'Meet the Press' transcript for Jan. 4, 2009

MR. DAVID GREGORY: Our issues this Sunday: Just two days until the 111th Congress convenes and the legislative agenda is already packed, as President-elect Obama meets tomorrow with congressional leaders to discuss the economy and embattled Illinois Governor Rod Blagojevich's pick Roland Burris says he'll show up to fill the Senate seat vacated by the new president.  Do Senate Democrats have the legal authority to block the appointment?  We'll ask the man at the center of it all, our exclusive guest, Senate Majority Leader Harry Reid of Nevada.

Then, an escalation in the war between Israel and Hamas in the Gaza Strip, Israel now launching a full ground war invasion.  When will it end?  What role should the United States play in the conflict?  And what other foreign policy challenges await President-elect Obama in 2009?  Insights and analysis from our roundtable: Jeffrey Goldberg, national correspondent for The Atlantic; Katty Kay, Washington correspondent for BBC World News America; Hisham Melhem, Washington bureau chief of Al-Arabiya; Andrea Mitchell, NBC's chief foreign affairs correspondent; and David Sanger, The New York Times' chief Washington correspondent and author of the new book "The Inheritance: The World Obama Confronts and the Challenges to American Power."

But first, Israeli troops and tanks are now on the ground in Gaza as the fighting against Hamas enters a new phase.  NBC News chief foreign correspondent Richard Engel is in the Israeli city of Sderot just a mile outside of Gaza.

Richard, as the ground invasion begins, what are you experiencing where you are?

MR. RICHARD ENGEL: Well, over the last several hours there have been rockets that have come into this area.  We've heard air raid sirens and had to hit the deck.  I believe a rocket was just fired in this direction right now, and this is something we've been seeing throughout the day.  We're also hearing the outgoing Israeli artillery and we've seen some extra Israeli reinforcements being brought into the area.

MR. GREGORY: Richard, what's Israel's goal?  Why did it move in on the ground?

MR. ENGEL: Israel says it wants to take over--and now I just heard the impact of that rocket that was launched a few seconds ago.  Israel says it wants to take over the areas where these rockets are being launched.  Its troops have spread out throughout the northern Gaza Strip, cut the Gaza Strip into several sections.  They're avoiding going into the densely populated areas but are trying to hold on to the areas very near the population centers where most of the rockets have been launched and to do that...(technical difficulties).

MR. GREGORY: The fear...(technical difficulties)...that since the point of disengagement from Gaza three years ago that Hamas has been able to fortify its defenses, bring in weaponry.  All of that could be brought to bear against Israeli forces.  How are they responding on their side?

MR. ENGEL: They are responding first with heavy artillery that was used last night to create a smoke screen for the advancing Israeli troops.  Also, they're using a lot of bulldozers.  There's a deep concern that mines were put in place to try and booby-trap the Israeli advance.  So they are proceeding very slowly.  They're also mostly advancing at night, when they have the advantage of night vision technology, which the Palestinians generally do not have.

MR. GREGORY: Richard, you know the Arab well--world as well as anyone. What's the reaction within Arab capitals to this offensive?

MR. ENGEL: On the Arab official side there has been very little support for Hamas.  Governments in Saudi Arabia and in Cairo have expressed not support outright for the Israeli offensive, but certainly no support for Hamas.  On the Arab street we have seen quite a bit of sympathy for the Palestinian people.  There have been protests almost daily.  But on a, on a governmental side, the Israel--one Israeli official I, I spoke to said they feel absolutely no international pressure.

MR. GREGORY: What about civilian casualties?  The criticism of Israel throughout this campaign has been that it's been disproportionate.

MR. ENGEL: Medical officials in Gaza say they are struggling, that there have been more than 2,000 injured, several hundred killed.  They don't exactly know how many people have been killed and injured, because today so many of the roads have been cut.  According to the main hospital in Gaza City, there's no electricity.  They're running on generator backup power and they say they only have about 24-hour supply left.  After that they will be in a real crisis.

MR. GREGORY: The question now, how long and is Israel open to the idea of a cease-fire?

MR. ENGEL: We've heard no talk about that today.  The Israelis, all they say is they will continue this mission.  They are focusing now on the weaponry, on the Hamas weaponry.  They are very concerned that the weaponry has gotten more advanced with support from Hezbollah and support from Iran.  And that's mostly what we're hearing from the Israelis today, briefings on how this offensive should continue, not talks of diplomatic initiatives or any cease-fire.

MR. GREGORY: Richard Engel, our chief foreign correspondent, in Sderot, about a mile from the Gaza border.  Richard, thank you and please stay safe.

MR. ENGEL: Thank you.

MR. GREGORY: And here with us now, the Senate majority leader, Harry Reid.

Welcome back to MEET THE PRESS and happy New Year.

SEN. HARRY REID (D-NV): Thank you very much.

MR. GREGORY: Let me ask you about the ground invasion into Gaza.  Do you think on the part of this Israeli--of the Israelis this was offensive or defensive?

SEN. REID: I spoke to Prime Minister Olmert a couple of days ago.  He indicated that they would do the ground activities.  Let's understand the background.  For eight years they've been firing rockets into Israel.  They've become more intense the last few months.  Israelis have been killed, maimed and injured.  Sometimes more than 200 a day coming into Israel.  If this were going on in the United States from Vancouver, Canada, into Seattle, would we react?  Course we do.  We would have to.  I think what the Israelis are doing is very important.  I think this terrorist organization, Hamas, has got to be put away.  They've got to come to their senses.  The Fatah group, which is--makes up part of Palestinian group, has a peace arrangement with Israel. Hamas should do the same.

MR. GREGORY: And they're in power in the West Bank.

SEN. REID: That's right.  And, and, and Israel, for--since 1967, controlled Gaza.  They gave it to the Palestinians as a gesture of peace.  And all they got are a bunch of rockets in return.

MR. GREGORY: So you think that Israel ought to move forward and try to remove Hamas from power?

SEN. REID: They have to.  I, I'm not concerned about removing Hamas from power, I'm concerned about stopping the rocket fire and the mortar fire into Israel.  That is the key, and that's what Israel's up to according to the prime minister.

MR. GREGORY: Should there be an immediate cease-fire?

SEN. REID: If the Hamas organization will agree and there is some degree of certainty that they will follow through.  They, in the past, have simply not lived up to what they said they would do.  If there's a way of enforcing this cease-fire, then yes.  Otherwise, Israel has to continue till they stop the rockets and mortars coming into Israel, maiming, injuring...

MR. GREGORY: Right.

SEN. REID: ...and killing Israelis.

MR. GREGORY: So you, you're in sync with the Bush administration on this point?

SEN. REID: Yes, I am.

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