Morning Bulletin – Thursday, Feb. 19, 2009

A roundup of news, schedules, and key stories from CBS News Political Director Steve Chaggaris:

(AP)

On tap for Mr. Obama and Prime Minister Harper: trade, the economy, the environment and Afghanistan.

"On the eve of Barack Obama's Canadian visit, Prime Minister Stephen Harper told an American audience he is confident the U.S. president is committed to stopping the spread of protectionism," reports the Ottawa Citizen's Mike Blanchfield. "Mr. Harper's upbeat assessment, in a televised interview with CNN, comes after weeks of warnings and concern from Canada and the European Union that Mr. Obama's nearly $800-billion stimulus bill -- with its now-watered-down Buy American provision -- would spark a wave of global protectionism that would deepen the worldwide recession. ... In recent days, both leaders have moved to minimize the Buy American controversy and set a positive tone for their whirlwind working meeting today. However, when pressed, the prime minister did say that Canada has the ability to retaliate against protectionist measure."

"With Canadians up in arms over 'Buy America' provisions in President Obama's economic recovery package, and Prime Minister Stephen Harper warning the United States not to back away from its international treaty obligations, Mr. Obama, who will make a day trip to Ottawa on Thursday, is no longer emphasizing the idea of reopening Nafta," adds the New York Times' Sheryl Gay Stohlberg. "Instead, he and his senior advisers are talking up the booming trade relationship between Canada and the United States — the largest trade partnership in the world, the White House says — and limiting their Nafta message to revamping side agreements on environmental and labor protections. ... Trade is an issue that has long bedeviled Democrats, and this is especially so for Mr. Obama. Trade has split the party along regional and economic lines, pitting those who see a globalized economy as inevitable and productive against those in economically depressed areas of the nation, like Ohio and Michigan, who see the price of free trade, in lost jobs and declining wages, as simply too high for the American worker to bear. The last Democratic president, Bill Clinton, fought hard to pass Nafta, and made many in his party uncomfortable — including, eventually, his wife, Hillary Rodham Clinton, who like Mr. Obama talked of reopening the pact when she was running for president. Now that Mr. Obama is in the White House, he is confronting a climate that makes free trade an even tougher sell — mounting job losses, an economy in deep recession and fresh isolationist pressure from the Democratic-led Congress."

"The visit to Canada, which has the fourth-highest level of troops in Afghanistan, comes two days after Obama said he was sending 17,000 more U.S. troops to Afghanistan," writes USA Today's David Jackson. "Canada has 2,830 troops in Afghanistan and has lost 108 in the war that started in October 2001. Obama said he wants Canadian help with a new approach to the war that includes more diplomacy and economic assistance."

(AP Photo/The Canadian Press)

"The environment will also be on the agenda for Obama and Harper, aides said," adds the Washington Post's Michael D. Shear. "Environmental groups are pushing Obama to seek restrictions on tar sands oil, a dirtier form of oil that contributes about half of the oil imported into the United States from Canada. ... Canadians point out that processing the tar sands oil produces half as much carbon emissions as does the coal-fired plants that are common across the United States. In an interview with the Canadian Broadcasting Corp., Obama said he thinks the oil sands create 'a big carbon footprint' and said that is part of a broader dilemma facing the United States about how to get the energy it needs without contributing to climate change. But he expressed optimism that the two countries can find ways to use technology to lessen the environmental impact from the sand oil. Canada is the leading provider of U.S. imported oil, accounting for about 20 percent, slightly more than Saudi Arabia."

Talk about rolling out the red carpet – it seems Canadians' excitement for Mr. Obama's day trip is off the charts. "Let the love-in begin," writes the Ottawa Sun's Kathleen Harris. "With stars and stripes flapping in the wind, enamoured Canadians will line the streets of the capital today trying to catch a fleeting glimpse of U.S. President Barack Obama as he touches down for a premiere meet-and-greet with Prime Minister Stephen Harper. But with heavy security measures locking down much of the city core, they could be disappointed. Key streets around Parliament Hill will be closed as Obama makes his way in an armoured car to private and official meetings with the PM followed by a luncheon with a tight circle of guests. After a brief news conference, Obama will be whisked back to the airport for a short meeting with Liberal Leader Michael Ignatieff before heading home. The visit will be short, but local merchants hope to make it sweet by capitalizing on the president's popularity. On offer to celebrate the special occasion are edibles such as 'Pizza Obama' and 'Obama Hawaiian Punch' and 'ObamaTails,' along with souvenirs such as T-shirts and bobblehead dolls."

For those not lucky enough to be standing outside in windy Ottawa's 1-degree Celsius (34 degrees Fahrenheit) high temperatures today, the folks at Canada's Public Works and Government Services provide a live webcam of the city's Parliament Hill.

BURRIS WOES GROW:

(AP Photo/Ted S. Warren)

The LA Times' David G. Savage writes that it's not so easy to kick someone out of the Senate. Pressure to resign is the more likely m.o. "It takes a vote of two-thirds of the senators to oust a member, and the last senators to be formally expelled were charged with supporting the rebels during the Civil War. 'It's a collegial body that doesn't like to police its members,' said Donald A. Ritchie, the Senate's associate historian. 'It prefers to leave that to the voters and to the courts.' But a veteran Washington campaign lawyer said that Burris (D-Ill.) may not benefit from the Senate's usual protectiveness toward its members, and that he could face strong pressure from within the Senate to resign. 'He doesn't have a reservoir of goodwill. He is new to the institution, and he arrived under questionable circumstances,' attorney Jan W. Baran said."

The Chicago Sun-Times' Lynn Sweet points out that Burris is shutting himself off from the public in the coming days. "Embattled Sen. Roland Burris (D-Ill.) is cancelling his Thursday schedule, where he was to have met with Rockford area civic, elected and religious leaders as Sen. Dick Durbin (D-Ill.) sent out a very frosty statement, saying Burris failed to disclose under oath the nature of his relationship with former Gov. Blagojevich. ... The schedule Burris put out last week had him meeting with mayors of Rockford and Freeport. Burris is also closing events Friday at military and veterans facilities in Great Lakes. Burris He is also dropping a lunch he was to have in North Chicago on Friday."

Meantime, the Sun-Times followed the Tribune in calling for Burris to resign: "In the crucible of close media scrutiny and tough political calculation of the last few weeks, when honesty and integrity were really all that mattered, we have all come to know 'the real Roland.' A man who has lost the last shred of credibility. A month into the job, Burris has squandered any chance of being an effective senator. He must go."

The Washington Post's Peter Slevin's overview of the Burris saga is here.

HHS TALK:

(AP Photo/Charlie Riedel)

"Kansas Gov. Kathleen Sebelius remains a finalist for secretary of Health and Human Services, although President Obama has not selected his nominee," reports the Kansas City Star's Steve Kraske. "Sebelius, 60, has been mentioned for weeks as a leading candidate for a job that will be closely involved in what's expected to be an attempt at sweeping reforms in health coverage. Sebelius could not be reached for comment Wednesday night, but her spokeswoman, Beth Martino, said she knew nothing about the renewed speculation and had not spoken to Sebelius about it. 'As far as I know, she is really focused, as is evidenced, on the budget and the economy,' Martino said. 'She's the governor, that's her job, and that's what she's doing.'"

ALSO TODAY: First Lady Michelle Obama continues her tour of the government agencies visiting the Department of Agriculture today.

At 1:45pm ET, Vice President Joe Biden swears in Leon Panetta as CIA Director.

And Secretary of State Hillary Clinton makes a couple of more stops on her Asian trip - to Jakarta, Indonesia and Seoul, South Korea.

HOUSING PLAN

(AP Photo/Gerald Herbert)

Politico's Victoria McGrane, "Housing plan leaves out critical pieces": "Potentially, the most gaping hole in the housing plan could be the lack of an aggressive attempt to encourage principal write-downs on homes that have lost much of their value. And there's the threat that the nation's economic woes will mount to such a scale that the plan would be worthless."

LA Times' Maura Reynolds, "Obama's mortgage plan up against fast-rising defaults": "What the Obama loan-modification plan does not do is mandate that lenders take part in either of the programs. But financial institutions that have received capital infusions under the $700-billion Troubled Asset Relief Program will be required to follow the government's protocols, which will be issued March 4. Other lenders can offer the new loans at their discretion. Furthermore, the plan doesn't require lenders participating in the loan modification plan to reduce the principal of mortgages on houses that have lost value. The modifications will lower monthly payments, but the homeowner's outstanding debt will probably not change. The plan also does not help borrowers with 'jumbo' mortgages -- generally those above $417,000 in much of the country, or as much as $730,000 in higher-priced areas. That could be a significant gap in parts of California, Illinois, Florida and other areas that had superheated home markets. And the plan doesn't address the problem of borrowers with second mortgages, such as home equity lines of credit. Any modification or refinancing would apply only to the primary mortgage. 'I'm not impressed,' said Dean Baker, a housing specialist with the Center for Economic and Policy Research. 'There are some good things in there. I think giving servicers incentives is a good thing. But it's mostly money for banks, not money for homeowners. The banks still decide who gets into this, and that's been a problem all along.'"

NY Times' Tara Siegel Bernard with Q&A on the housing plan.

ECONOMIC STIMULUS

(CBS)

Associated Press' Melina Deslatte, "GOP governors consider turning down stimulus money": "A handful of Republican governors are considering turning down some money from the federal stimulus package, a move opponents say puts conservative ideology ahead of the needs of constituents struggling with record foreclosures and soaring unemployment. Though none has outright rejected the money available for education, health care and infrastructure, the governors of Texas, Mississippi, Louisiana, Alaska, South Carolina and Idaho have all questioned whether the $787 billion bill signed into law this week will even help the economy."

Associated Press' Charles Babington, "GOP poised to leap on spending abuses in stimulus": "Republicans are preparing to pounce on any wasteful spending in the $787 billion stimulus package as they refocus their criticisms of a measure whose success could hurt their 2010 election prospects. ... House Republicans are setting up 'a stimulus-watch program' that will allow watchdog groups and private citizens to report findings as contractors and agencies start spending billions of dollars on roads, schools, renewable energy projects and other initiatives, said House GOP Whip Eric Cantor of Virginia."

AUTOMAKER BAILOUT

(AP Photo/Toby Talbot)

MINNESOTA SENATE RECOUNT
St. Paul Pioneer Press' Rachel E. Stassen-Berger, "Judges shoot down Coleman request on excluded ballots"

Minneapolis Star Tribune's Pat Doyle, "Coleman lawyers blast judges"

ALSO:
NY Times' Mark Landler, "Clinton Tells of Why She Took the Job"

Washington Post's James V. Grimaldi, "Palin Now Owes Taxes on Payments for Nights at Home, State Rules"