CNN - The Situation Room and Lou Dobbs Tonight - 2006-07-12

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Transcript

Language: English (original, YouTube automatic captions)

[0:00] Right, Susan. And to our viewers, you're

[0:03] in the situation room where new pictures

[0:04] and information are arriving all the

[0:06] time. Standing by, CNN reporters across

[0:09] the United States and around the world

[0:11] to bring you today's top stories.

[0:13] Happening now, President Bush heads

[0:15] overseas as Middle East tensions are

[0:18] exploding. It's 1000 p.m. in Germany

[0:20] where the traveling White House is

[0:22] pointing an angry finger at Syria and

[0:25] Iran. We'll have live reports on this

[0:27] developing story. Also this hour,

[0:30] Hillary Clinton's extreme makeover. As

[0:32] first lady, she riled up the healthcare

[0:34] industry with her radical plan for

[0:36] reform. Now, as a senator, she's getting

[0:39] a much different reaction, and it's

[0:41] paying off for her politically and

[0:43] financially. And columnist Bob Novak

[0:46] names names. It's 400 p.m. here in

[0:49] Washington where we now have new details

[0:51] about the sources of the CIA leak

[0:53] [music] and the Carl Rove connection.

[0:56] I'm Wolf Blitzer. You're in the

[0:57] situation room.

[1:04] [music]

[1:12] [music]

[1:13] Right now, President Bush is in Germany,

[1:15] closer to some of the world's most

[1:17] dangerous hot spots, including the

[1:19] Middle East. And two targets of the Bush

[1:21] administration's anger today. That would

[1:24] be Syria and Iran. The M East crisis

[1:27] clearly ratcheting up after the radical

[1:30] group Hezbollah today abducted two

[1:32] Israeli soldiers, killed three others,

[1:35] calling that an act of war. Israel sent

[1:37] troops into Lebanon, Hisbala's base of

[1:40] attack, losing five more Israeli

[1:42] soldiers. The Bush administration is

[1:44] accusing Hisbala of terrorism. And the

[1:47] White House says it's holding Syria and

[1:49] Iran responsible because they support

[1:52] Hezbollah. Our White House correspondent

[1:54] Ed Henry is traveling with the

[1:55] president. He's standing by live in

[1:57] Germany. Let's go to Jerusalem. Paula

[1:59] Hancock has all the latest developing

[2:01] information. Paula.

[2:05] Well, Wolf, the Israeli government has

[2:07] just had a special meeting to decide

[2:09] what to do next. Now, that meeting has

[2:11] finished, but they are giving very

[2:12] little way. This was a meeting for

[2:14] operational details. the military

[2:17] operation that they are going to carry

[2:18] out against Lebanon. Now, we have been

[2:20] seeing the uh Israeli air forces,

[2:23] troops, tanks, gunships, all in southern

[2:25] Lebanon. This is the first time we've

[2:27] seen them there since they withdrew in

[2:29] May 2000. Now, we've heard from one

[2:31] minister leaving that special cabinet

[2:34] meeting saying this is the start of a

[2:36] new era. We've also heard from Ran Gis

[2:38] Singh, spokesman uh for the government

[2:41] saying that they are going to take

[2:43] gradual steps suggesting there is not

[2:45] going to be a huge military incursion

[2:47] but just the troops that we see at the

[2:49] moment after eight Israeli troops were

[2:51] killed this Wednesday. Now we know that

[2:53] they have been targeting Hezbollah

[2:55] buildings. We know that they have been

[2:56] targeting roads and bridges. Uh they are

[2:59] hoping the military says to stop

[3:01] militants moving with the two Israeli

[3:03] soldiers that they have taken and

[3:05] they're trying to restrict their

[3:06] movements so they have a better idea of

[3:08] where they are. But they are moving

[3:09] slightly deeper into Lebanon. As I say,

[3:11] the first time we've seen this for 6

[3:13] years, a severe escalation in tensions

[3:15] here in the Middle East. Surprising it's

[3:18] escalated so fast, even though things do

[3:20] escalate very quickly in this region.

[3:22] Wolf,

[3:22] >> first the tensions with Gaza and now the

[3:25] situation in the north with Lebanon.

[3:27] We're getting reports, and I wonder if

[3:29] you've heard this, that the Israeli

[3:31] military has started to activate reserve

[3:33] units to bolster up its military

[3:36] presence in case it moves directly into

[3:38] Lebanon.

[3:41] >> Yes, we heard that a little earlier this

[3:43] Wednesday, the military sources

[3:44] confirming to us that reserves are being

[3:46] called up. Now, this is to back up the

[3:48] troops that they have already. We know

[3:50] that uh in the hours after this attack,

[3:52] it happened 9:00 a.m. local time in the

[3:54] morning. That's 2 am Eastern time. Uh

[3:57] instantly tanks and troops were moved up

[3:59] to that is uh Israeli southern Lebanon

[4:02] border. Uh and we know also that things

[4:04] are ongoing in Gaza as well. We know

[4:07] almost 20 Palestinians have been killed

[4:10] uh just Wednesday alone. That's 80

[4:12] Palestinians according to security

[4:14] sources that have been killed uh in Gaza

[4:16] since the start of this operation just

[4:18] over two weeks ago. So on two fronts

[4:20] now, Israel is carrying out very heavy

[4:23] military operations. Wolf

[4:25] >> Paula, stand by. You and your colleagues

[4:26] there are going to have a very very busy

[4:28] uh several few hours. Thank you very

[4:31] much for that. I suspect it's going to

[4:33] be a tense situation throughout the

[4:35] region coming up tonight. President Bush

[4:37] meanwhile landed in Germany only moments

[4:39] ago, his only stop before the G8 summit

[4:42] in Russia. With so many global

[4:44] challenges before him, including these

[4:46] latest developments in the Middle East,

[4:48] this trip may be a critical test of the

[4:51] president's new emphasis on diplomacy.

[4:53] Our White House correspondent Ed Henry

[4:55] is traveling with the president. He's on

[4:57] the scene in Germany. Ed, what has the

[4:59] White House reaction to the latest

[5:01] tensions involving Israel and Lebanon?

[5:04] What's been the official White House

[5:05] reaction?

[5:08] Wolf, even before the president arrived

[5:09] here in Germany, the White House

[5:11] released a blistering statement putting

[5:12] the blame squarely at Iran and Syria for

[5:15] the escalating violence in the Middle

[5:17] East. Add that to the list of foreign

[5:19] policy headaches that will be waiting

[5:20] for the president at the G8 summit in

[5:22] St. Petersburg.

[5:26] >> Secretary of State Condisa Rice is on a

[5:28] separate diplomatic mission to Paris to

[5:30] deal with Iran, again refusing to answer

[5:32] the US offer for talks in exchange for

[5:35] suspending its nuclear enrichment

[5:36] program.

[5:37] As Rice threatened tough UN sanctions

[5:40] against Iran, she had to deal by phone

[5:42] with yet another Middle East flare up.

[5:46] Israeli troops stormed into Lebanon

[5:48] after Hezbollah abducted two Israeli

[5:50] soldiers and killed three more, which

[5:52] the Israeli prime minister dubbed an act

[5:54] of war and the White House called an

[5:56] unprovoked act of terrorism. Then

[5:59] there's a nuclear threat from North

[6:01] Korea as well as Iran, which the White

[6:03] House seems to be reacting to from a

[6:05] defensive posture. We'll have to see. I

[6:07] think the diplomacy has set it up well.

[6:09] We'll have to see what these countries

[6:11] decide.

[6:11] >> This has inflamed some conservatives

[6:13] with Bill Crystal charging the approach

[6:15] to North Korea is Clintonian.

[6:19] >> But yet another hot spot, the ongoing

[6:21] war in Iraq has left the president with

[6:23] a weakened hand.

[6:25] >> The White House says the president has

[6:26] always said that approaches will change

[6:28] as circumstances change. But one of the

[6:30] circumstances that has changed, of

[6:31] course, is the president's standing at

[6:33] home and in the world

[6:34] >> in need of allies. The president is

[6:36] making the special stop in Germany to

[6:38] further bond with new chancellor Angela

[6:40] Merkel.

[6:41] >> Bush has focused on Germany now that

[6:44] Chancellor Merkel is in office as the

[6:47] key link to Europe. And that's important

[6:50] because Tony Blair is very weak. That

[6:52] gives the United States a new foothold

[6:54] in Europe. But there may be cracks in

[6:56] the president's one-time alliance with

[6:58] Russian President Vladimir Putin on the

[7:00] eve of their own one-on-one talks before

[7:03] the G8 summit. President Putin is

[7:05] reacting bitterly to a speech Vice

[7:07] President Cheney recently delivered in

[7:08] Lithuania, charging Russia may be

[7:10] backsliding on the way to full

[7:12] democracy.

[7:14] >> I think your vice president's expression

[7:17] there is like his bad shot on his

[7:21] hunting trip.

[7:25] >> An obvious reference to the to the vice

[7:27] president's recent hunting mishap back

[7:29] in the United States. The vice

[7:31] president's office today would not

[7:33] comment on that blast from Mr. Putin. It

[7:35] may only add to the pressure pressure on

[7:37] President Bush to actually address some

[7:39] of this directly with his Russian

[7:41] counterpart. But for now, senior aids

[7:43] are saying the president is likely to be

[7:45] frank and in private with Mr. Putin,

[7:48] meaning basically that he'll do most of

[7:50] the talking behind closed doors rather

[7:51] than embarrass Mr. Putin in public. Wolf

[7:54] Ed, are White House officials

[7:55] elaborating on why they're pinning the

[7:57] responsibility on Syria and Iran for

[8:00] this latest crisis in the Middle East?

[8:05] They're not elaborating in great detail,

[8:06] but it's pretty clear that given the

[8:08] fact that there's already this nuclear

[8:09] standoff with Iran, the White House sees

[8:11] an opportunity here to ratchet even more

[8:14] pressure on Iran, try to rally the

[8:16] international community against Iran to

[8:18] make sure that that uranium enrichment

[8:20] program is for peaceful purposes. Wolf

[8:22] >> Ed Henry traveling with the president.

[8:24] Ed, thank you very much. And to our

[8:26] viewers, this note, we're going to talk

[8:27] a lot more about the North Korea missile

[8:30] crisis coming up in our 700 p.m. Eastern

[8:32] hour right here in the situation room.

[8:34] The special US envoy Christopher Hill,

[8:37] he'll be joining us live from Beijing.

[8:40] That's coming up 700 p.m. Eastern.

[8:42] Tonight,

[8:43] after many months of silence, the

[8:45] columnist Bob Novak is revealing more

[8:47] about his role in the leak of a CIA

[8:49] operative's identity. Let's get some

[8:51] more on this story that we reported on

[8:53] last night. Bob uh Novak story. Brian

[8:56] Todd is standing by here in Washington.

[8:58] Brian

[8:59] >> Wolf in a new column breaking that

[9:01] silence. Novak seems to be trying to

[9:02] make one fundamental point that he did

[9:05] not betray his sources.

[9:09] Bob Novak says he confirmed all three of

[9:11] his sources on former CIA officer

[9:14] Valerie Plame's identity to

[9:15] investigators because he writes in his

[9:18] latest column, "Special prosecutor

[9:20] Patrick Fitzgerald already quote knew

[9:22] the names of my sources."

[9:24] >> It's interesting that Fitzgerald already

[9:26] had identified his sources when he

[9:28] finally came to interview uh Mr. Novak.

[9:31] >> How did Fitzgerald know? The columnist

[9:33] says the prosecutor had gotten signed

[9:35] waivers from every official who might

[9:37] have leaked claims identity. Legal

[9:40] experts say by signing those waivers,

[9:42] government officials free journalists to

[9:44] talk about their conversations and use

[9:46] their names with investigators, but not

[9:48] to the public unless the source agrees.

[9:51] How was Fitzgerald able to pair down

[9:53] possibly hundreds of officials who might

[9:55] have known about claim to Novak's three

[9:58] sources? A former special prosecutor

[10:00] says Fitzgerald most likely worked very

[10:02] fast, sending his team of investigators

[10:05] to interview all of them.

[10:06] >> Those individuals know when a FBI agent

[10:09] comes calling, uh, you either tell the

[10:11] truth or you're committing a crime, and

[10:14] I suspect most of them owned up very

[10:17] quickly to their conversations, and

[10:19] that's how we knew. Novak does not

[10:21] publicly reveal the name of his primary

[10:23] source, but he does say White House

[10:25] Deputy Chief of Staff Carl Rove and

[10:27] former CIA spokesman Bill Harlo were his

[10:30] secondary sources, confirming Pla's

[10:32] identity. Legal experts differ on

[10:35] whether those conversations add up to

[10:37] leaks. President Bush has often been

[10:39] pressed on what he'd do with a leaker on

[10:42] his staff. Uh,

[10:43] >> do you stand by your pledge to fire

[10:44] anyone found to have done so?

[10:46] >> Yes. and that's up to the US attorney to

[10:48] find the facts.

[10:50] >> Rove would not comment on Novak's latest

[10:53] column, but a Rove spokesman has said he

[10:55] never reached out to reporters about

[10:56] claim and only responded casually when

[10:59] asked about her. Bill Harlo was not

[11:01] available for public comment, but a

[11:03] former intelligence official familiar

[11:04] with the issue tells CNN Harlo tried to

[11:07] convince Novak not to run the story on

[11:09] claim after Novak presented her name to

[11:12] him. Wolf.

[11:13] >> All right, Brian, thanks very much.

[11:14] We're going to have more on the story

[11:15] coming up in the situation room as well.

[11:17] In the meantime, let's check in with

[11:18] Jack Caferty. He's in New York with the

[11:20] Caerty file. Hi, Jack.

[11:21] >> Wolf, you can tell that spring is near

[11:24] when the swallows return to Capistrano.

[11:26] You can tell the midterm elections are

[11:28] near when the army announces it's ending

[11:30] a multi-billion contract, billion dollar

[11:32] contract with Hallebertton. The contract

[11:34] to provide logistical support to

[11:36] soldiers in Iraq will be rebid and

[11:38] potentially split among three different

[11:40] companies. Hallebertton, which used to

[11:42] be run by Vice President Dick Cheney,

[11:44] has long been under fire from auditors,

[11:47] from the Justice Department, from

[11:49] congressional Democrats for the price

[11:51] and the quality of its work. Government

[11:53] audits found more than a billion dollars

[11:55] in questionable costs. Army officials

[11:59] defend Hallebertton's performance. They

[12:01] acknowledge that relying on a single

[12:03] contractor leaves the government

[12:05] vulnerable, not to mention looking more

[12:07] stupid than usual since the vice

[12:09] presidents their former CEO.

[12:11] Hallebertton will be eligible to bid on

[12:13] the new contracts. The company has

[12:15] denied allegations of any wrongdoing and

[12:17] they say it's neither unusual nor

[12:19] unexpected that the contract would be

[12:22] replaced with a competitive bid

[12:24] approach, particularly in light of the

[12:26] looming midterm elections. Here's the

[12:28] question. What does it mean that the

[12:30] Army is ending its contract with

[12:31] Hallebertton? Email your thoughts to

[12:34] [email protected]

[12:36] or go to cnn.com/caffertyfile.

[12:39] Wolf

[12:39] >> Jack, thank you. Uh, and to our viewers,

[12:42] if you want a sneak preview of Jack's

[12:43] questions, plus an early read of the

[12:45] day's political news and what's ahead

[12:47] right here in the situation room. Sign

[12:49] up for our daily email alert, just go to

[12:51] cnn.com/

[12:53] situation room. Coming up, nearly 5

[12:56] years after the 9/11 attacks,

[12:58] allegations of waste, fraud, and abuse

[13:00] of Homeland Security Department dollars,

[13:03] we're going to tell you about the

[13:04] schemes being spotlighted by Congress is

[13:07] showing up online, including one

[13:09] involving a petting zoo. Plus, has a

[13:12] former target of the healthcare industry

[13:14] become its new darling? We're checking

[13:16] into the healthy donations being given

[13:18] to Senator Hillary Clinton. And up next,

[13:21] former Secretary of State Alexander Hey

[13:23] on the escalating crisis in the Middle

[13:25] East and the Bush administration's

[13:27] attempt to hold Syria and Iran

[13:29] accountable. Stay with us. You're in the

[13:32] situation room.

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[14:18] Thailand. The Thai people celebrate his

[14:20] majesty King Pumipon Adunedate's 60th

[14:22] anniversary ascension to the throne. He

[14:25] is currently the longest reigning

[14:27] monarch in the world. His majesty

[14:29] [music] was born in Cambridge,

[14:30] Massachusetts, where his father, Prince

[14:32] Mahedon, attended Harvard University. A

[14:35] [music] great patron of the arts, he is

[14:37] also an accomplished jazz musician and

[14:40] has played [music] with many

[14:41] world-renowned names such as Benny

[14:43] Goodman, Jack T. Garden, and Lionel

[14:45] Hampton. Applying his diverse background

[14:48] and experience [music] from both east

[14:50] and west to developing his country, his

[14:53] majesty has improved the social and

[14:55] economic conditions of his people.

[14:57] Thailand's current prosperity is proof

[14:59] of this innovative approach. On this

[15:02] joyous occasion of his majesty's 60th

[15:04] anniversary ascension to the throne,

[15:07] royalty from around the world will

[15:08] descend on Thailand for the celebration.

[15:11] We welcome you to join us for this

[15:13] momentous event.

[15:16] Larry King Live exclusive. Dan Rather's

[15:19] first live in-depth interview on his

[15:20] life after CBS. Dan Rather takes your

[15:22] calls. Larry King exclusive tonight 9

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[16:28] Why TWWA flight 800 could happen again.

[16:30] CNN Saturday and Sunday night, 7 [music]

[16:32] Eastern.

[16:35] We're standing by to speak live with

[16:37] former Secretary of State Alexander Hey

[16:39] on the escalating crisis in the Middle

[16:40] East. We'll get to that shortly. First,

[16:43] Fred Rico Whitfield is joining us from

[16:44] the CNN Center with a closer look at

[16:46] some other important stories making

[16:48] news. Hi, Fred.

[16:49] >> Hello to you, Wolf. Authorities say a

[16:50] raging wildfire in Southern California

[16:52] is 0% contained and could scorch as much

[16:55] as 100,000 acres. Low humidity, high

[16:58] winds, and temperatures in the high 90s

[17:01] are hampering efforts to contain the

[17:03] blaze. The blaze, which has charged some

[17:05] 26,000 acres so far, has destroyed 30

[17:08] buildings and caused about 300 people to

[17:10] be evacuated. A short time ago, China

[17:13] and Russia introduced a resolution to

[17:15] the UN Security Council responding

[17:17] [music] to North Korean missile testing.

[17:19] The new resolution deplores last week's

[17:21] launches and urges Pyongyang to impose a

[17:24] moratorium on missile testing, but it

[17:27] tones down or removes much of the

[17:29] [music] language included in an earlier

[17:30] Japanese draft that was deemed

[17:32] counterproductive by the Chinese.

[17:35] Defense Secretary Donald Rumsfeld says

[17:37] US troops will have to continue

[17:39] providing support to Iraqi security

[17:40] forces for quote some period of time. He

[17:44] made the comments while visiting US

[17:45] forces in Iraq today. Rumsfeld told the

[17:48] troops that the development of the Iraqi

[17:50] military and police has been in his

[17:52] words uneven. And following talks with

[17:54] Iraqi officials in Baghdad, the

[17:56] secretary said political progress is key

[17:58] to establishing security in that

[18:00] country. Meanwhile, another wave of

[18:02] violence in Iraq. Nine people were

[18:05] killed and more than 20 were wounded in

[18:07] a pair of bombings in Baghdad. And late

[18:09] today, 20 bodies were found in Diala

[18:12] Province, northeast of Baghdad. Iraqi

[18:14] security officials say they are among

[18:16] two dozen people kidnapped earlier in

[18:18] the day. Wolf,

[18:20] >> thanks Fred very much. Frederick

[18:21] Whitfield filling in for Zayn Vie, who's

[18:24] on assignment today. We're going to have

[18:26] a lot more on Iraq coming up in the next

[18:27] hour, including my interview with Major

[18:30] General William Caldwell, the chief

[18:31] spokesman for the US military in Iraq.

[18:34] At the same time, new crises are being

[18:37] met with a new language coming in these

[18:40] days from the White House. But is it a

[18:42] sign of a new attitude, the end of

[18:44] what's being called uh cowboy diplomacy?

[18:47] Our senior analyst Jeff Greenfield takes

[18:49] a closer look. Jeff,

[18:52] >> what do you think? Wolf, President Bush

[18:54] is off to Germany and Russia at a time

[18:55] when diplomacy seems to be the watch

[18:57] word of the moment. Does this represent

[18:59] a change in tone and maybe even

[19:01] substance from the past? Among those who

[19:03] say yes, there is a fascinating mixture

[19:05] of approval and concern.

[19:07] >> This will be a monumental struggle.

[19:10] >> By most accounts, the Bush

[19:11] administration's posture after the

[19:13] attacks of September 11th was that of a

[19:15] nation determined to act forcefully with

[19:17] or without the world's approval. I will

[19:20] not wait on events while dangers gather.

[19:24] >> Even before the invasion of Iraq back in

[19:26] the fall of 2002, the administration's

[19:29] national security strategy made a case

[19:31] for preemptive action and set down a

[19:34] strong marker about universal values.

[19:36] America, it said, must stand firmly for

[19:39] the non-negotiable demands of human

[19:40] dignity, free speech, freedom of

[19:42] worship, equal justice, respect for

[19:45] women, religious and ethnic tolerance,

[19:47] and respect for private property.

[19:50] When the invasion of Iraq was opposed by

[19:52] traditional allies like Germany and

[19:54] France, Defense Secretary Donald

[19:56] Rumsfeld labeled them part of the old

[19:58] Europe.

[19:59] >> You're thinking of Europe as Germany and

[20:01] France. I don't. I think that's old

[20:03] Europe. and Bush allies like the New

[20:06] York Post graphically scorn the axis of

[20:08] weasel.

[20:10] But now with American forces stretched

[20:12] thin in Iraq and with trouble spots

[20:14] heating up from North Korea to Iran, the

[20:16] recent tone has been sharply different.

[20:18] >> Welcome.

[20:19] >> Secretary of State Rice has been mending

[20:21] fences and the president's language

[20:23] after the North Korean missile launch

[20:24] has been strikingly different from that

[20:26] of the past.

[20:27] >> Diplomacy takes a while. And as for

[20:30] those non-negotiable demands for

[20:31] universal values,

[20:33] >> I looked the man in the eye. I found it

[20:35] to be very straightforward and

[20:37] trustworthy.

[20:38] >> The president continues to embrace

[20:40] Russia's Putin after a string of curbs

[20:42] on private property and individual

[20:44] freedoms.

[20:45] China is a partner even as it cracks

[20:47] down on dissident. The policies of Saudi

[20:50] Arabia on women's rights and religious

[20:51] tolerance go all but unmentioned. And

[20:54] while Time magazine approvingly notes

[20:56] what it calls the end of cowboy

[20:57] diplomacy, there is some discontent

[20:59] being heard from the right. In the

[21:01] current Weekly Standard, influential

[21:02] neoonservative Bill Crystal writes of

[21:04] these diplomatic initiatives, quote,

[21:06] "Too bad the cost has been so high. A

[21:09] decline in the president's credibility

[21:11] around the world and sinking support for

[21:13] his foreign policy at home." For now,

[21:16] the administration rhetoric and policy

[21:18] seems to reflect something the president

[21:20] talked about much more as a candidate

[21:21] back in 2000 than as president during

[21:24] his first term. That US foreign policy

[21:26] ought to be guided by a sense of

[21:28] humility.

[21:29] Wol

[21:30] >> Jeff Greenfield, thank you for that.

[21:32] Still ahead here in the situation room,

[21:34] almost 14 billion dollar in taxpayer

[21:37] money has been spent on federal

[21:39] assistance to 911 recovery efforts. But

[21:41] how much of that money actually went to

[21:43] those who really need it? We're going to

[21:45] take a closer look. And next, as

[21:48] President Bush prepares to meet with

[21:49] Russian President Putin, why is Vice

[21:51] President Cheney the focus of Putin's

[21:54] latest criticism? We'll discuss that and

[21:56] a lot more with Donna Brazil and Terry

[21:58] Jeffrey. They're standing by for our

[22:00] strategy session.

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[24:36] Welcome back to the situation room. I'm

[24:38] Wolf Blitzer in Washington. Let's get

[24:40] back to our top story. The escalating

[24:42] tensions and violence in the Middle East

[24:44] right now after the abduction of two

[24:46] more Israeli soldiers. This time along

[24:49] the Israeli Lebanese border, the radical

[24:51] group Hezbollah doing that. The US

[24:54] laying direct blame though on Syria and

[24:56] Iran, urging Lebanon to work to solve

[24:59] the problem. Syria and Iran the US

[25:01] government says supports Hisbala.

[25:03] Joining us now from West Palm Beach in

[25:05] Florida is the former Secretary of State

[25:07] Alexander Hey. Do you agree with the

[25:09] White House, Mr. Secretary, that Syria

[25:12] and and Iran, which support Hezbollah,

[25:15] should really be responsible for what

[25:17] has happened today along the border with

[25:19] Israel?

[25:20] >> Oh, there's no question about it. There

[25:22] never has been any question about it. I

[25:24] don't know why anyone would question the

[25:26] US government. We have good intelligence

[25:28] on that situation. And this is a

[25:30] longstanding problem. It's clear that

[25:33] Lebanon is not a sovereign state. It was

[25:36] relinquished some years ago when I was

[25:38] Secretary of State and left the

[25:40] administration because of it. Uh these

[25:43] are things that are very very clear and

[25:46] have been for many many months.

[25:48] >> Why would why would Syria and Iran right

[25:52] now want to start trouble with Israel?

[25:55] Well, they'd want to do it because

[25:57] Israel is now fully occupied with the

[26:00] territories they've just relinquished.

[26:02] And in hindsight, I guess it would have

[26:04] been better if they had kept their

[26:05] forces in there until they saw whether

[26:07] or not the people that were going to

[26:09] govern

[26:11] in Palestine were going to be uh truly

[26:14] interested in peace rather than uh the

[26:17] destruction of Israel. But that hasn't

[26:19] happened. And now we're confronting a

[26:21] situation where they're going to be

[26:22] inching missiles farther in uh to uh

[26:26] Israeli territory and Israel just can't

[26:29] take it. It doesn't have the strategic

[26:31] depth and it's going to have to take

[26:32] action. So this is a diversion to try to

[26:35] remind them uh and this is of course

[26:38] Iran and Syria which is largely uh

[26:42] controlled today by Iran and Lebanon

[26:44] which has no sovereignty at all to speak

[26:46] of because we've let that happen as

[26:49] well.

[26:50] >> So all of these things are converging

[26:52] and now Israel has no more flexibility.

[26:55] They're going to have to take action

[26:57] unless thing is resolved peacefully and

[27:00] it doesn't look like there's a mood to

[27:02] do that quite yet.

[27:03] >> You referred to your experience when you

[27:05] were Secretary of State during the

[27:07] Reagan administration in Lebanon. What

[27:09] should the current Bush administration

[27:11] be doing now? Assuming, as a lot of

[27:13] analysts do assume, that Israel is going

[27:15] to take its forces, ground forces, air

[27:18] power, and move into southern Lebanon to

[27:20] look for those captured Israeli

[27:22] soldiers.

[27:24] Well, I think there's not very much they

[27:26] can do unless they have an alternative

[27:28] uh for Israel to be able to live in

[27:31] peace with its neighbors. After all,

[27:33] this is all incited by the other side,

[27:36] not Israel. Why are we why are we asking

[27:39] Israel to risk its own survival uh by by

[27:44] turning the other cheek in in a

[27:46] situation which is an act of war? So the

[27:49] US policy should be right now just down

[27:51] the line support for the government of

[27:53] Prime Minister Aud.

[27:55] >> Well, it's never down the line support.

[27:57] The Americans always have an obligation

[28:00] to speak as a friend to a friend and

[28:02] they do and we will. And I'm very

[28:05] confident that the situation is not all

[28:08] as grim as it might look at the moment.

[28:10] We also have the economic summit coming

[28:13] up where the Soviet Union, which is a

[28:15] former Soviet Union, is really a been a

[28:18] prime mischief maker throughout the

[28:20] Middle East and continues to be that,

[28:23] has some very important other axes to

[28:25] grind and and we're going to have to see

[28:28] how it all turns out. uh rather than

[28:30] rush into to panic, but we've got to

[28:33] stick with the with our ally, our

[28:36] historic ally, and those whom we have an

[28:38] obligation to support. It's in our

[28:41] interest to do so.

[28:42] >> Do you see a common thread running

[28:44] through this now escalating crisis

[28:46] between the Israelis, the Palestinians,

[28:48] and and Lebanon, if you will, as as far

[28:51] as the uh regional situation with Iran,

[28:54] Syria, Iraq, and elsewhere uh in this

[28:57] bigger picture is concerned?

[28:59] Well, it's always been that way, Wolf.

[29:01] Uh, this is a world that we have friends

[29:05] and we have those that don't share our

[29:06] values or interests. And it's interest,

[29:09] not values that decide good foreign

[29:12] policy. And if until we return to a

[29:14] foreign policy where interests are are

[29:17] sharing ideology as is our goal, then

[29:22] we're going to have trouble. And I think

[29:24] that's beginning to happen. And I very

[29:25] much welcome it. Finally, before I let

[29:27] you go, quick assessment. Will the US be

[29:30] able to resolve the standoff with North

[29:33] Korea right now peacefully?

[29:36] >> Well, it's too early to say, but uh

[29:38] there's still much to be done there as

[29:41] well. After all, China doesn't want a

[29:44] conflict on its border that's going to

[29:45] bring about the very outcome it fears

[29:48] the most, and that's a flood of refugees

[29:50] into the Chinese territories. They don't

[29:53] want that. They also want to be

[29:55] recognized as a peacemaker, not a

[29:57] troublemaker in a region that there are

[30:00] very very severe conflicting interests

[30:02] emerging.

[30:04] >> Alexander Heg, the former Secretary of

[30:05] State, thanks for coming into the

[30:07] situation room.

[30:08] >> Thank you.

[30:09] >> In our strategy session, President Bush

[30:11] in Europe right now getting ready for

[30:13] the G8 summit, facing a new explosion of

[30:16] violence in the Middle East and a host

[30:18] of other international problems. and the

[30:20] columnist Robert Novak sharing some of

[30:23] his secrets in the CIA Lee case. Two

[30:25] subjects for our strategy session.

[30:28] Joining us are CNN political analyst and

[30:30] Democratic strategist Donna Brazil and

[30:32] Terry Jeffrey the editor of Human Events

[30:35] online. Guys, thanks very much for

[30:37] coming in uh this Bush trip to Germany

[30:40] now. Then he's heading to St. Petersburg

[30:42] in Russia for the G8 summit. It comes as

[30:45] tensions all over the world seem to be

[30:48] escalating. Donna, it it poses, I guess,

[30:51] a great challenge for the president, but

[30:53] also potentially an opportunity.

[30:55] >> Well, I think it's both a challenge and

[30:56] opportunity. Wolf, look, last week the

[30:58] president in Chicago outlined, you know,

[31:00] what I believe is a new strategy to

[31:02] focus on diplomacy. He has a lot of work

[31:05] to do next week and trying to convince

[31:07] the his his partners are uh to to to

[31:11] focus on Iraq, to focus on Iran, to

[31:13] focus on North Korea. Of course, energy

[31:15] security is a major issue for this uh G8

[31:18] summit, but also I think the president

[31:20] has to tell Mr. Putin that some of the

[31:22] anti-democratic initiatives that he's

[31:24] undertaken as president must be

[31:26] corrected. So, this is a big meeting for

[31:28] the president.

[31:29] >> I don't know if you saw the interview

[31:30] that Matt Lowour did on the Today show

[31:32] this morning, Terry, with Vladimir Putin

[31:34] in which Putin didn't back down at all

[31:37] from any of the criticism and he leveled

[31:39] right back at the vice president, Dick

[31:41] Cheney. I think we have a clip from

[31:43] that. Let's listen.

[31:46] >> I think your vice president's expression

[31:48] there is like his bad shot on his

[31:53] hunting trip.

[31:55] >> Uh the vice president had taken a shot

[31:57] at Putin earlier, complaining about some

[32:00] of the clamping down of democratic

[32:01] reforms within Russia. Putin not backing

[32:04] down at all.

[32:05] >> Right. He's also complaining about

[32:06] Russia using its oil as a weapon against

[32:08] some of the former states of the Soviet

[32:10] Union that are close in like Ukraine or

[32:12] Georgia. You know, the Cold War is over.

[32:14] Russia is reasserting itself as an

[32:16] international power. They have

[32:17] interests. The US has interests. As

[32:19] Secretary Heg was saying, sometimes

[32:21] nations pursue their interests. We have

[32:23] a lot of shared interests with Russia.

[32:25] Particularly, they have an interest in

[32:26] integrating themselves into the Western

[32:28] economy. Wolf, that's why it's

[32:29] fortuitous that the G8 summit is taking

[32:31] place in St. Petersburg. On the other

[32:33] hand, we have an interest in Russia and

[32:35] Vladimir Putin helping us with Iran,

[32:37] which is moving towards developing

[32:38] nuclear weapons, and helping us with

[32:40] North Korea. They seem to have come on

[32:42] board a little bit with Iran, but we

[32:44] have to see how that plays out. They

[32:45] haven't helped us at all in North Korea.

[32:47] So hopefully the president will get

[32:49] progress on those two fronts.

[32:50] >> We'll see what we'll see what he does on

[32:51] that. Let's talk a little bit about

[32:52] Robert Novak, uh the syndicated

[32:55] columnist, our former colleague here at

[32:57] CNN. He wrote a column and appeared in

[32:58] the Washington Post and other newspapers

[33:00] today around the country in which he

[33:02] disclosed much more than he's disclosed

[33:04] before, but he's still not telling us

[33:06] who his original source was that told

[33:09] him basically gave him the tip to go

[33:11] hunt for Joe Wilson's wife, Valerie Pla

[33:14] Wilson. What did you learn from this

[33:16] column that you read in the post this

[33:17] morning? Well, I I learned that Bob may

[33:19] have broke his silence, but we still

[33:21] don't know who broke the law, who his

[33:23] primary source was uh and leaking the

[33:26] name of Allerie Plane. While he could

[33:28] find the name uh in the who's who

[33:30] according to his column, um he didn't

[33:33] know. Someone told him that she was a

[33:34] CIA.

[33:35] >> It sounds Terry like someone said to

[33:37] him, you know, Joe Wilson, he was on a

[33:39] boondoggle. He got this trip because his

[33:41] wife works at the CIA and then but but

[33:43] didn't mention the name of the wife and

[33:46] then Bob Novak began to do what a

[33:48] journalist does began to connect the

[33:50] dots.

[33:50] >> Well, there's no question Bob Novak is

[33:52] an excellent journalist. He's proved

[33:53] that in a long long career. Wolf, he

[33:55] said in his column, first of all, that

[33:57] the senior administration source who

[33:58] first told him about Wilson's wife uh

[34:01] had done it inadvertently. Secondly,

[34:02] he's said for a long time that he

[34:04] actually looked up her name and who's

[34:05] who. Something Donna said I think is is

[34:08] incorrect. He said, "We don't know who

[34:09] committed the crime yet." The fact of

[34:10] the matter is, as Novak's column gives

[34:12] us more evidence. Patrick Fitzgerald

[34:14] conducted an very aggressive

[34:16] investigation. He knew exactly who

[34:18] Novak's sources were, including the

[34:20] original source, he did not charge that

[34:22] person with a crime because that person

[34:24] did not commit a crime. Meanwhile,

[34:25] Scooter Libbyy's crime that he has been

[34:27] charged with that he's been alleged to

[34:28] have committed is perjury and

[34:30] obstruction of justice in a grand jury,

[34:32] not leaking Valerie Pla's name,

[34:34] >> and lying to FBI agents, which is a

[34:36] serious charge as serious crime and it's

[34:38] also a crime to identify and leak the

[34:42] name of of a of a a CIA uh uh covert

[34:46] agent. So that that is a crime and

[34:47] someone and the president in the White

[34:49] House at first distanced himself from

[34:51] this investigation said no one was

[34:53] involved in the White House. Now we

[34:55] learned that Carl Ro was a secondary

[34:57] source of this information.

[34:58] >> Bob Novak called up to try and confirm

[35:00] this. But the fact of the matter is

[35:01] Victoria Tonsing who is a counsel of the

[35:03] intelligence committee in the Senate

[35:04] when the agents identity protection act

[35:06] was written has said and I believe she's

[35:08] absolutely right that the this law did

[35:11] not apply to Valerie Pla or leaking her

[35:13] name to a reporter. That is why Patrick

[35:15] Fitzgerald did not charge anyone with

[35:17] that crime. It simply was not a crime.

[35:19] >> Here's what the president said on

[35:21] September 30th, 2003, shortly after all

[35:24] of this erupted. Uh listen to what he

[35:26] said.

[35:29] If there's a leak out of my

[35:30] administration, I want to know who it

[35:32] is.

[35:34] Uh, and

[35:36] if the person has violated law, that

[35:38] person will be taken care of.

[35:41] >> What did you, how did you interpret what

[35:43] the president said in his actions

[35:44] subsequent to that?

[35:46] >> Well, the president clearly has

[35:47] flip-flopped. I mean, in in that uh

[35:49] interview, the president made it clear

[35:51] that once he uncovered uh if anyone

[35:54] leaked in his administration, he would

[35:56] fire him. And we now know that Carl Ro

[35:58] still has his job and he still has his

[36:00] security claim.

[36:00] >> He didn't say if someone committed a a

[36:02] crime they would fire him. If somebody

[36:04] leaked that they would be fired.

[36:05] >> Well, you know, it's if I believe that

[36:07] Novak is telling the truth about how he

[36:09] got this information. It was

[36:10] inadvertently given to him in the course

[36:11] of a long interview with the senior

[36:13] administration official. In other words,

[36:14] this person didn't have an animist

[36:16] against Valerie Plamer or Joe Wilson.

[36:17] They weren't bringing in Novak and

[36:19] saying, "Here, Bob, take this and put it

[36:20] in the newspaper." It was inadvertent. I

[36:22] don't think that was a leak. It was a

[36:24] mistake.

[36:24] >> Mr. Harlo, the the other

[36:26] >> former CIA spokesman,

[36:28] >> he he stated uh that he told Bob Novak

[36:31] not to put her name in that article and

[36:33] and it's clear that Bob went ahead and

[36:35] put that put her name in that article.

[36:37] >> Well, Novak says he remembers that

[36:38] differently and so they have a

[36:40] conflicting story there.

[36:42] >> Well, we'll see what uh what else comes

[36:43] out in the next few days. Appreciate

[36:46] both of you coming into the situation

[36:47] room. Thank you very much.

[36:49] >> And up next, news coming into CNN right

[36:51] now. We're going to go back to Israel

[36:53] where we're hearing the Israeli cabinet

[36:55] has now authorized what's being

[36:57] described as a severe response to the

[37:00] abduction of those two Israeli soldiers

[37:02] by Hezbollah along the border with

[37:04] Lebanon. We're going to go back and have

[37:06] details. Also coming up, has the healthc

[37:09] care industry had a change of heart when

[37:11] it comes to Senator Hillary Clinton?

[37:13] We'll examine the senator's lucrative

[37:15] new relationship with doctors,

[37:17] hospitals, and drug makers. And could

[37:20] there possibly be a connection between

[37:22] Homeland Security and a center for

[37:25] kangaroos? We're looking at the new

[37:27] questions about security spending. Your

[37:29] tax dollars at work. Stay with us.

[37:31] You're in the situation room.

[37:45] Heat. Heat.

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[40:26] We're getting more on the really

[40:27] escalating tensions rocking the Middle

[40:29] East right now. Let's go back to

[40:31] Jerusalem. CNN's Paula Hancock standing

[40:33] by with the latest developments. Paula,

[40:35] what has just happened?

[40:38] >> Well, Wolf, a special cabinet meeting

[40:40] has just ended and Israeli Prime

[40:42] Minister Ayad has authorized military

[40:45] action in southern Lebanon. We have been

[40:47] seeing that for the past day. He has

[40:49] said he will carry out a severe response

[40:53] against these Hizbollah attacks which

[40:55] left eight Israeli soldiers dead and two

[40:58] Israeli soldiers kidnapped. Now, we have

[41:00] also heard from Dan Hulutz, the chief of

[41:02] staff earlier on telling Israeli media

[41:04] that he is willing to take Lebanon back

[41:07] 20 years uh if uh they uh continue with

[41:10] these attacks. We're also hearing from

[41:12] this cabinet meeting that they are going

[41:13] to carry out attacks to prevent future

[41:16] attacks against the Israeli people. So,

[41:18] not giving any details about what

[41:19] exactly these attacks will entail, but

[41:22] certainly saying there will be a severe

[41:24] response. OM once again saying he holds

[41:27] the Lebanese government responsible for

[41:29] the attacks early this Wednesday

[41:30] morning. Wolf

[41:31] >> earlier the Bush administration said

[41:32] they hold Iran and Syria responsible as

[41:35] well. Paula standby. We're going to have

[41:37] a lot more on this story. We're watching

[41:39] it minute by minute. Much more coming up

[41:41] at the top of the hour right here in the

[41:43] situation room. Another story we're

[41:46] watching involving severe weather.

[41:48] Jackie Jarus is watching that story for

[41:50] us. What's the latest development on

[41:52] that front, Jackie? Well, Wolf, we had a

[41:54] possible tornado touchdown in upstate

[41:56] New York, and it sounds like it caused

[41:58] some damage to some buildings. The town

[41:59] is called Hawthorne. It's just north of

[42:01] the White Plains area. There you can see

[42:03] the possible tornado as it pulled on

[42:06] through. Uh the National Weather Service

[42:08] is reporting that a building was damaged

[42:11] and people are trapped. Uh CNN has

[42:13] spoken with local authorities. They say

[42:15] they're not sure whether or not anybody

[42:16] is trapped in that building, but they

[42:18] are confirming that there has been some

[42:20] damage with this storm. There was a

[42:22] tornado warning in effect around the top

[42:24] of the hour. At the time that this

[42:26] happened, the storm is now weakening and

[42:28] heading across southern parts of

[42:29] Connecticut, but a tornado watch remains

[42:31] in effect across the area throughout the

[42:33] rest of the afternoon. Wol.

[42:35] >> All right, we'll continue to watch this

[42:36] story with with you as well, Jackie.

[42:38] Thank you. Coming up here in the

[42:40] situation room, [music] does US Envoy

[42:42] Chris Hill have progress to report in

[42:44] his efforts to deal with the North Korea

[42:46] missile standoff? He's going to be our

[42:48] guest live here in the situation room

[42:51] 700 p p.m. Eastern. He'll be joining us

[42:53] from Beijing. Also, when Hillary Clinton

[42:56] lived in the White House, she made some

[42:58] enemies in the healthc care industry. A

[43:00] lot of us remember that. Is she making

[43:02] new friends and now that she's mulling a

[43:04] presidential campaign of her own? Stay

[43:07] with us.

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[45:28] >> Welcome back on Capitol Hill. Today,

[45:29] lawmakers are putting a spotlight on

[45:31] allegations of very wasteful spending or

[45:34] worse, in response to the 9/11 attacks

[45:36] nearly 5 years ago. Let's bring in our

[45:39] congressional correspondent, Andrea

[45:41] Cppel. Andrea

[45:42] >> Wolf, this is the first of three

[45:44] hearings that will be held here on the

[45:45] Hill this week. All focused on a similar

[45:48] theme, focusing on the response, the

[45:52] recovery, and the rebuilding of lower

[45:54] Manhattan.

[45:57] Almost 5 years after terrorists attacked

[45:59] the World Trade Towers, the federal

[46:01] government has spent close to$14 billion

[46:04] dollars to help New York respond and

[46:06] recover. There have been plenty of

[46:08] allegations of waste, fraud, and abuse.

[46:11] But Homeland Security Chairman,

[46:12] Congressman Peter King says it wasn't

[46:15] until he saw how FEMA mishandled

[46:17] Hurricane Katrina that he decided

[46:19] Congress needed to investigate FEMA's

[46:22] role in post 911. I felt it was

[46:25] important as a New Yorker and as

[46:26] chairman of the committee to look into

[46:28] exactly what happened in the aftermath

[46:29] of September 11th, what went wrong, what

[46:31] went right, and also apply that to other

[46:34] tragedies such as Katrina. In the six

[46:36] months since King and his colleagues

[46:38] launched their review, they say they've

[46:40] received over,00 complaints resulting in

[46:43] approximately 250 investigations, the

[46:47] majority related to fraudulent

[46:48] applications for help with paying

[46:50] mortgages, rents, and unemployment

[46:53] assistance. One scheme involved two

[46:55] people, each of whom claimed $10,000

[46:58] worth of damage to their personal

[47:00] property from smoke and debris they said

[47:03] filled their apartments. about 35 blocks

[47:06] away from the World Trade Center site.

[47:08] Today's hearing, the first of three

[47:10] scheduled this week, was focused on the

[47:13] immediate response to 9/11. One

[47:15] government witness pledged not to repeat

[47:18] the mistakes of the past.

[47:20] >> The government must learn from these

[47:21] costly lessons and make fraud prevention

[47:25] a high priority for future disasters.

[47:29] But even before then, these lessons

[47:31] learned can still prove useful in the

[47:33] post 911 recovery and rebuilding Wolfe.

[47:37] In fact, the federal government has just

[47:39] yet to spend another $6 billion that

[47:42] Congress approved back in 2001. Wol

[47:45] >> Andrea Cppel on the Hill, thank you. And

[47:47] we're also picking up new details on how

[47:49] the Homeland Security Department doss

[47:51] out anti-terrorism dollars. Is it's

[47:54] based in part on the National Asset Debt

[47:57] database. a system that breaks down

[47:59] state-by-state possible terrorist

[48:01] targets. So, how did petting zoos and

[48:04] high stakes bingo make the list? Our

[48:07] internet reporter Abby Tatton is

[48:08] standing by with details. Abby

[48:09] >> Wolf, the Kangaroo Conservation Center,

[48:12] that's one of about 1,500 sites in

[48:14] Georgia that appear on this Homeland

[48:16] Security list. And the Department of

[48:18] Homeland Security's own Inspector

[48:20] General has examined the list and is

[48:22] questioning what it's calling

[48:24] non-critical assets. Not just the

[48:26] kangaroos, a petting zoo, a apple and

[48:29] pork festival in Illinois, a Tennessee

[48:31] mule day parade. This report criticizes

[48:34] these inclusions, saying the database

[48:36] does not accurately represent key sites

[48:39] nationwide that could be terror targets.

[48:42] And also, it's making the allocation of

[48:43] resources difficult. It's also

[48:45] questioning the number of assets that

[48:48] different states submitted. Look at

[48:49] Indiana there with over 8,000. That's

[48:51] 50% more than New York, where lawmakers

[48:54] have recently criticized terror funding

[48:57] cuts. The Department of Homeland

[48:59] Security in a response defended the

[49:01] database, saying it's supposed to be an

[49:02] inventory, not a prioritized list. They

[49:05] are, however, improving guidelines given

[49:07] to states on what is critical. Wolf

[49:10] >> Abby, thank you. And still to come, Jack

[49:12] Caferty wondering what it means that the

[49:15] US Army is now ending its contracts with

[49:18] Hallebertton. He's standing by with the

[49:19] Caerty file. Plus, Senator Hillary

[49:22] Clinton and the healthcare industry. Our

[49:24] senior political analyst, Bill

[49:25] Schneider, will show us what's bringing

[49:28] this odd couple together. Stay with us.

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[52:15] CNN, the most trusted name in news.

[52:24] There's a developing story we're

[52:25] following in Houston, Texas. Let's go

[52:27] back to CNN's Federrico Whitfield at the

[52:29] CNN Center. What's the latest uh Fred?

[52:31] >> Well, our affiliate KHOU in Houston is

[52:33] reporting that in Harris County on

[52:36] Winfield, somehow a drum, a 55gallon

[52:40] drum containing hydro bromic acid has

[52:42] been punctured at a warehouse there.

[52:44] About 200 people have been exposed. This

[52:47] chemical is known to be one of the

[52:49] strongest mineral acids known. And

[52:51] because of the exposure to these 200 or

[52:53] so people now, a number of metro buses

[52:55] are being brought in to help provide

[52:58] some sort of air conditioning triage. We

[53:01] don't know exactly what and how this

[53:03] drum was punctured, just that it has

[53:06] been and that many people have been

[53:07] exposed and these are the measures that

[53:09] are being taken right now.

[53:11] >> We'll continue to watch it. Uh thanks

[53:12] very much, Fred. We'll get more

[53:14] information and bring it to our viewers.

[53:16] Back when she was first lady, Hillary

[53:18] Clinton made a bad first impression on

[53:20] the healthc care industry. But the times

[53:22] have changed now that she's a US senator

[53:24] and a possible presidential hopeful.

[53:26] Let's bring in our senior political

[53:28] analyst, Bill Schneider. Bill

[53:30] >> Wolf, they say politics makes strange

[53:32] bedfellows. They don't come much

[53:34] stranger than Senator Hillary Clinton

[53:36] and the healthcare industry.

[53:38] >> Private health insurance.

[53:39] >> Remember the Harry and Louise ads from

[53:41] 1994?

[53:43] >> Congress isn't passing the healthcare

[53:44] reform America wants. The health

[53:46] insurance industry used those ads to

[53:48] help defeat First Lady Hillary Clinton's

[53:50] healthcare plan. Now, the New York Times

[53:52] reports that Senator Hillary Clinton

[53:55] ranks second among candidates in

[53:57] contributions from the healthcare

[53:59] industry, more than $850,000.

[54:02] Senator Clinton has proposed legislation

[54:05] to increase Medicare payments to

[54:06] healthcare providers and to lower the

[54:08] cost of malpractice insurance. She's

[54:11] even worked with N. Gingrich to improve

[54:14] healthcare information technology.

[54:16] >> I know I know it's a bit of an odd

[54:18] fellow or oddwoman mix, but uh Speaker

[54:21] Gingrich and I have been talking about

[54:23] uh healthc care and national security

[54:25] actually now for uh several years.

[54:28] >> So why is Senator Clinton raising so

[54:30] much money from the healthcare industry?

[54:32] We asked a prominent Washington lawyer.

[54:35] >> There's no quid proquo.

[54:37] Uh you're not buying access. You're you

[54:40] you want your friends elected or

[54:42] reelected.

[54:44] >> Does the healthcare industry consider

[54:45] Hillary Clinton a friend?

[54:47] >> Yes, I would say she's a friend of the

[54:49] healthcare industry in the sense that

[54:51] she understands it. Okay. She's had a

[54:54] lot of experience in it.

[54:57] >> She probably knows the health care

[54:58] system, what's good and bad about it

[55:00] better than any other senator. Oh, and

[55:03] one more thing, power. All industries, I

[55:07] think, including healthcare, are

[55:08] reaching out to her because they expect

[55:10] her to be the nominee in 2008.

[55:13] >> The healthcare industry knows she's

[55:15] likely to be a major player.

[55:17] >> Know I've done a little bit of work on

[55:19] healthc care myself and still have the

[55:22] scars to show for it.

[55:24] >> To paraphrase something British

[55:26] statesman Lord Palmerston once said, "In

[55:29] politics, there are no permanent friends

[55:32] and no permanent enemies. There are only

[55:35] permanent interests. Wolf,

[55:38] >> Bill Schneider, thanks for that. Bill

[55:39] Schneider, part of the best political

[55:41] team on television. CNN, America's

[55:43] campaign headquarters. Still to come,

[55:46] raging flames, dry land, and hot winds

[55:48] challenging firefighters in Southern

[55:50] California. We'll have a live report on

[55:52] the fight against a threatening

[55:54] wildfire. And what does it mean that the

[55:56] US Army is ending its contract with

[55:58] Hallebertton? Jack Caerty will be back

[56:01] with your email. Stay with us.

[56:05] Close captioning hours on CNN sponsored

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[58:20] else.

[58:21] >> Check back with Jack. He's got the caff

[58:23] file. Jack,

[58:24] >> the question this hour is, what does it

[58:26] mean that the Army is ending its

[58:28] contract with Hallebertton? James,

[58:31] Sergeant First Class, US Army Infantry

[58:33] in Denton, Texas. As a soldier who

[58:36] recently completed a 13-month tour in

[58:38] Iraq, I applaud the decision to make the

[58:40] field wide open. With competition, the

[58:43] price for the taxpayer will go down. The

[58:45] quality for the military personnel in

[58:47] theater will go up. A win-win situation

[58:49] for all of us. Larry in a story in New

[58:52] York writes, "It means nothing now. It's

[58:54] too late. It's normal for a blood

[58:56] sucking leech to fall off once it's so

[58:58] bloated it can't possibly take another

[59:00] drop. Why do you think we went to war in

[59:02] the first place?" Gene in Dallas writes,

[59:04] "Jack, do you really think the army

[59:06] makes a decision without a direction

[59:07] from the top of the Pentagon? It means

[59:09] Rumsfeld doesn't want Hallebertton to be

[59:11] an issue for this year's election."

[59:13] Steven in Springfield, Virginia writes,

[59:15] "It means the company with the lowest

[59:16] bid will get the contract. If

[59:18] Hallebertton gets it, then they get it."

[59:20] Jack, why do you always have to have

[59:21] some sort of conspiracy? This is just

[59:23] good business. Uh yeah, Tim in Beverly,

[59:26] Massachusetts. It means the Republicans

[59:28] are afraid of losing control of at least

[59:30] one house of Congress, and they're

[59:32] trying to muddy the waters before the

[59:34] inevitable and long overdue

[59:35] congressional oversight hearings finally

[59:37] begin. And Janet in Tacoma, Washington

[59:39] writes, "With the mess the budget's in,

[59:41] the Army was forced to stop shopping at

[59:43] Nean Marcus and now must visit Kmart in

[59:46] order to get a decent deal, just like

[59:48] the rest of us." Wol

[59:50] >> Jack, thanks very much. To our viewers,

[59:52] you're in the situation room where new

[59:54] pictures and information are arriving

[59:56] all the time. Standing by, CNN reporters

[59:59] across the United States and around the

[60:01] world to bring you today's top stories.

[60:04] Happening now, killings, kidnappings,

[60:06] and vows of revenge. It's midnight in

[60:09] Gaza and in Lebanon, where Israel is

[60:11] unleashing an all-out assault on

[60:13] Palestinian militants and his bulla

[60:16] gerillas. in Gaza strikes to rescue an

[60:19] Israeli uh soldier in Lebanon. Two other

[60:22] Israeli troops are being held captive.

[60:24] Israel calls that an act of war. The end

[60:28] of what some are calling a

[60:29] billion-dollar boondoggle. It's 3 p.m.

[60:31] in Texas where a Hallebertton subsidiary

[60:34] sees its exclusive contract in Iraq

[60:36] pulled. Hallebertton is the company once

[60:39] run by the vice president Dick Cheney.

[60:42] And it's 2 pm in Southern California

[60:44] where a raging wildfire is swallowing up

[60:47] the land. It's already scorched some

[60:49] 26,000 acres. Now residents are running

[60:52] for their lives. I'm Wolf Blitzer.

[60:55] You're in the situation room.

[61:05] [music]

[61:12] Right now, the world's hot spots are

[61:14] reaching full boil, and world leaders

[61:16] are pondering how to respond on North

[61:18] Korea's recent missile launches. Today,

[61:20] China and Russia offering a new UN

[61:23] Security Council council resolution

[61:25] different from the one already proposed

[61:27] by Japan. Yet, the Security Council has

[61:30] already decided what to do regarding

[61:32] Iran. and the five permanent members

[61:35] will send Iran back before the Security

[61:37] Council for possible sanctions over its

[61:40] nuclear program. And in the Middle East,

[61:42] Israel is battling Palestinian militants

[61:44] in Gaza and the Hezbollah in Lebanon.

[61:48] Two Israeli troops are being held there

[61:50] and Israel calls that an act of war. The

[61:53] Israeli Defense Forces telling an

[61:55] Israeli TV channel that if the soldiers

[61:57] captured by Hzbollah are not returned,

[62:00] Israel will quote, "Turn Lebanon's clock

[62:03] back 20 years." Let's get some more now

[62:07] from CNN correspondent John Voss. He's

[62:09] on the border between Israel and

[62:11] Lebanon. You're on the Israeli side,

[62:13] right, John?

[62:15] >> That's right, Warren. From here, Israel

[62:17] has launched air strikes and artillery

[62:19] rounds targeting uh Hezbollah training

[62:22] camps and buildings in the southern part

[62:24] of Lebanon. Roads and bridges have also

[62:27] been bombed. A short time ago, the

[62:29] Israeli cabinet approved a severe

[62:32] response, but says the military

[62:33] operation will be gradually escalated to

[62:36] pressure the Lebanese government. This

[62:38] is an offensive by land, sea, and air

[62:41] with the head of Israel's Northern

[62:43] Command warning that all of Lebanon is

[62:45] now a legitimate target. So far, eight

[62:48] Israeli soldiers have been killed since

[62:50] this all began earlier today. Three were

[62:53] killed in the initial attack in which

[62:55] the two Israelis were taken hostage.

[62:58] Another four died when their tank hit an

[63:00] explosive just inside Lebanese

[63:03] territory. An eight soldier was killed

[63:04] by gunfire trying to rescue them. Here

[63:07] in northern Israel, residents have been

[63:09] ordered into bomb shelters after

[63:11] Hezbollah fired dozens of Kusha rockets

[63:14] and mortars. At least four people were

[63:16] wounded. Israel's Prime Minister Ahoud

[63:18] Almat says this goes way beyond an act

[63:20] of terrorism. And he's accused the

[63:22] Lebanese government of an act of war.

[63:25] But amid the celebrations in Lebanon,

[63:27] the government there says it does not

[63:29] condone the actions of the militants

[63:31] from Hezbollah, who are now demanding

[63:33] the release of prisoners held by Israel

[63:35] in exchange for the two Israeli

[63:37] soldiers. Israel is now facing a hostage

[63:40] crisis on two fronts. To the south in

[63:43] Gaza, the Israeli soldier Galach has

[63:45] been held for more than two weeks. Hamas

[63:47] militants there are demanding the

[63:48] release of Palestinian prisoners as

[63:50] well. Wolf

[63:51] >> John, how did the Hisbala capture these

[63:53] two Israeli soldiers? Did they cross the

[63:55] border into Israel? What did they do?

[63:59] >> This was a routine patrol that the

[64:01] Israeli soldiers were on. They were in

[64:03] armored Humvees. It was a crossber raid.

[64:05] It looked like it was very well

[64:06] coordinated. Hezbollah fired Kouta

[64:09] rockets and mortars to begin with. It

[64:11] started at 9:00 local time. By 9:05,

[64:14] Hezbollah guerrillas crossed the

[64:15] borders, attacked the patrol, and

[64:17] grabbed the two Israeli soldiers. Wolf.

[64:19] >> All right, John, stand by. We're going

[64:20] to be coming back to you. John Voss on

[64:22] the border between Israel and Lebanon.

[64:24] Let's go to Germany right now. That's

[64:26] where the president of the United States

[64:28] has just arrived getting ready for the

[64:30] G8 summit in St. Petersburg. First talks

[64:33] in Germany. Ed Henry's our White House

[64:35] correspondent traveling with the

[64:36] president. How is the White House

[64:38] officials traveling with the president,

[64:40] Ed, responding to these escalating

[64:42] tensions along the Israeli Lebanese

[64:44] border?

[64:46] Well, Wol, just about an hour or so ago

[64:49] when the president arrived, even before

[64:50] that, there had been a very tough

[64:51] statement put out by the White House uh

[64:54] basically blasting Iran and Syria

[64:57] directly blaming them, putting uh the

[65:00] blame for this escalating violence

[65:01] squarely at their doorstep, saying that

[65:03] they're supporting Hezbollah and that is

[65:06] the reason for this escalating violence.

[65:07] I just spoke to a senior official here

[65:09] adding a little more context that

[65:11] basically the White House sees an

[65:13] opportunity here to really pounce on

[65:15] Iran in particular as a bad actor.

[65:17] They're already going after Iran because

[65:19] of their thirst for nuclear weapons. The

[65:21] White House sees an opportunity here to

[65:23] repeat the presidential mantra, the new

[65:25] one of diplomacy, diplomacy, diplomacy.

[65:27] We're going to hear that in Germany.

[65:28] We're going to hear it then in Russia

[65:29] for the G8 summit. But obviously given

[65:32] the fact that all these hot spots around

[65:34] the world are bubbling up, if diplomacy

[65:36] does not provide any breakthroughs from

[65:38] from the from Gaza to North Korea to

[65:40] Iran, there's going to be a lot more

[65:42] pressure on this president to come up

[65:43] with more than just diplomacy. Wolf.

[65:45] >> All right, Ed, thank you very much. Ed

[65:46] Henry reporting for us. He's traveling

[65:48] with the president. Let's go back to

[65:50] Jerusalem. Government spokesman Gideon

[65:52] Mayer is joining us now live from

[65:54] Jerusalem. Thanks very much for coming

[65:56] in. How serious is this current crisis

[66:00] right now? We hear words that there's

[66:02] going to be a severe Israeli response.

[66:04] What can you tell us?

[66:07] >> I think it's very serious and as you

[66:10] rightly said, there's going to be a

[66:11] severe uh Israeli response because we

[66:14] cannot tolerate this kind of attack and

[66:17] within two weeks we actually witnessing

[66:20] the same modus operandi whether it's in

[66:22] the Gaza Strip or in the northern part

[66:24] of of of Israel in the in our border

[66:27] with Lebanon. What happened here? About

[66:29] 10 months ago, Israel withdrew from the

[66:32] Gaza Strip. There's not there's no

[66:34] presence of Israeli, neither soldiers or

[66:35] settlers in the Gaza Strip. We withdrew

[66:38] from uh from from South Lebanon. The

[66:40] international community recognized the

[66:42] international border. Israel implemented

[66:44] United Nation resolution 425. And

[66:47] actually the security council and the

[66:49] international community demanded that

[66:52] thebala terror organization will be

[66:54] dismantled by the Lebanese government

[66:57] which is a sovereign government of

[66:58] Lebanon. And therefore what our prime

[67:01] minister said today that we see the

[67:04] government of Lebanon as responsible for

[67:06] what happened this morning on the border

[67:08] between Israel and Lebanon.

[67:09] >> What what does it mean when when the

[67:11] Israeli cabinet authorizes a severe

[67:14] response? uh because that could mean a

[67:16] lot. What does it mean from your

[67:18] perspective?

[67:21] >> From our perspective, it means that the

[67:24] will have to pay a price for its

[67:25] aggression. It was an unprovoked

[67:27] aggression. The same unprovoked

[67:29] aggression that we witnessed in Gaza.

[67:31] And unprovoked aggressions will have to

[67:33] be responded by the Israeli government.

[67:35] and Wolf, you will not expect me right

[67:37] now on the air to spell out what Israel

[67:39] is exactly going to do in the next hours

[67:42] or the next coming days, but uh we have

[67:45] to expect a a a very uh severe respond

[67:49] by our defense forces.

[67:50] >> The Lebanese ambassador to the United

[67:52] States was on CNN earlier today and he

[67:55] said this. He said, "We have our

[67:57] prisoners. They have prisoners. An

[67:59] exchange would be appropriate and I

[68:01] think it will resolve the problem." Is

[68:04] Israel open today to an exchange between

[68:07] Israel and Lebanon, Israel and Hisbala

[68:09] along the lines of what Israel has done

[68:11] in the past?

[68:14] Absolutely not. We expect our

[68:16] servicemen, whether it's Gilad Shalit in

[68:18] the Gaza Strip or the two servicemen

[68:20] which were kidnapped up this morning

[68:22] from Israeli soil in a in a in a mafia

[68:25] style operation. We expect them to be

[68:28] returned to us life and safely

[68:32] immediately without any precondition. No

[68:35] negotiation because negotiation will

[68:37] what will happen it will lead to another

[68:39] kidnapping. This is a method a method of

[68:42] terrorism which comes out from the

[68:44] school of terrorism headquartered in

[68:46] Damascus and and Tehran. Last week the

[68:49] Israeli air force flew over flew over

[68:52] Latakia the summer residence of the

[68:54] Syrian president Bashar al-Assad.

[68:57] Clearly a signal to the government in

[68:58] Damascus today. The US government, the

[69:00] Bush administration saying that [snorts]

[69:02] Syria and Iran have responsibility for

[69:05] what has happened. What are you planning

[69:06] on doing as far as Syria and Iran are

[69:09] concerned? Again,

[69:12] Wolfe, I will not go into any

[69:14] operational

[69:16] mod the modus operandi of the Israeli

[69:19] Defense Forces, but I think it's enough

[69:22] when we are saying that the excess of

[69:24] terror and hatred goes through the two

[69:27] capitals of Syria and Iran. Let me give

[69:30] you one more quote from Hassan Nalla,

[69:32] the Hisbala leader in Lebanon. He said

[69:34] this, "No military operation will return

[69:37] the abducted Israeli soldiers." The

[69:39] prisoners will not be returned except

[69:41] through one-way indirect negotiations

[69:44] and a trade. Uh, was it a mistake years

[69:47] ago for Israel to have those lopsided

[69:50] exchanges, hundreds of Palestinian

[69:52] prisoners released for two or three

[69:54] Israeli soldiers?

[69:58] I'm not here. I'm representing the

[69:59] Israeli government. I don't think it

[70:01] would be right for my in my position to

[70:03] say whether it was right or wrong. We

[70:05] hear the voices in here in Israel which

[70:08] were also voices in the past, voices

[70:10] today which said it was a mistake. I can

[70:13] what I can say is what is the policy of

[70:15] the Israeli government today and the

[70:17] policy today is no negotiation. The

[70:20] return of the these two the three

[70:22] servicemen immediately without any

[70:24] precondition.

[70:25] >> Gideon mayor as a government spokesman

[70:27] in Jerusalem. Thanks very much for

[70:28] coming in to the situation room. Uh

[70:31] let's go to New York right now. Jack

[70:32] Caerty standing by with the Caerty file.

[70:35] Jack,

[70:36] >> well, guess what? Carl Rove, turns out,

[70:38] was a source in the CIA leak case after

[70:41] all. That's according to columnist

[70:42] Robert Novak, who broke the original

[70:44] story. He says that Rove, President

[70:47] Bush's chief strategist, confirmed the

[70:49] identity of CIA operative Valerie Pla.

[70:52] So far, the White House has declined to

[70:54] comment on any of this, but remember

[70:56] when President Bush said this?

[71:01] If there's a leak out of my

[71:03] administration, I want to know who it

[71:04] is.

[71:06] Uh, and

[71:08] if the person has violated law, that

[71:11] person will be taken care of.

[71:13] Oh, please. Meanwhile, the president

[71:16] continues to insist how dangerous leaks

[71:18] about the government's NSA and banking

[71:20] surveillance programs are. So, let me

[71:22] see if I understand this. It's a threat

[71:24] to national security to leak information

[71:27] about the administration's secret and

[71:29] possibly illegal surveillance programs.

[71:32] But it's okay for one of Mr. Bush's

[71:34] closest political allies to confirm the

[71:36] identity of a CIA operative. Is that

[71:38] about it? Here's the question. Now that

[71:41] Carl Ro has been identified as a source

[71:43] in the CIA leak case, what should happen

[71:45] to him? Email us at [email protected]

[71:49] or go to cnn.com/caffertyfile.

[71:53] Wolf,

[71:53] >> Jack, thank you. Jack Caerty reporting.

[71:55] And if you want a sneak preview, by the

[71:57] way, of Jack's questions, plus an early

[71:59] read on today's political news and

[72:01] what's ahead here in the situation room,

[72:03] sign up for our daily email alert. Just

[72:05] go to cnn.com/situation

[72:08] room. Up ahead, dozens of homes

[72:11] destroyed, thousands of acres burned, a

[72:13] Southern California wildfire burning out

[72:15] of control right now. We'll take you

[72:17] live to the fire lines. Also, Defense

[72:20] Secretary Donald Rumsfeld in Iraq

[72:22] visiting as violence surges across the

[72:25] country. We'll have the latest. Plus,

[72:27] new developments in the giant and

[72:29] controversial Pentagon contract that

[72:31] went to the Vice President Dick Cheney's

[72:33] old company. Stay with us. You're in the

[72:37] situation room.

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[75:13] New developments in the North Korean

[75:15] missile crisis. China and Russia are now

[75:17] proposing their own United Nations

[75:19] resolution, an alternative to a Japanese

[75:22] draft resolution that would punish

[75:23] Pyongyang for a series of missile

[75:25] launches last week. Let's get the latest

[75:27] from our senior UN correspondent Richard

[75:30] Roth. Richard,

[75:31] >> wolf, thunder, and lightning right now

[75:33] outside a New York rainstorm. Apppropo

[75:36] atmosphere for what's going on inside

[75:38] the UN Security Council.

[75:41] >> After refusing to support a legally

[75:43] binding resolution on North Korea, China

[75:45] and Russia switched tactics and offered

[75:47] their own version. We uh accepted the

[75:50] format of resolution and we think that

[75:52] is going a long way towards um some

[75:55] wishes expressed by some uh council

[75:57] council members.

[75:58] >> But the Russian and Chinese draft is

[76:00] softer on sanctions against North Korea

[76:02] and urges rather than demands that North

[76:05] Korea reestablish a moratorium on

[76:07] missile tests. Proponents of the

[76:09] original resolution, the United States

[76:11] and Japan, appreciated the shift by

[76:13] Russia and China, but not necessarily

[76:15] the wording. a quick glance uh at the

[76:18] text show that there are very serious uh

[76:20] gaps uh on uh very uh important issues.

[76:25] So the diplomatic deadlock remains more

[76:28] than a week after the missile launches.

[76:29] The UN security council has yet to

[76:31] respond. The US Japanese camp doesn't

[76:34] think the Russian China resolution goes

[76:36] far enough in punishing Pyongyang. The

[76:38] US and Japan have been waiting with

[76:40] little result for any positive news from

[76:42] a Chinese delegation's visit to North

[76:44] Korea. The US and Japan insist they are

[76:46] ready to put up their own resolution for

[76:48] a vote. China issued a warning.

[76:51] >> If that draft is put to to a vote

[76:53] without any modifications

[76:55] and instructions from me is to veto it.

[76:58] It's clear

[76:59] >> the hot plate is getting hotter. North

[77:01] Korea has succeeded so far in harming

[77:03] security council unity. The Iran nuclear

[77:05] issue has also been referred back to the

[77:08] fractured security council. This is a

[77:09] case uh a question of whether the

[77:11] security can c council can handle two

[77:13] concrete cases. Two cases of rogue

[77:16] states uh that are seeking nuclear

[77:19] weapons and ballistic missile

[77:20] development capabilities that threaten

[77:22] uh peace and security in their region

[77:24] and peace and security on a worldwide

[77:26] basis. Ambassador Bolton said the

[77:28] security council should consider an act

[77:30] on North Korea first before Iran. But

[77:33] council ambassadors Wolf are discussing

[77:35] both nuclear country issues right now.

[77:38] Wolf.

[77:39] >> All right, Richard. Thanks very much.

[77:40] Uh, and coming up in our 700 p.m.

[77:43] Eastern hour, the Bush administration's

[77:45] pointman right now on North Korea, the

[77:47] assistant secretary of state,

[77:49] Christopher Hill. He'll join us live

[77:51] right here in the situation room. He'll

[77:52] be in Beijing. He's working the North

[77:55] Korea crisis. We'll ask him what the

[77:57] latest information is. Mission

[77:59] accomplished. That's how the US Air

[78:01] Force is describing a test of a missile

[78:03] defense system today. Let's bring in our

[78:05] senior Pentagon correspondent, Jamie

[78:07] McIntyre. Jamie. Well, Wolf, can the US

[78:10] shoot down an incoming ballistic

[78:12] missile? Well, yes it can, and in more

[78:14] ways than one. The evidence of that came

[78:16] at the White Sands missile range today

[78:19] during a test of THAAD. That's Pentagon

[78:22] speak for terminal high alitude area

[78:24] defense. As we see in the video, the

[78:27] test involved a target missile being hit

[78:30] by a THAAD interceptor missile in the

[78:32] high endo atmosphere that's just inside

[78:34] the Earth's atmosphere. The shootown was

[78:37] designed as a test for the launchers,

[78:38] radars, and fire control systems, and

[78:41] the successful intercept was described

[78:43] as a bonus. TAD is still years away from

[78:46] deployment. It's part of a multi-layered

[78:48] missile defense being developed by the

[78:50] US. The idea is the more different

[78:52] systems you have to throw at an incoming

[78:54] missile, the better chance that one of

[78:56] them will work. Wolf.

[78:58] >> All right, Jamie. Thanks very much.

[78:59] Jamie McIntyre at the Pentagon. And

[79:01] still to come, a raging wildfire in

[79:03] California. It's already scorched 26,000

[79:06] acres so far and fearful residents are

[79:09] fleeing for safety right now. And the

[79:12] defense secretary makes a surprise visit

[79:14] to Baghdad and he does not have positive

[79:17] things to say about the progress of

[79:19] Iraq's police forces. Stay with us.

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[82:13] >> Happening now, a wildfire burning out of

[82:15] control in the Southern California

[82:17] desert. It's already charred 26,000

[82:20] acres, destroyed at least 30 homes, and

[82:22] it's threatening many, many more. CNN's

[82:25] Kang Law is joining us now from the Yaka

[82:27] Valley with the latest. How bad is it?

[82:29] It looks awful behind you, Kean.

[82:31] >> It is, but what uh you're seeing here is

[82:34] actually good news, Wol. I'm actually

[82:35] standing on the southern edge of this

[82:37] fire, this 26,000 acre fire. And this is

[82:39] good news. Firefighters have had a lot

[82:41] of success setting these backfires. This

[82:43] wind, high heat, and low humidity, they

[82:45] say, is a recipe for wildfire growth.

[82:47] And it is what they have seen today.

[82:49] 26,000 acres, 0% containment, and this

[82:53] fire continues to march north.

[82:55] Firefighters have widened the evacuation

[82:57] area this afternoon to include 100

[83:00] additional residents of a local canyon

[83:02] community that's just near where we're

[83:03] standing. 1,500 houses are now

[83:06] endangered and 30 structures, according

[83:09] to the fire department, have been

[83:10] destroyed. We are still waiting to hear

[83:12] if any of those are homes or if they are

[83:14] simply outouses. We're expecting those

[83:16] in the next hour or so. And here is the

[83:18] bad news. Well, firefighters say that

[83:20] the forecast continues to show dry

[83:23] winds, dry high heat here in the

[83:26] California desert, which does not bode

[83:27] well for fighting this fire, Wolf.

[83:29] >> All right, we'll check back with you.

[83:30] Kang Kiang Law reporting from the scene.

[83:33] Let's get some more now here in the

[83:34] situation room. CNN's Tom Foreman is

[83:36] watching this story develop as well.

[83:38] What are you picking up? Well, let's get

[83:39] a sense of where this is happening.

[83:40] Actually, if you look out at Los Angeles

[83:42] to begin with, since everybody knows

[83:43] where that is, this right down here on

[83:45] the coast, you move inland from that

[83:47] eastern eastward about 50 miles, you

[83:50] come to San Bernardino, and then we move

[83:52] out to the Morango Valley, which is sort

[83:54] of ground zero for what's happening

[83:55] right now. Look at this terrain in here.

[83:58] Steep hills, sharp canyons, high desert.

[84:00] You're talking about in this whole area,

[84:02] 4,000 to 7,000 ft in altitude. That's

[84:06] enough to make a workout for you if

[84:07] you're there as a firefighter trying to

[84:08] do your work. It's also high desert

[84:10] where you have a lot of dry areas. This

[84:13] is one of the target areas we've been

[84:14] watching very closely. Pioneer Town.

[84:16] This was built back in 1946 as a place

[84:19] for movie sets. A lot of uh famous movie

[84:21] stars stayed out there. This is the

[84:22] motel they actually stayed in out there.

[84:24] Um Gene Autry, Roy Rogers, Barbara

[84:26] Stanwick, folks like that. This is one

[84:28] of the areas people watch very closely

[84:29] because it's a historic site, important

[84:32] particularly in California with the

[84:33] movie making business. But beyond that,

[84:35] people are looking out here to the

[84:37] general Yucka Valley area and of course

[84:39] over here to the Joshua Tree National

[84:41] Monument. Still about 20 m away, but in

[84:44] these rough canyons where all these

[84:45] things are very dry, it's a tough place

[84:47] to fight fires. Tough place to get out

[84:49] of if a fire comes your way.

[84:51] >> Let's hope they can contain it. Thanks

[84:52] very much, Tom Foreman in the situation

[84:54] room. Coming up, Donald Rumsfeld gets a

[84:57] firstirhand look at security nightmares

[84:59] in Iraq after a new and brazen attack

[85:02] and new details about the terror attack

[85:04] on those commuter trains in India. We're

[85:07] following the investigation and the hunt

[85:08] for the bombers. Stay with us. You're in

[85:11] the situation.

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[87:47] >> Welcome back to the situation room. I'm

[87:48] Wolf Blitzer in Washington today. The

[87:51] defense secretary, Donald Rumsfeld, made

[87:53] an unexpected trip to Iraq. The defense

[87:56] secretary says the development of Iraqi

[87:58] security forces has been uneven. uneven,

[88:01] his word, and that army forces are

[88:03] further along than Iraqi police forces.

[88:06] That help is badly needed to try to stem

[88:08] the unyielding violence. For more on all

[88:10] of this, let's bring in our senior

[88:12] international correspondent, Nick

[88:14] Robertson, in Baghdad. Nick

[88:17] Wolf, the most troubling outbreak of

[88:19] violence today came from the town of

[88:20] Muktadier, about 65 miles northeast of

[88:23] Baghdad. at a bus station there. Early

[88:26] in the in the morning, insurgents went

[88:28] in, rounded up 24 people, uh, passengers

[88:31] and bus drivers alike, took them away.

[88:33] Later in the day, police discovered 20

[88:36] bodies. They believe those bodies are

[88:38] the bodies of some of those people

[88:40] rounded up earlier in the morning. In

[88:42] Baghdad, a car bomb in the center of the

[88:44] city killed two people, wounded another

[88:46] two people. And in a restaurant in the

[88:49] south side of the city, a suicide bomber

[88:51] walked into the restaurant, detonated

[88:53] his explosives, killed seven people,

[88:56] wounded 20 others. This appears to be a

[88:59] recently rising trend where suicide

[89:01] bombers are now choosing to go into

[89:03] restaurants to target areas where people

[89:06] are crowded, where they it appears they

[89:08] know they can kill a lot of people in

[89:09] one go. Quite a bloody day in Baghdad

[89:12] today, Wolf.

[89:12] >> Nick Robertson on the scene for us in

[89:14] Baghdad. Thank you. Could this

[89:16] unyielding violence in the country bring

[89:18] about the very event American officials

[89:21] fear most?

[89:24] And joining us now, Major General

[89:26] William Caldwell. He's the chief

[89:27] spokesman for the coalition forces in

[89:30] Iraq. General, uh, it looks to the

[89:33] outsider like the country is falling

[89:36] apart and getting into the brink of a

[89:38] civil war. How bad is the situation

[89:41] right now?

[89:42] >> Well, there's no question that we've

[89:44] we've got some incidents that we're

[89:46] dealing with here in the Baghdad area,

[89:48] but we are by no means uh out of

[89:50] control. What you really have are some

[89:52] extreme groups out there uh that are

[89:54] trying to do sensational attacks.

[89:56] They're sort of desperate. The al-Qaeda

[89:58] in Iraq has been severely depleted.

[90:00] They're very desperate right now and

[90:02] they're going out and do sensational

[90:03] things that are producing casualties to

[90:05] grab headlines and attention. and uh

[90:08] it's something we're we're focusing on

[90:09] and readjusting our efforts here in

[90:11] Baghdad to confront.

[90:13] >> In recent days, we've put together a

[90:14] list of some of the atrocities that have

[90:17] gone on. On July 9th, mass Shiite gunman

[90:20] abduct at least 40 Sunnis and kill them.

[90:23] Also on July 9th, two car bombs explode

[90:25] near a Shia mosque. 17 people dead. In

[90:28] recent days, since the weekend, a

[90:31] hundred people have been brutally killed

[90:33] almost uh in in a deliberate fashion.

[90:37] and people looking for their ID cards if

[90:39] they seem to have a Shia name the uh or

[90:41] a Sunni name and they're dead.

[90:45] >> Well, let's take the incident at Jihad

[90:49] there on the 9th of July. Uh US forces

[90:51] eventually were called in to respond to

[90:53] that where supposedly 40 uh Sunnis were

[90:56] were executed. When we arrived on the

[90:58] scene and started assessing the

[91:00] situation there, we were able to find 14

[91:02] uh dead personnel. I mean, even one is

[91:04] too many, but the reporting is actually

[91:06] has gotten a little larger than what's

[91:08] actually occurring out there. And we've

[91:09] been seeing that repeatedly lately as if

[91:12] the almost somehow the the

[91:13] sensationalize what's going on. There

[91:16] are challenges. There's no question. But

[91:18] at the same time, it's not out of

[91:19] control as people are saying. Um, the

[91:22] car bombs at the same time that we're

[91:25] talking about these these incidents you

[91:27] just talked about, I can tell you about

[91:28] four different events where we stopped

[91:30] kidnapping attempts. We being the Iraqi

[91:32] security forces foiled four kidnapping

[91:34] attempts stopping cars at checkpoints

[91:36] and and freeing people who had been

[91:38] captive. Three red crescent workers and

[91:40] three other local Iraqi nationals. I can

[91:42] tell you an incident where we diffused a

[91:44] car bomb sitting right out near the

[91:46] green zone because Iraqi security forces

[91:49] identified this car and with literally 5

[91:51] minutes left uh diffuse a bomb. So at

[91:54] the same time some of these things are

[91:55] going on. There's some great things that

[91:57] are happening too that the Iraqi

[91:58] security forces are doing that

[91:59] unfortunately just never reach the

[92:01] attention of anybody.

[92:02] >> The defense secretary Donald Rumsfeld is

[92:04] in Iraq today. He said this earlier. He

[92:07] said the problem in Baghdad is basically

[92:09] there are armed groups that roam the

[92:11] place and when our forces go in they

[92:13] disappear. So that tells you something.

[92:16] It's not like you can find an enemy and

[92:18] go in and address them. A lot of people

[92:21] are wondering three and a half years or

[92:22] so into this war I and General Casey

[92:26] himself acknowledged that in the short

[92:27] term the US may have to beef up its

[92:30] military presence in Baghdad to deal

[92:33] with this emerging situation.

[92:36] >> Baghdad is the center of the universe

[92:38] here in Iraq. There's no question. As go

[92:40] Baghdad will go the rest of this nation.

[92:42] And so we have got to put the right

[92:44] focus there. and the and the insurgent

[92:46] elements, the anti- Iraqi force elements

[92:48] know the same thing and they're focused

[92:50] on Baghdad, too. And we are going to

[92:53] continue to look and refine this plan.

[92:55] The government of Iraq has had a lot of

[92:56] meetings over the last few days with us

[92:58] there in support of them as they've

[93:00] talked about how they might reorient

[93:02] what they're doing inside of Baghdad to

[93:03] further address some of these people

[93:06] acting as illegal groups operating

[93:08] outside of the law uh that need to be

[93:10] dealt with. There's no question there

[93:12] are some out there and then they're

[93:13] working some plans right now to in fact

[93:15] do that.

[93:16] >> Could you uh have you been able the US

[93:18] intelligence community to confirm that

[93:20] that gruesome video that uh al-Qaeda

[93:23] apparently released the other day of

[93:25] these two American soldiers who were

[93:28] killed in Yusf that that gruesome video

[93:31] was in fact the mutilation of uh private

[93:33] first class Christian Manaka and private

[93:35] first class Thomas Tucker.

[93:37] >> We have not been able to positively

[93:39] confirm it at this point. And although I

[93:41] know they are working on that now uh to

[93:43] do that verification, but what we do

[93:45] know is that the brutality of uh those

[93:48] groups that did that to those two young

[93:50] uh soldiers there that would take and

[93:52] then posted on the internet as if

[93:53] somehow that brutality being shown on on

[93:56] on the internet is somehow glorifying

[93:59] what they're doing is just shows you the

[94:01] evil that we're confronted with over

[94:02] here and that the pe poor people of Iraq

[94:04] have to deal with every day themselves.

[94:06] and this notion that they were killed

[94:09] because in revenge for the alleged rape

[94:11] of an Iraqi woman by a US soldier and

[94:14] some others. Uh what do you make of

[94:16] that?

[94:17] >> Well, at this point there's absolutely

[94:18] nothing we can find uh to show any

[94:21] correlation between the two. It appears

[94:23] it's a chance opportunity that they

[94:24] taken advantage of uh because we have

[94:27] been so open about the incident we're

[94:29] dealing with down there. We had an

[94:31] incident down there. We've been very

[94:32] open and transparent about it. we're

[94:34] investigating it and and we're going to

[94:36] seek justice in that that situation to

[94:38] ensure that justice is done. Whereas

[94:41] this element that's posted the uh

[94:43] pictures on the internet, they're think

[94:45] seeking revenge. Uh they have no idea of

[94:48] what it means to seek justice out there

[94:49] and and this is something that the

[94:51] people of Iraq unfortunately have not

[94:53] had the opportunity to experience.

[94:55] >> General Caldwell, as I always tell you,

[94:57] be safe over there. Thanks very much for

[94:59] joining us.

[94:59] >> Well, thank you very much.

[95:01] Meanwhile, the former dictator Saddam

[95:03] Hussein is on a hunger strike. A US

[95:05] military spokesman says he's refused all

[95:07] meals since last Friday, drinking only

[95:10] coffee with sugar and fortified water.

[95:13] The strike is to protest poor security

[95:15] for his defense attorneys, three of whom

[95:18] have been killed since Saddam Hussein's

[95:20] trial started. This is also Saddam

[95:22] Hussein's third hunger strike since uh

[95:25] then. Coming up, it had no competition

[95:28] for a Pentagon Iraqi contracts worth

[95:32] billions. Now, the controversial deal is

[95:35] about to end. We'll have the latest on

[95:36] Vice President Dick Cheneyy's old

[95:38] company, Hallebert. And coming up in our

[95:41] 700 p.m. Eastern hour, the [music]

[95:43] assistant US Secretary of State, Chris

[95:45] Hill. He's the Bush administration's

[95:47] pointman on North Korea. He's in Beijing

[95:50] right now. He's working the crisis,

[95:52] traveling throughout the region. He's

[95:54] going to join us live from Beijing right

[95:57] here in the situation.

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[98:47] The

[98:48] >> US Army's ending its multi-billion

[98:50] dollar contract in Iraq with

[98:52] Hallebertton. The company once run by

[98:54] Vice President Dick Cheney. The deal was

[98:56] highly controversial because it was

[98:58] awarded without competing bids. Our

[99:00] Pentagon correspondent Barbara Star is

[99:02] following the story. She's joining us

[99:04] live. Barbara Wolf. The Army has made

[99:06] the decision indeed to go ahead and

[99:08] rebid that contract to Hallebertton. One

[99:11] of the most controversial uh contracts

[99:13] in Pentagon history. a multibillion

[99:16] dollar contract to provide food, water,

[99:18] fuel, even laundry services to thousands

[99:22] of US troops in Iraq, Afghanistan, and

[99:25] around the world. Now, the army had been

[99:26] paying Hallebertton uh between five and

[99:30] 7 billion dollar a year as the sole

[99:33] source for this type of work. There had

[99:35] been almost constant allegations of

[99:38] course of overcharges and other contract

[99:40] problems, problems that Hallebertton had

[99:43] denied. This was their Kellogg, Brown

[99:45] and Root subsidiary, Hallebertton, as

[99:47] you say, the former company of Vice

[99:49] President Dick Cheney. So, what the Army

[99:52] is going to do now, they say it's just

[99:54] part of their lessons learned on how to

[99:56] do business better. They are going to

[99:58] open up that contract. They're going to

[100:00] bid to as many as three companies with a

[100:03] fourth company that they will select to

[100:05] oversee it all. But army officials wolf

[100:08] behind the scenes are already telling us

[100:10] there are very few companies that can do

[100:12] this kind of work on such a large scale.

[100:15] So they expect Hallebertton to bid again

[100:17] and still be in the business. Wolf.

[100:19] >> All right Barbara, thank you very much.

[100:21] The death toll from the series of

[100:23] bombings on commuter trains in Mumbai,

[100:25] India now up to 185 with more than 700

[100:29] people injured and new details of the

[100:31] attacks are emerging from the

[100:33] investigation. CNN's Anishh Ramen is

[100:35] joining us now live from Mumbai,

[100:37] formerly known as Bombay. Anish?

[100:42] >> Well, Wolf, yet to emerge is exactly who

[100:44] was behind these attacks. The Indian

[100:47] Prime Minister earlier today addressed

[100:48] the nation. He said India stands united

[100:51] but did not mention nor has any public

[100:53] official here suggested who was behind

[100:55] the attacks. Now all the assumptions on

[100:57] the ground at the moment is that it was

[100:59] an Islamic militant group operating

[101:00] within India, one of the larger ones

[101:02] because of the high sophistication

[101:04] involved in these attacks. Some seven

[101:06] bombs and an eighth outside of a train

[101:08] taking place in the course of 11

[101:10] minutes. But the Indian public and in

[101:12] Mumbai specifically are waiting for

[101:13] something tangible. They do think that

[101:15] as well that they have some leads that

[101:17] there were timers found in pencils

[101:19] perhaps within these trains. And of

[101:21] course eerie similarities between what

[101:23] happened in Mumbai, what's happened in

[101:24] Madrid, what happened in London. Uh that

[101:26] is also playing into the investigation.

[101:28] Meanwhile though for the families uh of

[101:30] the dead, they burned them today as is

[101:32] Hindu custom. I met with some of the

[101:34] families. I went to some crematoriums.

[101:36] They are angered. They are wondering why

[101:38] yesterday it took hours for the

[101:40] communication to come back up. Why

[101:41] people were rushed into government

[101:43] hospitals that were overcrowded. Those

[101:45] that have enough money have now

[101:46] transferred their loved ones who were

[101:48] injured into private hospitals. Uh and

[101:50] so as the city itself rebounds and moves

[101:52] forward, it suffered attacks like this

[101:54] before to this magnitude, not for

[101:56] perhaps a decade. Uh it does so with

[101:58] these residents within who are resigned

[102:00] essentially, Wolf, to the fact that this

[102:01] will happen again and that the

[102:03] government has no control. But the key

[102:04] dynamic we're waiting for is if the

[102:06] Indian government does as it's done in

[102:08] the past, call upon the Pakistani

[102:10] government to do more and whether it

[102:11] thinks that the Pakistani government and

[102:13] President Masharf will respond with

[102:15] force to the militants that they think

[102:16] are operating in Pakistan in reaction to

[102:19] this attack. Wolf.

[102:20] >> All right. Anish Ramen joining us live

[102:21] from Mumbai. Thank you. And I talked

[102:24] about the bombings earlier with

[102:25] Pakistan's foreign minister Kushid

[102:28] Kasoui and I asked him about accusations

[102:31] that Pakistan may have played a role in

[102:33] the attacks. Listen to this.

[102:36] >> These people do not wish Pakistan India

[102:38] peace process well. They are the enemies

[102:40] of the peace process and we condemn this

[102:43] unequivocally. It's a dustardly act. the

[102:46] government of Pakistan, the president,

[102:47] the prime minister and I have condemned

[102:50] it unreservedly

[102:51] >> because as you know there are already

[102:53] statements coming out of India given the

[102:55] history of the tensions between India

[102:57] and Pakistan pointing fingers at

[103:00] Pakistan. One uh um former member of the

[103:03] Indian National Security Advisory Board

[103:05] is quoted in the Wall Street Journal

[103:07] this week as saying it has all the

[103:10] hallmarks of a terrorist act coming from

[103:12] a militant organization that has got its

[103:15] headquarters and gets its sustenance

[103:18] from Pakistan.

[103:19] >> Well, let me uh make a few comments on

[103:22] that. There have been statements from

[103:24] high government officials civil and

[103:26] military in which they have admitted

[103:29] publicly and has been carried widely by

[103:31] Indian newspapers that what they

[103:33] describe as movement across the line of

[103:35] control has come down drastically. In

[103:38] some cases they have left it at that. In

[103:40] some cases they have claimed the credit

[103:42] for having the fence there and for the

[103:46] effectiveness of the government of the

[103:48] Indian government. You're talking about

[103:49] the line of control in Kashmir and the

[103:51] disputed area between India and

[103:54] Pakistan. This is the source of all the

[103:56] tensions between these two governments.

[103:57] >> Absolutely. And they have themselves

[103:59] said that has been controlled. Now when

[104:02] it's been controlled to a very large

[104:03] extent in their words, the point is that

[104:06] why should there be fingerpointing every

[104:09] time? India is a vast country. It has

[104:11] its own problems. There are attacks in

[104:14] other parts of India. We strongly

[104:15] condemn this incident. But you there

[104:17] should not be a knee-jerk reaction that

[104:20] everything happening in India starts

[104:22] from Pakistan.

[104:24] >> And you can see the full interview with

[104:26] the Pakistani foreign minister that will

[104:28] air this Sunday on Late Edition 11:00

[104:30] a.m. Eastern only here on CNN. Let's

[104:33] check in with Lou Dobs to see what's

[104:35] coming up right at the top of the hour.

[104:36] Hi Lou.

[104:37] >> Hi Wolf. Thank you. Coming up at 6

[104:40] Eastern here on CNN tonight, we'll be

[104:42] reporting on the huge Israeli military

[104:44] assault against Lebanon after the

[104:46] abduction of two Israeli soldiers. The

[104:49] White House today blamed Syria and Iran.

[104:52] To discuss Israel and the war in Iraq,

[104:54] one of the world's leading authorities

[104:55] on the Middle East, Pujami joins us.

[104:58] Also tonight, computer hackers have

[105:00] successfully gained access to some of

[105:02] the most sensitive information in the US

[105:04] State Department. Have communist China

[105:07] and North Korea declared a cyber war

[105:09] against the United States? We'll have

[105:11] that special report. And the White House

[105:13] and the Senate incapable [music] of

[105:15] dealing with our illegal immigration and

[105:16] border security crisis. Now, states

[105:19] taking action on their own. We'll have

[105:21] that report and I'll be talking with

[105:22] Senator Rick Santorum who's battling for

[105:25] his political life and is now strongly

[105:27] opposing his president's [music]

[105:29] immigration policies. We hope you'll be

[105:31] with us for all of that and a great deal

[105:33] more at the top of the hour here on CNN.

[105:36] Wolf, back to you.

[105:36] >> You know, Lou, do you ever get the sense

[105:38] that between North Korea, Iran, Iraq,

[105:41] Afghanistan, now Israel with the

[105:43] Palestinians, and in Lebanon that the

[105:46] whole world is falling apart? The the

[105:49] fact of the matter is, as we've been

[105:50] reporting on this uh on this network for

[105:53] some years, this is a war against

[105:55] radical Islamist terrorists. And there

[105:58] should be no mistake. I I've always said

[106:00] uh for years uh that it's a mistake to

[106:03] call it a war on terror. This is a war

[106:05] against a very specific group of people,

[106:07] radical Islamists, and it is global. Lou

[106:10] Dobs coming up right at the top of the

[106:12] hour. Thanks very much. Thank you, Will.

[106:14] >> The prominent political advisers behind

[106:16] a new website call it the online

[106:18] equivalent of a national town hall

[106:20] meeting, a digital nonpartisan forum

[106:23] where millions can discuss and dissect

[106:25] hot political topics. The site's name,

[106:28] Hot Soup. Internet reporter Jackie Shar

[106:31] standing by with more. Jackie, tell us

[106:33] about this new site.

[106:34] >> Well, Mark McKinnon was a chief media

[106:36] strategist for Bush Cheney in 2004, and

[106:39] Joe Lheart was a press secretary for

[106:41] President Clinton, but now they're

[106:42] coming together as part of a team that

[106:44] is pooling its funds and its resources

[106:46] to create a new online community that

[106:48] they are calling Hot Soup. One of the

[106:51] women involved is Alli Savverino, and

[106:53] she has experience online with community

[106:55] and video. She tells me the goal is to

[106:56] create a place where people can have

[106:58] intelligent bipartisan conversation. The

[107:01] site is set to launch in October and

[107:03] they're inviting leaders in business,

[107:04] entertainment, and politics to have open

[107:07] unedited conversation. The site's going

[107:09] to be run by Ron Forier, a for former

[107:11] Associated Press political writer, and

[107:13] he's supposed to pose questions and keep

[107:15] the dialogue going. We are seeing plenty

[107:17] of skepticism online already, and that

[107:20] too, Wolf, is bipartisan. Everything

[107:22] from talking about how the site is going

[107:23] to tank immediately to conversation

[107:25] about how you're going to need more than

[107:26] a website to fix political polarization

[107:28] in this country. Wolf,

[107:30] >> and I spoke earlier today with one of

[107:31] the founders of this new website, Joe

[107:34] Lockart, the former White House press

[107:36] secretary under Bill Clinton. He's very

[107:38] excited about this and we're going to

[107:40] have him on at some point to talk about

[107:42] this new website, Hot Soup. Thanks,

[107:45] Jackie, for that. Up ahead, Carl Rove on

[107:47] Jack Caf's mind. He's wondering what

[107:50] should happen now that Rove has been

[107:52] identified as a source in the CIA leak

[107:55] case. And this note coming up at our 700

[107:57] p.m. Eastern hour. It was the headbutt

[108:00] heard around the world. You all watched

[108:02] it. You saw it. Now the guy who buted,

[108:06] he's going to tell his side of the

[108:07] story. And it's a story made for our

[108:09] Genie Mos. You'll want to see it. That's

[108:11] at 7:00 p.m. Eastern. [music]

[108:15] Tonight

[108:18] [music]

[108:25] at 8, he's been called America's mayor

[108:28] since 9/11. But does Rudy Giuliani want

[108:30] to be America's next president? And

[108:32] [music] what kind of a president would

[108:34] he be? Tonight, 8 Eastern.

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[111:17] one.

[111:20] >> Wait an hour for morning [music] news. 6

[111:23] a.m. CNN American Morning tomorrow.

[111:25] Here's

[111:29] a look at some of the hot shots coming

[111:30] in from our friends over at the

[111:32] Associated Press. Pictures likely to be

[111:34] in your hometown newspapers tomorrow.

[111:36] Southern Lebanon smoke rises after an

[111:38] Israeli air raid as people flee in a

[111:41] Mercedes. Soul, South Korea, protesters

[111:44] burn a North Korean flag. A police

[111:46] officer is quick to douse it with a fire

[111:48] extinguisher. Morango Morango Valley,

[111:51] California, wildfire rages out of

[111:54] control. Thousands of acres are on fire.

[111:57] And in Mobile, Alabama, after an early

[111:59] morning rainfall, look at this. A

[112:01] rainbow reaches across the sky. Some of

[112:04] today's hot shots, pictures often worth

[112:07] a thousand words. Let's go back to CNN's

[112:10] Fred Rico Whitfield. She's joining us

[112:11] from the CNN Center in Atlanta with a

[112:13] closer look at some other stories. Fred

[112:15] >> and Wolf, we have some new pictures

[112:16] coming into CNN. A Houston news station

[112:18] is reporting 200 people have been

[112:20] exposed to a toxic chemical leak in the

[112:22] city. K HOU television reports that a

[112:25] drum of hydro bromic acid [music] was

[112:27] punctured at a warehouse in northeast

[112:29] Houston. At least six city buses are

[112:31] said to be on the scene, apparently to

[112:33] provide mobile triage units for the

[112:36] victims. Safety inspectors in

[112:38] Massachusetts say that bolts attaching

[112:40] three ton ceiling panels in a tunnel in

[112:43] Boston are loose in more than 60 places.

[112:46] This after a falling panel killed a

[112:48] motorist on Monday. Despite the

[112:50] problems, the chairman of the state's

[112:51] Turnpike Authority says Massachusetts

[112:53] tunnel system is quote safe. Drug makers

[112:57] are reporting that the FDA today

[112:59] approved the first once daily pill for

[113:02] fighting HIV AIDS. The new pill combines

[113:05] three medications produced by two

[113:07] pharmaceutical companies. HIV and AIDS

[113:09] patients have traditionally had to take

[113:11] a so-called cocktail of medications that

[113:14] involve many pills a day. Wolf,

[113:17] >> thanks Fred. Fred Fredo Whitfield

[113:19] reporting. A new report crowns

[113:21] myspace.com as the most visited website

[113:24] in the United States, but is the social

[113:26] networking site really more popular than

[113:28] say Yahoo? Let's bring in our internet

[113:30] reporter Jackie Shakner. Jackie,

[113:32] >> you just wanted to say Yahoo. Hitwise is

[113:34] one of those companies that tracks web

[113:36] traffic and they did just say that

[113:38] MySpace was the most trafficked website

[113:40] in the United States. Puts it above

[113:41] Google, Yahoo Mail, even Hotmail. Well,

[113:44] they also site growth as one of the

[113:46] reasons. Because if you take a look

[113:47] here, the blue line here is MySpace.

[113:49] This is Google. It was a survey of some

[113:51] 10 million internet users nationwide.

[113:53] But here's the catch. Hit wise separates

[113:56] out different aspects of websites. So

[113:58] they'll separate Yahoo Mail and Yahoo

[114:00] Search. So MySpace may be more visited

[114:03] than each of those separately, but not

[114:04] more than those combined. Yahoo says

[114:06] that the Hitwise results are misleading.

[114:08] And in a statement, they say they are

[114:09] still the most popular internet

[114:11] destination in the world. And if you

[114:13] take a look at one of the other web

[114:14] traffic tracking sites like Alexa, they

[114:17] do say the same thing. They put Yahoo

[114:18] number one in the United States, Google

[114:20] number two, and MySpace comes in at

[114:23] three. Well,

[114:24] >> my favorite is CNN.com. Thanks very

[114:26] much, Jackie, for that. Up next, Jack

[114:29] Caerty wondering what should happen to

[114:31] Carl Rove now that he's been identified

[114:33] as a source in the CIA leak case, the

[114:36] Caerty file.

[114:37] >> Straight ahead, stay with us.

[114:42] Tonight on 360, tightening the news on a

[114:44] fugitive polygamous by targeting his

[114:46] flock. Followers of Warren Jeffs now

[114:48] facing justice, some facing prison. We

[114:50] hear from an ex follower whose [music]

[114:52] testimony is bringing them down.

[114:53] Tonight, 360, 10 p.m. Eastern.

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[117:33] >> Let's check back with Jack in New York.

[117:35] Jack, uh, Wolf, the question this hour

[117:37] is, now that Carl Rove has been

[117:39] identified by Bob Novak as a source,

[117:42] pardon [clears throat] me, in the CIA

[117:43] leak case, what ought to happen to him?

[117:46] Donna in Breton, Washington writes,

[117:48] "Fire Rove. He committed an act of

[117:49] treason and should be punished. He along

[117:52] with Novak endangered the lives of many

[117:54] people and put in peril numerous

[117:56] projects that would have benefited our

[117:57] national security. Peg writes, "What

[118:00] should happen to Carl Rove now? As a

[118:02] former Fed, I can tell you what would

[118:03] have happened to any of us who did a

[118:05] similar thing. Fired. He should be off

[118:08] the government payroll and out of the

[118:10] White House. Where is some integrity

[118:11] here? Government employees take an oath

[118:13] and most of us mean it. I guess

[118:15] political employees are above such

[118:17] things." Steven Atlanta writes Carl Ro

[118:19] should be put in jail. If he was a

[118:21] source for the leak, then the man needs

[118:23] to do time. I'm so tired of politicians

[118:25] getting off or getting a slap on the

[118:27] wrist Allah Cynthia McKini for

[118:29] performing illegal acts that anyone else

[118:31] would be fined and jailed for. Jesse

[118:34] writes he should receive the

[118:35] Presidential Medal of Freedom. Of

[118:36] course, Chuck in Mon, Missouri, the

[118:38] president should keep his promise and

[118:40] fire him as he said he would. If that

[118:42] should happen, then the energy crisis

[118:44] would be solved as well because we could

[118:46] all use flying pigs for transportation.

[118:48] And Jim in Fort Worth, Texas, if Ro has

[118:51] violated the law, he should be forced to

[118:53] spend three days listening to reruns of

[118:55] the Cafferty file. That would be

[118:57] punishment enough for anyone.

[118:59] >> Did you get any emails supporting Carl

[119:02] Rove?

[119:03] >> Uh, not outright support. We got some

[119:05] suggesting that, you know, he wasn't

[119:06] indicted by Fitzgerald and that he

[119:09] hasn't been convicted of any crime and

[119:11] uh and those kinds of things. We didn't

[119:13] get anything though. Carl Ro is my

[119:15] favorite all-time American human being.

[119:16] I didn't read anything like that.

[119:18] >> So, what you're suggesting, what a lot

[119:19] of our viewers at least are suggesting,

[119:20] there should be one standard for being

[119:22] fired from the government, another for

[119:24] having criminal charges filed against

[119:27] you.

[119:27] >> Well, maybe there are two different

[119:29] issues here. And and President Bush made

[119:31] it fairly clear. My tie is so crooked, I

[119:33] can't even stand it. Pardon me.

[119:35] President Bush made it very clear that

[119:37] if he found anybody in his White House

[119:39] that was leaking sensitive information

[119:41] to the press, it would be addressed. So

[119:43] if Rove talked to Novak about Valerie

[119:45] Pla, that seems to fit what the

[119:47] president was talking about. And the

[119:49] president so far hasn't done anything

[119:51] about it.

[119:52] >> We'll see you in an hour, Jack. Thanks

[119:53] very much. We're back in 1 hour. Let's

[119:55] go to Lou. Dos. He's in New York. Lou,

[119:57] >> thank you. Wolf, tonight, Israel is on

[120:00] the verge of an all-out war with

[120:02] Lebanon. Israeli tanks, artillery, and

[120:04] troops are now in southern Lebanon.

[120:06] We'll have a live report from the Israel

[120:08] Lebanon border. And the US State

[120:10] Department today revealed its computers

[120:12] have been attacked. Have North Korea

[120:14] [music] and communist China declared a

[120:16] cyber war against the United States?

[120:18] We'll have that special report here

[120:20] tonight.

[120:24] [music]

[120:25] This is Lou Dos tonight. News, debate,

[120:28] and opinion for Wednesday, July 12th.

[120:31] Live in New York, [music] Lou Dos.

[120:34] >> Good evening, everybody. The Middle East

[120:35] tonight appears to be on the verge of an

[120:37] all-out war. Israel says it will unleash

[120:40] its utmost power to recover two Israeli

[120:42] soldiers abducted by Hezbollah on the

[120:45] Israel Lebanon border. Israeli troops

[120:47] tonight are advancing into southern

[120:49] Lebanon and shelling suspected terrorist

[120:51] positions. And Israel is calling up its

[120:54] military reserves. The White House today

[120:56] said Syria and Iran, which support

[120:59] Hezbollah, are responsible for the

[121:01] violence. This new crisis comes as

[121:03] President Bush faces a rising insurgency

[121:06] in Afghanistan and rising sectarian

[121:08] violence in Iraq. While both North Korea

[121:11] and Iran have issued new threats against

[121:13] the United States, John Boss reports

[121:16] from the Israel Lebanon border tonight

[121:18] on the Israeli offensive. Ed Henry

[121:20] traveling with President Bush reports

[121:22] from [music] Rosto, Germany on White

[121:24] House reaction to the violence. And

[121:26] Barbara Starr reports from the Pentagon

[121:28] on US efforts to stop the spiraling

[121:30] number of sectarian killings in Iraq. We

[121:33] turn first [music] to John Voss. John,

[121:37] blue Israeli air strikes have struck

[121:39] deep inside southern Lebanon today,

[121:41] targeting mostly Hamas training camps

[121:43] and buildings, but roads and bridges

[121:46] have also been bombed. The head of the

[121:48] Israeli northern command forces says all

[121:51] of Lebanon is now a target. This is an

[121:54] offensive by land, sea, and air. The

[121:57] Israeli military says so far today,

[121:59] eight Israeli soldiers have been killed.

[122:01] Three in the initial attack in which two

[122:03] Israeli soldiers were killed or

[122:05] kidnapped rather. Another four were

[122:07] killed when their tank hit an explosive

[122:10] just inside Lebanese territory and an

[122:13] eight soldier was killed by gunfire as

[122:15] he tried to rescue them. The Israeli

[122:17] cabinet tonight has approved what it

[122:19] says is a severe response, but says the

[122:21] military operation will be gradually

[122:23] escalated to pressure on the Lebanese

[122:25] government. The Israeli Prime Minister,

[122:27] Ahud, says the kidnappings and the

[122:30] attacks go way beyond terrorism. He says

[122:32] it's now an act of war and it's holding

[122:34] the Lebanese government responsible for

[122:36] the fate of the two kidnapped Israeli

[122:39] soldiers. But amid all of the

[122:41] celebrations in Lebanon, the government

[122:43] there is denying any responsibility and

[122:46] says it does not condone the actions of

[122:48] the Hezbollah militants who are now

[122:50] demanding the release of Lebanese

[122:53] prisoners being held by Israel in

[122:56] exchange for the two kidnapped Israelis.

[122:59] Luke

[123:00] >> John Voss, thank you. from the Israel

[123:02] Lebanon border. Israel today launched

[123:04] more attacks in Gaza as Israeli troops

[123:06] intensified their search for a captured

[123:08] Israeli soldier there. Israeli artillery

[123:11] and aircraft, firing on and killing at

[123:13] least 18 Palestinians. Today, one of the

[123:16] worst for casualties since the Israeli

[123:18] military operation began at the end of

[123:20] last month. The White House today blamed

[123:23] Syria and Iran for the abduction of the

[123:26] two Israeli soldiers by Hezbollah. The

[123:28] new international crisis comes as the

[123:30] president prepares to discuss global

[123:32] events with world leaders at the G8

[123:34] summit meeting held in Russia this

[123:36] weekend. Ed Henry is traveling with

[123:38] President Bush and reports from the

[123:40] German city of Rosto.

[123:45] President Bush is stopping in Germany on

[123:47] his way to the G8 summit in Russia where

[123:49] a mountain of foreign policy headaches

[123:51] await him.

[123:53] Secretary of State Condisa Rice is on a

[123:55] separate diplomatic mission to Paris to

[123:57] deal with Iran. Again, refusing to

[123:59] answer the US offer for talks in

[124:02] exchange for suspending its nuclear

[124:03] enrichment program. As Rice threatened

[124:06] tough UN sanctions against Iran, she had

[124:08] to deal by phone with yet another Middle

[124:10] East flare up.

[124:14] Israeli troops stormed into Lebanon

[124:16] after Hezbollah abducted two Israeli

[124:18] soldiers and killed three more, which

[124:20] the Israeli prime minister dubbed an act

[124:22] of war and the White House called an

[124:24] unprovoked act of terrorism. Then

[124:27] there's a nuclear threat from North

[124:28] Korea as well as Iran, which the White

[124:30] House seems to be reacting to from a

[124:32] defensive posture.

[124:34] >> We'll have to see. I think the diplomacy

[124:35] has set it up well. We'll have to see

[124:37] what these countries decide. This has

[124:39] inflamed some conservatives with Bill

[124:41] Crystal charging the approach to North

[124:43] Korea is Clintonian.

[124:47] >> But yet another hot spot, the ongoing

[124:49] war in Iraq, has left the president with

[124:51] a weakened hand.

[124:52] >> The White House says the president has

[124:53] always said that approaches will change

[124:55] as circumstances change. But one of the

[124:57] circumstances that has changed, of

[124:59] course, is the president standing at

[125:00] home and in the world. In need of

[125:02] allies, the president is making the

[125:04] special stop in Germany to further bond

[125:06] with new chancellor Angela Merkel.

[125:08] >> Bush has focused on Germany now that

[125:12] Chancellor Merkel is in office as the

[125:14] key link to Europe. And that's important

[125:17] because Tony Blair is very weak. That

[125:20] gives the United States a new foothold

[125:22] in Europe. But there may be cracks in

[125:24] the president's one-time alliance with

[125:26] Russian President Vladimir Putin on the

[125:28] eve of their own one-on-one talks before

[125:30] the G8 summit. President Putin is

[125:33] reacting bitterly to a speech Vice

[125:34] President Cheney recently delivered in

[125:36] Lithuania, charging Russia may be

[125:38] backsliding on the way to full

[125:40] democracy.

[125:42] >> I think your vice president's expression

[125:44] there is like his bad shot on his

[125:48] hunting trip.

[125:53] The vice president's office declined to

[125:55] comment today on that blast from Mr.

[125:57] Putin, which will only increase pressure

[125:59] on President Bush to press his Russian

[126:02] counterpart harder, not just on the

[126:04] issue of reform, but also in bringing

[126:06] Russia along to fight Iran and North

[126:09] Korea's thirst for nuclear weapons. So

[126:11] far, that support has been elusive. Lou,

[126:14] >> Ed, thank you very much. Ed Henry

[126:15] reporting from Roto, Germany. Communist

[126:18] China and Russia today directly

[126:20] challenged US policy toward North Korea

[126:22] after Pyongyang's missile test. China

[126:25] and Russia introduced today a draft

[126:27] United Nations resolution that makes no

[126:29] reference whatsoever to mandatory

[126:31] sanctions against North Korea. The

[126:33] United States supported by Japan says it

[126:36] still wants the Security Council to

[126:37] order sanctions against North Korea.

[126:41] >> We're prepared to to push ahead for a

[126:43] vote. We've deferred it on the basis of

[126:45] the high level Chinese mission in

[126:47] Pyongyang. That's what the government of

[126:49] China asked us to do and that's what

[126:51] we've been doing. Reviewing it on a on a

[126:53] day-to-day basis. Uh but if uh if the

[126:56] resolution comes to a vote and China

[126:58] votes no uh then that that's uh that

[127:02] that will be a decision they will have

[127:03] to make.

[127:05] >> Japan tonight said the Chinese Russian

[127:07] draft resolution has what it calls very

[127:10] serious gaps on very important issues.

[127:13] Communist China and Russia appear to be

[127:15] slightly more cooperative on the issue

[127:16] of Iran's nuclear weapons program and

[127:19] its defiance of international demands to

[127:21] end it. China, Russia, the United

[127:24] States, and other countries have sent

[127:25] the issue back to the UN Security

[127:27] Council for consideration. The agreement

[127:30] follows Iran's refusal to decide by

[127:32] today whether to accept an offer to

[127:34] begin talks on its nuclear activities.

[127:37] The US military has successfully tested

[127:40] an intermediate range missile defense

[127:42] system. The system has the unlikely

[127:44] acronym TH A THAAD. The interceptor is

[127:49] designed to shoot down short and

[127:50] intermediate range missiles in their

[127:52] last minutes of flight. It is a

[127:54] different type of interceptor from the

[127:56] type deployed in Alaska and California

[127:58] and would be used against the North

[128:01] Korean ICBMs. Those interceptors, of

[128:03] course, are intended to shoot down

[128:05] intercontinental ballistic missiles.

[128:07] Defense Secretary Donald Rumsfeld today

[128:09] made an unannounced visit to Iraq as

[128:11] sectarian violence there spiraled out of

[128:13] control. At least 30 Iraqis today were

[128:16] killed. Rumsfeld said it is too early to

[128:18] talk about large-scale US troop

[128:20] withdrawals from Iraq, and the

[128:22] commanding general in Iraq, in fact,

[128:24] announced today that our troops could be

[128:26] called back to patrol the streets of

[128:27] Baghdad. Barbara Star reports from the

[128:30] Pentagon.

[128:33] Defense Secretary Donald Rumsfeld is in

[128:35] Iraq at a time when sectarian violence

[128:38] in Baghdad alone has claimed more than

[128:41] 100 Iraqi lives in the last few days.

[128:44] His top commander, General George Casey,

[128:47] says it's a violent Shia backlash

[128:49] against the Sunni insurgency. we are

[128:52] seeing now as a counter to that is death

[128:54] squads primarily from Shia extremist

[128:57] groups uh that are retaliating against

[129:00] uh civilians

[129:02] >> at a time when US commanders hope to be

[129:04] talking about troop reductions. Casey is

[129:08] saying more troops might be needed to

[129:10] deal with the death squads. It's

[129:12] constant pressure on both sides of the

[129:14] equation uh while we uh increase the

[129:18] numbers of forces in and around the city

[129:19] to protect the population. Does it

[129:21] include additional US forces in Baghdad?

[129:24] It

[129:24] >> it may. Yes.

[129:25] >> This comes after a highly publicized

[129:28] effort to put thousands of Iraqi

[129:30] security forces on Baghdad streets.

[129:33] Iraqi Prime Minister Nuriel Maliki told

[129:35] members of parliament he now fears

[129:38] insurgents will try to take control of

[129:40] Western Baghdad. For his part, Rumsfeld

[129:44] kept to the stay the course message, but

[129:47] also acknowledged that police forces

[129:50] must do better. The secretary continues

[129:53] to say that US military force cannot fix

[129:56] Iraq's problems. The political process

[130:00] is critical to success on the security

[130:02] side. The prime minister's effort with

[130:05] respect to reconciliation will be

[130:07] critically important

[130:10] in achieving better success with respect

[130:12] to security.

[130:14] >> Lou, while the violence against Iraqi

[130:16] civilians continues really unabated at

[130:19] this point, US troops are also facing a

[130:22] rising number of IED attacks. There is

[130:25] one piece of better if not good news and

[130:28] that's that the troops the Pentagon says

[130:30] are finding more of the IEDs before they

[130:32] explode. Lou

[130:34] >> Barbara that is good news indeed. Thank

[130:36] you Barbara Star from the Pentagon. The

[130:39] US Army has decided to end its exclusive

[130:41] contract with Hallebertton for

[130:43] logistical services for our troops in

[130:45] Iraq, Afghanistan and other countries.

[130:47] The multibillion dollar contract will

[130:50] now be open for bidding from other

[130:52] companies. The cancellation of the deal

[130:54] follows repeated allegations of waste,

[130:56] fraud, and mismanagement by

[130:57] Hallebertton. Allegations that

[130:59] Hallebertton has denied. Still ahead

[131:02] here, secret negotiations to try to

[131:04] force President Bush's proamnesty agenda

[131:06] for illegal aliens through the Congress.

[131:08] We'll be live in Washington with that

[131:10] report. And states have had a belly full

[131:13] of the federal government's failure to

[131:15] secure our borders and [music] to

[131:16] enforce our immigration laws. Now, many

[131:18] states are taking action on their own to

[131:21] enforce those laws. We'll have the

[131:23] report and troubling questions tonight

[131:25] about computer security in some of our

[131:27] government's most sensitive offices.

[131:29] Have [music] communist China and North

[131:30] Korea launched a cyber war against the

[131:33] US State Department? That special report

[131:35] coming up here next.

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[134:00] States, many of them, are taking action

[134:02] to directly attack the illegal

[134:04] immigration crisis. While Washington

[134:06] remains divided, we have two reports

[134:09] tonight on the widening gap between

[134:10] state action and federal inaction. Lisa

[134:14] Sylvester reports on the continuing

[134:15] congressional deadlock over so-called

[134:18] comprehensive immigration reform. And

[134:20] Kenny Pilgrim reports on state efforts

[134:22] to address the illegal immigration

[134:24] crisis. We begin with Lisa Sylvester in

[134:27] Washington. Lisa

[134:28] >> Lou, the Bush administration and

[134:29] congressional leaders have been

[134:31] negotiating behind the scenes to get an

[134:33] immigration reform bill through

[134:34] Congress, even as both the House and the

[134:37] Senate continue with a series of public

[134:39] hearings.

[134:42] >> In a moment, we'll hear from

[134:43] >> proponents of amnesty are pinning their

[134:45] hopes on President Bush to see if he can

[134:47] break a congressional log jam. Monday,

[134:50] Senator Ted Kennedy pressed the case for

[134:52] amnesty at a White House Special

[134:53] Olympics event. Tuesday, Senator Arlland

[134:56] Spectre had a separate immigration

[134:58] meeting with the president. Today,

[134:59] Senator Patrick Ley tried to pin down

[135:02] the administration's immigration

[135:03] representative, Commerce Secretary

[135:05] Carlos Gutierrez, at a judiciary

[135:07] committee hearing.

[135:08] >> Is the president prepared to to get

[135:10] personally involved in this to increase

[135:12] his involvement in this issue?

[135:15] >> Uh, Senator, everything I've seen from

[135:17] the president is that he is deeply

[135:19] involved, deeply engaged. Gutierrez says

[135:22] the White House still backs the

[135:24] comprehensive approach that combines

[135:26] border security with a guest worker

[135:28] program and legalization of illegal

[135:30] aliens while keeping the door open to

[135:33] compromise.

[135:34] >> One of the big challenges is how you

[135:36] execute that. How do we execute

[135:38] comprehensive reform? That execution can

[135:41] take on a lot of different uh avenues.

[135:46] U but it needs to be comprehensive

[135:49] reform. The Senate is trying to wrestle

[135:52] control of the issue from the House

[135:54] leadership, which announced a new round

[135:56] of summer hearings. House Majority

[135:58] Leader John Boehner says he not only has

[136:00] the public support for a plan that

[136:02] secures the borders first, but is also

[136:04] winning over senators. Uh the number of

[136:07] conversations that I've found myself in

[136:09] with Democrats and Republicans on the

[136:12] Senate side uh have have made it clear

[136:15] to me that that uh there's some movement

[136:19] toward the House uh the House bill and

[136:22] I'm encouraged by that.

[136:23] >> Still, there's been no major

[136:25] breakthroughs. The House saying no to

[136:27] amnesty. The Senate still trying to get

[136:29] its legislation passed by Congress

[136:31] before the November elections.

[136:34] And it's looking less likely that there

[136:36] will be something passed before the

[136:37] November elections. The House favors a

[136:39] two-part system. First, border security,

[136:42] then later addressing guest worker

[136:44] concerns. Senate leaders and the

[136:46] president, at least at this point, still

[136:47] pushing for the so-called comprehensive

[136:49] approach. Lou,

[136:51] >> Lisa, thank you. Lisa Sylvester from

[136:52] Washington. Well, many states, in fact,

[136:55] more than half of the states are fed up

[136:57] waiting for the federal government and

[136:59] they are acting on their own to address

[137:01] our illegal immigration crisis. Colorado

[137:04] became the latest state to restrict

[137:06] social benefits and to require employers

[137:08] to verify the legal status of their

[137:10] workers. More than two dozen other

[137:12] states have recently passed legislation.

[137:15] Kenny Pilgrim reports.

[137:18] >> Congress can endlessly discuss illegal

[137:21] immigration, but states are charging

[137:23] ahead in proposing and enacting illegal

[137:26] immigration laws.

[137:27] >> States are taking this issue on their

[137:29] own into their own hands. They're not

[137:32] waiting for a gridlocked Congress to

[137:34] act.

[137:35] >> In 2006 alone, 500 pieces of legislation

[137:38] have been introduced with at least 59

[137:41] bills enacted in 27 states. The issue of

[137:45] illegal hiring is high priority. State

[137:48] after state are getting tough on

[137:49] employers who hire illegal aliens. Laws

[137:52] on education, benefits, voting, and

[137:55] driver's licenses are also high

[137:57] priorities in many states.

[137:59] >> The state cannot have its own

[138:00] immigration policy. It can't for example

[138:02] control its own borders or control our

[138:05] own national borders. But there is a

[138:07] huge range of area where states can

[138:09] really be helpful in ensuring that they

[138:11] are not magnets that attract people

[138:13] illegally. Here four states have enacted

[138:15] the toughest legislation related to

[138:18] illegal immigration. Colorado, Arizona,

[138:21] Georgia, and Virginia. Colorado is now

[138:23] restricting benefits like food stamps

[138:25] and Medicaid to illegal aliens, but also

[138:28] requires business owners to prove that

[138:30] their workers are legal. It also

[138:32] requires a contractor who discovers an

[138:35] illegal alien at a work site to alert

[138:37] the state agency within 3 days. Georgia

[138:40] state agencies check a person's legal

[138:42] status before providing benefits.

[138:44] Arizona requires US citizenship to

[138:47] receive health care benefits, giving

[138:49] only emergency care to illegal aliens.

[138:52] Virginia denies illegal immigrants

[138:54] permission to obtain a handgun permit

[138:56] and requires the Department of Motor

[138:58] Vehicles to provide the State Board of

[139:00] Elections with a list of noncitizens

[139:03] driver's license applications each

[139:05] month. Now, the message being sent by

[139:07] Colorado, Arizona, Georgia, Virginia,

[139:09] and more than half the states this year

[139:11] is very clear. They want strong

[139:14] enforcement of immigration laws and if

[139:15] Congress won't act, states are going to

[139:18] step in and do what they can. Lou

[139:20] >> Kitty, thank you. Kitty Pilgrim. Voters

[139:22] in Georgia won't have to show their

[139:24] photo ID when they go to the polls for

[139:26] next week's primary elections. The

[139:28] Georgia Supreme Court today refused to

[139:30] block a challenge to the state's voter

[139:32] identification law. That law requires

[139:34] voters to show a state approved photo

[139:37] identification card. It's designed to

[139:39] prevent voter fraud, but critics say it

[139:41] infringes on the voting rights of

[139:43] minorities and poor people. Coming up

[139:45] next, a security breach exposes our most

[139:48] sensitive government information. North

[139:50] Korea and Communist China could be

[139:51] declaring cyber war on this country. A

[139:54] special report ahead and investigators

[139:56] in Mumbai are searching for clues in the

[139:59] bombings that killed nearly 200 Indian

[140:01] commuters. A live report from India

[140:04] ahead. And Israel attacks Lebanon. A new

[140:07] front in the widening Arab-Israeli war.

[140:09] Bad Jami, one of the world's leading

[140:11] authorities on the Middle East, joins

[140:13] me. Stay with us.

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[142:57] Cyber war attacks on computers at the US

[142:59] State Department. And those attacks

[143:01] succeeded in crippling some State

[143:03] Department communications as North Korea

[143:06] was preparing its missile test. And the

[143:08] attackers may have permanently damaged

[143:11] the State Department's computer network.

[143:13] Bill Tucker reports. [snorts]

[143:16] This is the new front line of war. The

[143:19] latest attack, computers in the State

[143:21] Department's offices dealing with China

[143:23] and North Korea. The State Department

[143:26] downplayed the latest incident.

[143:28] >> These are unclassified systems

[143:30] uh that don't deal with classified

[143:33] material in any way, shape, or form. The

[143:35] dismissive attitude belies warnings from

[143:38] the Defense Department about the growing

[143:40] use of information technology as a

[143:42] strategic military tool by foreign

[143:45] governments, particularly China. Just

[143:48] last fall, the Pentagon warned Congress

[143:50] the Chinese understand what technology

[143:53] can do, noting the PLA's emphasis on

[143:56] information technology as a force

[143:59] multiplier. Security experts echoed that

[144:02] warning saying foreign governments

[144:03] understand the power and the

[144:05] vulnerability of technology.

[144:07] >> I actually had a chance to observe a

[144:09] school where uh this particular

[144:12] government was giving subsidies and some

[144:15] spending money to actually learn how to

[144:18] hack and then was picking from those and

[144:21] then developing them into uh

[144:23] professional hackers. And while the

[144:25] State Department's initial investigation

[144:28] shows that no sensitive data was

[144:30] compromised in the hacker attack, the

[144:32] damage may not be in what was not taken,

[144:35] but in what could have been left behind

[144:37] in the way of back doors allowing them

[144:39] re-entry or in the form of worms or a

[144:41] Trojan horse. That's the bad news is

[144:44] that we don't know the full scope of

[144:46] these attacks. They've been going on for

[144:49] years. They've they've gotten a lot of

[144:51] information and they could have put

[144:53] things on people's computer systems that

[144:55] could do damage to us later.

[144:57] >> No one is saying who is behind this

[144:59] latest hacker attack.

[145:01] >> The State Department will only say that

[145:03] the attacks came from the region of East

[145:05] Asia. There is no denying that the

[145:07] timing of these attacks are very

[145:09] interesting, Lou. They occurred in the

[145:10] weeks preceding North Korea's missile

[145:13] test. And in point of fact, they

[145:15] succeeded in entering sensitive areas of

[145:18] the US State Department's computers.

[145:20] >> Exactly. They gained access. And yet the

[145:22] State Department says that they did not

[145:24] take any sensitive information even

[145:26] though they had access to it. Correct.

[145:29] Uh and at the same time, leading up to

[145:32] those missile tests, the State

[145:33] Department acknowledges that those cyber

[145:36] war attacks in fact uh ended some of the

[145:40] communications for the US State

[145:41] Department computers.

[145:42] >> Yes. If they're concerned, Lou, there

[145:44] was no evidence in the State Department

[145:46] briefing at all today that they are

[145:48] concerned.

[145:49] >> Well, thank you very much, Bill.

[145:51] Fascinating report and an alarming one.

[145:53] Bill Tucker, take a look now at your

[145:55] thoughts. Ron in Kansas asking, "What

[145:58] happened to one man, one vote? A 10%

[146:01] error factor is simply not acceptable."

[146:03] Referring to e- voting machines and the

[146:05] standards in this country. John in New

[146:07] Jersey said, "Hey, Lou, I can only wish

[146:09] our elected officials failed only

[146:11] onetenth of the time. Bill in Texas Lou

[146:14] in the 1960s we had the technology to

[146:16] put a man on the moon yet in 2006 we're

[146:19] not able to count all of our citizens

[146:21] votes and elections Vincent in

[146:23] California Mr. Dobs. The more I write to

[146:25] CNN wanting to have you on more than an

[146:28] hour, the less we get. Sir, could you

[146:30] tell me why? Well, it's an interesting

[146:32] question and we will relentlessly,

[146:35] rigorously seek out the answers. And

[146:37] Gerald in Nevada, Cambridge, like the

[146:40] rest of Massachusetts, is guilty of

[146:41] treason. All federal funds should be

[146:44] immediately stopped and the town council

[146:46] arrested for violation of the RICO act.

[146:49] referring to Cambridge, Massachusetts uh

[146:52] sanctuary laws and its uh interest in

[146:54] providing support and sucker for illegal

[146:57] aliens. Adrien in New York, there is one

[147:00] thing both the House and Senate are

[147:02] always in agreement on the raises and

[147:05] they continually give to themselves

[147:07] those raises at a time when the average

[147:08] American's wages haven't even kept up

[147:11] with the cost of living. Thomas in

[147:13] Arizona, Lou, I will keep this short and

[147:15] simple. No to Mike Pence and yes to a

[147:18] border fence. Send us your thoughts at

[147:20] ludobs.com. More of your thoughts coming

[147:22] up here later in the broadcast. Now, our

[147:24] poll. Has your confidence in your

[147:26] elected officials ever been lower? Yes,

[147:29] in the '90s. Yes, in the [music] 80s.

[147:32] Yes, in the 70s. No. Or why do you ask?

[147:37] Everything's [music] mafo. Cast your

[147:39] vote at ludobs.com. We'll have the

[147:41] results coming up here later. Next,

[147:43] wildfires scorching thousands of acres

[147:45] in Southern California. We'll have the

[147:47] latest for you on what is now a state

[147:48] [music] of emergency on the West Coast.

[147:50] And investigators have new clues tonight

[147:52] in the terrorist bombings in India.

[147:54] We'll have a live report on the commuter

[147:56] train [music] massacre from Mumbai. And

[147:59] Israel on the attack. Violence rising in

[148:02] Iraq and Afghanistan. Fuadjami, one of

[148:05] the world's leading authorities on the

[148:07] politics and [music] culture of the

[148:08] Middle East, joins us here tonight. Stay

[148:10] with us.

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[149:15] >> CNN, the most trusted name in news.

[149:20] In a moment, Senator Rick Santorum, who

[149:22] is fighting for his political life, will

[149:24] be joining us. But first, these

[149:26] headlines. In Mumbai, investigators are

[149:29] trying to determine who is responsible

[149:31] for the bombings that killed nearly 200

[149:33] people. We go now to Anish Ramen in

[149:36] Mumbai for the latest developments.

[149:38] Anish

[149:42] Lou, good evening. Investigators are yet

[149:44] to name exactly who they think was

[149:46] behind the attack. They do have some

[149:47] clues, the type of explosives involved,

[149:49] also timers that they think were as

[149:51] small as those of a pencil that were

[149:53] inside the train. This was a highly

[149:55] sophisticated coordinated attack. In the

[149:58] course of 11 minutes, eight bombs

[149:59] detonating yesterday, killing close to

[150:02] 200 people. All of this is leading

[150:04] investigators towards the country's b

[150:06] biggest Islamic militant group that does

[150:08] have ties to Pakistan and is leading us

[150:11] to wonder whether the Indian government

[150:12] could stall the peace process that is

[150:14] being built on Kashmir, the disputed

[150:16] region in the north and push the

[150:18] Pakistani president to do more.

[150:20] Meanwhile, the family of those killed uh

[150:22] they cremated their dead today as is

[150:24] Hindu custom. I visited with some of

[150:26] them. They expressed outrage at the

[150:28] government for the number of hours it

[150:29] took for communications to come back up

[150:32] for the number of people that were sent

[150:33] to government hospitals that were

[150:35] inadequate in terms of preparation for

[150:37] that large number of casualties. And the

[150:39] bigger question in Mumbai tonight is the

[150:41] train system here remains one of India's

[150:43] biggest vulnerabilities. Some 10 million

[150:45] people a day on average use this train

[150:48] system as a livelihood uh to get from

[150:50] where they go from what they are to

[150:52] where they have to go. There's virtually

[150:54] no security. It is being described as

[150:56] implausible given the number of people.

[150:58] But if the Indian government doesn't

[150:59] figure out a way, this train system

[151:01] remains an eerie similarity to London

[151:03] and Madrid and could get attacked again.

[151:05] Lou,

[151:05] >> and to be clear, Anish uh at this point,

[151:08] no definitive uh understanding as to who

[151:10] is responsible uh for this massacre.

[151:16] >> None as of yet. The Indians here in

[151:18] Mumbai are waiting for the government to

[151:20] say who they think exactly is behind

[151:21] this attack. Anish Ramen from Mumbai,

[151:24] India. Thank you, Anish. A state of

[151:27] emergency tonight in San Bernardino,

[151:29] California. Firefighters are battling a

[151:31] wildfire there. It scorched more than

[151:33] 26,000 acres. The fire has destroyed

[151:35] more than 30 homes and buildings. More

[151:37] than a thousand people have been

[151:39] evacuated. In Washington, DC's police

[151:41] chief has declared a crime emergency in

[151:44] this nation's capital city. 14 people

[151:48] been murdered this month in Washington

[151:50] DC and armed attacks have jumped nearly

[151:53] 20%. Two groups of terrorists were

[151:56] robbed at gunpoint near the Washington

[151:58] Monument just last night. Turning now to

[152:01] the showdown over illegal immigration in

[152:03] Washington DC. Senator Rick Santorum is

[152:06] now in the political battle of his life

[152:08] back home. Polls show him to be one of

[152:10] the most vulnerable incumbents in this

[152:12] year's upcoming midterm elections. Now

[152:14] Senator Santorm is attacking the

[152:16] president. so-called comprehensive

[152:17] reform legislation proposing a different

[152:19] plan to secure the border and to prevent

[152:21] employers from hiring illegal aliens.

[152:24] Senator Santorum joins us tonight from

[152:25] Capitol Hill. Senator, thanks for being

[152:28] here.

[152:28] >> Thank you, Luke.

[152:29] >> Why are you weighing in at this

[152:31] particular moment uh with the

[152:32] introduction of your legislation uh as

[152:35] the Senate is seeking conference with

[152:37] the House?

[152:37] >> Well, u and we've been working on this

[152:39] issue now for almost 18 months uh in the

[152:42] United States Senate. Uh we we've been

[152:44] going through countless iterations

[152:45] trying to get compromised bills up and

[152:47] before the Senate. They finally did

[152:49] bring a bill up which I could not

[152:50] support. And what I've done from that

[152:53] point is to try to figure out what we

[152:54] can we pass what can pass the Senate and

[152:57] what can pass the House. And uh I I

[153:00] thought of uh of the compromise being

[153:02] since the House wants a border security

[153:04] first bill, let's take the provisions

[153:06] that just passed the United States

[153:08] Senate in the Senate bill that deal just

[153:10] with border the border security issue

[153:12] and let's take the Senate pass bill,

[153:14] send it to the House, have the House

[153:16] pass that bill and then send it back to

[153:17] us. And uh you know there we have a

[153:19] situation where we can take the first

[153:21] step. Now there may be there additional

[153:23] steps are going to have to be taken.

[153:24] We're going to have to look at, you

[153:25] know, what we're going to do with

[153:26] employer verification and improving that

[153:28] and uh probably some sort of temporary

[153:30] worker program, but uh we can agree that

[153:33] the Senate uh security provision should

[153:36] go first.

[153:37] >> Some sort of temporary worker program.

[153:40] you you you know as we look at Senator

[153:43] uh at Senator Frist and his eagerness

[153:46] for border security that resulted in

[153:48] what is basically an amnesty and a

[153:50] sellout uh in its entirety in that

[153:52] Senate legislation which he and Senator

[153:54] Kennedy and Senator McCain and others

[153:57] hailed as some sort of profound

[153:59] historical achievement by the Senate.

[154:01] We're looking at uh Dennis Hastard, the

[154:03] speaker of the house, James Cinson

[154:05] Brener, uh leading the judiciary

[154:07] committee, standing up and saying,

[154:09] "We're going to secure the borders." And

[154:10] that's the that's the law they passed.

[154:12] That's right. Every poll shows Americans

[154:14] want our border secured and they frankly

[154:16] don't trust the uh you guys to get much

[154:20] done because this president has played

[154:22] games obiscating the difference between

[154:24] immigration and illegal immigration

[154:26] talking border security and can't even

[154:28] get 6,000 National Guardsmen to the

[154:30] troop uh to the border with Mexico as he

[154:32] promised. I mean, why should we take

[154:34] anything that happens in the Senate uh

[154:37] including your advances seriously? Well,

[154:40] because it it is an attempt to try to

[154:41] bridge that gap between what you

[154:42] described, which was a Senate bill that

[154:45] I did not support and could not support.

[154:47] Even though I would argue my opponent,

[154:48] who I'm running against you, in the

[154:49] political run of my life, you suggest it

[154:51] does support the Senate bill. Uh I

[154:53] don't. And but I do uh I I have problems

[154:56] with some of what the House has done. Uh

[154:58] but the House is right that we need to

[155:00] do border security first. And so my

[155:02] suggestion is let's take the provisions

[155:04] that were in the Senate bill dealing

[155:06] with border security and pass that.

[155:08] Senator San Trump, let me just ask you

[155:10] straight up. What is it in the US Senate

[155:13] that is not understood? What is it in

[155:16] the White House that's not understood?

[155:18] How complicated is it to simply say that

[155:21] almost 5 years since September 11th,

[155:24] this nation, a superpower, has the

[155:26] wherewithal, the political will, and

[155:28] understands its senators understand the

[155:30] need to secure our borders and our

[155:32] ports? Well, I think you see it uh

[155:34] candidly just just played out uh in in

[155:36] the in the coalition that has supported

[155:39] this quote comprehensive reform and it's

[155:41] a coalition of the Wall Street Journal

[155:43] and and some of the uh open markets

[155:45] conservatives, the business community uh

[155:48] who wants a flow of labor into this

[155:50] country. Uh

[155:51] >> did you say cheap labor to exploit?

[155:53] There's no question that uh the vast

[155:56] majority of the labor that's coming in,

[155:57] illegal uh immigration, overwhelming

[155:59] majority, is cheap labor, is low are

[156:02] low-wage workers. And you combine that

[156:04] with the open borders crowd of the left,

[156:05] the Ted Kennedy's folks who who see this

[156:07] as a political opportunity to build a

[156:09] future political base of support for the

[156:11] Democratic party. And that combination

[156:13] has resulted in the bill that we have in

[156:15] the United States Senate today. And what

[156:16] I'm suggesting is uh let's let's you

[156:19] know let's let's stop that and let's put

[156:21] something forward that deals with

[156:23] national security and the economic

[156:24] security of our country.

[156:26] >> Let me ask it just straight up this way.

[156:28] Would you be willing to support what the

[156:30] House has uh already passed

[156:34] >> uh

[156:34] >> without without any other uh addendums?

[156:38] >> Well, the only I I have a couple of

[156:40] problems with the with the House passed

[156:41] bill. Actually, one of them is very

[156:43] interesting. this whole provision uh

[156:44] saying that crossing the border would be

[156:46] a felony. I have a problem with that.

[156:48] Not because I don't think

[156:49] >> but James Sensen Brener, the chairman of

[156:50] the House Judiciary Committee has

[156:51] already said that's out.

[156:52] >> That's out. Oh. So, so I guess my point

[156:55] is with some of the changes that people

[156:57] have talked about, I could support it,

[156:58] but not as originally passed because I

[157:00] think there's some problems in the

[157:01] original pass bill House bill.

[157:03] >> Senator Rex Santorm, we thank you for

[157:05] being here.

[157:05] >> Thank you.

[157:06] >> Up next here, three of the nation's most

[157:08] provocative and intelligent political

[157:10] analysts and commentators join me. And

[157:12] the Middle East tonight on the verge of

[157:14] allout war, sectarian violence in Iraq

[157:16] and Israel on the move in southern

[157:19] Lebanon. One of the country's top Middle

[157:21] [music] East analysts, Ladami joins us.

[157:23] And after a productive day in space for

[157:25] the astronauts at the International

[157:27] Space Station, NASA [music] may be

[157:29] getting back on course. Stay with us.

[157:34] >> Here we go.

[157:37] >> Um, I'm sorry, Jake was next.

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[159:36] Israel tonight is giving every

[159:38] appearance of preparations for allout

[159:40] war. Israeli troops, tanks, aircraft,

[159:43] and ships are on the move. Israel has

[159:45] been bombarding southern Lebanon

[159:47] throughout this day. Israeli troops are

[159:50] advancing into southern Lebanon, and

[159:52] reserves have been called up. There is

[159:54] also rising sectarian violence in Iraq.

[159:57] The commanding general in Iraq today

[159:58] said US troops could be called back to

[160:00] patrol the streets of Baghdad. Joining

[160:03] me now is Fuad Jami. He's one of the

[160:05] world's leading authorities on the

[160:06] Middle East and Islam. He's professor of

[160:08] Middle East studies at John Hopkins

[160:10] University and he is the author of the

[160:12] new and very important and beautifully

[160:15] written book, The Foreigners Gift: The

[160:18] Americans, the Arabs, and the Iraqis in

[160:20] Iraq. Vad, it is a great pleasure to

[160:22] have you here.

[160:23] >> Thank you, dude.

[160:23] >> Let me start by complimenting you on a

[160:25] book that is very important to all our

[160:28] understanding.

[160:29] >> My publisher would love you. Well, I I

[160:32] have to say that uh this book is

[160:34] important. It puts in so much in

[160:36] context, but as we are listening to

[160:38] General Casey today, Fouad say that US

[160:41] troops may be not withdrawing, but

[160:43] rather moving back to patrol the streets

[160:44] of Baghdad, a law enforcement role as

[160:47] we're watching Israel on the advance in

[160:49] Lebanon,

[160:49] >> right?

[160:50] >> Uh let let's start with Iraq. Yes. And

[160:53] let's use one of uh if I can paraphrase

[160:56] one of your titles and a center point.

[160:58] Um, where does all this end in Iraq?

[161:01] >> Well, I think we are deeply committed

[161:03] and deeply engaged in Iraq. And you're

[161:04] right. I mean, General Casey, one of our

[161:06] top commanders, an amazingly honest and

[161:08] candid man, he understands the

[161:10] situation. The battle has been joined,

[161:12] Lou, in Iraq. In fact, the Sunni Arabs

[161:14] had a free go at it for a long, long

[161:16] time. They went at the Shia and they

[161:17] went at them with abandon. They killed

[161:19] them wherever they could find them. They

[161:21] targeted them. They targeted them

[161:23] everywhere. And now all of a sudden now

[161:25] the the Shia militias have found their

[161:27] way into the into the battle and you

[161:29] have these boys of Mkhtad Sar this

[161:31] radical brigant this radical cleric and

[161:34] they have come out of Sra City to engage

[161:36] in this fight and so we have not quite

[161:38] civil war but we have something

[161:40] approaching civil war.

[161:42] >> It's approaching civil war and is there

[161:46] any doubt in your mind that we will see

[161:47] it uh explode into civil war? Well, I

[161:49] think there is something, you know, the

[161:51] the positive news, if you will, out of

[161:52] Iraq. I mean, there is now a government

[161:54] in the country which is really committed

[161:55] to national unity. This new prime

[161:58] minister, Nur Malik, is a very decent

[161:59] man. He's eager. He's engaged in a

[162:02] program of of national reconciliation.

[162:04] He's invited the Sunni Arabs to have a

[162:06] piece of the of the politics of the

[162:08] country. He's even gone out of Iraq. And

[162:10] if you notice a few days ago, he was in

[162:12] Saudi Arabia and Kuwait and the United

[162:13] Arab Emirates courting the Sunni Arabs

[162:16] around Iraq in order to to cap the

[162:18] volcano in his own country.

[162:20] >> The volcano in his own country and that

[162:23] volcano is uh it seems uh becoming far

[162:27] more active uh and certainly moving

[162:29] nothing toward nowhere near uh

[162:32] dormcancy. Uh what can the United States

[162:36] do here? Are we so as you say committed

[162:38] and so engaged that extrication is

[162:41] unthinkable at this point or is that

[162:43] unthinkable?

[162:44] >> Well, I think there there are two things

[162:45] that are happening in in Iraq. There is

[162:48] one the training of the Iraqi army is

[162:49] really going at pace and it's it's quite

[162:51] quite advanced and it's actually doing

[162:53] very well. The training of the police is

[162:55] a very different world. The police is

[162:57] really the sectarian militias by another

[162:59] name. Because when the Sunni Arabs

[163:01] boycotted the government, what happened

[163:02] is the young Shia boys went into the

[163:05] police and the interior ministry and the

[163:07] police forces have become an extension

[163:10] of the Shia militias. This is really

[163:11] where the Shia are striking back at the

[163:13] Sunnis who've goded them into this

[163:15] battle.

[163:16] >> Um the idea that the 22 Arab states

[163:21] >> Yeah.

[163:22] >> are doing nothing to support the United

[163:24] States. In point of fact, they're

[163:25] supporting uh in most cases uh as you

[163:29] document uh they're supporting the

[163:31] insurgency and the Sunnis who a minority

[163:35] have held sway over the Shia, the

[163:37] majority and the Kurds of course uh for

[163:40] decades.

[163:42] Why can the United States not come up

[163:44] with a foreign policy that says to Saudi

[163:46] Arabia, to Syria, uh to Egypt?

[163:50] You will either be our friend and you

[163:52] will support Iraq or you will be our

[163:54] enemy.

[163:55] >> Well, you've asked a very noble American

[163:56] question as is your habit on this show.

[163:58] I think this is the fundamental issue

[164:00] here. The Arab states around Iraq are

[164:02] eager to see us bleed. They don't really

[164:04] want We are

[164:05] >> absolutely. They don't want us to they

[164:07] don't want to see us fail big time

[164:08] because our shadow falls over that

[164:10] region and we underpin their security.

[164:12] So they don't want to see us fail but

[164:14] they also don't want to see Iraq emerge

[164:16] as a nent and good democracy. And I

[164:19] think our predicament today is actually

[164:21] good in many ways the the the Arab

[164:24] regimes because I've in this book I say

[164:26] that there is a battle between American

[164:27] power and the laws of gravity in the

[164:29] region and they are content to watch us

[164:31] bleed in Iraq and they believe that the

[164:33] laws of gravity will prevail that we

[164:35] will lose this war. We won't because the

[164:37] Iraqis believe me will come to the

[164:39] rescue. This Iraqi army will be reliable

[164:41] in the end. There is a political process

[164:43] unfolding in Iraq and the Iraqis are

[164:45] eager to reclaim their country and to

[164:47] stop this drift toward destruction.

[164:50] >> Destruction. Israel on the march and

[164:52] southern Lebanon.

[164:53] >> Right.

[164:53] >> Where does that end?

[164:54] >> Well, southern Lebanon is by chance is

[164:56] my birthplace. So, it's very close. I

[164:59] think what happened is no government, no

[165:01] sovereign government in the world could

[165:02] countenance the kidnapping of it soldier

[165:04] and stand idly byah. The party of God in

[165:07] Lebanon sought this crisis as a way of

[165:10] controlling the politics of the country

[165:12] and has in fact goed Israel into this

[165:14] battle.

[165:15] >> Will it be an allout war in your

[165:17] judgment?

[165:17] >> I don't think there will be a wider war,

[165:19] but I think fundamentally the question

[165:20] ofah, the question of an armed militia

[165:23] in a sovereign country is a problem and

[165:25] there are all kinds of UN resolutions

[165:27] against that. We need to disarm

[165:28] Hezbollah and we need to bring the

[165:30] Lebanese army to the Israeli Lebanese

[165:32] border

[165:33] >> and Syria and Iran to be held

[165:35] accountable for their support.

[165:36] >> Syria and Iran are accountable. I mean,

[165:38] in fact, the paycheck forbalah comes

[165:40] from Iran and the political and military

[165:42] support comes from Syria and that's what

[165:43] they've done.

[165:45] >> Ojami, we thank you for being here. We

[165:46] want to thank CBS News for permitting

[165:48] you to be here for analysts for uh on

[165:52] the Middle East for CBS News. The book

[165:54] is The Foreigner's Gift. A very

[165:56] important book, a very good read. We

[165:58] thank you very much, Bob. Thank you very

[165:59] much.

[166:00] >> Coming up at the top of the hour here on

[166:01] CNN, the situation room with Wolf

[166:03] Blitzer. Wolf, tell us all about it.

[166:05] He's also Lou, a great teacher. He is my

[166:07] teacher at the John's Hopkins School of

[166:08] Advanced International Studies. Fujami,

[166:11] a good man. Coming up at the top of the

[166:13] hour, Israel on the offensive. We're

[166:15] going to have more on what's going on

[166:17] involving the Palestinian militants and

[166:19] Isbala after the seizure and killing of

[166:22] some Israeli soldiers. We have reporters

[166:24] standing by live in Gaza, Jerusalem, and

[166:27] along the border with Lebanon. The

[166:29] Middle East is only one hot spot on

[166:31] President Bush's radar right now as he

[166:33] gets ready to meet with fellow world

[166:35] leaders. Can they come up with a plan

[166:37] for North Korea? I'll put that question

[166:39] to the point man for North Korea, the

[166:42] assistant US Secretary of State,

[166:43] Christopher Hill. He'll join us live

[166:45] from Beijing. And it was the headbutt

[166:48] heard around the world. Now, the guy who

[166:50] did it tells his side of the story. And

[166:52] it's a story made for Genie Mos. All

[166:54] that, Lou, coming up right here in the

[166:56] situation.

[166:57] >> Looking forward to it, Wolf. Thank you.

[166:59] A reminder to vote in our poll tonight.

[167:01] Has your confidence in your elected

[167:03] officials ever been lower? Yes, in the

[167:05] '90s. Yes, in the 80s. Yes, in the

[167:07] [music] 70s. No. Why do you ask?

[167:10] Everything's baff. Cast your vote at

[167:12] ludobs.com. We'll [music] have the

[167:13] results coming up here in just a few

[167:15] moments. Astronauts from the shuttle

[167:17] Discovery today completed their third

[167:19] spacew walk. They tested m uh materials

[167:22] that could be used to repair a damaged

[167:24] space shuttle. The astronauts applied

[167:26] ceiling putty that would fill cracks and

[167:28] a damaged heat shield. This is the final

[167:31] spacew walk planned for Discovery's

[167:32] mission while it's docked at the

[167:34] International Space Station. Up next

[167:36] here, another look at your thoughts on

[167:38] the war on our middle class. And I'll be

[167:40] talking with three of the country's top

[167:41] political analysts in this country about

[167:43] illegal immigration reform. North Korea,

[167:46] Iran, Israel, and a great deal more.

[167:49] Stay with us.

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[170:38] >> Don't wait an hour for morning news. 6

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[170:44] >> Joining me now from Washington, Diana

[170:46] West, columnist, Washington Times. Here

[170:49] in New York, Democratic strategist

[170:50] Robert Zimmerman and John Fun,

[170:52] columnist, Wall Street Journal. Good to

[170:54] have you all here.

[170:56] Let me ask you this. Uh we have right

[171:00] now uh Israel advancing into southern

[171:02] Lebanon, an insurgency that is on the

[171:04] rise in Afghanistan, rising sectarian

[171:07] violence in Iraq,

[171:09] >> uh a host of issues. Uh North Korea,

[171:12] Iran, Syria, uh this administration is

[171:17] surrounded by challenges to what uh is

[171:20] generally regarded a superpower. How is

[171:23] this administration responding? How

[171:25] effectively?

[171:26] >> Well, Lou, the administration is

[171:28] responding but not effectively. And I

[171:30] think that the whole world and what I

[171:31] mean by the world is the free world is

[171:33] not responding effectively. We have to

[171:35] start connecting some dots between this

[171:37] violence in Israel, this violence in

[171:40] Umbai or we used to say Bombay uh this

[171:43] violence across uh across the

[171:45] continents. We have a problem with

[171:47] Islamic jihad and the administration

[171:50] needs to start seeing these things not

[171:52] as isolated incidents but as part of a

[171:54] pattern.

[171:55] >> Uh John, as Diana says, this

[171:58] administration has been resistant to say

[172:00] uh that this is a global war on radical

[172:03] Islamists and instead prefers the uh

[172:07] rather innocuous uh tepid war on terror.

[172:12] Yes.

[172:12] >> Why not declare and name the enemy?

[172:14] Well, it's more important to be resolved

[172:16] than rather than talk about the

[172:17] semantics. I think it's very important

[172:19] that we prosecute the war and we go

[172:21] after everyone. If the if the if there

[172:23] are any connections to the U Middle

[172:25] Eastern terrorists in India, we have to

[172:28] go after that as well. The bottom line

[172:30] though is resolve more than rhetoric and

[172:32] sematics. [snorts]

[172:33] >> I wouldn't agree with that only because

[172:36] you have to define your enemy otherwise

[172:38] people don't know what their resolve is

[172:39] about. I think we pretty clearly know. I

[172:40] think we very much know who our enemy

[172:42] is. And I think the reality is what

[172:44] we're seeing is an administration that

[172:46] put all of their all of their eggs in

[172:48] one basket. They put us into a quagmire

[172:50] in Iraq. And in fact, that has weighed

[172:52] us down from dealing effectively with

[172:54] combating terrorism around the world.

[172:56] And that's the real issue here.

[172:57] >> And at home, [snorts] the we are

[173:00] witnessing the spectacle of the Senate

[173:03] uh conducting hearings on legislation

[173:05] that effectively was passed more than a

[173:07] month ago. Yesterday, John Fun, we had

[173:11] General Peter Pace, the chairman of the

[173:12] Joint States, uh Monday rather, uh

[173:15] crying at a hearing in which there was

[173:18] no distinction made on the part of

[173:19] anyone at that hearing. Uh no difference

[173:22] between legal immigration and illegal.

[173:25] Is this purposeful uh obiscation or was

[173:28] that simply an accident of semantics?

[173:30] This debate has become completely

[173:31] muddled because people are scared.

[173:33] They're scared that the country has lost

[173:35] control of its border. Uh I think we

[173:37] have to look back to the last great

[173:38] immigration crisis we had which was in

[173:40] the early 1950s which was the first year

[173:42] in 1954 when we hit over 1 million

[173:44] illegal alien arrests. We solved that

[173:46] crisis and you know how we did it Lou? A

[173:48] comprehensive approach more enforcement

[173:50] and the Brero Guest worker program. It

[173:53] worked 50 years ago. Exactly.

[173:54] >> I think we're facing a very different

[173:55] set of problems here. We're dealing with

[173:57] a Congress and a president that have

[173:59] refused to show any leadership in

[174:01] addressing this matter. These hearings

[174:03] are a sham and there there's no

[174:05] confusion about semantics. There's every

[174:07] effort to offiscate the issue and delay

[174:09] it till after the midterm elections.

[174:11] >> Donna West,

[174:12] >> I think that the that that this is being

[174:14] addressed at the state level. We're

[174:16] seeing states taking control of their

[174:18] own benefits, their own uh uh uh welfare

[174:22] and their own laws pertaining to

[174:25] employers and illegal aliens being

[174:27] hired. Um, people really want something

[174:29] done and they do want the border secured

[174:32] first,

[174:33] >> but the proper way to go about it, it's

[174:34] a federal issue and it's the federal

[174:36] government that has an responsibility to

[174:38] address it. The reality is you have a

[174:40] situation in the Republican party and

[174:41] they control both the presidency and the

[174:43] congress where you've got business that

[174:45] wants the cheap labor and the

[174:47] conservative wing that just wants

[174:48] detention or

[174:50] and in the Senate you have the president

[174:52] of the United States for the purpose of

[174:54] pushing through this amnesty program

[174:55] making the Democrats a majority party

[174:59] making us look more closer to the

[175:01] problem. Governor Bill Owens of Colorado

[175:03] to this week forced the legislature to

[175:06] restrict benefits to illegal aliens, but

[175:08] he also knows that it must come

[175:09] handinhand with a guest worker program.

[175:11] You should have him on.

[175:12] >> Uh I have had him on. We've discussed it

[175:15] quite a number of times, but thank you

[175:16] for the suggestion. Let me ask you

[175:18] another question. Aren't you offended by

[175:20] the fact that the president of the

[175:21] United States and his administration

[175:23] would trot off the chairman of the Joint

[175:24] Chiefs of Staff and put him on display

[175:27] like a trained monkey in a Senate

[175:29] hearing on immigration? I mean, aren't

[175:32] you offended by that?

[175:33] >> I think the joint chief

[175:33] >> No, I'm asking a question. I'm going to

[175:35] answer to you. The joint chiefs of staff

[175:37] have been abused, misused, and used as

[175:39] props on every issue. And I think the

[175:41] job of joint chiefs of staff is frankly

[175:43] outmoded. We probably should go to

[175:44] something.

[175:45] >> They may be outmoded, but those four

[175:46] stars on his shoulder deserve a hell of

[175:48] a lot more respect than what this

[175:50] administration and the Senate

[175:51] demonstrated.

[175:52] >> And just as bad, this administration's

[175:54] attacked our military leaders when

[175:55] they've had the character to go after

[175:57] this administration for their failed

[175:58] policies. Diana, quickly, you got 15

[176:00] seconds to get the last word.

[176:02] >> I think that anyone who thinks that just

[176:04] because their father or grandfather was

[176:06] an immigrant has more to say about

[176:07] immigration also is off the subject.

[176:09] This is an American issue for no matter

[176:11] when your people came here.

[176:13] >> Dina West, thank you very much. Robert

[176:15] Zimmerman, thank you very much. John

[176:16] Fond, thank you very much.

[176:17] >> Thank you.

[176:17] >> Still ahead, the results of our poll,

[176:19] another look at your thoughts. [music]

[176:21] Stay with us.

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[178:41] Now, the results of uh tonight's survey.

[178:44] 87% of you responding [music] that your

[178:46] confidence in your elected officials has

[178:49] never been lower. Taking a look at more

[178:51] of your thoughts. Ida in Indiana, I'm

[178:54] part of the middle class and would love

[178:55] to get a job that Americans won't do.

[178:57] Why are we standing around like cattle

[178:59] instead of trying to save our jobs and

[179:01] our world? Come on, America. Wake up

[179:03] before it's too late for all of us.

[179:05] Scott in New York, I agree. Productivity

[179:07] is up. anyone has taken economics 101

[179:10] understands that when people work longer

[179:12] and harder for less money, that is seen

[179:14] as an increase in productivity. Sandy in

[179:17] Kentucky, what is this about illegal

[179:19] immigrants getting American driver's

[179:20] licenses? We're not just a melting pot,

[179:23] we're just melting. Richard in Alabama,

[179:26] why don't the Democrats seize the

[179:28] opportunity and call the issue the

[179:29] illegal employer problem instead of

[179:31] illegal immigrant problem? Send us your

[179:34] thought at ludobs.com. Each of you whose

[179:36] email is read here receives a copy of my

[179:38] book, Exporting America. Thanks for

[179:40] being with us tonight, and please join

[179:41] us here tomorrow when [music] three of

[179:42] the country's leading climate scientists

[179:44] join me to examine the threat of global

[179:46] warming. What's real? What isn't? We

[179:48] hope you'll be with us for that and

[179:49] more. For all of us here, thanks for

[179:51] watching.