(swong@politico.com or @scottwongDC)

RICE BOWS OUT -- Mark Lander writes on A1 of the New York Times: “President Obama knew before he picked up the phone on Thursday afternoon what Susan E. Rice, his ambassador to the United Nations, was calling about: she wanted to take herself out of the running for secretary of state and spare him a fight. By acceding to Ms. Rice’s request, which she had conveyed to White House aides the night before, Mr. Obama averted a bitter, potentially disruptive battle with Republicans in Congress at the start of his second term and at a time when his administration is struggling to reach a politically difficult deal on the federal budget. …

-- “By all accounts, Ms. Rice had been Mr. Obama’s first choice to succeed Hillary Rodham Clinton, though recently he seemed to be signaling that her nomination was far from a foregone conclusion. Her decision to withdraw, which senior officials insist Ms. Rice made without prodding from the White House, clears the way for Mr. Obama to nominate Senator John Kerry, Democrat of Massachusetts and chairman of the Senate Foreign Relations Committee, officials said. Republicans say Mr. Kerry would sail through a confirmation process, while several senators had vowed to block Ms. Rice’s nomination, citing what they said were her misleading statements about the Sept. 11 attack that killed four Americans, including Ambassador J. Christopher Stevens.

-- “By stepping aside, Ms. Rice will allow Mr. Obama to present a full slate of appointees to his national security team as early as next week. Among the other candidates for key posts, officials said, is former Senator Chuck Hagel, a Nebraska Republican, for secretary of defense. Like Mr. Kerry, Mr. Hagel, a Vietnam veteran who became a critic of the Iraq war, would be supported by many of his former colleagues.” http://nyti.ms/TYzm83

RICE CONFIRMATION FIGHT WOULD HAVE DISTRACTED FROM 2^ND-TERM AGENDA -- POLITICO’s Reid Epstein writes: “Rice’s decision pre-empts what was expected to be an intense confirmation battle that could have swallowed key first months of the president’s second term – and perhaps big-ticket agenda items along with it. That’s a relief to some inside his administration worried about preserving the president’s political capital for fights over the budget and immigration reform. But there’s a lingering bitterness in the Oval Office over a stinging setback that deepens the divide between Obama and congressional Republicans. Obama seemed eager to fight for a loyal member of his circle — one he felt had been unfairly attacked by people looking to score political points against him. And large parts of his base are angry that the president got beaten back from promoting a prominent African-American woman to a job he clearly was interested in giving her.

-- “The president left open the possibility of appointing Rice to another top administration post — possibly national security adviser if Tom Donilon moves on, according to an administration official who added that Obama “is really angry about the way this went down.” http://politi.co/SVAkAM

IN HER OWN WORDS – Rice told Brian Williams on NBC’s “Rock Center” Thursday: “‘I didn’t want to see a confirmation process that was very prolonged, very politicized, very distracting and very disruptive because there are so many things we need to get done as a country and the first several months of a second term president’s agenda is really the opportunity to get the crucial things done.’ Rice noted that President Obama’s second-term agenda included ‘comprehensive immigration reform, balanced deficit reduction, job creation.’ She added, ‘And to the extent that my nomination could have delayed or distracted or deflected or maybe even some of these priorities impossible to achieve, I didn’t want that and I much prefer to keep doing what I’m doing which is a job I love at the United Nations.’” Watch here: http://nbcnews.to/UFM89Z

-- In a Washington Post op-ed, Rice explains why her decision was “the right call.” “I grew up in Washington, D.C., and I’ve seen plenty of battles over politics and policy. But a national security appointment, much less a potential one, should never be turned into a political football. There are far bigger issues at stake. So I concluded this distraction has to stop.” http://wapo.st/Wbmhrt

TWITTER TRAFFIC -- ‏@AmbassadorRice: Those of you who know me know that I'm a fighter, but not at the cost of what's right for our country.

Former Secretary of State Madeleine Albright called the GOP attacks on Rice “outrageous” during an interview with  CBS’s “This Morning”: http://politi.co/VF11bo

RICE AND OBAMA will meet in the Oval Office late this afternoon, according to the White House.

IGNATIUS: THE CASE FOR KERRY AT STATE – “Kerry is a familiar figure to America and the world. He has been a member of the Senate Foreign Relations Committee for nearly three decades. This very familiarity can seem something of a liability: the lean face, the patrician bearing, the status as a presidential also-ran. But the fact that Kerry is a known commodity, with a predictable, reliable persona, is one of his strengths. Three qualities make Kerry a good fit for this moment.

-- “First, he recognizes that the world is a mess, starting with the chaotic Arab nations, and that it needs stronger American diplomatic leadership. When the Arab revolutions began in 2011, President Obama rightly decided not to try to contain the explosion. But we’re entering a new period when Arabs need more U.S. help in consolidating their gains. Kerry, who has been traveling in the Middle East long enough to develop a genuine feel for the region, would be a good and steadying partner for the Arab transformation.

-- “Second, Kerry appreciates the importance of quiet diplomacy, especially now. To make progress in brokering a Syrian political transition, exploring negotiating options with Iran and assessing prospects for Israeli-Palestinian peace talks, Obama will need a confidential emissary. Kerry has played that role successfully for him already, in Afghanistan and Pakistan. It’s hard for a secretary of state to operate in “quiet mode,” but Kerry understands that’s important now. He’s well-traveled enough that he could skip the get-acquainted tours.

-- “Third, while Kerry sometimes comes across as stiff, he’s surprisingly willing to challenge conventional wisdom, especially about engaging America’s adversaries. This unlikely contrarian streak would be an advantage, especially because it’s so well disguised: With his stolid demeanor, Kerry would find it easier to take diplomatic chances than other potential nominees, especially the younger, less experienced Rice.

-- “Kerry’s weakness is that, like Hillary Clinton, he lacks a close personal relationship with Obama. … If Obama does what White House sources predict and nominates Kerry for State, the two will need to establish a better bond. Washington gossips report that Obama sometimes found Kerry long-winded during the hours of debate preparation when Kerry played the role of Mitt Romney. Maybe Obama and Kerry need to play basketball together, or go windsurfing, or just have a beer.” http://wapo.st/ZpoXpI

OH YEAH, THE FISCAL CLIFF: OBAMA, BOEHNER MEET AT W.H. – Richard Cowan and Jeff Mason write for Reuters: “President Barack Obama and House of Representatives Speaker John Boehner held a ‘frank’ face-to-face meeting on Thursday in an effort to break an impasse in talks to avert the "fiscal cliff" of steep tax increases and spending cuts. With an end-of-year deadline looming, the two leaders talked at the White House as frustration mounted over the recent lack of progress in negotiations that had become bogged down in a daily round of finger-pointing. Aides on both sides used similar language to describe the 50-minute meeting, calling it "frank" and repeating that lines of communication remained open. The meeting, also attended by Treasury Secretary Timothy Geithner, was announced after frustration broke out on both sides at a lack of progress and U.S. stocks turned negative due to fears the economy could dip into recession again if politicians fail to break the gridlock in Washington.” http://reut.rs/UFOmpO

FISCAL CLIFF COUNTDOWN: 17 DAYS

--In case you didn’t hear Boehner’s message that spending is the problem, his office has created a new graphic to underscore the point: http://1.usa.gov/SVXsiq

GOOD FRIDAY MORNING, DECEMBER 14, 2012, and welcome to the Huddle, your play-by-play preview of the day’s congressional news. Send tips, suggestions, comments, complaints and corrections to swong@politico.com. If you don't already, please follow me on Twitter @scottwongDC.

My new followers include but are not limited to @JeffEFrank and @Texas_CR.

TODAY IN CONGRESS – Both the House and Senate are out today but are expected back next week.

AROUND TOWN – Departing Sen. Richard Lugar, former chairman of the Foreign Relations Committee, will be presented Jan. 29 with the Commitment to Development "Ideas in Action" Award, sponsored jointly by the Center for Global Development and The FP Group, the publishers of Foreign Policy.  The award, bestowed annually since 2003, honors an individual or organization for making a significant contribution to changing attitudes and policies of the rich and powerful toward the developing world. http://bit.ly/QYn6ok

GOVS. CHRISTIE, CUOMO, MALLOY IN WAPO OP-ED: “Why the delay on Sandy relief?” http://wapo.st/TYHyFd

ONE REASON: DEMOCRATS’ SANDY AID BILL INCLUDES SWEETENERS – Kerry Young writes for Roll Call: “In general, the Senate bill closely resembles the White House’s $60.4 billion request made on Dec. 7, but it adds some new spending not specifically mentioned in the Obama administration’s proposal. Included would be $125 million for a Department of Agriculture watershed program that could help Colorado cope with the aftermath of the summer’s wildfires and $50 million for the National Parks Service’s Historic Preservation Fund. The Sandy bill also would include $150 million for fisheries that have faced recent disasters in Alaska and the Gulf of Mexico, as well as New England, said Mark Begich, D-Alaska, who had sought this funding to address the marine debris washing up on the coasts of Western states from the Japan earthquake of March 2011.” http://bit.ly/RtilVd

-- This follows an ABC News report that the Obama administration’s Sandy aid request called for millions of dollars to be directed far from the storm’s epicenter: “The request, which still needs the approval of Congress, includes some surprising items:  $23 million for tree plantings to ‘help reduce flood effects, protect water sources, decrease soil erosion and improve wildlife habitat’ in forested areas touched by Sandy; $2 million to repair roof damage at Smithsonian buildings in Washington; $4 million to repair sand berms and dunes at the Kennedy Space Center in Florida; and $41 million for clean-up and repairs at eight military bases along the storm’s path, including Guantanamo Bay, Cuba. The FBI is seeking $4 million to replace ‘vehicles, laboratory and office equipment and furniture,’ while Customs and Border Protection wants $2.4 million to replace ‘destroyed or damaged vehicles, including mobile X-Ray machines.’” http://abcn.ws/SVZ6Re

SCOTT, GOWDY ARE FRIENDLY RIVALS – Jennifer Steinhauer writes for the New York Times: “Representatives Trey Gowdy and Tim Scott, first-term Republicans from South Carolina, are both in the running to replace Senator Jim DeMint when the conservative leaves office next month. But they say they know the best man for the job: the other guy. … Mr. DeMint’s surprise retirement announcement last week — he will become the head of the conservative Heritage Foundation in January — has left Gov. Nikki Haley in the delicious spot of choosing a replacement who would fill out the next two years of his term and then presumably run to defend the seat in 2014. Mr. Gowdy and Mr. Scott are on the short list of contenders, which also includes Jenny Sanford, the ex-wife of former Gov. Mark Sanford, who infamously disappeared for almost a week in 2009 to visit his mistress in Argentina; Catherine Templeton, a lawyer who runs the state’s Department of Health and Environmental Control; and Henry McMaster, a former state attorney general.

-- “The competition for the opportunity to join the Senate without facing the voters — and gain an advantage for the next election — often inspires backbiting and chilly discord among the hopefuls. But Mr. Scott and Mr. Gowdy are eating, praying and heaping praise on each other through an experience that will absolutely end in great disappointment for one — if not both — in their search for ascent.” http://nyti.ms/UgAykY

JOE WALSH FOR SENATE? – POLITICO’s David Catanese poses the question to him: “The in-your-face Illinois congressman who was ousted in November after a single term told POLITICO he’s being encouraged to run for Sen. Dick Durbin’s seat. ‘People want me to look at that race among others. Fair to say, it’s something I’m being encouraged to take a look at, and will take a hard look at, once I get settled in the next couple of months,’ Walsh said. Asked who was urging him on, Walsh responded: ‘The best kind of people in the world — real people, activists, conservatives and everyday Republicans all over the state.’ The 50-year-old Walsh got thumped by Iraq war veteran Tammy Duckworth in the 8th congressional District after a bitter campaign in which he accused her of talking excessively about her military service and criticized her for dwelling over her choice of a dress for the Democratic National Convention. Those off-the-cuff rants would remain prime fodder for Democrats should Walsh run again. The 68-year-old Durbin has not yet confirmed he’ll run for a fourth term, but his seat is only seen as competitive if he retires.” http://politi.co/UEaocp

HANK JOHNSON SORRY FOR ‘MIDGET’ REMARKS – Seung Min Kim writes for POLITICO: “Rep. Hank Johnson (D-Ga.) wants everyone to know he’s sincerely sorry for using the word ‘midget’ on the House floor this week. He didn’t know that the term could be offensive. So when he went on the House floor Wednesday and used a ‘giants’ vs. ‘midgets’ analogy to decry Michigan’s new right-to-work law, Johnson had no clue the outrage he would spur. ‘I was thinking to myself earlier today, what happens when you put in a cage fight a giant with a midget?’ Johnson said then. ‘Well, the midget will not win the fight. I'm going to tell you that. Why? He just doesn't carry enough weight to do so. But if you put 30 midgets in with that giant, then the midgets have a chance.’

-- “Not even 24 hours later, Johnson took to the House floor again to express his contrition. … ‘But to my discovery, just within the last 12 hours or so, I have found that the use of the ‘midget’ — oh, excuse me, the use of the m word — is no longer socially acceptable.’ He likened his use of the ‘m word’ to the once-common use of the ‘n word,’ which Johnson noted used to be ‘socially acceptable’ but is no longer. Johnson then explained that the ‘m word’ referred to a medical condition called dwarfism, though he expressed his preference for the term ‘abnormally small people’ rather than dwarfism.” http://politi.co/UKWfrW

REPORT FINDS CIA INTERROGATIONS INEFFECTIVE – Greg Miller in the Washington Post: “After a contentious closed-door vote, the Senate intelligence committee approved a long-awaited report Thursday concluding that harsh interrogation measures used by the CIA did not produce significant intelligence breakthroughs, officials said. The 6,000-page document, which was not released to the public, was adopted by Democrats over the objections of most of the committee’s Republicans. The outcome reflects the level of partisan friction that continues to surround the CIA’s use of waterboarding and other severe interrogation techniques four years after they were banned.” http://wapo.st/VF4IOf

IN FAREWELL SPEECH, SNOWE LAMENTS THE LOSS OF THE ART OF LEGISLATING – Robert Long for the Bangor Daily News: “‘Throughout my tenure, I’ve borne witness to government’s incredible potential as an instrument for common good,’ she said. ‘I have also experienced its capacity for serial dysfunction. Indeed, as I stated in announcing I would not seek a fourth term in the U.S. Senate, it is regrettable that excessive political polarization in Washington today is preventing us from tackling our problems at a time of monumental consequence for our nation.’ Voicing her fear that ‘we are losing the art of legislating,’ Snowe urged her colleagues to recommit to following ‘the Founding Fathers’ blueprint, in order to return the institution to its highest calling of governing through consensus. For it is only then that the U.S. Senate can ascend to fulfill the demands of our times, the promise of our nation and the rightful expectations of the American people.’ http://bit.ly/UXCsKn

THURSDAY’S TRIVIA WINNER – Nobody correctly answered Matt Laslo’s trivia question yesterday. We’ll use it one more time in hopes we get a winner: Name the person who set three Senate records in just one day. And what were the three records? First to correctly answer gets a mention in the next day’s Huddle. Email me at swong@politico.com.

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