUL RYAN SAID TALK OF A GOVERNMENT SHUTDOWN IS REALLY NOT NECESSARY BECAUSE HE THINKS THAT THEY WILL EXTEND THE CONTINUING RESOLUTION, CONTINUE TO FUND THE GOVERNMENT ON THE SHORT TERM. SO THAT THEY CAN CONTINUE TIME FOR NEGOTIATIONS TO GET A FINAL BUDGET DEAL FOR THIS YEAR'S BUDGET. THE PRESIDENT ALSO SAID TODAY THAT HE DOESN'T WANT ANYONE TALKING LOOSELY ABOUT A GOVERNMENT SHUTDOWN SO I DON'T THINK WE'RE GOING TO COME NECESSARILY TO THOSE FULL LOGGERHEADS THAT OTHERS HAVE ANTICIPATED. I THINK THAT THEY MIGHT GET A SHORT-TERM EXTENSION TO GIVE THEMSELVES BREATHING ROOM TO WORK OUT A DEAL BUT MAKE NO MISTAKE THE REPUBLICANS ARE PUSHING VERY DEEP CUTS AND THE DEMOCRATS ARE GOING TO PUSH BACK AGAINST IT.

>> Woodruff: POLITICAL EDITOR DAVID CHALIAN, THANKS.

>> SURE.

>> Ifill: COMING UP, ANOTHER VIEW ON THE BUDGET, FROM TEA PARTY MEMBER RAND PAUL; THE EGYPT-STYLE PROTESTS IN BAHRAIN; THE CRACKDOWN ON DEMONSTRATORS IN IRAN; A CLINIC THAT TACKLES DIABETES IN COLORADO; AND THE WINNERS OF THE MEDAL OF FREEDOM. BUT FIRST, WITH THE OTHER NEWS OF THE DAY, HERE'S HARI SREENIVASAN.

>> Sreenivasan: WALL STREET LOST GROUND TODAY AFTER NEWS THAT RETAIL SALES WERE SURPRISINGLY WEAK IN JANUARY. THE DOW JONES INDUSTRIAL AVERAGE DROPPED 41 POINTS TO CLOSE AT 12,226. THE NASDAQ FELL MORE THAN 12 POINTS TO CLOSE AT 2,804. ITALIAN PRIME MINISTER SILVIO BERLUSCONI WAS ORDERED TODAY TO STAND TRIAL OVER ALLEGATIONS HE PAID A 17-YEAR-OLD GIRL FOR SEX. WE HAVE A REPORT NARRATED BY JAMES MATES OF INDEPENDENT TELEVISION NEWS.

>> Reporter: THE PRIME MINISTER OF A MAJOR EUROPEAN ECONOMY, NOT JUST ACCUSED, BUT NOW FORMALLY CHARGED WITH UNDER-AGE PROSTITUTION AND ABUSE OF POWER. HE'S FACING 15 YEARS IN JAIL, ENOUGH TO FORCE A RESIGNATION. IT SEEMS NOT EVEN CLOSE. THE CHARGE IS THAT HE PAID FOR SEX WITH THIS WOMAN WHEN SHE WAS JUST 17, ILLEGAL IN ITALY. KARIMA EL MAHROUG, WHOSE WORKING NAME IS RUBY, HAS BECOME SOMETHING OF A CELEBRITY, APPEARING IN ADVERTS LIKE THIS ONE. AT ONE POINT, BERLUSCONI PERSONALLY CALLED THE POLICE AND ASKED FOR HER TO BE RELEASED FROM JAIL ON A THEFT CHARGE. HE ADMITS IT, BUT SAYS HE DID IT BECAUSE HE THOUGHT SHE WAS THE GRANDDAUGHTER OF EGYPTIAN PRESIDENT HOSNI MUBARAK. RUBY, IN FACT, COMES FROM MOROCCO. SHE CATEGORICALLY DENIES HAVING SEX WITH BERLUSCONI, EVEN THOUGH HE GAVE HER 7,000 EUROS IN CASH. HE SAYS THAT WAS "TO HELP HER OUT." THE CHARGES HAVE NOW BEEN LAID. IN JUST A FEW WEEKS, THE DETAILS WILL BE AIRED IN OPEN COURT.

>> I THINK THAT THAT COULD HURT THE IMAGE OF THE PRIME MINISTER AND HIS POSITIONING AS PRIME MINISTER.

>> Reporter: JUST TWO DAYS AGO, HUNDREDS OF THOUSANDS OF ITALIAN WOMEN TOOK TO THE STREETS TO PROTEST AT BERLUSCONI'S BEHAVIOR, AND HIS REFUSAL TO LEAVE OFFICE. "IF NOT NOW, WHEN?" THEY SHOUTED. BUT HE'S BEEN LEADING ITALY AT VARIOUS TIMES SINCE 1994, AND WITH MORE THAN A THIRD OF ITALIANS STILL SAYING THEY BACK HIM, HIS DEPARTURE DOES NOT SEEM TO BE IMMINENT.

>> Sreenivasan: BERLUSCONI'S TRIAL IS SET TO BEGIN APRIL 6 IN MILAN. THE ESTIMATE OF DEATHS FROM A MASSACRE IN SUDAN DOUBLED TODAY. A SENIOR MEMBER OF THE SOUTH'S RULING PARTY SAID 211 PEOPLE WERE KILLED IN THE ATTACKS LAST WEEK. THE TROUBLE STARTED AFTER THE SOUTH VOTED FOR INDEPENDENCE LAST MONTH. LEADERS FROM THE SOUTH ALSO ACCUSED THE GOVERNMENT OF SUDAN OF ARMING AND FINANCING THE REBELS. THE U.S. WILL SPEND $25 MILLION THIS YEAR IN A BID TO BOOST POLITICAL FREEDOM ON THE INTERNET. SECRETARY OF STATE HILLARY CLINTON SAID TODAY IT IS CLEAR GOVERNMENTS CAN NO LONGER PICK AND CHOOSE WHICH RIGHTS TO GRANT THEIR CITIZENS. SHE SAID LEADERS WHO RESTRICT INTERNET FREEDOM WILL EVENTUALLY FIND THEMSELVES "BOXED IN".

>> THEY WILL FACE A DICTATOR'S DILEMMA AND WILL HAVE TO CHOOSE BETWEEN LETTING THE WALLS FALL OR PAYING THE PRICE TO KEEP THEM STANDING. WHICH MEANS BOTH DOUBLING DOWN ON A LOSING HAND BY RESORTING TO GREATER OPPRESSION AND ENDURING THE ESCALATING OPPORTUNITY COST OF MISSING OUT ON THE IDEAS THAT HAVE BEEN BLOCKED AND PEOPLE WHO HAVE BEEN DISAPPEARED.

>> Sreenivasan: THE U.S. INITIATIVE WILL TRY TO PROTECT BLOGGERS AND HELP THEM BYPASS BARRIERS LIKE CHINA'S "GREAT FIREWALL," AND GAGS ON SOCIAL MEDIA IN IRAN AND CUBA. FEDERAL PROSECUTORS TODAY DEFENDED THEIR PROBE OF WIKILEAKS AND ITS RELEASE OF SECRET U.S. DOCUMENTS. THEY SAID THEIR REQUESTS FOR INFORMATION ARE ROUTINE. A FEDERAL MAGISTRATE HAS ORDERED THE SOCIAL MEDIA SITE TWITTER TO TURN OVER DATA ON SEVERAL ACCOUNTS LINKED TO WIKILEAKS. LAWYERS FOR THOSE USERS ASKED TODAY THAT THE ORDER BE RESCINDED. AND LAST NIGHT, THE U.S. HOUSE EXTENDED KEY PARTS OF THE ANTI- TERROR PATRIOT ACT FOR TEN MONTHS. THEY INVOLVED WIRETAPPING, SURVEILLANCE AND ACCESS TO BUSINESS RECORDS. AN IRAQI DEFECTOR NOW ACKNOWLEDGES HE LIED ABOUT SADDAM HUSSEIN HAVING BIOLOGICAL WEAPONS BEFORE THE IRAQ WAR. THE BUSH ADMINISTRATION RELIED HEAVILY ON RAFID AHMED ALWAN AL- JANABI AND HIS EVIDENCE. HE HAS LONG SINCE BEEN DISCREDITED. JANABI'S OWN ADMISSION CAME IN TODAY'S "GUARDIAN" NEWSPAPER IN LONDON. HE SAID, "I HAD THE CHANCE TO FABRICATE SOMETHING TO TOPPLE SADDAM'S REGIME. I AND MY SONS ARE PROUD OF THAT." JANABI INSISTED "THERE WAS NO OTHER WAY," DESPITE THE THOUSANDS KILLED IN THE IRAQ WAR. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO GWEN.

>> Ifill: THE DEBATE OVER SPENDING AND BUDGETS IS PROVIDING THE FIRST REAL TEST FOR MANY LAWMAKERS WHO GOT ELECTED BY PLEDGING TO CHANGE THE WAY WASHINGTON DOES ITS BUSINESS. CHIEF AMONG THEM IS KENTUCKY REPUBLICAN RAND PAUL, WHO RAN AND WON IN 2010 ON A PROMISE TO SLASH THE FEDERAL BUDGET, AND NOW IS CO-FOUNDER OF THE SENATE TEA PARTY CAUCUS. WE TALKED ON CAPITOL HILL SHORTLY AFTER THE PRESIDENT FINISHED DEFENDING HIS BUDGET PLAN AT A WHITE HOUSE NEWS CONFERENCE. SENATOR PAUL, WELCOME.

>> THANK YOU.

>> Ifill: THE PRESIDENT SAYS HIS NEW BUDGET IS APPLYING A SCALPEL NOT A MACHETE TO THE PROBLEMS OF THE BUDGET, TO THE DEFICIT AND TO THE SPENDING. IS THAT SATISFACTORY TO YOU IN ANY WAY?

>> I DON'T THINK IT MATTERS WHETHER IT'S SATISFACTORY TO ME. I THINK IT'S WHETHER IT ADDRESSES THE PROBLEM. WE HAVE ENORMOUS PROBLEMS WITH OUR DEBT. IT IS APPROACHING 100% OF OUR GROSS DOMESTIC PRODUCT. OUR WHOLE ECONOMY IS EQUAL TO OUR DEBT NOW. THAT'S A REAL PROBLEM. ONE OF THE THINGS THAT I THINK REALLY GOT ME ABOUT HIS BUDGET WHEN I SAW THE PROPOSAL, SOME OF IT'S A TEN-YEAR PLAN. HE'S GOING TO SPEND $46 TRILLION OVER TEN YEARS. JUST A MIND BOGGLING NATURE OF THAT NUMBER. IT'S ALSO GOING TO DOUBLE THE AMOUNT OF DEBT. WHEN HE CAME INTO OFFICE, THERE WAS $8 BILLION IN DEBT. I COMPLAINED ABOUT THE REPUBLICANS. I'M ONE OF THE FEW WHO RAN IN THE PRIMARIES SAYING REPUBLICANS WEREN'T DOING A GOOD JOB. HE'S GOING TO LEAVE OFFICE IF HE WINS ANOTHER TERM WITH $27 BILLION. HE'S GOING TO TRIPLE THE DEBT DURING HIS PERIOD OF TIME. IT'S NOT JUST WHETHER IT'S DEMOCRATS VERSUS REPUBLICANS. IT'S CAN THE COUNTRY SUSTAIN THAT LEVEL OF DEBT?

>> Ifill: YOU MENTIONED THE FACT THAT SOME OF YOUR REPUBLICAN COLLEAGUES AREN'T NECESSARILY AS, HOW DO WE SAY, COMMITTED TO THIS IDEA AS YOU ARE. YOU'VE PROPOSED A $500 BILLION IN CUTS IN THE DEFICIT. SOMETHING SOME OF YOUR REPUBLICAN COLLEAGUES THINK IS KIND OF DRACONIAN.

>> THE AMAZING THING IS YOU KNOW MY RESPONSE? IT'S ONLY A THIRD OF ONE YEAR'S PROBLEM. THAT'S HOW BIG AND HOW BAD THINGS ARE THAT MY PROPOSAL WHICH MANY PEOPLE THINK IS TOO DRAMATIC IS ONLY A THIRD OF ONE YEAR'S PROBLEM. THE WAY I LOOK AT IT IS THAT THE PROBLEM WITH BALANCING THE BUDGET OR REDUCING THE DEBT IS YOU CAN'T LOOK AT THIS MUCH OF THE BUDGET. THE PRESIDENT SAID HE WANTED TO FREEZE SPENDING. EVERYBODY SAID THAT SOUNDS GOOD. HE WANTS TO FREEZE THEM AT INFLATED LEVELS BUT ONLY THIS MUCH OF THE BUDGET. THE REPUBLICANS ARE THE SAME. THEY WANT TO FREEZE IT AT 2008 LEVELS BUT THEY STILL WANT TO FREEZE THIS MUCH OF THE BUDGET. IT'S WHY YOU HAVE TO LOOK AT MILITARY SPENDING. YOU HAVE TO LOOK AT NON-MILITARY DISCRETIONARY FUND SPENDING. BUT ULTIMATELY YOU'RE GOING TO HAVE TO LOOK AT ENTITLEMENTS. ENTITLEMENTS ARE HALF OF THE BUDGET. WE'RE SPENDING MORE THAN WE BRING IN. IT'S ADD TO GO THE DEFICIT.

>> Ifill: HOW DOES YOUR POINT OF VIEW SQUARE WITH WHAT SOME OF YOUR COLLEAGUES HAVE SAID AND EVEN WHAT THE PRESIDENT HAS SAID THIS WEEK ABOUT WE SAW REPRESENTATIVE BOEHNER AND CANTOR, McCARTHY, GO TO THE HOUSE LAST WEEK. WE'VE SEEN YOUR KENTUCKY SENATE SEAT MATE MITCH McCONNELL GO TO THE WHITE HOUSE. THEY ALL COME AWAY SAYING THE SAME THING WHICH IS WHAT THE PRESIDENT SAID TODAY. WE HAVE TO FIND COMMON GROUND ON THIS. WE HAVE TO FIND A WAY TO GET IN THE SAME BOAT WITHOUT TIPPING IT OVER WHICH IS THE WAY THE PRESIDENT PUT IT. DO YOU AGREE WITH THAT.

>> I THINK WE NEED TO FIND COMMON GROUND BUT I THINK BOTH SIDES HAVEN'T WOKEN UP TO THEY NORM ITY OF THE PROBLEM. YOU CANNOT FIX THIS PROBLEM IF YOU ELIMINATE NON-MILITARY DISCRETIONARY SPENDING WHICH IS ALL THEY'RE TALKING ABOUT THIS SMALL PART OF THE BUDGET. IF YOU ELIMINATE IT, YOU STILL DON'T BALANCE THE BUDGET. I DON'T THINK WE'RE ON A PATH TOWARDS BALANCING THE BUDGET OR REDUCING THE DEBT. WE'RE ON A PATH TOWARDS STILL EXPLODING THE DEBT ON BOTH SIDES. DEMOCRAT AND REPUBLICAN. I THINK WE ARE STILL IN THE AWAKENING PROCESS TO HOW SEVERE THE PROBLEM IS.

>> Ifill: ONE THING NOBODY SEEMS TO BE PARTICULARLY INTERESTED BUT WHICH YOU SAY YOU HAVE A PLAN IN YOUR HIP POCKET ON IS SOCIAL SECURITY. ONE OF THE WORDS IS WILL POWER. CAN YOU DESCRIBE WHAT YOU MEAN BY THAT.

>> I THINK IT WILL TAKE FIRST WE ACKNOWLEDGE THERE'S A PROBLEM. WHEN THE CAMPAIGN WAS GOING ON, I WOULD LAUGHINGLY SAY YOU KNOW WHAT? THEY'VE BLAMED ME FOR A LOT OF PROBLEMS BUT I'M NOT RESPONSIBLE FOR THE BABY BOOM. I HAD NOTHING TO DO WITH THE BABY BOOM. BUT IT HAPPENED. IT'S A DEMOGRAPHIC THING. WE HAVE ALL THESE PEOPLE GETTING READY TO RETIRE BECAUSE PEOPLE HAD LARGE FAMILIES AFTER WORLD WAR II. THAT'S NOBODY'S FAULT. IT'S JUST A FACT. BUT WE CAN'T PAY FOR THEM NOW BECAUSE WE HAVE LESS WORKERS. WE HAVE A PLAN. WE HAVEN'T GOTTEN ALL THE THINGS TIED TOGETHER YET BUT IT WILL COME OUT WITHIN A WEEK OR TWO THAT WILL TALK ABOUT GRADUALLY RAISING THE AGE ON THOSE 55 AND UNDER. YOU CAN DO IT OVER 30 YEARS. YOU PROBABLY HAVE TO GRADUALLY RAISE IT TO 70. YOU'LL PROBABLY HAVE TO VO MEANS TESTING. WE'RE TRYING TO FIGURE OUT WHERE THAT MEANS TESTING HAS TO OCCUR. IT WILL FIX SOCIAL SECURITY IN PERPETUITY FOREVER. YOU JUST HAVE TO ACKNOWLEDGE WE'RE LIVING LONGER BUT IT'S TOUGH BECAUSE EVERYBODY WANTS SOMETHING FROM GOVERNMENT BUT THEY HAVE TO UNDERSTAND THERE ARE CONSEQUENCES TO GETTING SOMETHING FROM GOVERNMENT IF IT HAD TO BE BORROWED.

>> Ifill: EVERYTHING WANTS SOMETHING FROM GOVERNMENT. PERFECT SEGWAY. YOU GO HOME EVERY WEEKEND TO KENTUCKY A STATE WHICH GOT $30 BILLION IN AGRICULTURE MONEY FROM THE FEDERAL GOVERNMENT YET YOU'RE SUGGESTING CUTTING THAT MONEY. WHAT DO PEOPLE SAY TO YOU? DO YOU HAVE TO ACCOUNT FOR THAT TO YOUR CONSTITUENTS.

>> I'M NOT GETTING TOO MUCH BAD FEEDBACK. I MET WITH A UNIVERSITY PRESIDENT. WE SAT DOWN AND IN THE BEGINNING HE HAD A LIST OF EARMARKS. HE SAID MY SENATORS HAVE GOTTEN ME THESE THINGS. BUT HE LOOKED AT ME AND HE SAID YOU KNOW WHAT? I KNOW YOU'RE NOT GOING TO DO EARMARKS. I AM AN AMERICAN FIRST. THAT STRUCK HOME TO ME. I'M AN AMERICAN FIRST. I REALIZE THAT WHILE MY JOB IS TO ADVOCATE FOR FEDERAL MONEY, I REALIZE THAT WE HAVE THIS ENORMOUS DEBT. WE'RE BORROWING IT FROM CHINA AND ALL THESE OTHER COUNTRIES OR WE'RE PRINTING AT THE FEDERAL RESERVE. HE SAYS I KNOW IT CAN'T GO ON THE WAY IT'S BEEN IN THE PAST. SO I THINK PEOPLE ARE REALLY... I THINK ACTUALLY THE PEOPLE IN KENTUCKY OR THE PEOPLE ACROSS AMERICA ARE MUCH MORE READY THAN THEY ARE HERE. I THINK THERE'S ALWAYS A DISCONNECT OR A LAG BETWEEN PUBLIC OPINION AND THE PEOPLE HERE. PEOPLE HERE ARE VERY CAUTIOUS BECAUSE THEY WANT TO KEEP THEIR JOB. BUT PEOPLE OUT THERE SAY THERE ARE PROBLEMS. THEY WANT LEADERS WHO STAND UP. I THINK IT ACTUALLY WON'T HURT ME POLITICALLY TO STAND UP AND BE BOLD.

>> Ifill: WHAT ABOUT PEOPLE IN OTHER COUNTRIES TRADITIONAL ALLIES, LIKE ISRAEL, WHERE YOU SEG JESTED THAT FOREIGN AID BE CUT THERE AS WELL.

>> I SUGGESTED ALL FOREIGN AID SHOULD BE CUT. IT'S INTERESTING THAT ABOUT 70% OF THE AMERICAN PEOPLE AGREE WITH ME. I PUT IT IN TERMS LIKE THIS. DOES IT MAKE ANY SENSE FOR ME TO BORROW MONEY FROM CHINA TO GIVE IT TO EGYPT? OR DOES IT MAKE ANY SENSE TO GIVE MONEY TO CORRUPT LEADERS WHO STEAL THEIR PEOPLE'S MONEY? MY DAD LIKES TO SAY WE TAKE IT FROM POOR PEOPLE IN AMERICA TO GIVE IT TO RICH PEOPLE IN THIRD WORLD COUNTRIES. LOOK AT MUGABI THEY HAVE STOLEN FROM THEIR PEOPLE. THEY DON'T HAVE RUNNING WATER AND ELECTRICITY BUT THEY HAVE VAST WEALTH AND DIAMONDS AND RUBYS AND GOLD. WE SEND MONEY TO TRY TO HELP PEOPLE IN AFRICA BUT IT'S STOLEN RIGHT OFF THE TOP BY THE LEADERS. THAT'S NOT TO SAY THERE AREN'T GOOD THINGS YOU CAN DO.

>> Ifill: IN COUNTRIES LIKE ISRAEL?

>> I'D SAY THERE'S PROBABLY A LOT LESS CORRUPTION. THERE'S WASTE WHEN YOU GIVE TO GOVERNMENT ACROSS THE BOARD BUT PROBABLY LESS CORRUPTION IN SOME OF THE OTHER COUNTRIES. BUT IT'S STILL A QUESTION OF WHERE DOES THE MONEY COME FROM? THERE ARE TWO BRIDGES WE'RE TRYING TO BUILD. ONE IN CINCINATTI AND ONE IN LOUISVILLE. I TELL THEM WE'RE SHORT OF MONEY. MAYBE IF WE WERE GIVING LESS MONEY AWAY OVERSEAS WE SAW A BRIDGE COLLAPSE IN MINNEAPOLIS. WE HAVE INFRASTRUCTURE NEEDS. I'M NOT AGAINST ALL GOVERNMENT SPENDING. I'M SAYING WE HAVE TO REFRENCH AND SAVE ENOUGH MONEY THAT WE CAN SPEND IT AT HOME BEFORE WE PROVIDE FOR PEOPLE OVERSEAS.

>> Ifill: DO ANY OF YOUR COLLEAGUES EVER TAKE YOU ASIDE?

>> (LAUGHING).

>> Ifill: ESPECIALLY YOUR COLLEAGUES HERE IN WASHINGTON AND SAY SLOW DOWN. JUST SLOW DOWN. YOU JUST GOT HERE. WE KN DO EVERYTHING AT ONCE?

>> I THINK IT'S ACTUALLY BEEN THE OPPOSITE. MOST OF THEM HAVE COME UP TO ME, AND THERE'S A GENTLE RIBING THAT MAY NOT AGREE WITH WHAT I'M DOING. MOST OF THEM SEE THE ENTHUSIASM AND THE ZEAL FOR TRYING TO, YOU KNOW, FIX PROBLEMS. THEY MAY NOT AGREE WITH THE TIMETABLE OR HOW MUCH THE BUDGET CUTS ARE. BUT AT LEAST ON MY SIDE THE PEOPLE I SEE IN THE REPUBLICAN CAUCUS I THINK THEY ARE CONSERVATIVE. THEY WANT TO BALANCE THE BUDGET. BUT I PROVOKE THEM BY SAYING YOU'RE FOR A BALANCED BUDGET AMENDMENT BUT WHAT ARE YOU GOING TO CUT? THEY DON'T WANT TO TALK, YOU KNOW, NOT EVERYONE BUT SOME OF THEM DON'T WANT TO SAY WE'RE GOING TO CUT HERE, HERE, HERE BECAUSE IT WILL MAKE US UNPOPULAR. I SAY WELL THE PEOPLE WANT TO KNOW HOW YOU'LL DO IT AND YOU'LL LOSE YOUR CREDIBILITY WITH THE MEDIA AND EVERYBODY ELSE IF YOU DON'T SAY HOW YOU'LL CUT THE SPENDING.

>> Ifill: THANK YOU FOR JOINING US.

>> THANK YOU FOR HAVING ME.

>> Ifill: WE'LL HAVE THE VIEW FROM THE LIBERAL WING OF THE DEMOCRATIC PARTY TOMORROW NIGHT.

>> Woodruff: THE WAVE OF MIDDLE EAST PROTESTS SHOOK BAHRAIN AGAIN TODAY. THE SMALL PERSIAN GULF STATE IS HEADQUARTERS FOR THE U.S. NAVY'S MIDDLE EAST FLEET. TODAY, THOUSANDS OF PEOPLE DEMANDED POLITICAL REFORMS AND GREATER FREEDOMS, AND THE COUNTRY'S KING MADE A RARE NATIONAL TV ADDRESS. JONATHAN RUGMAN OF INDEPENDENT TELEVISION NEWS NARRATES OUR REPORT. AND A WARNING-- SOME OF THE IMAGES MAY BE DISTURBING.

>> Reporter: THIS WAS THE SCENE IN THE CENTER OF BAHRAIN'S CAPITAL THIS AFTERNOON. MORE THAN 10,000 PEOPLE DEMANDING DEMOCRATIC REFORM IN THE LARGEST POLITICAL PROTEST IN RECENT MEMORY. THE CHANT IDENTICAL TO THE ONE WHICH ECHOED ACROSS EGYPT. WE DEMAND THE FALL OF THE REGIME. THE TROUBLE IN THE ISLAND KINGDOM BEGAN YESTERDAY WHEN POLICE FIRED PELLETS, RUBBER BULLETS AND TEAR GAS AT PROTESTORS. THE ATTACKS WERE WITHOUT WARNING AND THE EYEWITNESSES SAID ANY GROUP THAT DARE GATHER WAS QUICKLY DISPERSED. ONE MAN WAS SHOT IN THE BACK BY RIOT POLICE. THE PICTURES OF HIS DEAD BODY QUICKLY POSTED ON THE INTERNET. THE DEAD MAN WAS 22 AND FROM A POOR SHIA VILLAGE OUTSIDE THE CAPITAL. MOURNERS AT THE HOSPITAL VOWED THAT HIS DEATH WOULD NOT BE IN VAIN. TODAY THOUSANDS ATTENDED HIS FUNERAL. THEY DEMANDED THE RESIGNATION OF BAHRAIN'S PRIME MINISTER, A SHEIK FROM THE SUNNI ROYAL FAMILY WHO HAS HELD THE JOB FOR 40 YEARS. ANOTHER MAN WAS SHOT DEAD BY RIOT POLICE SHORTLY AFTER THESE PICTURES WERE FILMED. PROMPTING THE COUNTRY'S MAIN SHIA OPPOSITION GROUP TO BOYCOTT PARLIAMENT. THIS AFTERNOON, BAHRAIN'S KING HAMADD MADE A RARE APPEARANCE ON TELEVISION. HE PROMISED A COMMITTEE WOULD INVESTIGATE THE DEATH OF WHAT HE CALLED TWO OF OUR DEAR SONS. BUT A DECADE OF PROMISES OF MORE CIVIL AND POLITICAL RIGHTS SEEMS TO BE FALLING ON DEAF EARS. THIS WAS THE ROUND-ABOUT IN THE CAPITAL TONIGHT WHERE THEY'RE ALREADY CALLING THE NEW TAHRIR SQUARE. IT'S BEEN A PARTY ATMOSPHERE FOR MUCH OF THE DAY BUT THE POLICE ARE WATCHING. YESTERDAY THEY STOPPED ANYONE FROM GETTING HERE. HIGH UNEMPLOYMENT AND HUMAN RIGHTS ABUSES SPARKING DEMANDS FOR CHANGE AT THE TOP WHICH THE KING'S SPEECH HAS FAILED TO DAMPEN.

>> THE KING WANTS THE PROCESS TO CALM DOWN BUT THE PEOPLE WON'T ACCEPT THAT ANYMORE.

>> THE PEOPLE IN THE PEARL ROUND-ABOUT HAVEN'T EVEN LOOKED INTO THE SPEECH LET ALONE CARE WHAT THE KING REALLY HAS TO SAY. ALL THEY'RE DEMANDING IS THAT THE REGIME LEAVE. THEY'RE SAYING THAT THEY'RE GOING TO STAY HERE AND PEOPLE ARE BRINGING TENTS, BLANKETS. THINGS TO SLEEP ON. THEY'RE SAYING THEY'RE GOING TO STAY HERE UNTIL THE REGIME FALLS.

>> Reporter: WE WANT ALL OUR FREEDOMS SAY THE BANNERS HELD BY THESE WOMEN. THE BAHRAINI KING HAS PROMISED REFORM BUT THE FALLOUT FROM EGYPT AND TUNISIA HAVE NOW ARRIVED IN THE PERSIAN GULF. WITH STATE VIOLENCE IN THE LAST 48 HOURS DRIVING THOUSANDS MORE ON TO THE STREETS.

>> Ifill: IN EGYPT, A NEW COMMITTEE BEGAN WORK AMENDING THE CONSTITUTION AHEAD OF NEW ELECTIONS. THE GROUP INCLUDED THE LONG- BANNED MUSLIM BROTHERHOOD. AND THE MILITARY SAID IT WANTS A NEW GOVERNMENT WITHIN SIX MONTHS. IT ALSO CALLED AGAIN FOR AN END TO LABOR STRIKES AND PROTESTS. SHE'S BEEN COVERING THE CELEBRATIONS AFTER PRESIDENT MUBARAK'S RESIGNATION. SHE'S NOW RECOVERING IN A U.S. HOSPITAL. ELSEWHERE, THE UNREST IN YEMEN CONTINUED FOR A FIFTH DAY, WITH PROTESTERS CONFRONTING POLICE AND GOVERNMENT SUPPORTERS. THE TWO SIDES FACED OFF IN THE CAPITAL CITY, SANAA. PROTESTERS CHANTED DEMANDS FOR THE OUSTER OF PRESIDENT ALI ABDULLAH SALEH, A U.S. ALLY. IN IRAQ, HUNDREDS OF PEOPLE DEMONSTRATED IN SEVERAL MAJOR CITIES. THEY CONDEMNED CORRUPTION AND A LACK OF JOBS AND BASIC SERVICES. AND HARD-LINERS IN IRAN'S PARLIAMENT DEMANDED OPPOSITION LEADERS BE TRIED AND EXECUTED. ON MONDAY, THOUSANDS OF PEOPLE RALLIED IN SUPPORT OF EGYPT AND AGAINST IRAN'S LEADERS. PRESIDENT OBAMA URGED GOVERNMENTS ACROSS THE MIDDLE EAST TODAY NOT TO USE FORCE ON PROTESTERS. HE SINGLED OUT IRAN FOR CRITICISM. THE MESSAGE WE'VE SENT EVEN BEFORE THE DEMONSTRATIONS IN EGYPT HAS BEEN TO FRIEND AND FOE ALIKE THAT THE WORLD IS CHANGING, THAT YOU HAVE A YOUNG, VIBRANT GENERATION WITHIN THE MIDDLE EAST THAT IS LOOKING FOR GREATER OPPORTUNITY. AND THAT IF YOU ARE GOVERNING THESE COUNTRIES YOU'VE GOT TO GET OUT AHEAD OF CHANGE. YOU CAN'T BE BEHIND THE CURVE. I FIND IT EYE RONIC THAT YOU'VE GOT THE IRANIAN REGIME PRETENDING TO CELEBRATE WHAT HAPPENED IN EGYPT WHEN IN FACT THEY HAVE ACTED IN DIRECT CONTRAST TO WHAT HAPPENED IN EGYPT BY GUNNING DOWN AND BEATING A PEOPLE WHO WERE TRYING TO EXPRESS THEMSELVES PEACEFULLY IN IRAN.

>> Ifill: NOW, TO THAT RESURGENT IRANIAN OPPOSITION MOVEMENT, AND TO JEFFREY BROWN.

>> Brown: AND I'M JOINED BY AFSHIN MOLAVI, SENIOR FELLOW AT THE NEW AMERICA FOUNDATION AND AUTHOR OF "THE SOUL OF IRAN: A NATION'S JOURNEY TO FREEDOM." AND ROBIN WRIGHT, LONGTIME REPORTER AND NOW A JOINT FELLOW AT THE U.S. INSTITUTE OF PEACE AND WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS. HER LATEST BOOK IS "DREAMS AND SHADOWS: THE FUTURE OF THE MIDDLE EAST."

>> Brown: STEP BACK BEFORE YESTERDAY'S DEMONSTRATIONS TO THE LAST COUPLE WEEKS IN EGYPT. THE IRANIAN GOVERNMENT REACTION TO THAT WAS A FIRST CONGRATULATORY. EXPLAIN WHAT WAS GOING ON.

>> IT WAS INDEED. THE IRANIAN GOVERNMENT WAS TRYING TO FRAME THE EGYPTIAN UPRISING AS KIND OF AN ISLAMIC AWAKENING. THAT WAS THE LANGUAGE THEY WERE USING. THEY WERE TRYING TO DEPICT IT AS SIMILAR TO THE 1979 REVOLUTION AGAINST THE SHAH IN WHICH ULTIMATELY AN ISLAMIC REPUBLIC WAS CREATED. THE OPPOSITION WAS FRAMING A DIFFERENT NARRATIVE. THEY WERE SAYING THAT THIS PROTEST IN EGYPT IN 2011 WAS SIMILAR TO THE 2009 PROTEST WHICH FOLLOWED THE ELECTIONS IN THE SUMMER OF 2009 IN IRAN WHICH MANY IRANIANS VIEWED AS FRAUDULENT.

>> Brown: IS THAT HOW YOU READ IT, ROBIN? DID IN FACT WHAT HAPPENED IN EGYPT PUSH THE OPPOSITION BACK INTO THE STREETS? WE HAVE NOT SEEN THAT FOR OVER A YEAR.

>> ONE OF THE IRONY S IS THAT MANY EGYPTIANS WERE QUITE INSPIRED BY THE 2009 PROTESTS IN IRAN. THIS WAS AFTER ALL THE FIRST EXPRESSION OF PEOPLE POWER. THE FIRST TIME WE SAW THIS TECTONIC SHIFT THAT WE'RE NOW SEEING ACROSS THE REGION WHERE PEOPLE ARE CHALLENGING TRADITIONAL ELITES IN IRAN'S CASE THE CLERGY TO SHARE POWER AND DEMANDING THAT THEY PROVIDE A ACCOUNTABLE GOVERNMENT, FREE AND FAIR ELECTIONS AND MANY IN EGYPT THEN DECIDED IT IS POSSIBLE AND WERE INSPIRED TO TRY THEIR OWN COURSE AGAIN USING THE SAME KIND OF INSTRUMENTS, FACEBOOK, THE INTERNET, CELL PHONE, TEXTING, TO MOBILIZE PEOPLE ON THE GROUND.

>> Brown: THE EGYPTIANS WERE LOOKING AT 2009 IN IRAN BUT NOW THE IRAN OPPOSITION HAS REAWAKENED.

>> ABSOLUTELY. THE WHOLE REGION IS. THIS IS SOMETHING THAT BECAUSE THE PRESIDENT OF TUNISIA AND PRESIDENT MUBARAK IN EGYPT HAVE BEEN OUST IN VERY SHORT PERIODS OF TIME PEOPLE SEE THAT PEACEFUL CIVIL DISOBEDIENCE IS AN EFFECTIVE TOOL.

>> Brown: IN IRAN THIS WAS AN OPPOSITION THAT WAS BADLY BEATEN DOWN. LOTS OF ARREST, LOTS OF KILLINGSS. WHO IS THE OPPOSITION NOW? HOW ORGANIZED? WHAT KIND OF LEADERSHIP?

>> THE OPPOSITION HAS BECOME KIND OF THIS AMORPHOUS GROUP KNOWN AS THE GREEN MOVEMENT. THEY HAVE MANY DIFFERENT DEMANDS, MANY DIFFERENT ASPIRATIONS. THERE ARE A FEW DE FACTO LEADERS OF THE OPPOSITION ONE OF WHICH IS A FELLOW WHO IS ONE OF THE PRESIDENTIAL CANDIDATES IN THE 2009 ELECTIONS. ANOTHER ONE (NAMING THE MAN). BOTH OF THEM ARE UNDER VIRTUAL HOUSE ARREST. BOTH OF THEM REGULARLY HAVE THEIR PHONE LINES TAPPED. IN FACT THE PARLIAMENT IN IRAN TODAY DEMANDED THAT BOTH OF THEM BE EXECUTED FOR SEDITION. SO THE LEVEL OF CRACKDOWN THAT WE HAVE SEEN IN IRAN IN 2009 AND OVER THE PAST YEAR-AND-A-HALF MAKES HOSNI MUBARAK LOOK LIKE A DICTATOR- LIKE IN A SENSE. IN THE PAST MONTH-AND-A-HALF ALONE THERE HAS BEEN ONE EXECUTION EVERY NINE HOURS IN IRAN. IRANIAN AUTHORITIES SAY THESE WERE DRUG DEALERS. THESE WERE PEOPLE INVOLVED IN CRIMES, THEY SAY. BUT SOME WERE POLITICAL DISSIDENTS. CLEARLY THE AUTHORITIES IN IRAN, ONE THING THEY UNDERSTAND AS ROBIN KNOWS, ROBIN HAS COVERED THE MIDDLE EAST AND THE IRANIAN REVOLUTION. THEY UNDERSTAND REVOLUTIONS BECAUSE THEY CAME TO POWER IN A REVOLUTION. THEY UNDERSTAND STREET POLITICS. YOU DON'T GIVE CONCESSIONS. YOU CRACK DOWN. YOU CRACK DOWN HARD.

>> Brown: JUST PICKING ON THE TODAY ASPECT OF IT. WE SAW IT IN THAT SHOT IN PARLIAMENT. HOW LIKELY, WHAT ARE THE PROSPECTS FOR ARRESTING THOSE LEADERS YOU JUST REFERRED TO? WHY HASN'T IT HAPPENED UP TO NOW AND HOW LIKELY NOW THAT THEY WOULD BE TRIED AND JAILED?

>> WELL, THE IMMEDIATE AFTER MATH OF THE PROTEST IN 2009, THE GOVERNMENT DID ARREST HUNDREDS OF OR THOUSANDS OF PEOPLE. IT PUT HUNDREDS OF THEM ON TRIAL AND MASS TRIALS THAT WERE STALIN STALINESQUE IN THEIR SCOPE. IT WAS A MESSAGE CLEARLY TO THE OPPOSITION LEADER AND TO THE YOUNG FOLLOWERS, LOOK, THERE ARE NO LIMITS TO WHAT WE WILL DO. AND THEY WERE A FORMER VICE PRESIDENT, A FORMER... SEVERAL FORMER MEMBERS OF PARLIAMENT WHO WERE AMONG THOSE PUT ON TRIAL, GIVEN LONG SENTENCES. IN SOME WAYS WHAT'S INTERESTING IS EGYPT, PRESIDENT MUBARAK TRIED TO PULL IN IRAN IN THE EARLY DAYS THROUGH THE USE OF FORCE AND FOUND THAT IT DIDN'T WORK. THE QUESTION IS AT WHAT POINT, YOU KNOW, DO THE IRANIANS GO BACK ON THE STREETS? ARE THEY WILLING TO DO WHAT THE EGYPTIANS DID BECAUSE THEY'RE LIKELY TO PAY A FAR GREATER COST THAN THE EGYPTIANS.

>> Brown: IN SAYING THAT LAST PHRASE, YOU'RE AGREEING THAT THE IRANIAN GOVERNMENT SHOWS NO SIGNS OF CONCESSIONS, NO SIGNS OF ANYTHING AND PERHAPS HAVING WATCHED EGYPT.

>> ONE OF THE INTERESTING THINGS IS THE DYNAMIC AMONG THE SECURITY FORCES. WE TALK ABOUT THE REVOLUTIONARY GUARDS IN IRAN AS ALL POWERFUL. IT IS CLEAR THAT THE REGIME HAS MILITARIZED. IT IS INCREASINGLY RELIANT ON THIS BODY, VERY POWERFUL BODY THAT IS NOW INTEGRATED INTO THE ECONOMY AND TO POLITICS AS WELL. BUT THEY ARE ALSO DIVIDED IN THE SAME WAY THE EGYPTIAN MILITARY WAS IN THAT THERE'S A GENERATIONAL DIVIDE. THERE ARE CON SCRIPTS IN IRAN JUST AS THERE ARE IN EGYPT. MANY OF THE YOUNG PEOPLE HAVE BROTHERS AND SISTERS AND COUSINS AND UNCLES WHO ARE OUT IN THE STREETS. FOR THEM TO BE USED TO OPEN FIRE, EVEN THAT'S TRUE AMONG THE YOUNG PARAAL MILITARY THAT ARE DISPATCHED. THAT BECOMES, YOU KNOW, YOU'RE FIRING AT YOUR OWN PEOPLE. THAT'S THE POINT AT WHICH WE DON'T KNOW WHEN IRAN MIGHT CRACK.

>> Brown: YOU RAISED THE 1979 NARRATIVE AT THE BEGINNING OF THIS DISCUSSION. YOU KNOW, THERE WERE A LOT OF PEOPLE WATCHING EGYPT AND WONDERING, MIGHT EGYPT BECOME WHAT WE SAW HAPPEN IN IRAN IN 1979. REMIND EXACTLY WHAT HAPPENED? I MEAN WHAT IS WORTH... WHAT COMPARISON IS WORTH THINKING ABOUT HERE OR NOT?

>> I THINK THAT THE NOTION THAT EGYPT COULD DEVOLVE INTO AN ISLAMIC REPUBLIC OF EGYPT I THINK IS FAR FETCHED. I THINK WHEN WE LOOK BACKATE AT THE 1979 REVOLUTION WERE MANY ELEMENTS THAT TOOK PLACE THERE THAT WERE NOT PRESENT IN EGYPT. FIRST OF ALL, THERE WAS A CHARISMATIC RELIGIOUS LEADER BY THE NAME OF AYATOLLAH KHOMEINI WHO WAS REALLY ONE OF THE MAIN LEADERS OF THE 1979 REVOLUTION. HE DID NOT HIDE HIS DESIRE FOR AN ISLAMIC REPUBLIC. THE OTHER THING THAT WAS GOING ON IS THERE WAS A WIDE VARIETY OF DIFFERENT GROUPS. YOU HAD COMMUNISTS, YOU HAD ISLAMIST MARXISTS AND VARYING DEGREE OF LEFTISTS. ISLAMIC THOUGHTS WERE INDULGED IN A WAY THE INTELLECTUAL CLASS OF EGYPT DOES NOT DO TODAY. I THINK THAT'S THE MOST SIGNIFICANT DIFFERENCE. THERE IS NO AYATOLLAH KHOMEINI IN EGYPT TODAY.

>> Brown: LASTLY, ROBIN, I WANT TO BRING YOU AGAIN RIGHT TO TODAY. WE SAW PRESIDENT OBAMA WITH SOME PRETTY TOUGH TALK, RIGHT? IS THIS... DOES THIS LOOK LIKE A STRATEGY, A NEW STRATEGY BY THE U.S. ADMINISTRATION TO DEAL WITH IRAN?

>> IT'S A CLEAR SHIFT. THE ADMINISTRATION BACK IN 2009 WAS VERY RELUCTANT TO COME OUT AND SAY DECISIVELY WE ARE FOR THE PROTESTORS AND THE IRANIAN GOVERNMENT MUST BE ACCOUNTABLE AND STOP THESE BRUTAL PRACTICES. PRESIDENT OBAMA AND SEVERAL ADMINISTRATIONS SINCE LAST FRIDAY SINCE MUBARAK LEFT EGYPT HAVE USED STRIKING LANGUAGE THAT HAS CHANGED THE TONE OF U.S. POLICY. BACK IN 2009 THE U.S. STILL HOPED TO ENGAGE IRAN AND WANTED TO BALANCE POLICY. YES, WE'RE ON THE SIDE OF HUMAN RIGHTS BUT WE DIDN'T WANT TO ALIENATE THE REGIME BECAUSE THEY WANTED TO GET TOGETHER TO TALK ABOUT IRAN'S NUCLEAR PROGRAM. TODAY THERE HAVE BEEN TWO ROUNDS OF DIPLOMACY OVER THE NUCLEAR PROGRAM. NOTHING HAS HAPPENED. THE ADMINISTRATION CLEARLY IS

>> Brown: MADE A DECISION THAT THEY'RE NOT EVEN GOING TO TRY.

>> THEY STILL MAY TRY AGAIN BUT TICK HARLEY BECAUSE OF THE LANGUAGE THAT WAS KIND OF FORCED OUT OF THEM AFTER EGYPT THEY'RE TAKING A MUCH FIRMER POSITION ON IRAN.

>> Brown: ROBIN WRIGHT, ASHIN SHIN, THANK YOU BOTH VERY MUCH.

>> THANK YOU.

>> THANK YOU.

>> Woodruff: NEXT, TACKLING ONE OF THE BIGGEST HEALTH CARE ISSUES IN AMERICA, THE GROWING BURDEN OF DIABETES. INCREASINGLY, DOCTORS AND INSURERS ARE TRYING TO FIND WAYS TO HELP PATIENTS DEAL WITH THE DISEASE BEFORE THEIR PROBLEMS GET WORSE. BETTY ANN BOWSER REPORTS FOR OUR HEALTH UNIT ON HOW A CLINIC IN COLORADO IS TRYING THAT APPROACH.

>> Reporter: BONNIE BELL WAS DIAGNOSED WITH DIABETES WHEN SHE WAS PREGNANT 30 YEARS AGO. AT THE TIME SHE HAD RECENTLY WON A STRUGGLE WITH BULIMIA.

>> THE ACTUAL DIAGNOSIS WAS LIKE A BLAST FROM GOD. IT WAS LIKE HOW CAN YOU DO THIS TO ME? I DON'T KNOW HOW TO EAT NORMALLY WITHOUT THIS DISORDER AND NOW ALL OF A SUDDEN I HAVE TO EAT PERFECT? I HAVE TO EAT EVERYTHING OR I'M GOING TO DIE OR I'M GOING TO LOSE A LIMB?

>> Reporter: SHE DIDN'T GET REAL HELP THOUGH UNTIL TEN YEARS AGO WHEN HER SYMPTOMS GOT MUCH WORSE.

>> MY BLOOD SUGARS WERE VERY HIGH. MY VISION WAS GOING CRAZY. I FOUND CLINICA, AND CLINICA HELD ME BY THE HAND. THEY JUST SAID, YOU KNOW, YOU NEED NUTRITIONISTS. YOU NEED THESE PROGRAMS THAT WE OFFER.

>> Reporter: CLINICA FAMILY HEALTH SERVICES, WHICH TREATS 1800 DIABETICS, CAME TO BELL'S RESCUE. ITS FOUR CLINICS PROVIDE MEDICAL HOMES FOR LOW-INCOME AND UNINSURED PATIENTS IN COLORADO. THAT MEANS ONE STOP SHOPPING FOR PATIENTS NOT ONLY SEEING DOCTORS BUT FILL PRESCRIPTIONS AND EVEN SEE A DENTIST. THOSE WITH DIABETES REGULARLY GET THEIR BLOOD PRESSURE AND BLOOD SUGAR LEVELS TESTED. THEY GET CHECKED TO SEE IF THE DISEASE HAS AFFECTED THEIR FEET AND EYES. AND IN GROUP SESSIONS, THEY LEARN HOW TO LIVE WITH THEIR ILLNESS.

>> DO YOU THINK THAT'S RIGHT, THAT AUTOMATICALLY YOU'RE GOING TO DIE EARLIER IF YOU HAVE DIABETES?

>> NO.

>> WHY IS THAT?

>> I'M STILL HERE AND I'VE GOT DIABETES. I'VE HAD IT FOR SIX YEARS. I REALLY DON'T THINK DIABETES IS THE CAUSE OF EVERY THING THAT HAPPENS TO ME.

>> LOOKS LIKE WE FINALLY GOT THE GOAL.

>> Reporter: USING ELECTRONIC HEALTH RECORDS, DR. CAROLINE SHEPPARD, CLINICA'S MEDICAL DIRECTOR, CAN TRACK PATIENTS' PROGRESS.

>> WE TRY TO PAY ATTENTION TO OUR ENTIRE POPULATION OF PATIENTS WHO HAVE DIABETES OR OTHER CHRONIC DISEASES BY KNOWING WHO THEY ARE AND WHAT INDICATED CARE THEY'VE HAD AND WHAT CARE THEY'VE BEEN MISSING.

>> Reporter: IF THEY DON'T SHOW UP, YOU GO FIND THEM.

>> THAT'S RIGHT. THE PACKAGE FOR DIABETES PREVENTION IS ONE OF THE NEXT STEPS WE NEED TO GET ACCOMPLISHS.

>> Reporter: LEFT UNATTENDED DIABETES CAN HAVE DEVASTATING CONSEQUENCES, SAYS DR. ANN ALBRIGHT FOR THE CENTERS FOR DISEASE CONTROL IN ATLANTA.

>> DIABETES IS THE NUMBER ONE CAUSE OF ADULT BLINDNESS. THE NUMBER ONE CAUSE OF KIDNEY FAILURE. NUMBER ONE CAUSE OF NOW TRAUMATIC LOWER LIMB AMPUTATION. IT'S A HUGE CONTRIBUTOR TO HEART ATTACK AND STROKE. DIABETES IS LIKE DROPPING A ROCK IN THE POND AND THE RIPPLES GO OUT.

>> Reporter: SHEPPARD THINKS CLINICA IS STOPPING THAT RIPPLE.

>> I THINK WE'RE WINNING THE WAR BECAUSE WE SEE LESS LONG- TERM COMPLICATIONS HAPPENING. WE HAVE FEWER PATIENTS WINDING UP WITH DIABETES-CAUSED BLINDNESS OR WITH KIDNEY FAILURE.

>> WE'VE GOT TO HAVE A PHASED APPROACH WHICH MEAN SOME THINGS COMES FIRST, SECOND AND.

>> Reporter: THAT SAVES THE SYSTEM MONEY IN THE LONG-RUN ACCORDING TO THE CEO.

>> YOU TAKE THE $4,000 PER PATIENT PER YEAR FOR THE DIABETES CARE THAT WE PROVIDE AND YOU MULTIPLY IT TIMES THE 1800 DIABETES PATIENTS WE HAVE, AND YOU SAVE ABOUT $7 MILLION A YEAR. NOT IN THE CARE WE PROVIDE WHICH IS ACTUALLY A LITTLE BIT MORE PRICEY BUT IN THE HOSPITAL STAYS THAT DON'T OWE KAUR OR THAT ARE MUCH... DON'T OCCUR OR THAT ARE MUCH SHORTER.

>> Reporter: THE PROBLEM IS MORE AND MORE PEOPLE ARE GETTING DIABETES PARTLY BECAUSE THEY ARE LIVING LONGER AND PARTLY BECAUSE SO MANY PEOPLE ARE OVERWEIGHT.

>> OUR DATA SHOWS ONE IN THREE TO ONE IN FIVE PEOPLE WILL HAVE DIABETES IN 2050. THERE'S AN OLD ANALOGY. IT SAYS THAT YOUR GENERAL IT... GENETICS LOADS THE CANNON AND LIFESTYLE LIGHTS THE FUSE. IT IS THE COMBINATION IN OUR ENVIRONMENT AND THE CHANGES IN LIFESTYLE THAT HAVE INCREASED THE RATES OF OBESITY.

>> Reporter: SOME GROUPS ARE MORE AT RISK THAN OTHERS. ALBRIGHT FOUND THAT 11% OF HISPANICS HAVE DIABETES. 3% ABOVE THE NATIONAL AVERAGE. MANY IN THAT COMMUNITY LIKE LANDSCAPER JIMMY GO UNDIAGNOSED FOR YEARS.

>> I THINK THIS STARTED ABOUT 25 YEARS AGO BUT YOU WASN'T AWARE OF THAT UNTIL I GOT SICK IN 2001 OR 2002. ONE OF THEM. I CAN'T REMEMBER. WHEN I WAS AT WORK AND I JUST SAT DOWN IT WAS SO HOT AND I SAT DOWN AND I COULDN'T GET UP NO MORE.

>> Reporter: HOW MUCH DIABETES IS THERE IN YOUR FAMILY?

>> OKAY. A SISTER THAT WAS 34 YEARS OLD. SHE DIED OF IT. MY OLDEST BROTHER, 72, HE DIED OF IT. MY BROTHER THAT'S 70 YEARS OLD THAT DIED THREE MONTHS AGO, HE DIED AS A DIABETIC TOO.

>> Reporter: CLINICA IS TRYING TO REACH OUT TO HISPANICS BY OFFERING GROUP MEETINGS IN SPANISH. ITS SLIDING SCALE PAYMENT SYSTEM HELPS PATIENTS LIKE JIMMY AFFORD TREATMENT.

>> WHEN YOU DRAW BLOOD OUT OF YOUR FINGER, A LITTLE STRIP... I WOULD NEVER CHECK MY BLOOD. BECAUSE I COULDN'T AFFORD TO UNTIL I FIND OUT THEY TOLD THEM HERE FOR $23 FOR 50. SO I CHECK MY BLOOD EVERY DAY.

>> Reporter: CLINICA HAS GOTTEN ALMOST $4 MILLION. MUCH OF IT FROM THE HEALTH REFORM LAW. TO OFFER MORE SERVICES TO MORE PATIENTS. HE SAYS EVERY DOLLAR TRANSLATES INTO MORE CARE.

>> ONE MORE CARE TEAM HERE IS ABLE TO SERVE BETWEEN 3,000 AND 3200 MORE PEOPLE. SO IT WILL BRING US UP FROM CARING FOR 25% OF THE LOW-INCOME PEOPLE IN THE COMMUNITY TO AROUND 30. WE'LL STILL HAVE A LONG WAY TO GO BUT IT'S CERTAINLY A STEP IN THE RIGHT DIRECTION.

>> HOW ABOUT A SAMPLE TODAY.

>> Reporter: A STEP BONNIE BELL ALREADY HAS TAKEN WITH A HEALTHY DIET AND A NEW ATTITUDE.

>> I'VE LOST ALMOST 100 POUNDS WITH THE HELP OF THE DIABETIC MEDICATIONS. I'M NOT ON INSULIN. I'M MORE STIMULATED AND EXCITED ABOUT THE FACT THAT I HAVE... I FEEL LIKE I HAVE THE WORLD BY THE TAIL BECAUSE I HAVE THIS DISEASE AND IT DOESN'T HAVE ME.

>> Reporter: CLINICA HAS APPLIED FOR ANOTHER BIG FEDERAL GRANT TO OPEN A FIFTH CENTER. BUT WITH BATTLE LINES BEING DRAWN AROUND THE BUDGET IN WASHINGTON FUTURE FUNDING IS UNCERTAIN.

>> Ifill: FINALLY TONIGHT, CELEBRATING EXTRAORDINARY LIVES AND ACHIEVEMENTS. THAT WAS THE FOCUS OF A WHITE HOUSE CEREMONY TODAY HONORING 15 PEOPLE WHO'VE MADE IMPORTANT CONTRIBUTIONS TO NATIONAL SECURITY, WORLD PEACE, CULTURE AND OTHER ENDEAVORS. NEWSHOUR CORRESPONDENT KWAME HOLMAN HAS THE STORY. ( APPLAUSE )

>> Holman: BASEBALL GREAT STAN MUSIAL, RENOWNED CELLIST YO-YO MA, AND FORMER AMBASSADOR TO IRELAND JEAN KENNEDY SMITH-- JUST A CROSS-SECTION OF THE DIVERSE GROUP OF RECIPIENTS OF THE PRESIDENTIAL MEDAL OF FREEDOM, PRESENTED THIS AFTERNOON IN THE EAST ROOM OF THE WHITE HOUSE.

>> PRESIDENT KENNEDY ONCE SAID DURING A TRIBUTE TO THE POET ROBERT FROST THAT A NATION REVEALS ITSELF NOT ONLY BY THE MEN AND WOMEN IT PRODUCES, BUT BY THE MEN AND WOMEN THAT IT HONORS, THE PEOPLE THAT IT REMEMBERS. AND I HEARTILY AGREE. WHEN YOU LOOK AT THE MEN AND WOMEN WHO ARE HERE TODAY, IT SAYS SOMETHING ABOUT WHO WE ARE AS A PEOPLE.

>> Holman: AMONG THE AWARDEES WERE ARTISTS-- PAINTER JASPER JOHNS AND AUTHOR MAYA ANGELOU. /I WON'T TRY TO SAY IT BETTER THAN MAYA ANGELOU WHO, HERSELF, WHO WROTE THAT "HISTORY, DESPITE ITS WRENCHING PAIN, CANNOT BE UNLIVED; AND IF FACED WITH COURAGE, NEED NOT BE LIVED AGAIN. LIFT UP YOUR EYES UPON THE DAY BREAKING FOR YOU. GIVE BIRTH AGAIN TO THE DREAM."

>> Holman: THERE WERE ADVOCATES- - LABOR LEADER JOHN SWEENEY AND ENVIRONMENTAL LAWYER JOHN ADAMS; BUSINESSMAN AND PHILANTHROPIST WARREN BUFFETT.

>> YOU SEE HIM DEVOTING THE VAST MAJORITY OF HIS WEALTH TO THOSE AROUND THE WORLD WHO ARE SUFFERING OR SICK OR IN NEED OF HELP. AND HE USES HIS STATURE AS A LEADER TO PRESS OTHERS OF GREAT MEANS TO DO THE SAME. A PHILANTHROPIST IS A LOVER OF HUMANITY, AND THERE'S NO WORD THAT FITS WARREN BETTER. I SHOULD POINT OUT HE'S SO THRIFTY, I HAD TO GIVE HIM A WHITE HOUSE TIE... ( LAUGHTER ) ...THE LAST TIME HE CAME HERE TO VISIT.

>> Holman: HUMAN AND CIVIL RIGHTS FIGURES WERE HONORED-- HOLOCAUST SURVIVOR GERDA WEISSMAN KLEIN, AND SYLVIA MENDEZ, THE PLAINTIFF IN A LANDMARK SCHOOL DESEGREGATION CASE. AND GEORGIA CONGRESSMAN JOHN LEWIS.

>> THERE'S A QUOTE INSCRIBED OVER A DOORWAY IN NASHVILLE WHERE STUDENTS FIRST REFUSED TO LEAVE LUNCH COUNTERS 51 YEARS AGO THIS FEBRUARY. AND THE QUOTE SAID, "IF NOT US, THEN WHO? IF NOT NOW, THEN WHEN?" IT'S A QUESTION JOHN LEWIS HAS BEEN ASKING HIS ENTIRE LIFE. IT'S WHAT LED HIM BACK TO THE EDMUND PETTUS BRIDGE IN SELMA AFTER HE HAD ALREADY BEEN BEATEN WITHIN AN INCH OF HIS LIFE DAYS BEFORE. IT'S WHY, TIME AND AGAIN, HE FACED DOWN DEATH SO THAT ALL OF US COULD SHARE EQUALLY IN THE JOYS OF LIFE.

>> Holman: BASKETBALL LEGEND BILL RUSSELL, WHO HELPED WIN 11 CHAMPIONSHIPS WITH THE BOSTON CELTICS, AND WAS THE FIRST AFRICAN AMERICAN TO COACH IN THE NBA.

>> WHEN A RESTAURANT REFUSED TO SERVE THE BLACK CELTICS, HE REFUSED TO PLAY IN THE SCHEDULED GAME. HE ENDURED INSULTS AND VANDALISM, BUT HE KEPT ON FOCUSING ON MAKING THE TEAMMATES WHO HE LOVED BETTER PLAYERS, AND MADE POSSIBLE THE SUCCESS OF SO MANY WHO WOULD FOLLOW. AND I HOPE THAT ONE DAY, IN THE STREETS OF BOSTON, CHILDREN WILL LOOK UP AT A STATUE BUILT NOT ONLY TO BILL RUSSELL, THE PLAYER, BUT BILL RUSSELL, THE MAN.

>> Holman: LIBBY LITTLE ACCEPTED THE AWARD ON BEHALF OF HER HUSBAND, DR. TOM LITTLE, AN OPTHAMOLOGIST MURDERED IN AFGHANISTAN LAST YEAR. THE LAST TO BE HONORED, FORMER PRESIDENT GEORGE H.W. BUSH...

>> NOT SIMPLY FOR THE YEARS HE SPENT AS OUR 41ST PRESIDENT. WE HONOR GEORGE HERBERT WALKER BUSH FOR SERVICE TO AMERICA THAT SPANNED NEARLY 70 YEARS-- FROM A DECORATED NAVY PILOT WHO NEARLY GAVE HIS LIFE IN WORLD WAR II, TO U.S. AMBASSADOR TO THE UNITED NATIONS, FROM CIA DIRECTOR TO U.S. ENVOY TO CHINA, TO THE VICE PRESIDENCY. HIS LIFE IS A TESTAMENT THAT PUBLIC SERVICE IS A NOBLE CALLING. THIS IS A GENTLEMAN, INSPIRING CITIZENS TO BECOME POINTS OF LIGHT IN SERVICE TO OTHERS, TEAMING UP WITH A ONE-TIME POLITICAL OPPONENT TO CHAMPION RELIEF FOR THE VICTIMS OF THE ASIAN TSUNAMI, THE HURRICANE KATRINA. AND THEN JUST TO CAP IT OFF, WELL IN THE 80S, HE DECIDES TO JUMP OUT OF AIRPLANES-- BECAUSE, AS HE EXPLAINED, "IT FEELS GOOD."

>> Holman: PRESIDENT OBAMA AWARDED THE MEDALS-- THE NATION'S HIGHEST CIVILIAN HONOR- - TO THE 14 MEN AND WOMEN PRESENT.

>> Ifill: PRESIDENT OBAMA SAID HE WOULD GIVE CHANCELLOR MERKEL HER AWARD WHEN SHE COMES TO WASHINGTON FOR A STATE VISIT LATER THIS YEAR.

>> Woodruff: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY: PRESIDENT OBAMA MADE THE CASE FOR HIS NEW BUDGET AS HOUSE REPUBLICANS PRESSED FOR MAJOR SPENDING CUTS IN THE CURRENT FISCAL YEAR. THE PRESIDENT ALSO CRITICIZED IRAN FOR USING FORCE TO QUELL PROTESTS. AND THOUSANDS OF PEOPLE MARCHED AGAIN IN BAHRAIN AND YEMEN, DEMANDING POLITICAL REFORMS. AND TO HARI SREENIVASAN FOR WHAT'S ON THE NEWSHOUR ONLINE. HARI.

>> Sreenivasan: YOU CAN WATCH ALL OF PRESIDENT OBAMA'S NEWS CONFERENCE, AND SECRETARY CLINTON'S ADDRESS ON INTERNET FREEDOMS. FIND BOTH ON THE "RUNDOWN" BLOG. WE LOOK AT THE SCIENCE BEHIND THE ANALYSIS USED IN THE FBI'S INVESTIGATION OF THE 2001 ANTHRAX ATTACKS. A NEW REPORT RAISES QUESTIONS ON THE FBI'S METHODS PLUS "NEWSHOUR EXTRA," OUR SITE FOR STUDENTS AND TEACHERS, PARTNERED WITH THE INDEPENDENT TELEVISION SERVICE TO HOST A LIVE CHAT ON EGYPT. THAT DISCUSSION IS ARCHIVED ONLINE, ALONG WITH RESOURCES FOR EDUCATORS. ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. JUDY.

>> Woodruff: AND THAT'S THE NEWSHOUR FOR TONIGHT. ON WEDNESDAY, WE'LL LOOK AT THE TOUGH CHOICES ON DEFENSE SPENDING AND MORE IN THE PRESIDENT'S BUDGET. I'M JUDY WOODRUFF.

>> Ifill: AND I'M GWEN IFILL. WE'LL SEE YOU ONLINE, AND AGAIN HERE TOMORROW EVENING. THANK YOU AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> YOU CAN'T MANUFACTURE PRIDE, BUT PRIDE BUILDS GREAT CARS. AND YOU'LL FIND IT IN THE PEOPLE AT TOYOTA, ALL ACROSS AMERICA.

>> OKAY, LISTEN. SOMEBODY HAS GOT TO GET SERIOUS.

>> I THINK...

>> WE NEED RENEWABLE ENERGY. >>...RENEWABLE ENERGY IS VITAL TO OUR PLANET.

>> YOU HEAR ABOUT ALTERNATIVES, RIGHT? WIND, SOLAR, ALGAE.

>> I THINK IT'S GOT TO WORK AN A BIG SCALE. ONLY, I THINK IT'S GOING TO BE AFFORDABLE.

>> SO, WHERE ARE THEY?

>> IT HAS TO WORK IN THE REAL WORLD. AT CHEVRON, WE'RE INVESTING MILLIONS IN SOLAR AND BIOFUEL TECHNOLOGY TO MAKE IT WORK.

>> WE'VE GOT TO GET ON THIS NOW.

>> RIGHT NOW.

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