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From a political strategy point of view, Daschle is the only one who is handling this correctly so far. He accepts Lott's apology (makes himself look magnanimous), and he gets to keep a political hammer in his back pocket. I believe he is currently trying to get fellow Democrats to quiet down in order to keep Lott as Senate Leader. The last thing Daschle wants is a strong Republican leader in the Senate.
Thanks to numbskull Lott, the race-baiters already have the issue...what we do from here will determine whether they will still have it for '04.