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While in Europe, President Bush Faces Dissent from Home

Aired July 19, 2001 - 17:00   ET

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


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JUDY WOODRUFF, CNN ANCHOR: This is INSIDE POLITICS. I'm Judy Woodruff in Washington. President Bush launches his European visit, but the doubts that he faced today came not from skeptics abroad but from a key adversary back home.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: I'm John King traveling with the president in Europe. I'll have details of the president's day as well as White House reaction to sharp criticism from a leading Democrat back home.

KATE SNOW, CNN CONGRESSIONAL CORRESPONDENT: I'm Kate Snow on Capitol Hill, where the House has handed the president a victory on his faith-based initiative.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: I'm Bob Franken. The search for Chandra Levy continues as police express deep skepticism about the results of a lie detector test taken by Congressman Gary Condit.

ANNOUNCER: Now Judy Woodruff takes you INSIDE POLITICS.

WOODRUFF: Thank you for joining us. President Bush is finishing up a generally favorable first day of his latest journey to Europe, marked by an amicable meeting and news conference with British prime minister Tony Blair, where the two found some grounds for agreement on the subject of missile defense. The president and first lady, Laura Bush, also paid a visit to Queen Elizabeth.

So far, the controversies surrounding Mr. Bush's trip have come not from abroad but from home, where comments from Senate Majority Leader Tom Daschle have set off an angry trans-Atlantic exchange.

Let's go now to London and our senior White House correspondent, John King -- John.

KING: Well, that's right, Judy. Senator White House aides waking up here in Europe the first day of the president's trip to word that back home in the newspapers, Senator Tom Daschle, the Senate majority leader, quoted as saying that he thinks the president's views on missile defense and global warming are isolating the United States and undermining its leadership on the world stage.

White House aides were furious. Already the president faces a tough sell trying to convince the European allies to move his way, a much more difficult task White House aides say, if those leaders believe the president doesn't have the support of his own constituents back home in the United States. So complaints immediately this morning from the White House -- Karen Hughes, the counselor to the president, complaining, Ari Fleischer, the press secretary, and then the president himself walking over to reporters and saying he did not think it helpful at all that the leading Democrat back home in the United States was so sharply critical of him just as he began a critical international trip.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I think the people of America appreciate foreign policy positions we've taken, that we're not retreating within our borders. And I'll represent the American interests. And secondly, the world leaders have found that I'm a person who speaks plainly and openly about key issues, we're willing to listen. But I will still continue to stand for what I think is right for our country and the world.

(END VIDEO CLIP)

KING: Now as the president was responding in public, his national security adviser, Condoleezza Rice, picked up the telephone. She made a direct appeal to Senator Daschle telling him the White House did not find his comments helpful at all. And a short time later in Washington, Senator Daschle met with reporters and delivered a partial apology.

(BEGIN VIDEO CLIP)

SEN. TOM DASCHLE (D-SD), SENATE MAJORITY LEADER: Had I given some thought to the fact that the president was departing, I probably would have chosen a different time to make those comments. But having said them, I certainly will not back away from my comments. I do believe, though, that there are times and places for evaluations and assessments of the president's record and -- but I think one of those legitimate times to be a little more supportive publicly is when he is traveling abroad. There'll be plenty of times for us to provide more candid assessments at a later date.

(END VIDEO CLIP)

KING: But even though Senator Daschle apologized for the timing of his criticism, Democrats this afternoon back in Washington rushing to point out that on several occasions when the Democratic president, Bill Clinton, was traveling overseas, Republicans in Congress showed no hesitation at all in criticizing him. So this debate about the president's international policy, a little bit of a domestic political debate as well -- Judy.

WOODRUFF: John, people around President Bush were not so much surprised at the substance of what Senator Daschle was saying, were they? I mean, they know that he disagrees with the president on these issues.

KING: They certainly know that he disagrees on the issues. What they were surprised by is, look, this is a very tough sell for the president. Here with Prime Minister Blair today, more importantly, as he moves on to the G-8 summit. European leaders outraged over the president's opposition to Kyoto, skeptical about his missile defense plan. The president making the case that on issues like those -- national security issues, major economic issues -- it used to be that politics stopped at the water's edge.

This is a president, remember, who promised to change the tone in Washington. Since the turnover of the Senate, though, things have been a bit more partisan. And again, even as Senator Daschle backed up a bit today saying he shouldn't have done it at just that moment, the Democrats saying the Republicans are being pretty hypocritical, that almost every time he traveled overseas, especially in the second term, Republicans didn't hesitate at all to criticize Bill Clinton.

WOODRUFF: Well, is the White House acknowledging that, John, the fact that when a Democratic president was in office, this kind of comment, this kind of criticism often came from the other party?

KING: That's exactly right. Senator Trent Lott very critical of Bill Clinton when he traveled on occasion, other Republicans as well. Some of that had to do with the impeachment proceedings in the second Clinton term. Then the White House, then the Clinton White House didn't feel it was helpful for the president to be criticized at all as he traveled overseas. But some of it also had to do with international initiatives, including a military campaign against Iraq at one point. So this part of the game in Washington, but this is the first time it has happened to this president. And his aides this morning, Karen Hughes, was doing a round of television interviews and she made clear to reporters that she wanted to be asked about Senator Daschle's criticism, that she wanted to fight back.

This administration showing a bit of feistiness this morning, a bit of surprise about the timing of it. But again, they're still adjusting to this turnover in the Senate. Karen Hughes saying perhaps Senator Daschle still getting used to his new role. Democrats rushing to support Senator Daschle back in Washington this afternoon. The debate will quiet down this week as the president travels perhaps, and it will pick up when he gets home.

WOODRUFF: John, the two main issues the president said dealing with while he's in Europe on this trip, missile defense and also the Kyoto treaty on global warming. We know the president talked today to the British prime minister, Tony Blair, about this. Any headway?

KING: You can't say there was any substantive headway, Judy, but certainly, any friendship is tested most at a time of strain. Quite a bit of strain between the United States and all the European allies right now on the issues of global warming and missile defense. Prime Minister Blair doing his best today while airing some disagreements with President Bush to try to show that he wants to be a partner with the United States, that he wants to help the United States bridge the gaps with other European leaders.

Take the issue of global warming. President Bush once again insisting he will not heed the European calls to reverse course and support the Kyoto treaty on global warming. Still, Mr. Bush saying he supported the aims, and that his administration would do something down the road. And in that, the British prime minister found a silver lining.

(BEGIN VIDEO CLIP)

TONY BLAIR, BRITISH PRIME MINISTER: Though again, I think it is helpful that the United States is saying, "Look, this is not what we can agree to, but nonetheless, we agree with the aim, we agree with the objectives, and there are proposals that we will make as to how we can get there now." We've got a very strong position and they've (UNINTELLIGIBLE) geared to that as opposition obviously. And but the fact that there is that dialogue there is extremely important.

(END VIDEO CLIP)

KING: Mr. Blair also trying to buy the president a little time on the issue of missile defense. The leaders of France and Germany among those most critical, the president of Russia as well. But Mr. Blair making the case that he Europeans should withhold judgment for now to see if Mr. Bush can sell the Russian president, Vladimir Putin, on a key deal.

The United States wants Russia to set aside the 1972 anti- ballistic missile treaty. That treaty would ban -- forbids the testing and research the United States wants to do in the months ahead. Mr. Bush will sit down with Mr. Putin at a general summit just a few days from now. Mr. Bush saying he hopes to make the case to the Russian leader to negotiate a new strategic framework.

(BEGIN VIDEO CLIP)

BUSH: I'm absolutely convinced we need to move beyond the ABM Treaty and will continue my dialogue with President Putin in a couple of day's time. It is important for him to know once again to hear me say once again Russia is not the enemy of the United States. There is no need for us to live under a treaty that codified a period of time in which the world was divided into armed camps. It's time to work together to address the new security threats that we all face.

(END VIDEO CLIP)

KING: Now both Mr. Bush and Mr. Blair move on tomorrow to that G-8 summit in Genoa, Italy by the tens of thousands anti-globalization protesters already waiting there. And on that issue, Mr. Blair and Mr. Bush say they see eye to eye. Those protesters don't like global trade. They don't want more international trade deals. Both Mr. Bush and Mr. Blair saying they believe those protesters are dead wrong and that more trade and more economic cooperation is the quickest way, the best path to improving poverty, disease and other terrible conditions in developing nations -- Judy.

WOODRUFF: All right, John King reporting tonight, Thursday night, from London.

And now for more fallout from Senator Tom Daschle's comments, let's go to Capitol Hill to our congressional correspondent, Jon Karl.

Jon, what are the Republicans saying up there?

JONATHAN KARL, CNN NATIONAL CORRESPONDENT: Well, Republican leaders not surprisingly jumping all over Tom Daschle for what he had to say about George Bush just as he was heading out on this international trip. The majority leader -- I mean, now the minority leader in the U.S. Senate, Trent Lott, through his spokesperson said this: "It's a sign of his inexperience as a majority leader. It has the potential to undercut the president's position as he tries to cultivate relationships to benefit the United States.

Now, interestingly, Judy, Trent Lott was going to deliver a message like that right on the Senate floor once he heard of Daschle's remarks. But then when he saw Daschle do what John King called that partial apology, the minority leader Trent Lott, decided that he would just speak through his spokesperson.

Meanwhile, Dennis Hastert also jumped on this, the speaker of the House, Republican. He said in a written statement -- quote -- "I think Tom Daschle is wrong. America is not being more isolationist nor does the world take us any less seriously."

And then Hastert flipped it around and tried to use Daschle's comment as a way to get Daschle to work more on the trade issue. He said -- quote -- "If Tom Daschle truly believed that America is not taken as seriously today as we were a few years ago, he would work with the White House and the House of Representatives to give the president trade promotion authority."

Now trade promotion authority, so-called fast-track, is exactly one of the top priorities for Republicans right now. Faces a lot of opposition from Democrats and from Democratic constituent groups like organized labor.

Meanwhile, privately, even some Democrats up on Capitol Hill raised their eyebrows when they heard Daschle criticize Bush at this moment, thought this was not exactly the best time to do it. Of course, expressing those opinions privately and not publicly, but to try to minimize some of that damage. Daschle has been trying to explain exactly the context here when he made these remarks critical of Bush. It was at an hour-long Q&A session with Gannett and "USA Today." It wasn't like he held a press conference to criticize Bush as he was leaving.

They also point out Bush had actually not left the country yet and that Daschle made these comments in response to a single question. And, of course, as you heard Daschle himself say, he would not have done it if he had realized the timing, regrets the timing, but not the content of his remarks.

And they also, as you heard John King mention, are talking about all the criticism that Republicans have made of President Clinton while President Clinton was abroad. The Democratic National Committee has put out a four- page list here of quotes from various Republican leaders. Daschle's people have their own two-page list. An example is Tom DeLay back in March of 2000. While President Clinton was in India, DeLay said -- quote -- "The president of the United States and his foreign policies are a total disaster. I mean, look at Russia, Kosovo, the Baltic, Haiti, the Sudan, China, Taiwan, anywhere that he has had any influence whatsoever." So Democrats pointing out in the past, Republicans leaders have been the ones criticizing the president when it was a Democratic president traveling abroad -- Judy.

WOODRUFF: So Jon Karl, just to sum up, it sounds like the reaction, they're smarting more over the timing of this than the substance. Is that fair to say?

KARL: Well, absolutely. And this was what Daschle regrets. Daschle regrets the timing. You know, generally, the rule up here is don't criticize the president when he's going on an international mission like this. Obviously, Republicans also disagree with Daschle's assessment of the president's foreign policy. But they wouldn't be making such a big stink about it if it wasn't the fact Bush was going over on this international trip.

WOODRUFF: All right, Jon Karl, thanks. Well, some numbers now from a new CNN-"TIME" poll. Forty-nine percent of those surveyed approve of President Bush's handling of international affairs, they say; 34 percent disapprove. Now, back in March, 55 percent said they approved of Mr. Bush's handling of global matters. And that number dropped to 51 percent in May. Mr. Bush's overall approval rating remains more or less steady at 55 percent in our new poll.

Polls standing and notwithstanding, Mr. Bush won a victory in the House of Representatives today. The House approved the president's plan to fund religious charities. CNN's congressional correspondent Kate Snow joins us now.

Kate what happens next?

SNOW: Well, Judy, what happens next is now this goes over to the Senate, which we'll get to in a moment. But first, in the House today, it certainly was a day later than Republican leaders had planned and a little bit trickier than they had planned. This was no easy victory.

(BEGIN VIDEOTAPE)

REP. TOM DELAY (R-TX), MAJORITY WHIP: They've spent 40 to 50 years getting God out of our institutions. And they have fought very long and have been very successful at it. Now we have a president that comes along and says, no, faith is important.

SNOW (voice-over): At its core, supporters say the faith-based initiative is meant to help religious groups help others. The measure allows federal funding to go to religious charities for programs like crime prevention, housing grants and job training. It also includes tax breaks for charitable contributions. Single filers who don't itemize can deduct up to $25 next year. For most people, that means less than $4 in tax savings. The president wanted bigger tax breaks, but the initiative was scaled back after complaints about cost.

The most contentious debate was over one sentence. The bill says a religious organization receiving federal money -- quote -- "shall have the right to retain its autonomy from federal, state and local governments." Democrats and some Republicans argued that means faith- based groups could discriminate in their hiring, avoiding state and local anti-discrimination laws.

REP. JERRY NADLER (D), NEW YORK: On the road to Jericho, did the good Samaritan ask the wounded traveler whether he was of a certain faith, or whether he was gay or whether he was of the proper race? If the answer is no, then why would we think it necessary for churches to do this now with public funds?

REP. ROB PORTMAN (R), OHIO: You've heard opponents say this bill discriminates in employment. Not true. This legislation strictly protects the exemption for religious organizations first established in the civil rights act of 1964. This exemption allows religious organizations to maintain their character and mission by hiring staff that share their beliefs. That's all.

(END VIDEOTAPE)

SNOW: And Republicans realized clearly how tricky this issue was, and they realized that they needed to do something in order to appease some of these concerns. And what they ended up doing, Judy, was going to the House floor today. J.C. Watts, who was the chief sponsor, Republican of this bill, went on the floor, gave a speech and talked about the fact that he would be willing to compromise on the language regarding discrimination, regarding these concerns about discrimination perhaps later on when they get to the conference committee when they're trying to reconcile differences with the Senate -- Judy.

WOODRUFF: All right, Kate Snow at the Capitol.

And now let's turn to CNN's Major Garrett, our White House correspondent.

Major, this was a big victory for the president. Significant?

MAJOR GARRETT, CNN CORRESPONDENT: It's a big victory substantive -- small victory substantively, a big victory politically. The president single-handedly drove this through the House of Representatives, no great secret within the White House. But some senior White House staff are not as enthusiastic about the faith-based initiative as the president is. He asked them about it every single week and he asked House leaders every single week, "How are we doing?"

Many events have been added to the president's schedule the past six or seven weeks to highlight his support for the faith-based initiative. Single handedly, this president pushed this initiative across the finish line in the House of Representatives today. The vote was 233 to 198.

Right before the vote, I talked to some senior administration officials. I said, "What would be a good vote for you?" They said, well, maybe 220. So they got a lot more votes than they were expecting. Now we go to the Senate, where the sledding will be much tougher. But our guest later on today, Senator Joe Lieberman, will be a key player for the White House. He is supportive of this generally, and the White House will plan to invite Mr. Lieberman to the White House upon the president's return from his European trip to block strategy on faith-based initiative with him.

WOODRUFF: The president feels very strongly about this issue, evidently, Major. What's the political strategy that underlies this as well?

GARRETT: Well, there is a very precise underlying political strategy here, and, that is to move the Republican Party to a place it's never been in American political or cultural life: into African- American churches. The president knows that a vast majority, not all, but a vast majority of the social service organizations that provide some of the help that the president talks about through the faith- based initiative are African-American or Hispanic churches, or religious organizations. And if they receive direct federal grants and the president of the United States, a Republican, help bring those grants and funds to them, there will be a relationship between those groups and a Republican president that's never existed before. The president believes that vital.

As Kate Snow pointed out, this is a much smaller program than the president originally proposed. He's willing to take it now. Why? Because he wants a foot in that door both politically and to help address the needs he believes can best be met or at least partially met through social service organizations on the ground.

WOODRUFF: Different subject, Major. The president's blue ribbon commission -- if you'll call it that -- on Social Security has come out with a preliminary report. Now you've seen it. What does it say?

GARRETT: I have seen it. It is a draft report, they emphasize. It's a bipartisan commission the president founded. Among the chief leaders of it is Daniel Patrick Moynihan, Democratic senator from New York, former senator, one whose long spent his time studying the issue of Social Security. It's really sort of a prosecutor's opening argument, you would say, on the case for Social Security reform. Everything about the current system needs to be changed, this report says. It's a bad system not so much for those now, but it's a bad deal for people who are young in America now working their way through the system.

There's some stark statistics that the report points out. For example, if nothing is done to the Social Security system as it currently exists in the year 2020 it says, taxes, payroll taxes will have to be raised by $860 for the average American or if Congress doesn't decide to raise those payroll taxes, benefits will have to be cut by more than $2,200. Report says those are very stark choices, choices Congress has never made before. This system will begin its path toward insolvency in 2016.

So the report says Congress better step up to the plate in a bipartisan way and do something about this, because it's never shown any appetite for these kind of tax increases or these kind of benefit cuts. Of course, the president has said the way out of this is to allow people who are young to voluntarily take some of their payroll tax out, invest it privately. But there's one big catch to that. There are transition costs involved. If you take that money out of the system, how do you replace it? Estimates are that's $1 trillion. This report gives no explanation where that money might come from.

WOODRUFF: We should point out, there's still much more work to be done.

GARRETT: That's right.

WOODRUFF: All right, Major Garrett, thanks.

And stay with us. This is INSIDE POLITICS.

(BEGIN VIDEO CLIP)

BUSH: We want to reduce greenhouse gases. Our strategy must make sure working people in America aren't thrown out of work.

(END VIDEO CLIP)

ANNOUNCER: The backlash over the Kyoto rejection. Senator Joe Lieberman says the president is turning the U.S. into something of a renegade nation. Find out what he means when he joins us just ahead. Plus...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The interest we think that ought to be focused on missing persons. Well, the interest here seems to be focused on a congressman.

(END VIDEO CLIP)

ANNOUNCER: Politics and a stalled investigation. The latest on the search for Chandra Levy. And later, turning the tax rebate into political credit. Bob Novak on whether the GOP will count its reward in dollars or in cents. Live from Washington, Judy Woodruff brings you more of INSIDE POLITICS straight ahead.

(COMMERCIAL BREAK)

WOODRUFF: The search through Washington parks continued today for any evidence linked to the disappearance of intern Chandra Levy. CNN national correspondent Bob Franken joins us with an update -- Bob.

FRANKEN: Well, Judy, that's what did happen today. It was the fourth day for that. But a lot of the story today is what did not happen. The police did not release the Web results, the information from Chandra Levy's last visit to her computer in her apartment on May 1st. She spent several hours. There's a lot of material, an awful lot of sites she visited. Police are trying to decide which ones can be released to the public and enhance the investigation by jogging somebody's memory, restaurants that she surfed, restaurant sites, that type of thing. They're still deciding. There's a hope that it will come tomorrow.

What we also did not get was the final analysis from the FBI of the lie detector test that Gary Condit took by a polygrapher who was, in fact, hired by him. Police have said thus far they're less than impressed.

(BEGIN VIDEO CLIP)

CHIEF CHARLES RAMSEY, D.C. METROPOLITAN POLICE: Our experts are going over it now. FBI, MPD folks taking a look at it, interviewing the examiner to find out what questions were asked and so forth and how he proceeded with the exam. I don't have any results of that, but from what I've been told, there's nothing that's going to come of that that's going to be of any particular use, because we still don't know exactly which questions were asked, what the graph represents. We had no input in this obviously, and it's questionable as to whether or not it will be of any use.

(END VIDEO CLIP)

FRANKEN: It's been 80 days since the disappearance of Chandra Levy and the police are the first to admit, as Chief Ramsey did in an interview with Wolf Blitzer, which will be seen tonight at 8:00 p.m. Eastern, by the way -- they're the first to admit that they're almost no closer, Judy, to solving the mystery than they were on day one.

WOODRUFF: Bob, is it still fair to say, though, that the main focus is Congressman Condit or is it much broader than that?

FRANKEN: Well, as a matter of fact, the police say that Congressman Condit is the focus of news organizations but not necessarily their investigation. They say repeatedly he's not a suspect. They say that they've honed in on any number of other people who they won't discuss but that Congressman Condit is really a fascination to the media.

WOODRUFF: All right, Bob Franken.

Congressman Condit's involvement in the Chandra Levy case has left his political career in doubt, according to a new CBS news poll. While more than half of the registered voters who were polled in Condit's home district said he has done a good job in Congress, only 24 percent said that they would vote to reelect him next year. Fifty- three percent said they would not vote to reelect him and 1/3 of those questioned said Condit should resign his seat immediately.

You can see the rest of that interview with Chief Ramsey, as Bob Franken just mentioned, tonight on "WOLF BLITZER REPORTS," and that is at 8:00 p.m. Eastern.

Turning up the heat on climate change. Ahead, a Capitol Hill effort to move forward on global warming despite the president's position. The latest on the issue with Senator Joe Lieberman.

(COMMERCIAL BREAK)

WOODRUFF: We started this program talking about President Bush's trip to Europe. We've been hearing about Senator Tom Daschle, the Senate Democratic leader, criticizing the president's positions on international issues.

Joining us now, another Democratic member of the United States Senate, one who has taken the lead on the issue of global warming. He is of course Senator Joe Lieberman, who was last year's Democratic nominee to be vice president.

Senator, thank you for being with us. Let me first ask you what do you think about what Senator Daschle had to say?

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: I think Senator Daschle was well within his rights to express a point of view about his concern about the direction in which the Bush administration is taking our foreign policy. We do seem on the outside in so many important international negotiations, including particularly climate change, which is going on now.

And I don't think he undercuts the president. This is not as if, thank God, we're in the middle of a war. This is a meeting the president is going to at which he will find a lot of dissent from foreign leaders, including our allies in Europe, who are not happy with his position on various things. So I think the criticism of Tom Daschle is honestly much ado about nothing. He was just exercising his First Amendment rights.

WOODRUFF: You don't think that as the president arrives in Europe for these important meetings to have the leader, the leader of the Senate of the opposition party saying, making these strong comments undercuts the president?

LIEBERMAN: I really don't, and I think it actually may encourage people in Europe, our allies in Europe who I would guess feel somewhat like Tom Daschle and I do, that there's a large segment of American public opinion that agrees with them. I mean this is a discussion that the president is going to. They're not major critical items that are on the agenda. So I don't think he should feel undercut. I think he'll make his arguments and we'll move on.

WOODRUFF: Senator, as I mentioned, you have taken the lead on one of the issues that's very much on the president's platter as he's in Europe, and that is global warming. The president arrived in Europe saying he's sticking to his guns on this issue. He's not budging at all. What's your reaction to that?

LIEBERMAN: Well, I'm very disappointed. I mean the president has really made the U.S. into a kind of renegade nation on this issue of climate change. The science is clear. The planet is warming. Even the advisory group that President Bush appointed to take a fresh look at this came back and said Mr. President -- about a month ago -- the planet is warming, it is, the evidence grows that human activity is contributing to that warming, and we ought to do something about it. And I think while the Kyoto Agreement is not perfect -- believe me, I was there in Kyoto when it was negotiated -- this is a very complicated worldwide problem that will affect our children and grandchildren if we don't do something about it. And the way to do it is together.

So Kyoto is a process. I wish the president had said I've got some problems with Kyoto, I want to talk to the other great nations of the world and see if we can work it out, instead of essentially saying, or pulling out, we're on our own. I mean, we've got, we are the leading emitter, the creator of greenhouse gases that cause this problem, and yet our representatives in Bonn, Germany at this meeting are essentially on the outside. And they've said that if Kyoto is discussed they're going to walk out of the room. Now, that's not leadership.

WOODRUFF: Well, Senator, let me ask you, if you don't mind, to listen to what the president said today when he was talking with reporters about the Kyoto Treaty and global warming.

LIEBERMAN: Sure.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We want to reduce greenhouse gases. Our is a large economy. We're generating, we used to generate more wealth than we are today, and as a result, we are, we do commit, we do contribute greenhouse gases to the atmosphere. And so we're concerned about it.

But first things first, as far as I'm concerned. Our strategy must make sure working people in America aren't thrown out of work. My job is to represent my country, and I'm going to do so in a way that keeps in mind the ability for people to find work.

(END VIDEO CLIP)

WOODRUFF: Senator Lieberman, in other words, the president's saying if the U.S. were to go forward with the Kyoto Treaty, people are going to be out of jobs.

LIEBERMAN: I just totally and respectfully disagree. This is a problem that we've got years to deal with. Even the Kyoto agreement says that we don't have to meet these targets until 2012. The fact is we have to think about the costs of inaction, extreme weather, disease going to places it hasn't gone before, coastal areas basically flooded.

Senator Ted Stevens, no raving liberal, was before my committee yesterday talking about what he already sees as the consequences of global warming in Alaska, where the pack ice and the sea ice is melting, and fishing villages are already being threatened by rising tides. The point is to calculate the costs of inaction, and also to see this as an extraordinary opportunity for American technology to develop the greenhouse gas lessening technologies to power our society that we can sell to the world. And I actually think if we deal with this problem, it's going to create jobs in America, not lose any jobs.

WOODRUFF: Senator, if I could just turn you to another subject, you were speaking at a meeting last weekend of the Democratic Leadership Council. Among other things, you said Democrats have too often -- and I'm paraphrasing here -- dismissed the importance of faith and the faithful in American life. You said the faithful have often felt unwelcome in the Democratic Party. Was that one of the problems in the Gore-Lieberman ticket losing last year's election?

LIEBERMAN: I don't think so. I mean, I certainly talked about the role of faith in America's public life. Of course, we won the election. I always have to remember that, at least won the popular vote. But it's a warning that I wanted to give, and some of it comes from my experiences last year. Obviously, I was the first Jewish- American chosen to run for national office. When I was chosen, my faith, in that sense, was celebrated, and I was the beneficiary of the most extraordinary tolerance and acceptance, which is characteristic of the American people. But what...

WOODRUFF: And I guess what I'm asking, Senator, is were Democrats, led by Al Gore and by you, too quiet on some of these issues?

LIEBERMAN: I don't think so, and the reason, I actually spoke from that experience. I said once I started to actually express my faith, instead of being the beneficiary of tolerance about it, and give thanks to God for the opportunity I had and everything else that's been so good in my life, and talk about the role of faith in public life and the need for it, I found that some of my fellow Democrats were saying to me go quiet on this, lay back on it. And I think that's wrong.

I always believe in the separation of church and state. But within that constitutional area, there's a lot of room to welcome people of faith into public life and to work with faith institutions to make this a better country.

WOODRUFF: What is one thing the Democratic Party could do, you, other Democrats could do to reach out to those of strong religious belief?

LIEBERMAN: I think it begins with expressions of respect. It begins with an acknowledgement that when you take faith out of America's public life, or as one theologian said, out of the public square and leave it naked, that other institutions fill the square and they're not a source of the same kinds of good values that religion is.

Secondly, I believe that we ought to try to have a program in which the government works with faith-based institutions to deal with some of our social problems -- drug abuse, violence among kids, homelessness, etc. The faith-based bill that passed the House today, I think, has some provisions that trouble me because they seem to open the door to the federal government overruling state and local ordinances and laws that protect people from discrimination. So I'm going to try to draft a similar but different independent bill in the Senate to see if we can find a good way for the government to bring in faith-based institutions to empower them to partner with us and help us solve some of the most perplexing problems in our country today, and I think they can do it.

WOODRUFF: Senator, we have to wrap up. Is that something the president's going to go along with, your alternative there?

LIEBERMAN: Well, I hope so, because we have common objectives. I just think they've left some language in this bill that passed the House today that is not inclusive, as this bill should be, but is divisive and seems to open the door to overriding local anti- discrimination statutes. That's not right and it's not necessary.

WOODRUFF: All right, Senator Joe Lieberman.

LIEBERMAN: Thanks, Judy.

WOODRUFF: Good to see you. Thank you.

LIEBERMAN: You, too. Bye-bye.

WOODRUFF: And we want to let you know that tomorrow our John King will have an in depth interview with the president's national security adviser, Condoleezza Rice. You can hear her views on the issues facing the administration right here on INSIDE POLITICS.

Cleaning up in Baltimore, the latest on the aftermath of a derailed train that tangled traffic and delayed an Orioles game at Camden Yards. That and some of the day's other top stories just ahead on INSIDE POLITICS.

(COMMERCIAL BREAK)

ANNOUNCER: More INSIDE POLITICS with Judy Woodruff coming up. But first we go to Bill Hemmer at CNN Center in Atlanta for a look at some of the day's other top stories.

BILL HEMMER, CNN CORRESPONDENT: And good evening. A freight train that derailed in a tunnel in Baltimore continues to burn and leak hazardous chemicals. Officials canceled both of the Baltimore Orioles' games against the Texas Rangers today. So far, only six of the train's 60 cars have been pulled from the tunnel. Officials say that work there is slow and difficult.

(BEGIN VIDEO CLIP)

ROBERT GOULD, CSX: Very simply put, you're vacuuming the product out of one tanker and you're putting it into another tanker and then pulling that tanker car away. We want to get those two cars out of the way that are in front of that hydrochloric acid car. Once we do that, we have a clear shot to pull the tank car out.

(END VIDEO CLIP) HEMMER: That accident that took place yesterday afternoon has also disrupted travel and business in the city. And the National Transportation Safety Board now investigating what happened yesterday.

Sources say the federal government wants another Firestone recall. Federal highway officials hope to hear by tomorrow whether Firestone will call back millions of more tires voluntarily. Nearly a year ago, the company recalled more than six million tires made at its plant in Decatur, Illinois. Sources close to a federal safety investigation say if the new recall occurs, it would affect other models of tires and expand beyond the Decatur plant in question.

The journey home under way for fugitive Ira Einhorn. This afternoon, he was hauled from his home by French police to be returned to Pennsylvania for a murder trial. The former hippy radical lost his final appeal against extradition, this in the murder of his girlfriend, that took place more than 20 years ago.

Katherine Hepburn still in a Connecticut hospital. A few moments ago a spokeswoman there said that Hepburn's condition has improved and she's in stable condition. She's been able to sit up in bed, is awake and alert. The hospital has not released the reason for Hepburn's hospitalization. At the age of 94 she suffers from arthritis and Parkinson's Disease. The four time Academy Award winner expected to be discharged from that hospital in a few days time and Hepburn makes her home there in the state of Connecticut.

Northwest Airlines slashing jobs, reducing flights and closing facilities in an effort to cut costs and financial losses. A total of 1,500 jobs will be lost there at the airline. Those job cuts came the same day that the three largest air carriers, Delta, United and American, announced quarterly financial losses totaling nearly $900 million.

There are more problems for the crew of the space shuttle. After spending much of today repairing tiny air leaks, more leaks have been found on the space station Alpha. Those newest leaks were inside the portal for space walks. A NASA spokesman says all the leaks are expected to be repaired in time for tomorrow's space walk.

About 17 minutes away in the first evening news, a lot more on these stories and a whole lot more. We'll see you then. But for now back to Washington and more with Judy -- Judy.

WOODRUFF: Thank you, Bill. And we will see you a little bit later.

Congressman Gary Condit is under heavy pressure. Will he resign? And what do his fellow Democrats think? When we come back, Bob Novak will tell us what he's heard about that and other political developments.

(COMMERCIAL BREAK)

WOODRUFF: Joining us now with his reporter's notebook, Bob Novak of the "Chicago Sun-Times." All right, Bob, we understand those tax rebate checks have become a political issue. Tell us about it?

ROBERT NOVAK, "CHICAGO SUN-TIMES", CNN POLITICAL ANALYST: Absolutely. The Senate Democratic leader, Judy, Tom Daschle, is complaining they're not going out in time and the Republicans are going to try to make the most of it. In Kansas City tomorrow, the secretary of the treasury, Paul O'Neill, and Vice President Dick Cheney will give a little speech explaining how good this is going to be for the economy and for the American people.

Some people wonder whether some millionaire white men are really the people that are going to tell people how much $600 is going to help. But at least the president is going to be hooked in from satellite on his European trip. But it's all politics.

WOODRUFF: It all depends on your perspective. Bob, Congressman Gary Condit, some Democrats looking closely at his district. What are they saying?

NOVAK: Well, they are very happy that he's not going to resign, or at least he says he's not going to resign because a Republican will win the special election. But what they also want him to do is announce he won't seek reelection because he can't be reelected. That is going to be a tough district to reshape and put more Republicans in because Condit was so strong that previously they were going to take Democrats out of his district and give it to an adjoining district.

So that, the odds are that district is going to go Republican even if the legislature tries to reshape it.

WOODRUFF: All right, we're flying from one issue to another, but, Bob, Republican Congressman John Boehner has now agreed to chair the joint House-Senate conference committee on the education bill. You'd think the Republicans would be happy about that, but they're not. What's going on?

NOVAK: They're not a bit happy because that means under the alternating system that Senator Ted Kennedy will chair the conference, if there is one, and I think there will be one, on the Patients Bill of Rights, which is a much tougher issue than education. They would rather have Ted Kennedy do the education and not have to worry about him on Patients Bill of Rights.

WOODRUFF: And, Bob, you've decided that someone holds the most endangered Republican seat in the country. What's that?

NOVAK: I asked a leading strategist in the Democratic Party who it was and he said Senator Bob Smith of New Hampshire is the most endangered incumbent Republican, if he's nominated. But if John, Congressman John Sununu is nominated, it becomes a much less endangered seat.

So naturally the Democrats are hoping that Sununu won't get in this race and that Bob Smith runs, because they think that he is very highly beatable in what's going to be a fierce battle for the Senate in 2002.

WOODRUFF: And finally, a little bit of news, an update on New Jersey Senator, Democrat Bob Torricelli.

NOVAK: Congress -- Senator Torricelli, Judy, is telling his colleagues in the New Jersey Democratic delegation that his legal problems are going to be over within the next month, that the Justice Department is going to get off his back. That means he's not going to be indicted.

Now, I, the Democratic strategists I talked to say if he were indicted, he could not be elected. He's going to be, have an uphill fight for reelection, or a difficult fight for reelection anyway. But Torricelli is very confident and that is the word he's put out to Democratic congressmen, including, Judy, some who were thinking of running for the seat, and I think that's why he's saying don't run yet, I, Bob Torricelli, am still around.

WOODRUFF: All right, Bob Novak, we always love looking in your notebook. See you around soon.

NOVAK: Thank you.

WOODRUFF: And now we have some notes from our sources say department. CNN has been told that despite lingering bitterness over the fate of his campaign finance reform initiative in the House, Republican Senator John McCain has pledged to campaign actively for Republican House candidates next year. McCain met yesterday with Congressman Tom Davis, who heads the House GOP campaign efforts.

Now, separately our Kate Snow on Capitol Hill has learned that President Bush has been actively lobbying moderate GOP House members as they prepare to debate a so-called Patients Bill of Rights next week. Aides say Mr. Bush has convinced several moderates to drop their support for a sweeping patients' rights bill in favor of a more scaled back version, although Democrats dispute those claims.

And our Congressional producer, Dana Bash, tells us that House and Senate Republicans plan a rare joint caucus on the House floor next week. GOP aides say that it is imperative, they think, for both sides of the Capitol to come together around a unified Republican message before they leave for a month long summer recess.

Putting on a united front: why presidents past enjoyed bipartisan support on international issues. Coming up, our Bruce Morton on what's changed.

(COMMERCIAL BREAK)

WOODRUFF: Majority Leader Tom Daschle's criticism of the Bush policies brings to mind the adage politics should stop at the water's edge. But should international policy be bipartisan? Our Bruce Morton on the changing nature of the support back home.

(BEGIN VIDEOTAPE)

BRUCE MORTON, CNN CORRESPONDENT (voice-over): U.S. global policy was bipartisan during WWII. Some Americans couldn't stand Franklin Roosevelt, but no one was rooting for Hitler. It was bipartisan after the war, when internationalist Republicans like Arthur Vandenberg of Michigan took on the GOP's isolationist wing and said yes, the U.S. should join the United Nations, should help rebuild Europe. Republicans in Congress supported President Truman in helping Greece and Turkey resist the communists, supported the Berlin Airlift.

The Korean War was divisive. President Truman fired General Douglas MacArthur as U.S. commander in Korea amidst howls of protest. Dwight Eisenhower got elected in 1952 by promising to go to Korea and end the war. Truman said later he could have had the same settlement Eisenhower got, but that he'd have been impeached for it.

Still, presidents of both parties agreed on the need to contain the Soviet Union, the need for nuclear arsenals to deter a possible Soviet attack. The Vietnam War caused bitter quarrels. George McGovern, in a Senate chamber where members usually compliment their colleagues' wisdom, once said this chamber reeks of blood, as colleagues winced.

President Nixon's visit to China was controversial, but like Vietnam, not on party lines. And bipartisan support for containment, with occasional arguments over how to do it, continued. Ronald Reagan, for instance, drew fire for Iran-Contra, selling arms to Iran so that it would release U.S. hostages and then using the money to fund the Nicaraguan Contras. But on the main international policy front he was negotiating arms reduction deals with Mikhail Gorbachev and both parties supported that.

The first President Bush had bipartisan support as the cold war ended and as he marshaled U.S. and Allied forces to throw Iraq's Saddam Hussein out of Kuwait. A Tennessee senator named Al Gore was among those who supported the president on that. Though Mr. Bush did get criticized later on for not having toppled Saddam instead of just freeing Kuwait.

Bill Clinton, he was strongly for NAFTA, the North American Free Trade Agreement, got it through Congress more support from Republicans than from his own party, bipartisanship again. Republicans criticized Clinton for getting involved in Somalia, which went badly, and in Bosnia and Kosovo, which went well. And George W. Bush gets Democratic support on some issues, trade with China for one, criticism on others, like his plans for missile defense.

(on camera): So some bipartisanship endures, but the big change is that with the cold war over, international policy just doesn't seem that important anymore. Other issues look bigger.

Bruce Morton, CNN, Washington.

(END VIDEOTAPE)

WOODRUFF: INSIDE POLITICS will be right back.

(COMMERCIAL BREAK)

WOODRUFF: Senator Hillary Rodham Clinton went to the National Press Club today to talk about health hazards in the environment. But it was her answer to a question about the 2004 presidential race that caught our attention.

(BEGIN VIDEO CLIP)

SEN. HILLARY RODHAM CLINTON (D), NEW YORK: This is a very creative, imaginative group. No, I have said that I am not running and I'm having a great time being pre -- being a first term -- being a first term senator. You're going to get me in so much trouble. But I do, you know, I do think everyone who wants to run should run.

(END VIDEO CLIP)

WOODRUFF: Verbal slips aside, Clinton said she has plans to serve out her full six year term in the Senate.

That's all for this edition of INSIDE POLITICS. I'm Judy Woodruff.

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