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CNN LOU DOBBS MONEYLINE
Bush to Address Nation Tonight
Aired March 17, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is LOU DOBBS MONEYLINE for Monday, March 17. Here now, Lou Dobbs.
LOU DOBBS, HOST: Good evening.
In two hours, President Bush will issue a final ultimatum to Saddam Hussein. The president will tell the Iraqi leader to leave the country or face destruction. The president will speak to the nation at 8:00 Eastern this evening, 5:00 Pacific.
We have complete coverage for you tonight. From the White House, John King to report on the build-up to the president's speech. And from the United Nations, Richard Roth will report on the end of diplomatic efforts. And from the Pentagon, Jamie McIntyre will report on final preparations for war.
We begin tonight with John King -- John.
JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Lou, as you noted, less than two hours away now, a defining moment in the showdown with Saddam Hussein and a signature moment of the Bush presidency. Mr. Bush, we are told, will tell the American people they must prepare for the possibility of war within a matter of days. Mr. Bush also will say that if there is a war the United States will do all it can to limit civilian casualties.
The president has been preparing for this moment throughout the day. The secretary of state, Colin Powell, today offered a bit of a preview. He says in that speech Mr. Bush will make clear there is now just one way to avoid a war.
(BEGIN VIDEO CLIP)
COLIN POWELL, SECRETARY OF STATE: In his speech he clearly will issue an ultimatum to Saddam Hussein that the only way to avoid the serious consequences that were built into 1441 is for Saddam Hussein and his immediate cohort to leave the country and to allow this matter to be resolved through the peaceful entry of force and not a conflict.
(END VIDEO CLIP)
KING: For all the gravity of this moment, Mr. Bush did take a bit of time earlier today, you see him here, captured by photographers, taking a moment to play with his dogs, Spot and Barney, on the south grounds of the White House. One senior official put it this way: he said the president very much recognizes the gravity of the moment, but feels comfortable and confident with the course he is taking. At this hour, Mr. Bush meeting with key members of Congress to offer them a preview of his remarks tonight. Also to promise them that if there is a military action, and every expectation here at the Bush White House is there will be within a matter of days, that he will quickly send to Congress a request for emergency spending. We are told the price tag will be in the area of $70 billion to $100 billion. That bill could go up as early as next week.
And as we noted, Lou, at the top, less than two hours away now, a direct ultimatum from President Bush to the Iraqi leader, Saddam Hussein: leave power now or face war, perhaps by late this week -- Lou.
DOBBS: John, thank you very much. Our senior White House correspondent, John King, who will be helping lead CNN's special coverage of the president's address tonight, beginning at 7:00 Eastern, 4:00 Pacific. That coverage anchored by Aaron Brown and Judy Woodruff in Washington, Christiane Amanpour and Wolf Blitzer from Kuwait.
The United Nations is making preparations of its own for war. Today it ordered all U.N. staff in Iraq, including weapons inspectors, out of the country. At United Nations headquarters, coalition diplomats have abandoned their efforts to end this crisis diplomatically.
Senior U.N. correspondent Richard Roth reports.
(BEGIN VIDEOTAPE)
RICHARD ROTH, CNN SR. U.N. CORRESPONDENT (voice-over): Monday morning, the U.S. flag going up in front of the United Nations.
Two hours later, a U.S./U.K. Iraq resolution was pulled down from judgment by the Security Council.
JOHN NEGROPONTE, U.S. AMB. TO U.N.: We believe that the vote would have been close. We regret that in the face of an explicit threat to veto by a permanent member, the vote counting became a secondary consideration.
ROTH: Despite enormous pressure, the U.S. was unable to obtain nine votes in favor and blamed France for its veto threat.
JEREMY GREENSTOCK, BRITISH AMB. TO U.N.: That country rejected our proposed compromise before even the Iraqi government itself and has put forward suggestions that would row back on the unanimous agreement of the council in Resolution 1441.
JEAN-MARC DE LA SABLIERE, FRENCH AMB. TO U.N.: They have realized that the majority in the Council is against and oppose a resolution authorizing the use of force. This is the position of the huge majority in the Council. ROTH: With the U.S. closing the diplomatic window, the U.N. took action, ordering the pullout of some 330 people, including weapons inspectors and humanitarian aid staff.
Secretary-general Kofi Annan, frustrated the U.N.'s Security Council powers couldn't work out difference, believes U.S. military action now, without Council approval, runs counter to international law, thus damaging the U.N.
KOFI ANNAN, U.N. SECRETARY-GENERAL: The action is to take place without the support of the Council, its legitimacy will be questioned and the support for it will be diminished.
(END VIDEOTAPE)
ROTH: Now Annan's United Nations team is going to focus on humanitarian aid. As one U.N. spokesman said, "We're usually the cleanup brigade at times like this." A lot of diplomats here concerned about the U.S.-European trans-Atlantic relationship.
And Lou, the foreign ministers of France and Russia want to have a ministerial meeting still on Wednesday no matter what the state of military affairs -- Lou.
DOBBS: And what ever would they be talking about?
ROTH: They will be talking about the need to give Hans Blix and his inspectors more time and what outstanding issues Iraq still had to comply with. Never mind that the inspectors may be out of Iraq by then.
DOBBS: They do understand that the secretary of state has said that diplomatic efforts are ended?
ROTH: Reporters asked, Are you in Dreamland or "Alice in Wonderland?" And they said as long as there's a 1 percent chance, we have to still keep trying.
DOBBS: And Kofi Annan today for the first time, Richard, in my memory said that he regretted that Saddam Hussein had not been more cooperative. His focus had been previously upon President Bush. Is that a change in policy from the secretary-general's office?
ROTH: He has been calling on Iraq to cooperate and he did say several months ago Iraq would face the Security Council responsibilities. Diplomatic jargon and code word, but he's been trying to keep the pressure on Iraq. And he knows that the military pressure is what brought Iraq to cooperate to this level so far.
DOBBS: Indeed. Richard Roth, thank you. Our senior United Nations correspondent.
DOBBS: President bush's closest ally in Europe, British Prime Minister Tony Blair, today held an emergency cabinet meeting to discuss military action against Iraq. That meeting was held without Robin Cook, a senior cabinet member and former foreign secretary, who is a longtime critic of the prime minister's policies on Iraq. Cook resigned from the government because he thinks military action against Iraq should have wider international support.
But the British attorney general said Britain does have the legal authority to attack Iraq under existing U.N. resolutions, all 17 of them.
As war with Iraq appears imminent, two television networks are removing their reporters from Baghdad. Today NBC and ABC announced they are taking their crews out of harm's way. They are the only American television networks to do so. China's Xinhua News Agency has also evacuated Baghdad. CBS, CNN, and the BBC are still keeping reporters in Baghdad, although the British are reducing their staff in the city to eight people. Fox News Channel personnel were expelled from Baghdad last month by the Iraqi government.
Tonight, Saddam Hussein remains defiant. Today, he repeated that Iraq is ready to defeat any U.S.-led attack. His foreign minister said Saddam Hussein will not go into exile to avoid war.
Senior international correspondent Nic Robertson reports from Baghdad.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): A friendly wave from U.N. inspectors as they left for work, maybe suspecting, but not knowing, this was to be their last day of work in Iraq. Visiting six sites, including the Al-Karama Company, where they searched storage facilities containing computer boxes. A typical day, good access, but no breakthroughs.
Outside the Al Taji barracks, where U.N. experts were overseeing the destruction of two more al-Samoud 2 missiles, heavy military guns were being trucked away. War preparations, it seems, well under way.
And not just the military. In Baghdad's food markets, residents stocking up on food. If there is war, we are ready for it, says this shopper. And if there is peace, we'll be ready for that as well. Flashlights popular, too. Many remembering the Gulf War, when electricity was cut.
Political reaction as war closes in on Iraq, acerbic. Foreign Minister Naji Sabri called President Bush a warmonger and accused U.N. Secretary-General Kofi Annan of violating U.N. Resolutions and the U.n. charter by withdrawing weapons inspectors.
NAJI SABRI, IRAQI FOREIGN MINISTER: This means that the U.N. secretary-general has abandoned his own responsibility in maintaining peace and security in the world.
ROBERTSON (on camera): In total ,134 U.N. weapons inspections staff, including 56 inspectors, expect to fly out of Baghdad early Tuesday morning, bringing to an end 108 days of inspections, and apparently any hopes for peace.
Nic Robertson, CNN, Baghdad.
(END VIDEOTAPE)
DOBBS: U.S. officials today said there are new concerns that Saddam Hussein might use chemical and biological weapons if there is an invasion of Iraq. The United States and Britain have almost 300,000 troops within striking distance of Iraq.
Senior Pentagon correspondent Jamie McIntyre has the report.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: As U.S. troops prepare to fight in the face of chemical or biological attack, the United States is citing fresh intelligence that even as Saddam Hussein is insisting he has no banned weapons, he has issued chemical shells to at least one Republican guard unit.
While the intelligence falls short of hard proof, one U.S. official told CNN, "they clearly have given some chemical capability to some Iraqi forces."
Other U.S. officials downplayed the intelligence, calling it "ambiguous and inconclusive." But nevertheless, said there were increased reasons to be concerned Saddam Hussein might use chemical weapons against U.S. troops or his own people.
Meanwhile, Pentagon sources say all is ready for an invasion. Two U.S. aircraft carriers are likely to remain in the Mediterranean Sea, because the U.S. expects to have permission to fly around Israel, and over Jordan to hit targets in the north. More than 1,000 tomahawk cruise missiles are poised on more than 30 ships in the Red Sea and the Persian Gulf. And the 101st Airborne Division in Kuwait now has all of its battle gear and is ready to go, sources say.
Iraq could trigger war sooner by using chemical or biological weapons, attacking U.S. forces or neighboring countries, torching oil fields or creating some other ecological disaster, or taking high- profile hostages. Otherwise, the military will execute the war plan as soon as it considers condition favorable. Sand storms, for instance, could delay a war by a day or two, sources say. But the moon, which is now full, will not. Even though a full moon can make planes and paratroopers easier to see, the U.S. does not want to wait until next month for the total darkness of a new moon.
(END VIDEOTAPE)
MCINTYRE: And while there are always more preparations and more things that can be done to get ready, the Pentagon says it's ready now, as one U.S. Official put it, "essentially the gun is cocked and all that remains is for President Bush to pull the trigger" -- Lou.
DOBBS: Jamie, thank you.
Jamie, Turkey's government has decided to put forward another vote -- for another vote before Turkey's Parliament. U.S. combat forces in Turkey.
What is the significance of that? What is the judgment there about the likelihood that there would be a favorable result?
MCINTYRE: Well, even if it happens at the last minute, the Pentagon says it could use the help from Turkey, particularly in overnight rights, and they would rush a small number of special forces into Turkey to go into the north as well. But it's really too late for the 4th infantry division to make that massive movement through Turkey that was planned. But nevertheless, the U.S. has planned around Turkey, but they're hopeful that at the last minute Turkey can help in some small but significant ways -- Lou.
DOBBS: Jamie, thank you very much. Jamie McIntyre, our senior Pentagon correspondent.
Still ahead here, U.N. weapons inspectors tonight are preparing to leave Iraq. Former weapons inspector David Albright will join us tonight to talk about the threat to Coalition troops and Iraqi civilians from a possible Saddam Hussein biological or chemical weapons attack.
Federal law is supposed to stop companies firing military reservists when they are called up to active duty. But that has not been enough to save the job of one Navy reservist. Bill Tucker will have the report for us.
And on Wall Street the Dow Jones Industrials today rallied 282 points. The Nasdaq and the S&P 500 also making huge gains on the day. Christine Romans will have the market.
And the killer illness that has spread from Asia to Canada and Europe. Tim O'Brien will have a special report tonight. And Steven Corbin of the world health organization will be here to talk about the effort to stop this disease from spreading all around the globe.
That and more when we continue.
(COMMERCIAL BREAK)
DOBBS: Tonight the United States is closer to war with Iraq than at any time in the past 12 years. There is growing concern that if attacked Saddam Hussein will not hesitate to use chemical or biological weapons. Not only are Coalition forced at risk but so too Iraqi civilians.
Joining us now is David Albright former International Atomic Energy Agency weapons inspector, also the president of the Institute for Science and International Security.
David, good to have you here.
DAVID ALBRIGHT, PRESIDENT, INSTITUTE FOR SCIENCE AND INTERNATIONAL SECURITY: Good to be here.
DOBBS: These reports today emanating from the Pentagon suggesting that Saddam Hussein is moving what appears to be chemical weapons forward into position are very troubling. What is your best analysis?
ALBRIGHT: Well, I think if you base your analysis on U.S. information that Iraq has a sizable inventory of biological and chemical weapons and there's no reason to doubt that Saddam would use them. If nothing else just to be vindictive. Particularly against U.S. troops as they approach Baghdad or even as they're in the Southern parts or Northern parts of Iraq. So I think it is a real concern, and U.S. troops are going to need to worry about it. And more importantly, we're going to need to worry about Iraqi casualties because that's really what could backfire against the United States.
DOBBS: Well, I think that to put one level of importance on one or the other, the idea that Saddam Hussein would harm and kill his own citizens is a matter of record. U.S. troops in your judgment, are they adequately prepared for the eventuality of a chemical attack?
ALBRIGHT: My understanding is that they are. And that there have been concerns about that in the past, but I do believe that from what I understand that they are quite well protected. And it really is a question of what's going to happen to the Iraqis if these weapons are used.
DOBBS: A question of what will happen to the Iraqis, certainly that is a concern for everyone. But also this weekend we heard the vice president of the United States say that he is not convinced that Mohammed ElBaradei the head of the IAEA, that the work of those inspectors is necessarily any more valid today than it was 11 years ago. What is your judgment about the assessment by the International Atomic Energy Agency as to the fact that Saddam Hussein does not have nuclear weapons?
ALBRIGHT: Well, ElBaradei said that -- he said two things. One is -- which is a correct statement. They found no evidence that Iraq has nuclear weapons. He added a clause that there's no plausible indication of it. And I think he went too far there. One of the problems nuclear inspectors have encountered this time around is they've been working off a lot of what's turned out to be very bad U.S. intelligence information. There was this case of forged letters involving an attempt by Iraq to get uranium from Niger. There's this aluminum tube story that has not held up at all. And so what you've had is a situation where the inspectors have had to actually waste a lot of their time. And they don't have the resources of UNMOVIC. And so they really haven't gotten to the important issues about whether Iraq has a nuclear weapons program until just about now. On the last inspection mission by a senior team they collected a tremendous amount of procurement information from Iraqi trading companies and are just sitting down now to analyze it to look for patterns of procurement that could suggest or not suggest a nuclear weapons effort.
DOBBS: This inspection regimen that has been undertaken this time, has it -- we find out today that there are only half the number of inspectors in Iraq that we thought there were.
Had they been alerted to leave Iraq previously in your judgment? ALBRIGHT: My understanding is that there was a rotation out of Iraq by many inspectors. I mean, they had three-month contracts, this nuclear team that left, they'd been there for three weeks. But I would imagine that people aren't being replaced. I mean, the writing's been on the wall for at least about a week. And so why send more people in if you do worry that you'll have to evacuate them, and without a clear Security Council resolution with a deadline you can afford to wait. If the inspection process is going to continue, then it'll be fairly open-ended. But I think the bottom line is that a week ago Friday people started to understand that this inspection effort was going to wind down and that both sides of this debate have been locked in. And I think it became apparent over the last couple of days that the United States was completely unwilling to compromise. Even if France had been willing to compromise. Although I wouldn't guarantee that that would have happened.
As a matter of fact, you can accept the guarantee of the French government, David. They said they would not.
ALBRIGHT: Well, just in the last minute if they would have backed down. I mean, that's really the issue.
DOBBS: Immaterial, as they say, and now unfortunately irrelevant to the process. David, thank you very much. David Albright.
ALBRIGHT: OK. Thank you.
DOBBS: Still ahead, Pep Boys may have let down our men in uniform. Bill Tucker will have more on that story for us tonight -- Bill.
BILL TUCKER, CNNfn CORRESPONDENT: Lou, it's a story of honor, duty, and bankruptcy. We'll explain, Lou.
DOBBS: Thanks, Bill.
Also tonight, the government is considering raising the national terror alert level. Kelli Arena will have a report tonight for us on the FBI's plan to protect the home front in the event of war.
And health officials around the world are trying to stop a mystery illness from spreading further. I'll be joined by Dr. Stephen Corber of the World Health Organization for more on what appears to be now a very serious global health threat. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Imagine being fired from your job because you've been called to active duty in the National Guard. That's what happened to one employee of Pep Boys, the automotive repair chain. Bill Tucker has the story.
(BEGIN VIDEOTAPE)
TUCKER (voice-over): Manny, Mo and Jack may be lacking a little patriotic pep. Petty Officer Eric Balodis, member of the Navy Reserves, is suing Pep Boys for firing him after reporting for reserve training on June 27, 2002. That's the day he showed up for training, and that is the day that Pep Boys fired him for abandoning his job.
ANDREA WATTERS, BALODIS ATTORNEY: What happened to Eric was a pattern of discrimination because of his reserve duty obligations. In fact, he was demoted as soon as he had returned from a training tour in Korea. Then subsequent to that, when he was actually terminated, the reason given for termination was that he had abandoned his job when he'd gone to his reserve duty obligation.
TUCKER: Federal law prohibits a member of the reserves from losing his or her job because of a call to military reserve duty. Pep Boys says it abides by that law, and that its policies on leave for military duty are in full compliance with the law. But they also say they will not comment on the Balodis case, as it is ongoing litigation.
However, they do say that Balodis' dismissal was made because of poor job performance.
However, nine months before he was fired, Balodis was called to duty on September 11, 2001. In a letter to the Navy Reserve, the company asked that Balodis be excused from service as he, quote, "holds a critical position in the corporate structure of Pep Boys."
After returning from his training in the summer of 2002, Balodis was unable to find a job for five months.
KATHY BALODIS, WIFE OF NAVAL RESERVIST: Our finances basically went down the tubes really quick. We were living on credit cards to pay car payments, car insurance, groceries at one point. He was getting an unemployment check, but it was very minimal. It was about $200 a month. So that just doesn't pay the mortgage.
TUCKER: The family was forced to sell the home and file for bankruptcy.
(END VIDEOTAPE)
TUCKER: As for Petty Officer Balodis, he's back on active duty in South Korea -- Lou.
DOBBS: What's the next step here?
TUCKER: The case has been moved up to federal court. They have to go to court and go to trial.
DOBBS: And Pep Boys isn't talking about their policy beyond that statement?
TUCKER: No. They say they're in full compliance with the law and they refuse to comment on it beyond to say they're in compliance with the law.
DOBBS: Probably being in compliance with the law is probably not the adequate standard here. TUCKER: One would think that if you were going to take a spin on it, you might get a little more involved in this case. You're exactly right, Lou.
DOBBS: Bill, thank you very much.
In other news across America tonight, Social Security is in a much stronger financial position now than a year ago. Trustees say the program will remain solvent until 2043. But Medicare is in trouble, and it's expected to go broke by the year 2026. Trustees there blame joblessness and high hospital costs for Medicare's problems.
Hundreds of thousands of people turned out for the St. Patrick's Day parade in New York City today. Spring temperatures helped swell the crowd, which was undeterred by heightened security. The parade has been a tradition in New York City since 1766.
Tonight, gasoline prices in this country at an all-time high. Despite falling crude oil prices, the average gallon of unleaded regular costs you $1.728. That's pretty close to $1.73. According to the Energy Department, that's 44 cents higher than a year ago.
Coming up next, U.S. servicemen and women in the Persian Gulf face a new challenge here at home. Casey Wian will have that report.
CASEY WIAN, CNNfn CORRESPONDENT: Lou, the federal government wants to cut funding for a program designed to help school districts in areas with large military populations. District officials say projects like this high school expansion could be in danger -- Lou.
DOBBS: Casey, thank you.
Tonight, President Bush issues a final ultimatum to Saddam Hussein: Leave Iraq or face destruction.
Former Assistant Secretary of Defense Richard Perle will join us with his assessment of the president's strategy.
And with the United States moving closer to war, the national threat level on terrorism could also be on the rise. We'll tell you what the FBI is doing to improve homeland security. That story and a great deal more still ahead. Stay with us.
(COMMERCIAL BREAK)
DOBBS: CNN has learned the White House is considering raising the national terrorist threat level to orange. That would indicate a high risk of attack as the United States heads towards a possible confrontation with Iraq. The threat level is now at yellow, or elevated risk. Sources say a change could come as early as tomorrow.
The FBI today said it's ready to activate its plan to protect the United States in the case of war. FBI agents will step up their surveillance of people who counterterrorism experts say could launch retaliatory attacks. Kelli Arena has the report.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): At the FBI field office in Washington, D.C., agents are gearing up to cover 24/7 shifts. Intelligence shows the nation's capitol is top on the list of possible terror targets and as war with Iraq looms, agents here on the lookout are here for anything suspicious.
VAN HARP, FBI ASSISTANT DIRECTOR: All of our special assets would be available and ready to respond. We'll have an increased number of agents on the street.
ARENA: FBI offices across the country here in the same mode. Officials say many of the bureaus' non-terror operations will be curtailed and the FBI is expected to increase its surveillance activities. Already, a number of Iraqi nationals and former intelligence officials in the U.S. remain under 24/7 surveillance. That number is a small percentage of the hundred or so people in the U.S. who are constantly being watched, suspected of some involvement with al Qaeda or other terror groups.
JOHN ASHCROFT, ATTORNEY GENERAL: We'll be alert and ready, and we'll have high levels of -- of readiness to confront any terrorist attack here at home.
ARENA: Agents have already interviewed Iraq's nationals who they believe, could pose a threat. The FBI has also identified 11,000 Iraqi nationals to interview in the event of a war. Including individuals can contacts back home, whom may be able to help provide information.
(on camera): It is important to underscore that officials say there's no specific or credible information regarding an attack in the United States. In fact, they say, most intelligence points to an attack overseas. However, those same officials stress that it's simply too dangerous to rule anything out.
Kelli Arena, CNN, Washington.
(END VIDEOTAPE)
DOBBS: Our next guest has long called for regime change in Baghdad. Richard Perle is the chairman of the Defense Department Policy Review Board, a resident fellow at the American Enterprise Institute and a former assistant secretary of defense under President Ronald Reagan.
Richard Perle joins us now from our studios in Washington, D.C.
Good to have you here.
RICHARD PERLE, CHAIRMAN, DEFENSE POLICY REVIEW BOARD: Thanks, Lou. DOBBS: The president, in just a little less than an hour and a half, will be addressing the nation, giving Saddam Hussein an ultimatum. What is your best judgment as to the likelihood that Saddam Hussein will accept that ultimatum, go into exile?
PERLE: I rather doubt that he will, Lou. He's had this opportunity for some time now. He might have started a process of negotiating the terms and conditions of his departure. And he's chosen not to do so. I don't think he'll do it now.
DOBBS: To what degree do you believe the French government's policy and opposition to that of the United States has made either disarmament or the exile of Saddam Hussein a more unlikely outcome of this diplomatic process?
PERLE: Well, of course, we will never know whether unity at the United Nations might have persuaded Saddam Hussein to do the thing that the U.N. itself had insisted he do, which is give up the weapons of mass destruction. But, surely, the disunity was an encouragement to him.
DOBBS: And the likelihood of war tonight, the president will make that decision. Saddam Hussein, obviously, will be the one responsible for whatever consequences do flow from that. Is it your judgment that a conflict with Iraq will be quick?
PERLE: I believe it will be quick, largely because there are very few Iraqis who are prepared to fight for Saddam Hussein and even fewer who are prepared to die for him.
So, when it becomes clear that overwhelming force is being brought to bear, many Iraqis will either abandon the field or, in some cases, even join with U.S. and coalition forces.
DOBBS: What, in your -- what do you think happened in the Azores this weekend? The president a week ago was saying that he wanted a vote straight up and down on the Security Council on Iraq, that people should be accountable, those governments should be accountable, and then the decision to withdraw from a vote on that resolution. What do you guess is the reason? Or, if you know, what is the reason?
PERLE: Well, I don't know. I can only guess.
What I think happened is that the very clear declaration by President Mitterand -- I'm sorry -- by President Chirac -- that France was going to veto that -- any resolution meant that getting others on board became almost impossible. They reasoned, quite sensibly, that for them to stick their necks out and support a resolution only to have it vetoed would have been foolish, from their point of view. So, other countries that might have joined with us chose not to do so. And there was no hope of a satisfactory result at the United Nations under these circumstances.
DOBBS: Richard, I want to turn to one thing, that a number of people, following your last appearance here and certainly today, as they became aware that you would be our guest this evening, were talking about the New American Century Project in which, in 1998, you and a number of others called upon the Clinton administration for regime change.
Going through that letter, which is what it was, these people seem to take that as some sort of sinister -- put some sort of sinister tone on it. What's your reaction to that?
PERLE: Well, in 1998, a number of us, including the signers of that letter, believed that Saddam Hussein posed a threat of such proportion that we had to deal with it.
And there he was, expelling the inspectors, scorning and ignoring the United Nations, which had called for inspections. It was clear that, if we didn't deal with this dictator sooner, we would have to deal with him later. And I wish we had dealt with him back in 1998. Many people have died since, as a result of the way he terrorizes his own people. And the war that is now coming may well prove to be a more costly war than would have been the case had we acted in a timely fashion.
DOBBS: Well, let us hope not. And to those who attach some sort of sinister tones to the fact that that letter was written in 1998 and it is now the policy of the United States, if I may, I'm going to just say, www.NewAmericanCentury.org will show you, quite openly and clearly, precisely the writings and the treatises on the subject.
Richard Perle, as always, we thank you for being with us.
PERLE: Thank you, Lou. All the best.
DOBBS: These are the top stories we're following tonight: U.S. troops are preparing for war against Saddam Hussein. President Bush will address the nation, now in less than an hour and a half. The president is expected to give Saddam Hussein a final ultimatum to either go into exile or face destruction. CNN will have special coverage of the president's address. Our coverage begins at 7:00 p.m. Eastern, 4:00 p.m. Pacific.
U.N. weapons inspectors ordered to leave Iraq today, other U.N. employees in Iraq also being withdrawn; they will leave tomorrow. The children of U.S. service men and women in the Gulf and around the world face an additional challenge and burden at home. The schools they attend could lose millions of dollars in federal funding.
Casey Wian has the report tonight from Coronado, California.
(BEGIN VIDEOTAPE)
WIAN (voice-over): More than 1,000 of Coronado School District's 2,800 students have parents in the military. The small resort town near San Diego is home to two Naval bases. Many local parents are shipping out to the Persian Gulf. Some of their children now take lunch breaks in deployment club, talking with others in the same boat.
Administrators here and in similar communities nationwide are angry about a White House proposal to cut $172 million from a program that eases the financial burden on school districts with big military populations.
MARILYN WHEELER, SUPERINTENDENT, CORONADO SCHOOL DISTRICT: I know that the federal government is struggling with their budget as well. But I question the timing. Why penalize the children of the very people who are serving our country?
WIAN: The 50-year-old Federal Impact Aid Program compensates school districts for the fact that they don't receive property tax revenue for families who live or work on military bases, but still must educate their children.
UNIDENTIFIED FEMALE: So I want you to check your math again.
WIAN: The White House wants to end payments to schools for families living in taxable off-base residences. For Coronado, the $200,000 cut would mean layoffs at a time when some students need extra help, such as counseling.
JOHN FORKENBROCK, NATIONAL ASSN. OF FEDERALLY IMPACTED SCHOOLS: It's going to affect their ability to be able to serve some of these children's basic needs, as well as special needs, regarding the military child.
WIAN (on camera): The potential loss of federal impact aid would be another blow to a school district already facing $900,000 in spending cuts because of the state's budget crisis. School district officials say they're worried that projects like the expansion of this high school are now in jeopardy.
(voice-over): The White House says the cuts would be more than offset by nearly $3 billion in proposed increases for other school programs, adding that previous administrations requested similar cuts.
This impact aid proposal was asked for each and every year from 1966 to the year 2001 by every president, from Johnson through the Clinton administration.
WIAN: Districts like Coronado are counting on Congress to restore the funds, which it has done often in the past.
Casey Wian, CNN, Coronado, California.
(END VIDEOTAPE)
DOBBS: Coming up next: the latest on Israel's deadly attack in Gaza.
The World Health Organization steps up efforts to contain a serious illness affecting people around the world. Tim O'Brien will have more on that story for us -- Tim.
TIM O'BRIEN, CNN CORRESPONDENT: Health officials around the globe try to find the origin of what appears to be a mysterious and deadly new disease. Lou, it's already claimed four lives in the last four days.
DOBBS: Thank you, Tim.
For more on the story, we'll be joined by Dr. Stephen Corber of the World Health Organization.
And Merrill Lynch settles charges with the government over its dealings with Enron -- that story and more ahead.
Stay with us.
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DOBBS: In news "Around the World Tonight": nine people killed, 20 others injured during an Israeli raid in Gaza. Palestinian sources say the violence occurred when Israeli forces entered a refugee camp looking for terrorists.
Israel has now apologized for the death of an American protester yesterday; 23-year-old Rachel Corrie of Olympia, Washington, was killed by a bulldozer being used to demolish houses by the Israeli Defense Forces. The State Department has asked Israel to investigate the woman's death.
There is growing concern about a worldwide health threat tonight. A severe type of pneumonia is sweeping rapidly across the globe. It's already killed at least four people, infected hundreds of others. Scientists are scrambling for answers.
Tim O'Brien reports from Washington.
(BEGIN VIDEOTAPE)
O'BRIEN (voice-over): The first clue of some new mystery illness was how quickly large numbers of health care workers in Asian hospitals became infected; the second clue, how quickly what seemed to be the flu became something much worse.
DR. ANTHONY FAUCI, NATIONAL INSTITUTES OF HEALTH: People have a feeling of malaise, aches, high fever, some sore throat. And then, very rapidly, some of them emerge into a serious respiratory distress syndrome with pneumonia. And the people who have gone on to that have been seriously ill.
O'BRIEN: Health officials don't think it's any kind of flu, but haven't ruled it out. They don't know whether it's a virus or a bacteria. Whatever it is, it doesn't appear to be the kind of thing that could be created in a laboratory by terrorists.
E.K. YEOH, HONG KONG HEALTH SECRETARY: There's certainly no suggestion of bioterrorism anything.
O'BRIEN: Officials at the Centers for Disease Control in Atlanta are working around the clock, examining tissue specimens provided by some of the victims. The center's director says, if the illness could be traced to any common organism, they'd have found it by now.
DR. JULIE GERBERDING, CDC: It's emerging in a part of the world where there are great conditions of crowding and a great deal of international travel. And, certainly, it reminds us that we really do live in a global village and that an emerging problem in one corner of the world will soon be an engineering problem for all of us.
O'BRIEN: Although contagious, health officials say casual contact with a victim is probably not enough to become infected. There are no confirmed cases in the United States. But given the ease of travel to affected areas, health officials say they would not be surprised to see the illness turn up here.
(END VIDEOTAPE)
O'BRIEN: And health officials say they're not ruling anything out. Nor should travelers from Asia who develop flu-like symptoms. The Centers for Disease Control says they should check in with their doctors -- Lou.
DOBBS: Tim, thank you very much -- Tim O'Brien from Washington.
Joining us now: Dr. Stephen Corber, Dr. Corber a director of disease prevention and control for the World Health Organization.
Stephen, good to have you with us.
DR. STEPHEN CORBER, WORLD HEALTH ORGANIZATION: Thank you very much. A pleasure to be here.
DOBBS: This is very serious, without any question. When is the last time the World Health Organization issued an international travel advisory for any disease?
CORBER: Well, that's a hard question. It's been many years ago. There was an outbreak of influenza, avian flu from chickens, you may remember, a few years ago in Hong Kong. But that did not result in a travel advisory at that point.
DOBBS: Our viewers want to know, how serious is this? How concerned, how alarmed should they be?
CORBER: Well, I don't think people should be alarmed at this point. But I think it's potentially very serious, because it appears to be a -- an infection that's transmitted by air. And, of course, those are much more difficult to prevent the spread.
And it does appear that it can be serious in a number of people. We have a number of outbreaks in some countries. And we're trying to put together whether, of course, these are related to each other or whether they're distinct or not, because, so far, in the absence of isolating an organism, it's very hard to say that these are all the same thing.
DOBBS: And not being able to isolate the organism and to determine whether it is a bacteria, whether it is a virus, do we know what treatment is helpful here yet?
CORBER: Well, we're starting to get some ideas. But, obviously, the first thing to do is maintenance and to make sure that the patients get sufficient fluids, because they tend to lose fluids, make sure that they can breathe properly -- and seven patients at present are on ventilation systems -- and while we wait for the body's defense mechanisms to recover and fight disease.
In other words, supportive treatment while the patient fights the disease is the treatment at the moment, while various antibiotics are being looked at and other therapies.
DOBBS: Now, we know that pneumonia itself, plain old pneumonia, if I may, is a virulent and deadly disease around the world. Half a million people die from the disease.
How many people -- give us the latest numbers that you have. And your organization, of course, is the authority on this. How many people have been -- have contracted this strain of influenza?
CORBER: The latest numbers I saw from a little bit earlier today were 167 cases that could be linked to this, with four deaths.
There was another outbreak of respiratory illness in southern China, which began in November and went through February, which affected another 300 people. We're not sure whether those cases are linked to these or not.
DOBBS: And a question on everyone's mind is, how serious is this disease, how fatal?
CORBER: Well, we've got four deaths in 167 patients. We haven't proven, of course, that all of those cases died from the same thing. And there may be, of course, additional patients infected or people whose condition worsened. But, at the moment, we have four deaths which are probably linked to this condition.
DOBBS: And you are continuing the travel advisory?
CORBER: Yes, of course. Patients who have high fever, who have cough, difficulty breathing, shortness of breath, and who have been to one of those areas that have been infected or who have been in contact with a patient should see a physician immediately if they get those symptoms, of course.
And I should point out that, so far, all the patients, all the people who were infected, have met those criteria. That is, they have been to those area or been in contact with those people and have -- to have had the symptoms. It's not just reaching anybody who may have been on a plane or walking through the same area or something like that.
DOBBS: Dr. Corber, without trying to concern anyone, one of our producers has just put up a statistic, a historical fact, beneath us, referring to the 1918-1919 influenza outbreak that killed millions of people. There is no suggestion here that this is anywhere nearly so virulent as that disease?
CORBER: It doesn't appear to be at this point. As I mentioned, only the close contacts of people -- extremely close contacts have been people who have been affected so far.
But, as I pointed out at the beginning, one of the reasons that a number of 167 cases, which is not a large number of cases, is bringing such concentrated efforts here is because of the potential. When you have respiratory spread and we don't know quite what it is, we have to focus very hard on trying to determine exactly what we're facing here, because things can, in the wrong circumstances, with the wrong organism, produce much more serious consequences.
DOBBS: Dr. Stephen Corber of the World Health Organization, we thank you very much for your time, sir.
CORBER: You're welcome.
DOBBS: Coming up next, I'll share my thoughts on the failure of diplomacy in the Iraqi conflict.
Also, new fallout from the Enron scandal: The Securities and Exchange Commission today took action against four former Wall Street executives. We'll have that story for you.
And some country music fans have found a new use for their Dixie Chicks C.D.s. That's after some controversial comments from the group's lead singer, who perhaps just doesn't understand entirely the state of Texas.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: The Securities and Exchange Commission charged Merrill Lynch and four former Merrill executives with aiding and abetting securities fraud in connection with Enron. The SEC said those executives helped Enron manipulate earnings by engaging in two fraudulent transactions. Merrill agreed to pay $80 million to settle those charges. As part of the deal, Merrill did not admit any wrongdoing.
Stocks today soared on Wall Street, the market up for the fourth straight session. The Dow, S&P 500, the Nasdaq all up nearly 4 percent.
Christine Romans with the market now -- Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, the Dow is up 600 points in those four days, the biggest run since last October.
Today Caterpillar, AT&T, American Express, J.P. Morgan all up at least 6 percent. Today's rally came on 1.7 billion shares. It's been four days now of 1.5 billion or better. And today, up-volume swamped down-volume by 15-1. For the year, the Nasdaq is up more than 4 percent, but the Dow and the S&P still lower.
Meanwhile, today, bonds tumbled, the 10-year and 30-year bonds down at least a point. And crude prices retreated 48 cents to close below $35 to the barrel. Lou, tomorrow we get a Fed meeting. Don't forget.
DOBBS: Can't wait.
Christine, thanks a lot.
A big backlash against the Dixie Chicks: The country group landed in trouble when lead singer Natalie Maines told a London audience that she was ashamed that the president of the United States is from Texas. And the response: immediate. Radio stations stopped playing Dixie Chicks songs, organized protests to destroy their C.D.s. Maines, who is from the great state of Texas, has since apologized for her remarks.
Still ahead here: As America stands on the brink of war, I'll have a few thoughts about who is responsible for bringing us to this point.
Stay with us.
(COMMERCIAL BREAK)
ANNOUNCER: Tomorrow on LOU DOBBS MONEYLINE: The last U.S. diplomat to meet with Saddam Hussein, Ambassador Joe Wilson, says war with Iraq is only days away. He joins us.
And former Defense Secretary William Cohen will discuss the military's last-minute preparations for war -- tomorrow on LOU DOBBS MONEYLINE.
(COMMERCIAL BREAK)
DOBBS: Well, we've reached a moment of decision.
It is hard to believe that it was four months ago that the Security Council approved U.N. Resolution 1441 that demands the disarmament of Saddam Hussein's Iraq. Even though it was four months ago, that resolution called upon Iraq to disarm immediately, not in days or weeks, nor certainly months, or face grave consequences.
Grave consequences are now at hand. And those consequences are directly and solely the responsibility of Saddam Hussein. But there is some accountability as well, certainly for a lesser degree, for the governments of France and Germany, which, in their pathetic political posturing, have given Saddam Hussein every reason, in my opinion, to believe that he will not be held accountable, that he will not have to disarm or go into exile.
And if such a hope still exists in his mind tonight, Messrs. Chirac and Schroeder and, yes, U.N. Secretary-General Kofi Annan must bear the burden of their inconstancy and their wavering.
And, today, Senator Tom Daschle said he was saddened by events and he criticized President Bush, saying Mr. Bush had -- quote -- "failed so miserably at diplomacy that we're now forced to war" -- end quote. This is the same Senator Daschle who said on the floor of the U.S. Senate five months ago that it is -- quote -- "important for America to speak with one voice at this critical moment."
That critical moment was the day Congress approved the joint resolution that authorizes the president of the United States to use military force against Iraq. Senator Daschle has every reason to be saddened, but by his own words and deeds, not those of the president. President Bush has been clear and constant throughout. And, for that, he deserves great credit, not criticism, from the inconsistent.
That's MONEYLINE for this Monday evening. Please join us tomorrow. Our guests will include former White House economic policy adviser Lawrence Lindsey; former Ambassador Joe Wilson, the last U.S. diplomat to meet with Saddam Hussein.
Thanks for being with us. For all of us here, good night from New York.
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