• Condoleezza Rice defends secret overseas detention of suspected terrorists and says the U.S. “has fully respected the sovereignty of other countries that cooperate in these matters.” [WP, NYT]
• 9/11 Panel says the government is failing to secure the homeland. Thomas Kean: “If they do, and these reforms that might have prevented such an attack have not been implemented, what will our excuses be?” [WP, WP, NYT]
• Texas judge dismisses one conspiracy charge against Rep. Tom DeLay (R) but two others stand. [WP, NYT, LAT, WT, USAT]
• Bush, visiting North Carolina, touts economic vitality in likely preview of ‘06 theme: “This economy is strong, and the best days are yet to come.” [NYT, WSJ, USAT]
• Bush urges extension of tax cuts on investment dividends and capital gains; moderate Republicans “have expressed deep misgivings about approving a measure so beneficial to affluent investors so soon after they approved a budget-cutting bill that would cut people off food stamps, squeeze student lenders, impose new fees on Medicaid recipients and slash federal aid for child-support enforcement.” [WP, WT]
• Agreement on torture ban said to be within reach. [USAT]

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• Administration officials contemplate a presidency without Karl Rove; effort is underway to isolate Bush from “further damage” and design contingency plans. Andrew Card, said one GOP strategist, “looks totally burned out.” White House is now coping with consequences of a “lost year.” [WP, USAT]
• Fitzgerald is reportedly investigating whether Rove and “Scooter” Libby “sought to conceal their actions and mislead prosecutors” and/or leaked “garden-variety classified information”; both “have been advised that they may be in serious legal jeopardy.” [NYT, WSJ, USAT]
• Aide says former FEMA Director Michael Brown ignored eyewitness accounts from New Orleans as levee broke. [WP, NYT, USAT]
• White House was blind-sided by reaction to Miers, say observers. Professor: “You’re seeing evidence of a profoundly disorganized and demoralized White House. If you are looking for evidence of a rudderless White House, the slipshod manner in which Harriet Miers’ papers were prepared is really Exhibit A.” [WP, LAT]
• Miers has been practicing with mock confirmation hearings; tour of Capitol Hill is over. [NYT, WT]
• DeLay is booked by police, then released on $10,000 bond; says flack, “I just may use that photographer for my family Christmas photo.” House Republicans seek to “heal leadership divide.” [WP, NYT, WSJ]

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• Fitzgerald will not issue a final report and possible indictments are not expected this week; lawyers involved say the prosecutor is “leaning toward indictments but continuing to weigh thousands of pages of documents and testimony.” [NYT]
• Miers supported abortion ban in 1989; today she insists the court should not determine “social policy.” McClellan: “[P]ersonal views and ideology and religion have no role to play when it comes to making decisions on the bench.” [WP, NYT, LAT, WT, USAT]
• Miers‘ questionnaire lifts support among Republicans; Democrats have concerns about her abortion views. [LAT, WSJ]
• Miers was vetted by a few White House “insiders”; she met with Bush but not with Cheney or Rove. [USAT]
• Bush “made his displeasure known” to Rove two years ago and has “made his life miserable about” the leak investigation, says “presidential counselor.” [NYDN]
• Bush announces $32b domestic security bill: “We’re going to get control of our borders. We’ll make this country safer for all our citizens.” [NYT, LAT, WSJ, WT]
• White House to reduce next Gulf Coast relief package to around $20b. [WSJ]
• Republicans losing support among conservatives, moderates, and independents. Ronald Brownstein: “This two-front war complicates the challenge for the GOP as Bush tries to regain the initiative in Washington and the party prepares for the 2006 midterm elections.” [LAT]

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