Wolf Blitzer Reports

Will Bush Win His Cabinet Battles?; How Will History Regard the Clinton Presidency?

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

WOLF BLITZER, HOST: Tonight: George Bush's Cabinet nominees and their challenges.

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GEORGE W. BUSH, PRESIDENT-ELECT OF THE UNITED STATES: I do remain confident in Linda. She's a good person and a good -- she'll make a fine Cabinet secretary.

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BLITZER: The choices, the opponents, and the potential roadblocks to confirmation.

The big look to get bigger in the airline industry: American Airlines makes an approach for TWA. But will dwindling options mean unfriendly skies for the flying public? History's verdict on Bill Clinton's presidency: I'll talk with former aides Dee Dee Myers and David Gergen about the successes, the failures, and the unfinished business of the Clinton White House.

Good evening. I'm Wolf Blitzer, reporting tonight from Capitol Hill, where senators are gearing up for potentially stormy confirmation hearings. Eight years ago, most of us, for the first time, heard the names Zoe Baird and Kimba Wood. They were among President Clinton's candidates to become attorney general. But their names were dropped when it was disclosed they had so-called "nanny problems," either illegal immigrants working for them or in-house help who weren't being paid on the books.

Now there's a new controversy, this time involving president- elect George W. Bush's selection to become labor secretary. And that's our top story.

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LINDA CHAVEZ, LABOR SECRETARY DESIGNEE: Thank you very much, Mr. president-elect.

BLITZER (voice-over): Linda Chavez was already under fire even before we learned that an illegal immigrant had lived at her home, did work for her, and was given some money in 1991 and '92. But if president-elect Bush is worried about her being confirmed, he certainly isn't showing it.

BUSH: I firmly believe she'll be a fine secretary of labor. And I've got confidence in Linda Chavez.

BLITZER: At issue is this woman: Marta Mercado, from Guatemala, who was then in the United States illegally. Through an aide, Chavez says she let Mercado stay in her home out of compassion, and did not know at the time she was in the country illegally.

MARTA MERCADO, FMR. CHAVEZ HOME RESIDENT: So I cannot be sure when she knew that I was illegal.

BLITZER: Critics, already angered by her position against affirmative action and an increase in the minimum wage, are using this latest controversy to build opposition to Chavez's confirmation.

GERALD MCENTEE, PRESIDENT, AFSCME: Every time we look at her record and see more of her record, we believe, for working families, it's more negative. You know, it's not more positive.

BLITZER: A spokesman for Massachusetts Senator Ted Kennedy, the ranking Democrat on the committee which will hold the Chavez confirmation hearings, says this -- quote -- "These new disclosures are very disturbing. The cloud over her nomination is certainly getting darker."

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BLITZER: And for more on Bush's Cabinet picks and their confirmation chances, we join CNN senior White House correspondent John King.

John, you and I, we've covered a lot of stories in the past where there were these confirmation potential headaches. How much trouble is Linda Chavez really in right now?

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Well, Wolf, we'll know a lot no more in about 72 hours. The Bush campaign has launched a new investigation of this. The FBI has gone back to interview that woman. Bush campaign lawyers have interviewed that woman. They want to make sure that Linda Chavez told them the truth during the vetting process. If she did, then the question will be: How much of a fight will this be on Capitol Hill?

Tomorrow, the AFL-CIO will officially announce its opposition and mount a sustained campaign against her. Watch two Republican senators in the week ahead on the Labor Committee: Jim Jeffords of Vermont -- he's the senior Republican -- Susan Collins of Maine -- both moderates. Both have pretty good relationships with labor unions. They will be under intense pressure and will be the key swing votes here -- many Republicans today privately saying for the first time, though, that they believe Ms. Chavez is the one Bush nominee who might not make it through the confirmation process.

BLITZER: Well, what about -- on that specific issue beyond Chavez -- are any of the other potential nominees facing some serious questions at all?

KING: Another big meeting in Washington tomorrow: a whole coalition of civil-rights groups, women's groups, pro-choice abortion groups meeting to plot strategy -- some labor people involved in that as well -- strategy against the nominee for attorney general, John Ashcroft. He is in -- probably next to Ms. Chavez -- we all thought his would be the biggest fight. Right now it looks like Ms. Chavez will be the biggest target, followed by Mr. Ashcroft.

But remember back eight years ago. You mention Zoe Bared and Kimba Wood. When you have a complete turn of administrations like this, everybody will have their past looked into, including those likely to ultimately sail through in the end, like Colin Powell.

BLITZER: OK, John King in Washington, thank you very much.

Tonight, there's another development in the investigation of the October 12 attack on the USS Cole which killed 17 sailors.

CNN military affairs correspondent Jamie McIntyre is standing by live at the Pentagon with that -- Jamie, tell us what's going on tonight.

JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: Well, Wolf, CNN was the first to report last month that the captain of the USS Cole failed to do all the things he was supposed to, to protect the ship. But we didn't know whether he would face any discipline. Tonight, we have the answer.

The Navy's top admiral has decided to go along with a recommendation of another admiral not to have any disciplinary action against Commander Kirk Lippold for the security lapses. They have decided that his actions fell within the excepted behavior of a ship's commander, and that many of the security procedures he didn't implement probably wouldn't have made any difference anyway.

BLITZER: Well, what is it, Jamie, that the commander didn't do, specifically?

MCINTYRE: Well, there were about a dozen things that were fairly significant, things like they were supposed to prepare the fire hose to repel boarders, inspect any work boats, keep unauthorized boats away from the ship. And perhaps, most significantly, they were supposed to brief the crew and tell them to be very alert for the possibility of terrorist attack from small boats. And that's something that wasn't done.

BLITZER: OK, Jamie McIntyre at the Pentagon, thank you very much.

On another front, consumer advocates are expressing concern over a proposal that would bring an end to one of the oldest names in aviation. American Airlines is in talks to buy Trans World Airlines, the nation's eighth largest carrier.

Joining us now live from New York's LaGuardia Airport to discuss what this could mean to the flying public is CNN's Frank Buckley -- Frank.

FRANK BUCKLEY, CNN CORRESPONDENT: Well, Wolf, I am at LaGuardia Airport, which most recently has become pretty famous for its delays and cancellations. Our viewers may recall during the past few weeks that we've seen passengers sleeping on cots, being delayed, flights being canceled for various reasons. That's one of the concerns that some consumers have about this proposed merger. They believe that those delays and cancellations could increase.

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(voice-over): Some passengers see scenes like these from the current weary winter of delays and cancellations getting worse if American and TWA come together.

UNIDENTIFIED MALE: There's too many people they're trying to move, too many things going on. If one wet weather system in one area of the country messes them up, it messes up the whole system, because they're dependent upon those planes. So it's -- it wouldn't be a good thing.

BUCKLEY: But this passenger says bigger is better.

UNIDENTIFIED MALE: The small airlines, they offer up cheap prices, but don't necessarily give the service along with them. So they are liable to go out of business.

BUCKLEY: The proposed American-TWA merger comes in the wake of another proposed merger between giants United Airlines and US Airways, which would result, say critics, in less competition and higher fares.

RICHARD COPLAND, AMER. SOCIETY OF TRAVEL AGENTS: Over the last year, airline fares have gone up almost 9 percent. You will see this trend continuing. And almost like a seesaw, as prices go up, as airlines control marketplaces, service goes down.

THOMAS NULTY, PRES., NAVIGANT INTERNATIONAL: You'll see fuller airplanes, probably with less on-board service. And you'll probably pay more for it.

BUCKLEY: But at least one passenger advocate sees the American- TWA merger differently.

UNIDENTIFIED MALE: I think this will be a positive benefit for most air travelers, certainly the people who utilize TWA. This is a great boon for them, because the situation at TWA was pretty precarious on a financial point of view.

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BUCKLEY: So if American does in fact take over TWA, this will mark the end of an airline that itself began as a result of a merger in 1930 -- Wolf.

BLITZER: Frank, if there are people who have TWA tickets down -- tickets that could be used down the road months from now, should they at all be worried about their tickets?

BUCKLEY: That is a natural concern of passengers. But I was talking to Randy Petersen, who runs a Web site, InsideFlyer.com. He's sort of the frequent-flier guru. He was staying that it's his view that, in fact, this will come out as a positive for TWA ticket-holders because of the fact that it was a concern about the viability -- the future viability of TWA. Now those TWA ticket-holders know that, whatever happens in the months ahead, there will be an airline that will honor its ticket.

The downside is, potentially, say 18 months from now, when you -- when American -- if in fact this does take place -- American takes a look at the routes that are out there and says: Gee, maybe some of those TWA routes that we were -- just purchased aren't so profitable, and they pull back on those routes, and there isn't any service at all to those areas.

BLITZER: OK, Frank Buckley at New York LaGuardia Airport, thank you very much.

And up next, the curtain is about ready to fall on the Clinton White House: how the past eight years will be remembered and the view from two people who were on the inside. Stay with us.

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BLITZER: Welcome back.

For all of the power that comes with the job of U.S. president, the one thing no president has ever been able to control is how he is remembered by history.

CNN national correspondent Bruce Morton looks at Bill Clinton's years in office and what factors may influence the Clinton legacy.

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BRUCE MORTON, CNN CORRESPONDENT (voice-over): Presidents want to leave legacies, but they don't always get the ones they want. Lyndon Johnson wanted to make things better for the least fortunate Americans. And he did: The war on poverty didn't beat poverty, but it helped some. The civil-rights laws he got through Congress ended legal discrimination in the South.

But the war in Vietnam, which he couldn't win or end, ate up his presidency. Richard Nixon wanted to be the statesman: detente with the Soviets, an opening to China. But he is remembered as the first president ever to resign, driven from the White House by the Watergate scandal and the prospect of impeachment.

Bill Clinton: Opinions differ. Peacemaker? But Israel and the Palestinians are not at peace. Peacekeeper? What will happen in Bosnia, in Kosovo, when NATO troops leave? No one knows. Prosperity, yes: eight years of a booming economy, but how much credit should he get? Politically, he's the president who brought the Democratic Party back to the center, away from the long-haired hippie image of all those anti-war kids in the 1970s.

Clinton was pro-death penalty. He signed a tough welfare-reform bill Republicans claimed was really theirs -- back to the center. But Republicans captured the House during his presidency for the first time in 40 years. But his legacy? How about first president in more than 100 years impeached and brought to trial in the Senate: the victim, or the willing partner of a White House intern? The impeachment charges amounted to lying about sex. And he was acquitted in his Senate trial.

But his ordeal lasted more than a year and fascinated people here and abroad: a legacy? Certainly the most celebrated, famous, notorious -- choose your adjective -- part of his presidency.

Bruce Morton, CNN, Washington.

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BLITZER: And for what it was like behind the scenes in the Clinton White House and how it will be remembered, I'm joined by two people who were there: in Los Angeles, former White House press secretary Dee Dee Myers. And joining us from Boston: David Gergen, an adviser to three Republicans presidents, as well as to President Clinton.

Thanks for joining us.

Dee Dee, let me ask you, first of all, at this current story over Linda Chavez, the so-called nanny problem: You were there that first year of the Clinton White House, as I well remember. Does this look like a real serious problem for Linda Chavez and George W. Bush?

DEE DEE MYERS, FMR. CLINTON PRESS SECY.: Well, it could be. It depends on what the facts are. It depends on whether Linda Chavez told the FBI and the Bush transition team the complete and total truth, whether she's telling the truth about how she employed this woman and under what circumstances she lived in her home. And then it will depend somewhat on how much it resonates with the American public.

One of the things we realized during the transition in the Clinton administration was, we underestimated the impact of the Zoe Baird situation, which was that she had not only employed illegal immigrants to care for her children, she hadn't paid the taxes on those. That was an issue that resonated with the public. And it was responsible, in the end, for her withdrawal from the nomination as attorney general.

(CROSSTALK) MYERS: I think, with Linda Chavez, it remains to be seen whether -- what the circumstance are and how much it is going to resonate.

BLITZER: You would have thought, David, that the -- that vetting people on the Bush transition would have thoroughly gone through this kind of potential headache with Linda Chavez. Didn't they, apparently, learn anything from that Clinton experience?

DAVID GERGEN, FMR. CLINTON COUNSELOR: I bet they did, Wolf. And I think Dee Dee is absolutely right. If she told -- I'm sure she was pressed on this -- if she told the truth in the vetting process to the lawyers like Fred Fielding, and if she told the truth to the FBI -- I'm not even sure she's had an FBI full investigation yet -- then I believe she'll get through the confirmation process.

If she did not, then support for her within the Bush entourage will plummet and I think they will withdraw the nomination. So I think much depends on that. And then we'll have to see what the additional facts are. Frankly, I think that this whole system was terribly unfair to Zoe Baird and a parade of people in the Bush -- who wanted to come into the Bush administration.

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BLITZER: In the Clinton administration.

GERGEN: In the Clinton administration. I think we chopped these people up very unfairly. And it's now like sort of smoking marijuana: It's no longer a disqualifying offense to have smoked marijuana somewhere in your past. And having an immigrant should not be either.

BLITZER: Dee Dee, we all know what the worst moments of the Clinton administration were. From your perspective, what was the best moment?

MYERS: Boy, I think there were a lot of good moments, too, for Bill Clinton. I mean, one of the best while I was there in the early days was the initial signing of the peace accords between the PLO and Israel, which was a big day. It was Clinton's first big foreign- policy accomplishment. Obviously, I think the first two years were a little shorter on accomplishments than subsequent years. The passing of NAFTA was another big one early on.

And I think President Clinton has done a lot to expand international trade. That's helped keep the economy strong, as we've seen it throughout his presidency. And there were a lot of additional accomplishments on both foreign policy and domestic policy throughout his eight years in office. I think there were a lot of high points.

BLITZER: All right, let me ask David Gergen that same question: What was the best moment?

GERGEN: I think the best two moments that I saw -- and I believe in his presidency -- were when he showed real courage, political courage: one, when he listen to Bob Rubin, Alan Greenspan and Lloyd Bentsen and adopted a budget plan that, frankly, many in his party didn't want, because it was too tough. It cut spending. And it put us on a road -- he pushed it through. The Democrats came in the end. The Republicans didn't support him.

It put us on a road to really getting rid of the budget deficit. And I think he deserves enormous credit for that. Other great moment of courage was the NAFTA agreement. Dee Dee pointed that out. That was something in which the labor movement strongly opposed him, vigorously opposed him. He went against his base. I think he showed real courage on that. And I think he was rewarded. He helped to open up the trade lines here with Mexico and Canada -- especially with Mexico.

And I think that we're going -- I think America is on a much stronger economic position today because of those two early victories, both of which required political guts.

BLITZER: Dee Dee, were you surprised at how the president, over these past couple years, has managed to overcome the damage from the entire impeachment process that resulted from the Monica Lewinsky matter?

MYERS: Well, yes and no. Sometimes, when you're in the middle of the heat of the battle on those things, it seems impossible that Bill Clinton would actually recover. But if you look back over the history of his career -- starting, for me, in New Hampshire during the campaign in 1992 -- one of the most stunning things about him is his ability to recover, his resilience, his unwillingness ever to give up or to quit or to give in to his critics.

He just keeps on keeping on and hanging in. And he has got more lives than, you know, any politician I think we've ever seen.

BLITZER: David...

MYERS: So, on one level, it's not surprising at all.

BLITZER: Well, let me ask David this: Over the weekend, Orrin Hatch, the next chairman of the Senate Judiciary Committee, suggested that George W. Bush pardon Bill Clinton even in advance of any indictment after he leaves office. Today, president-elect George W. Bush was asked about that. Listen to what Bush had to say.

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BUSH: I wouldn't pardon somebody who has not been indicted. I think it's time for the president to allow the president to finish his term. And let him move on and enjoy life and become an active participant in the American system. And I think we've had enough focus on -- on the past. It's time to move forward.

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BLITZER: David, he sounds like a lot like his father, who said very similar words. Is he, in your opinion, suggesting to independent counsel, Robert Ray: End this and just drop the whole matter?

GERGEN: I think that was the subtle -- the message I heard, at least, Wolf, is he sounded to me remarkably like Jerry Ford, who was faced with the question of pardoning Richard Nixon. And he said: I won't pardon him unless he's indicted. And then he went ahead an pardoned him anyway. It sounds like to me, clearly, Governor Bush does not want this issue rolling around and complicating his own presidency. I think he'd like to have a clean slate so he can have an unencumbered shot at trying to be a good president.

BLITZER: All right, David Gergen and Dee Dee Myers, unfortunately, we have to leave it right there. Thanks to both of you for joining us on our program. And just ahead...

MYERS: Thank you, Wolf.

BLITZER: Thank you.

And just ahead: a check of our top stories. Thousands rally in Jerusalem in opposition to the current terms of President Clinton's plan for a peace. Also: the latest in high-tech gadgets from the Consumer Electronics Show in Las Vegas.

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BLITZER: An update now on some of our other top stories: Today, tens of thousands of people rallied against the prospect of a divided Jerusalem, casting more doubt on President Clinton's last-minute attempts to forge a peace deal before he leaves office. Israeli Prime Minister Ehud Barak has accepted Mr. Clinton's proposals in part, which include Palestinian control of Arab holy sights inside Jerusalem. But Palestinian officials have rejected the proposed deal.

In a surprise move, defense attorneys in the Lockerbie bombing trial rested their case today, refusing to call further witnesses. The two Libyans on trial are charged in the 1988 bombing of Pan Am Flight 103, which killed 270 people. Closing arguments are set to begin tomorrow. Court officials say a verdict could be rendered as early as next week.

Ted Turner, the founder of CNN, is launching an initiative aimed at lessening the dangers of nuclear power and proliferation. The foundation, to be run by former Senator Sam Nunn and funded by Turner, is designed to raise public awareness and eliminate nuclear weapons around the world. Turner has committed $50 million a year for the next five years to the project.

A woman paralyzed in a rollover crash reached a settlement today with Ford and Bridgestone/Firestone. Ford lawyers met personally with the woman who was paralyzed from the neck down last year when the tread peeled off a Firestone tire. Her case, set to begin today, would have been the first to go to trial since Firestone ordered its recall in August.

Tonight on the "Leading Edge": California's power crisis. Utility companies are warning the state: New transmission lines are urgently needed to prevent the collapse of its power grid. The transmission system used by state's largest utility is almost 50 years old and cannot support the growing demand.

It's the latest in high-tech: This year's hottest gadgets are being unveiled today at the Consumer Electronic Show in Las Vegas. Among them: a DVD recorder that lets you record right onto a DVD and edit from your computer and a Web tablet that enables you to use the Internet and watch TV wirelessly. And in the Motor City, automakers are rolling out the latest in concept cars. Keeping up with technology, most of the vehicles come equipped with on-board computer with phone and e-mail access. Others come with flexible interiors and programmable instrument panels.

And when we come back, I'll open our WOLF BLITZER REPORTS "Mailbag" and answer the question I'm asked more than any other. Stay with us.

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BLITZER: Welcome back.

Time now to open the WOLF BLITZER REPORTS "Mailbag."

Army Sergeant First Class Stephen Wright e-mails us with praise for the incoming president: "I believe that president-elect Bush will surprise all those who doubt his capabilities in the coming years. As a soldier and veteran of the Gulf War, I will be very proud to have him as my commander in chief."

Another upbeat note from Kevin: "I'm a 26-year-old entertainer, who, over the past few years, has grown a huge interest in American politics. After the election this year, the immature thing to do, being that I voted for Al Gore, would be to whine and blame and convince myself that George W. Bush stole the election. However, I will honor the vice president's wishes and unite with George W. Bush and his Cabinet for a better future. Why can I do this, Wolf? Because I'm an American and live in the greatest country in the world."

Finally, Anisa from Caracas, Venezuela writes with this question: "I was watching your show with my parents tonight. And after the show concluded, my mom said, 'What kind of name is Wolf, anyway?' My dad and I looked at each other in confusion because we didn't have the answer. So I thought I would write you and ask: Where is your name from? How did your parents get the idea to name you Wolf, anyway?"

Anisa, this is the most frequently asked question I get: Is Wolf your real name? The answer is yes. It was my maternal grandfather's name. And, yes, it is my real name.

You can e-mail me at wolf@cnn.com. I just might read your comments on the air.

Stay with CNN throughout the night. Former President Jimmy Carter is Larry King's guest at the top of the hour. Up next: Greta Van Susteren. She's standing by to tell us what she has.

Greta, what's your real name?

GRETA VAN SUSTEREN, "THE POINT": My real name is Greta. And you know what, Wolf? Everyone always asks me if your name is really Wolf. And, in fact, I have a cat named Wolf.

Having said that, tonight on "THE POINT," we're going to talk about the latest challenger in reality TV: "Temptation Island." The network says it's not about sex. But I'll ask my guests.

BLITZER: Whenever they say, Greta, "It's not about sex," we know that's not true. Greta, we will be watching.

Tomorrow night, we'll talk with President Clinton's national security adviser, Samuel Berger. He's been with him for eight years, going back way back to Little Rock. Until then, thanks very much for watching. I'm Wolf Blitzer in Washington.

"THE POINT WITH GRETA VAN SUSTEREN" begins right now.

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