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LIVE FROM THE HEADLINES

Pressure Building for Specifics From Schwarzenegger

Aired August 22, 2003 - 19:29   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DARYN KAGAN, CNN ANCHOR: Financial issues topping the list of concerns driving California's recall race, pressure building for candidate Arnold Schwarzenegger to outline a plan. Today, he met with business leaders in Huntington Beach.
And that's where our Kelly Wallace finds herself tonight -- Kelly, good evening.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Good evening, Daryn.

Arnold Schwarzenegger coming to these friendly streets of Huntington Beach, where about 60 percent of these registered voters are Republican. He came, as you said, to talk to small-business leaders. And what we witnessed was the power of celebrity, hundreds of autograph seekers, and crews from "Entertainment Tonight" to Taiwan TV crowding the streets to get a glimpse, this as some Republicans in this state are encouraging the other Republican candidates in the race to step aside and support Arnold Schwarzenegger to avoid splitting the vote and allowing Democrats to be victorious on October 7.

I asked Arnold Schwarzenegger if he believes the other Republicans should get out of the way. He told us he believes everyone should make their own decisions.

(BEGIN VIDEO CLIP)

ARNOLD SCHWARZENEGGER, RUNNING FOR GOVERNOR OF CA.: These are all people that I respect. These are all people that are Republicans that work very hard and at one point or the other, they have to make the decision. I cannot make it for them. Obviously, mathematically speaking, it's wiser to only have one candidate.

(END VIDEO CLIP)

WALLACE: And an aide to one Republican candidate, businessman Bill Simon, telling us the talk of pressure on Republicans is absolutely untrue and he says Simon will remain in the race and will be victorious.

Now, the concern from Republicans coming as Democrats appear to be centering around this strategy. Urging Californians to vote no on the recall and yes when it comes to Lieutenant Governor Cruz Bustamonte, the major Democrat on the ballot.

Even Governor Gray Davis who long has argued that having any Democrats on the ballot would legitimize this recall effort, seems to be embracing this strategy. He's now telling people that he believes having Bustamante on the ballot could get more hispanics to the polls and help him defeat the recall.

KAGAN: Kelly Wallace in Huntington Beach. Kelly, I'll have a chance to talk with one of Arnold Schwarzenegger's rivals, State Senator Tom McClintock. He's going to be my guest in the 10:00 p.m. hour when I host "NEWSNIGHT." Thank you for that report.

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