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CNN LOU DOBBS MONEYLINE

Rumsfeld: Only Unconditional Surrender by Saddam Will End War

Aired April 1, 2003 - 18:00   ET

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

LOU DOBBS, CNN HOST: Defense Secretary Donald Rumsfeld today said only unconditional surrender by Saddam Hussein will end the war. Rumsfeld said there will be no outcome that leaves Hussein and his regime in power. The Pentagon said General Tommy Franks has the authority to decide when to launch the ground attack against Baghdad.
Senior Pentagon correspondent Jamie McIntyre joins us now with the story -- Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Lou, the defense secretary used the Pentagon briefing, which is also rebroadcast in Arabic into Iraq, to send a message to the Iraqi people. He said he was denying what the U.S. says is a propaganda campaign to try to convince Iraqi people the war might end by secret peace talks that would stop short of regime change.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, DEFENSE SECRETARY: There are no negotiations taking place with anyone in the Saddam Hussein's regime. There will be no outcome to this war that leaves Saddam Hussein and his regime in power. Let there be no doubt. His time will end and soon. The only thing that the coalition will discuss with this regime is their unconditional surrender.

(END VIDEO CLIP)

MCINTYRE: Rumsfeld tried to focus on the progress the U.S. is making degrading three Republican Guard divisions south of Baghdad. He said they're being attacked from the air and the ground, and he said Saddam Hussein is trying to move troops in from the north to reinforce them, they have been so weakened.

And there was an emotional response to some of the growing criticism that the U.S. might have sent too few troops too late to Iraq. The chairman of the Joint Chiefs of Staff, General Richard Myers, said that charge is bogus and unhelpful and untrue at a time when the U.S. is fighting a war -- Lou.

DOBBS: And Jamie, this is the first time I've ever seen General Myers look very passionate and emotional in any context dealing with this war.

MCINTYRE: He looked like he had some pent-up emotion there. He was -- the question went to general -- to Secretary Rumsfeld but Myers sort of jumped in and said, "Let me answer that question" and gave a -- for about a minute or so a very impassioned defense of the war plan and some of the second-guessing of it. He said that criticism was very misguided, uninformed, and not very helpful.

DOBBS: Jamie, as you know, within the last couple of minutes we've received word from CENTCOM in Qatar that General Vincent Brooks will be making a statement. Our cameras are there. There you see the --the podium at the briefing room at CENTCOM. Do you have any indication there at the Pentagon as to the nature of this statement?

MCINTYRE: Well, it's 2:00 in the morning there, so it would be very unusual to just have a routine briefing. We're given the impression has something to do with the fate of some U.S. military personnel. But to go much beyond that would be speculating, and I think we'll find out very shortly exactly what it is CENTCOM has to say.

DOBBS: All right. And as Jamie pointed out, we are awaiting the statement. There is the podium at CENTCOM. A highly unusual for this -- for General Brooks, who is the principal briefer, along with General Tommy Franks to be making an appearance before cameras at this hour. We will be going to that live at CENTCOM as soon as General Brooks appears on that podium.

Airborne troops fighting to take control of Najaf today said Iraqi forces are offering much less resistance than yesterday. They say the Iraqis have abandoned significant quantities of their equipment as well.

Ryan Chilcote with the 101st Airborne Division has the report.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT: Well, the 1st brigade 2nd battalion, better known as "no slack, " sent more than 500 troops into the outskirts of An Najaf. The troops encountering no resistance, moving from street to street, house to house, with zero casualties.

An Najaf has of course been a problem for U.S. Troops. There was a suicide bombing here not too long ago that killed four U.S. servicemen. Back to you.

(END VIDEOTAPE)

DOBBS: Ryan Chilcote with the 101st.

The Pentagon today said General Tommy Franks alone will decide when to move coalition troops against Baghdad. Joining us now is CNN military analyst general David Grange.

General, good to have you here.

BRIG. GEN. DAVID GRANGE (RET.), U.S. ARMY: Thank you.

DOBBS: The -- the secretary of defense today said that -- made it very clear that the second-guessing going on from some quarters of the military ranks themselves, not the highest quarters certainly, but of those in the field in Baghdad -- in Iraq and some of the carping, if you will, from the Pentagon was just nonsense. What's your reaction?

GRANGE: Well, every -- I don't think I've ever been in a conflict where how the conflict is going was never criticized by someone to include those involved in the operation themselves. In fact, some criticism is good internally just to challenge an existing course of action of a plan. But since I've never seen also -- I've never seen a plan go as planned, the entire time I served, it's to be expected.

I think the problem is enough criticism where it may affect the morale of the troops. I think most of the troops just ignore a lot of these comments in the field, or they don't even hear them because they're too busy fighting.

DOBBS: And they have a few complaints, I suspect, of their own as well.

GRANGE: That's right. I mean, that's -- soldiers, Marines -- I mean, that's just part of being a trooper. I mean, you complain about the food now and then, ammunition, how hot it is, how cold it is, if you're wet. I mean, that's just being a soldier.

DOBBS: But to have this all occurring within less than two weeks of the beginning of this war has to set some new standard for second- guessing and carping, wouldn't you say?

GRANGE: Yes, probably so. I think more so in this conflict Lou, than others, there's a lot of comments, to include retired generals in the media and those that are still serving. And of course, Washington's full of them. And think tanks everywhere. It's just -- you know, commentators are everywhere.

But, you know, again, I think that the people that run the war kind of take it with a grain of salt and just kind of shed it off and then just keep moving on.

DOBBS: We occasionally refer to you, general, as embedded military here. The -- the fact of the matter is that your insight, your counsel on this has been absolutely invaluable.

I want to turn to another statement today by General Myers talking about two Republican divisions being reduced in strength by at least 50 percent. How far do you think they need to go to assure the minimum casualties and the maximum success in advancing against Baghdad?

GRANGE: Lou, what will happen is the decision when to attack with ground forces -- and I'm not talking about limited attacks but a major offensive -- let's say into Baghdad or key objectives in Baghdad -- will be based on the enemy situation in three areas.

One, the physical domain. Is the enemy armor reduced 50 percent? Thirty percent? Or the air defense, or whatever key weapons systems that Central Command believes are critical before they start the attack where they won't lose as many people.

Number two, is the organizational domain. Can the Iraqi leaders command and control and communicate with their forces to coherently fight a combined arms battle with whatever forces they have, indigenous, conventional, et cetera.

And the third area is the moral domain. Do they have the will to fight? Is their morale shattered? Do they want to just give up? Do they have a sense of hopelessness? Those three domains are considered before the command of the coalition forces begins an attack.

DOBBS: General, those two Republican Guard units that have been attrited, in the parlance of the military, more than 50 percent, that still leaves four divisions around Baghdad. Are you surprised that Saddam Hussein has chosen to bring all of those divisions to encircle Baghdad?

GRANGE: Two points.

One -- well, first of all, I'm not surprised that Saddam or his leadership that's representing Saddam has made that decision. They can only survive through a static defense, using urban terrain as a combat multiplier. They cannot really maneuver without dying.

The second thing is that I think that part of the Republican Guard divisions, the other Republican guard divisions, may have reinforced the Medina division in the south. But the point is that those, I think, will be attacked before any drive into Baghdad would take place.

So focus on the southern Republican Guard division right now, but I think the others will be attacked as well before anything happens in the city.

DOBBS: General David Grange, thank you.

The first ship carrying equipment for the 4th Infantry Division today arrived in Kuwait. The 4th was originally expected to travel through Turkey, but as you know, diverted to Kuwait after Turkey refused to allow U.S. combat troops on its territory.

Martin Geissler, of the ITN reports from Kuwait.

(BEGIN VIDEOTAPE)

MARTIN GEISSLER, ITN CORRESPONDENT: This is the beginning of the second wave. As the war rages on, the reinforcements are arriving and waiting. The mighty firepower of the U.S. Army's 4th Infantry Division is being unwrapped, but it won't see action for some time.

(on camera): The division has 36 of these huge container ships. It'll take weeks for them all to dock and unload. But not one of its soldiers will be into battle until that whole process is complete. A further indication if it were needed that the Coalition is preparing for the long haul. (voice-over): The soldiers, though, will not be fighting the war they'd expected. The original mission was to hit Baghdad from the cold, mountainous north, through Turkey. Now they're faced with desert and summer heat. No problem, according to their general.

UNIDENTIFIED MALE: We represent a decade of investment in technology, in capability, that will give us legality at, it will give us situational awareness on the battlefield. And that coupled with soldiers training will make something the enemy will be afraid of.

GEISSLER: The troops watched the start of this war at home on television, knowing they'd soon be thrown in.

UNIDENTIFIED MALE: A little nervous, but all in all I feel it's the right thing. I feel this is what I've got to do.

UNIDENTIFIED MALE: I didn't really want to see a war, but now that it's occurred I'm ready to do my -- do my job and go back home.

GEISSLER: 100,000 fresh Coalition troops will arrive here over the next month. It'll be some time before they see action but even longer before they get to go home.

Martin Geissler, ITV News, Kuwait.

(END VIDEOTAPE)

DOBBS: We have just received word from Reuters that a major battle apparently is under way at this hour that has broken out near Karbala in Iraq. We're going to, of course, be bringing as many details to you as soon as we learned them. And we're going to be also going to CENTCOM, where we're expecting a statement from General Vincent Brooks at CENTCOM in Qatar.

Just ahead here, you're looking at a live picture of the podium from which General Brooks is expected to make that statement. It is, again, almost 2:15 in the morning there. And this is a highly unusual departure from the norm there in that CENTCOM.

Still ahead here, Defense Secretary Donald Rumsfeld today called for Saddam Hussein's unconditional surrender.

Former Defense Secretary William Cohen will join us.

As the 4th Infantry Division arrives in Kuwait, the 3rd Infantry division is approaching the outskirts of Baghdad, preparing for the assault against the capital city. Walter Rodgers will have the report.

And an international flight quarantined in California today. The mystery illness known as SARS continues to spread at an alarming rate. Fears about the illness spreading even faster. We'll have that and a great deal more still ahead. Stay with us.

DOBBS: The Reuters News Agency is tonight reporting U.S. forces are engaged in a big battle, as they are describing it, with the Republican Guard near Karbala, south of Baghdad. We want to again remind you that those pictures there that you saw briefly, the podium at CENTCOM where we're awaiting a statement at about 2:20 in the morning in Qatar from General Vincent Brooks.

Soldiers involved in yesterday's battle for a strategic bridge over the Euphrates river spent the day resting and cleaning their weapons today.

Walter Rodgers, who is with the 3rd Infantry, 7th Cavalry, reports.

(BEGIN VIDEOTAPE)

WALTER RODGERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: What we're seeing now are increasing indications both here on the ground. And in other news reports that the focus of the land war will soon be Baghdad.

Here's how we come to that conclusion. First, there's a continuous pounding of the Medina Division by the air force south of Baghdad. The Medina division, according to some sources, air force sources, has now been degraded by air force bombing by at least 50 percent, perhaps upwards of 75 percent. That means the Southern defenses of Baghdad have been weakened. Again, gradually the U.S. Army's 3rd Infantry Division has pushed northward. It crossed the Euphrates river yesterday, below Al Hilla (ph), and the 7th Cavalry again, as well as the 3rd Infantry Division, is now within 50 to 60 miles of the southern suburbs of Baghdad.

Again, all signs focus, especially with more and more U.S. troops coming ashore in Kuwait, the 4th Infantry Division, that there's going to be a major push toward Baghdad in the not too distant future. The reason, of course, being you can see all those troops coming ashore, they'll be pouring into Iraq. And again, the air force bombing around Baghdad, everything hints to a change in focus coming in the coming days and weeks on Baghdad. It will be the entire focus of the war. Baghdad will be the end game.

(END VIDEOTAPE)

DOBBS: Walter Rodgers, with 3rd Squadron, 7th Cav.

In northern Iraq U.S. special forces and Kurdish troops today showed reporters a training complex used by radical Islamist terrorists from Ansar al-Islam. The Pentagon says that complex was used by the al Qaeda to make poisons.

Brent Sadler reports from northern Iraq.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT (voice-over): A group of Iraqi Kurdish fighters shows off the spoils of war. Leading us into recently captured territory, and the smashed remains of what they claim was once the hub of a terrorist network. A terror network they've been fighting for years called Ansar al-Islam. The heart of that network beat here, it's claimed, inside this mosque. At a remote Kurdish village called Biyara (ph) on the border with Iran.

Parts of the mosque were flattened. The dome with large shrapnel holes from American airstrikes. Unavoidable damage, say Kurdish officials, in their battle to root out and destroy a web of terrorist strongholds supported and funded, it's claimed here, by al Qaeda itself.

When the battle against Ansar was joined, it turned into a route, taking Kurdish forces just 36 hours to defeat their enemy. The first major battlefield operation linking American Special Forces and Kurdish fighters in northern Iraq.

It became a spectacular success, claimed these American Special Force officers, breaking their cover. Keeping praise on the thousands of Peshmurga fighters who bore the brunt of close quarters combat.

UNIDENTIFIED MALE: I think it's a classic example.

UNIDENTIFIED MALE: I would say it's and outstanding example of what Special Forces train for in the United States, unconventional warfare, working with an indigenous force to add to their capabilities and add assistance and advice where we can.

SADLER: Ansar's forces put up a ferocious fight, it's claimed. Hundreds dead, the rest fleeing over the border to Iran. At least one pretended to surrender but blew himself up. And then some may have abandoned some incriminating evidence under the rubble, possibly supporting alleged links to al Qaeda-sponsored terror.

UNIDENTIFIED MALE: We have found various documents, equipment, et cetera that would indicate a presence of chemical and/or biological weapons.

SADLER (on camera): It now begs the question that if American and Kurdish forces can work so well together here, then why not expand operations to break Saddam Hussein's control over the key northern cities of Kirkuk and Mosul? There may be no precise plan for that to happen now, but the Iraqi Kurds are pushing for it.

Brent Sadler, CNN, Thiara (ph), northern Iraq.

(END VIDEOTAPE)

DOBBS: As we reported, a big battle has broken out tonight near Karbala. That report from Reuters and we were following that for further details and we'll be bringing them to you.

Fierce fighting also under way tonight in Nasiriya. The people of that city struggling to survive with the help of U.S. Marines and a secret cash of Iraqi food supplies. Alessio Vinci is with the Marines' Task Force Tarawa, and has the report.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (voice-over): Iraqis living in this area just outside Nasiriya say they had no idea what was stored inside this warehouse. So when U.S. Marines began loading their trucks with flower bags to distributed further down the road, a group of about 100 villagers converged to collect their share.

"The Iraqi military used to take all the supplies and would not pass it to the people," says Karrem Jasim (ph), with whom we spoke through a U.S. military interpreter. Jasim, a farmer, came here with eight family members, including two young girls, in search of food.

"We are hungry," he says. He has not been in town for fear of being drafted by the Iraqi military. "The fighting," he says, was not so intense in his area, but two of his relatives were killed by U.S. helicopter gun ships, he says. He holds no grudges. "Around here," he says, "it's normal."

Arabic-speaking Marines tried to keep the unruly crowd under control, backed by heavily armed colleagues in the back. Women were allowed in first, picking up bags so large and heavy that some could not muster enough strength to carry them by themselves. Others walked away barefoot.

Nearby underneath one of the bridges now under control by U.S. Marines, another group of villagers collects water from a filthy pond. The aftermath of the intense firefight a week earlier still visible. The river bed littered with Iraqi ammunition.

UNIDENTIFIED MALE: So it is dangerous. But we know where it is. And they, again, we ask the civilians please stay away because it is dangerous.

VINCI: The entire area around the bridge is covered with hundreds of Iraqi mortars and grenades. Some of them, Marines say, could be loaded with chemical or biological agents.

UNIDENTIFIED MALE: We cannot destroy these ourselves. We have to have out EOD teams come out, look at them, make an assessment. Yes, it is an explosive. And then they can collect it and destroy it.

VINCI: Helping Iraqis get food and water is a priority, U.S. Marines say. Winning their hearts and minds is as important as winning the war. Then maybe later, just maybe, life could start to be normal again.

Alessio Vinci, CNN, with the U.S. Marines in Nasiriya, Iraq.

(END VIDEOTAPE)

DOBBS: Coming up next, I'll talk with former Defense Secretary William Cohen. We'll be talking about the -- Donald Rumsfeld's statements today, Saddam Hussein, his lack of statements and the secretary of defense's call for unconditional surrender.

We'll also be going to Centcom in Qatar where it is now 2:25 in the morning. We have been advised about 20 minutes ago -- a little better than that. Almost 25 minutes ago that there would be a briefing by General Vincent Brooks. Highly unusual 2:25 in the morning there for this statement. We, of course, will be going there as soon as General Brooks appears at that podium.

And the mystery illness known as SARS is continuing to spread. Health officials say they may have found at least the nature of the organism causing the disease. Elizabeth Cohen will be here with a report.

We'll also take you aboard a British submarine as it fires cruise missile at targets at Iraq.

New concerns tonight about the economy and how it's being affected by war. We'll have all of that and more straight ahead. Stay with us.

(BEGIN VIDEO CLIP)

MOHAMMED SAEED AL SAHAF (through translator): Hit them. Fight them. They are cursed. They are evil. You will be victorious, and they will be defeated.

RUMSFELD: The fact that Saddam Hussein did not show up for his televised speech today is interesting.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

DOBBS: Coalition submarines are playing a crucial role in Operation Iraqi Freedom. But until now their role has been little seen. British journalist James Forlong, invited to tour one of the two Royal Navy submarines in the gulf, and has this report.

(BEGIN VIDEOTAPE)

JAMES FORLONG, BRITISH TELEVISION CORRESPONDENT (voice-over): Beneath the waters of the Persian Gulf, the nuclear powered submarine, HMS Splendid and the final moments before a cruise missile is launched.

The coordinates set, the target many miles over the horizon.

UNIDENTIFIED MALE: Discharge. Missile away.

UNIDENTIFIED MALE: DCB correct.

UNIDENTIFIED MALE: Missile seen to fly.

UNIDENTIFIED MALE: Booster separation, transition to cruise.

FORLONG: HMS Splendid, one of two Royal Navy submarines in the region. The lives of the 120 men on board and the work they do for the most part beneath the waves and out of the spotlight.

Her exact position on any day, strictly classified.

(on camera): The nickname, the Silent Service, is well deserved., because despite all the coverage of this conflict, this is the first time that any cameras have been allowed on board any submarine, British or American, since the start of the war with Iraq.

(voice-over): Also classified is the number of cruise missiles she has launched. But on the opening day of the war, three American ships and two submarines, between them, fired a total of 50.

UNIDENTIFIED MALE: A submarine is today's battle cruisers. We have immense firepower, whether it's from Tomahawk Precision Strike weapons or from the torpedoes or even anti-surface weapons, we can pack a strong punch.

FORLONG: Often submerged for weeks at a time inside the cramped confines of the hull, it is a lifestyle chosen by only a minority in the Royal Navy. In the engine room the temperature regularly hovers about 40 degrees Centigrade.

UNIDENTIFIED MALE: (UNINTELLIGIBLE) you know, are getting on now and they're working in very hot waters. And they cope very well with it. (UNINTELLIGIBLE) the atmosphere, we feel it.

FORLONG: It's claimed every cruise missile fired from HMS Splendid so far has found its intended target. And with coalition strikes intensifying in and around Baghdad, there will in the days and weeks to come be many more launched from beneath the waters of the Persian Gulf.

UNIDENTIFIED MALE: Fire.

(END VIDEOTAPE)

DOBBS: The chairman of the Joint Chiefs of Staff today shot back at critics who say the coalition's war plan is short on troops. General Richard Myers said those claims are harmful and bogus.

(BEGIN VIDEO CLIP)

GEN. RICHARD MYERS, JOINT CHIEFS OF STAFF CHMN.: It is not helpful to have those kind of comments come out when we've got troops in combat because, first of all, they're false. They're absolutely wrong. They bear no resemblance to the truth. And it's just harmful to our troops that are out there fighting very bravely, very courageously.

(END VIDEO CLIP)

DOBBS: Joining me now, former defense secretary, MONEYLINE regular contributor, William Cohen. Bill, good to have you here.

WILLIAM COHEN, FMR. DEFENSE SECRETARY: Good evening, Lou.

DOBBS: Are you surprised at the virulence, if you will, the voraciousness of some of the criticism, even if their names are not attached to the criticism of the Pentagon and particularly Secretary of Defense Rumsfeld?

W. COHEN: I'm not surprised. I've been in that position myself when we were waging the war against Milosevic in Kosovo, and I think five days went by before the critics stepped in. And so there's something that tends to go with the territory. Something that has to be said about this, though, and the reason, I think, that General Myers was so agitated today is that he is the one who gives the best advice to the president of the United States.

He is the one who ultimately has to sign off on this as well as General Franks. If they at any time disagreed with that plan or thought it was deficient, they had an obligation to tell the president or pull off those stars and say, Mr. President, I can't support this. And so that would have been a dereliction of duty for either one of them to have supported something they didn't fully believe in. And I think that's the reason why he's coming out as strong saying I believe in this proposal, I supported it, and I'm behind it, and I want everybody to know it.

DOBBS: The criticism is criticism really without source, though, because the media's not reporting the names of those criticizing with the exception of General Wallace in Iraq, and that could be interpreted a number of ways. What do you make of that?

W. COHEN: Well, most of the critics, of course, had no participation in the formulation of the plan. It's clear that it did not unfold in the way they originally thought it should because of what happened in Turkey with the 4th Infantry Division. But nonetheless, this plan had to have a great deal of flexibility built into it, and I think it's going along remarkably well under the circumstances and there are going to be setbacks, there are going to be, quote, "temporary pauses on the part of some of the units", but overall it's quite remarkable what they've been able to achieve in a very short period of time.

DOBBS: Bill Cohen, if you would, please, be patient, as we're going to break away just for a moment, and we'll be right back to you. Troops with the 15th Marine Expeditionary Unit are tonight engaged in a fierce fight with Iraqi forces in Nasiriya. Earlier they seized a police compound on the outskirts of that city.

Jason Bellini is with the 15th Marine Expeditionary and joins us on the telephone from Nasiriya. Jason, what is the latest?

JASON BELLINI, CNN CORRESPONDENT (via phone): Lou, this offensive operation began just a few hours ago. This is a (UNINTELLIGIBLE) operation, and it involved tanks, Apache helicopter gunships, a large number of troops moving into the city itself south of the Euphrates River. We've heard loud explosions, planes overhead, Harrier jets have been dropping bombs, hitting some preplanned targets in the city.

Among them is the Ba'ath Party headquarters, as well we're told the residence of the residence of a key ally of Saddam Hussein here in Nasiriya -- going after those targets and a number of others. This is the beginning of an operation to go into the city itself and ferret out the militia groups that have been causing so much difficulty here -- Lou.

DOBBS: Jason, thank you very much. Jason Bellini, with the 15th Marine Expeditionary, as they begin an operation against quarters of Nasiriya, where the city, large sections of it, under coalition control, large sections of it also not. And that being addressed tonight by the 15th Marine Expeditionary Unit.

I want to go back to you, if I may now, Bill. Bill, the fact of the matter is that we have a number of operations tonight. It looks as though it is a very busy night for coalition forces. Do you have a sense that the advance against Baghdad is near at hand?

W. COHEN: I do. I think the pace has been accelerating in recent days. General Myers also said something recently about speed kills, namely, the enemy. We also have to calibrate this, though, in a way because speed can also kill a lot of innocent civilians. And so I think right now that they feel rather confident that there is a systematic dismantlement of some of those major divisions of the Iraqis, which will allow them to pick up the pace and start to intensify it as they move closer and closer to Baghdad.

DOBBS: And interestingly, the night skies over Baghdad, the screen that we have up, the picture that you're looking at tonight is live from Baghdad. And there has been very little activity over Baghdad over the last several, three or four hours now. This operation against Baghdad, do you think that it will be one in which there will be encirclement and siege, or do you believe that there will be necessarily urban combat?

W. COHEN: I don't think anyone can tell you at this point. You could see a cracking of the regime rather quickly. On the other hand, you have to prepare for the worst case scenario. One of the problems that we have to be concerned about is that this not be seen as a David versus Goliath type of contest in the Muslim world in particular. And remember that Saddam may be a David, but he has anthrax, ricin, mustard gas in that slingshot, and that's something that everybody should keep in mind. That's still a very dangerous individual and regime that has to be contended with.

DOBBS: Bashar Assad also runs a very dangerous regime, and he has declared his support for Saddam Hussein -- Syria. And how big an issue, how big a problem do you think that will be for the coalition forces, potentially?

W. COHEN: I don't think it will be a major problem for the coalition forces. I don't see Syria or any other Arab country deciding they want to get into this particular fight. That would be a big mistake on their part, and I think what they're trying to do is show some solidarity for the Arab population, but I don't think they have any stomach for a fight with the United States or the coalition forces.

DOBBS: OK. Bill Cohen, as always, thank you.

Coming up tonight, a special report on the possible cause of the mystery illness known as SARS, but first, these are stories making news at this hour.

The Pentagon tonight says a major battle is under way in the southern Iraqi town of Karbala. That's about 50 miles southwest of Baghdad. U.S. forces are battling with the Iraqi Republican Guard in Karbala, a key city on the route to Baghdad.

Bombs continue to explode south of Baghdad as the coalition prepares for a strike against that city. Those attacks have been targeting key command and control centers. They've also been pounding Republican Guard positions around the city. U.S. Central Command Chief General Tommy Franks has been given the green light to launch an assault against Baghdad when he sees fit.

A man who hijacked a plane from Cuba is being questioned tonight by federal authorities. The man was taken into custody shortly after that plane landed in Key West, Florida. Thirty-two people on board; they were all unharmed. The passengers included the hijacker's wife and 3-year-old daughter.

Air Canada filed for bankruptcy today. The carrier blamed its troubles on the economy, the threat of terrorism, the high cost of fuel and labor. Air Canada lost almost $300 million last year.

Gasoline prices at the gasoline pump are going down. The average price of a gallon of regular gasoline fell four cents to a national average of $1.65. Gasoline prices hit a peak of $1.73 two weeks ago, but they've been falling along with crude oil prices as it became clear there would be no shortage or disruption of oil because of the war against Saddam Hussein.

On Wall Street stocks closed higher, ending a four-session losing streak. The Dow up 77 points, the Nasdaq up 7.

Despite those gains, new concerns point to weakness in the economy. An economy that may or may not bounce back when this war ends. Peter Viles has the report.

(BEGIN VIDEOTAPE)

PETER VILES, CNNfn CORRESPONDENT (voice-over): Even when they're shopping, Americans are glued to war coverage. They're flying less, and they're buying less as war casts a shadow over the economy. What is not clear is whether the economy will bounce back on its own when the war is over.

But first the facts. Auto sales fell in March for the third month in a row. Manufacturing activity dropping sharply in March and job creation non-existent. The economy's been shedding jobs at a rate of 61,000 a month for the past six months.

Now the theory. Bear Stearns believes the main problem is geopolitical anxiety, counting on a tax cut from Congress it sees a post-war bounce by late summer.

JOHN RYDING, BEAR STEARNS: I think we get a bounce when it's clear that the major risks are behind us, and those risks are also risks to the oil supply as well as risks to allied military personnel on the ground and in the air in Iraq. VILES: Goldman Sachs, however, sees a one in three chance of recession right now because it sees an economy still weakened by the bursting of the stock market bubble.

WILLIAM DUDLEY, GOLDMAN SACHS: It's a little bit like religion. You either believe that the geopolitical uncertainties are responsible for the weak economic data or, like us, you believe that it's the weakness of the stock market that's the primary reason why the economy is not doing very well.

VILES: The most influential economist in the country has been pretty quiet on this. Alan Greenspan, known to be optimistic about the economy's post-war chances, but hasn't fully tipped his hand.

(END VIDEOTAPE)

VILES: Now, if there is weak growth, there has been a silver lining to weak growth. We've seen it time and time again. Weak growth tends to drive down bond yields, tends to drive down mortgage rates. Then we see these waves of mortgage refinancings, which put more money back into consumers' pockets, and when the economy gets weak it gets strength from that -- Lou.

DOBBS: Pete, thanks. Pete Viles. Coming up next, three people in California today hospitalized with symptoms similar to SARS. We'll have the latest on this mystery illness. Stay with us.

(COMMERCIAL BREAK)

DOBBS: We are awaiting word from CENTCOM. We have -- we were told just a little more than 40 minutes ago that General Vincent Brooks would be addressing -- issuing a statement from that podium that you see there, live pictures from CENTCOM in Qatar. We now know something about what we can expect from General Brooks.

Our senior White House correspondent, John King, reports that CENTCOM will be issuing a statement about the rescue of a number of soldiers from within Iraq. Now, it's unclear right now how many soldiers, where they were, and what their condition was today when they were rescued and by whom they were rescued. But that is the statement we are told will be issued by CENTCOM. General Vincent Brooks to issue a statement on that issue coming up here, we were told, in a matter of moments -- that some time ago now. But that is what we're waiting on, and we wanted to ring you those details, sketchy as they are, to this hour.

There was a SARS scare in California today. An American Airlines flight from Tokyo was quarantined in California when some passengers complained of SARS-like symptoms. Just moments ago health officials said those passengers do not have the disease, a categorical statement, do not have the disease. As of tonight, as you see there, more than 1800 people worldwide have been sickened by the disease. Sixty of them, more than 60, 62 of them have died. In this country 70 infections have been reported but no deaths as yet.

Our senior medical correspondent Elizabeth Cohen, joins us now with more on this story. Elizabeth, this is becoming a very, very concerning matter.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: That's right. Every day there are more cases and we hear about more deaths worldwide, not in the U.S., as you've said. And with that plane today in San Jose what we were seeing was the public health system at work. This is what the CDC does. When a plane is landing from Asia and there are reports that people are sick, they take those people off the plane and check them out.

Maybe they have SARS, maybe they don't, but they want to err on the side of caution. As we heard, in this case after interviewing them, looking at their symptoms, looking at their travel, they decided that they do not have SARS and so obviously, this is not a concern, then, for the people who are on that flight. There was some news today out of the CDC.

The CDC says that they are 90 percent sure that they have found the virus that causes SARS. They believe it is a never before seen strain of the corona virus. The corona virus also causes common colds. The CDC says they hope that this will put them on the road to finding a treatment for SARS because right now there is no treatment for SARS.

The CDC also today officially opened its emergency operations center. It is being used right now just for SARS. People are calling in with lots of questions, and the CDC health officials are there to answer them -- Lou.

DOBBS: Elizabeth, you said a never-before-seen strain. One of the questions on the minds of many people is what is the origin of this particular strain of the corona virus? Could it have been an engineered virus?

W. COHEN: They think that it was not an engineered virus. The CDC says that they're keeping their minds open. They do not think it was engineered. They do not think at this time that it was -- that it is any form of bio-terrorism. They basically -- they don't know where this came from, but this is one of many emerging infections that come along pretty much all the time. You see this with some frequency now. There is one theory that perhaps this is a virus that was common in animals and then made the jump to humans. That's one theory. They're not sure yet.

DOBBS: And the recommendations still from the World Health Organization is restricted travel, only essential travel to Asia at this time, is that correct?

E. COHEN: Well, actually, what the CDC is telling people is they're saying if you have non-essential traveled to countries like mainland China, Hanoi, Singapore, Hong Kong, you may decide -- you may wish to postpone it. They're not telling people to postpone it. They're just saying you may wish to postpone it.

DOBBS: Artfully put, and Elizabeth, we thank you very much. Elizabeth Cohen reporting. Tomorrow Health and Human Services Secretary Tommy Thompson will be joining me with his first interview on the issue of SARS and this outbreak of the disease that is affecting so many people and which has led to a worldwide health advisory by the World Health Organization. He joins us tomorrow, 6:00 Eastern here on CNN.

Coming up next, the northern front coalition forces await ground troops. The war -- the air war is intensifying. Jane Arraf will report from Kalak.

Then Madonna's latest effort to stop the world -- to shock the world is pulled from American airwaves, but her show goes on overseas. We'll tell you why and what its impact might be.

Sitting pretty on Wall Street, in the midst of war, companies' stock prices plunge while some CEOs are getting away with millions of dollars. Christine Romans will have that special report for us next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Turkey's refusal to allow U.S. troops access to its bases has left the northern front without large ground forces. But the coalition controls that region from the skies. Jane Arraf is in Kalak and has the story.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN CORRESPONDENT (voice-over): This was supposed to be the second front in the war on Iraq. The ground invasion, which would force the Iraqi military to fight in the south and the north. But again Tuesday the campaign in the north finds itself limited to the air. U.S. bombing near the strategic cities of Mosul and Kirkuk. U.S. warplanes also seem to be targeting Iraqi bunkers on the ridge separating Iraqi from Kurdish-controlled territory.

At the Hurriya airfield in northern Iraq U.S. forces continue to secure the perimeter of the airstrip and move in equipment. It's a shift in strategy after Turkey refused to allow U.S. land troops to use its bases. Several thousand troops have either parachuted or been airlifted in. But so far the large numbers of troops and heavy armor needed to attack Iraqi forces from the north just aren't there. Despite the intimidating security, soldiers landing in this Kurdish- controlled area have received a much different reception than in the south.

UNIDENTIFIED MALE: I have to say this is a beautiful country. The people here are great. I mean, here we are, you know, some of them they've hardly got nothing, but they just want to help us. You know, they give us bread and stuff. So I mean, they're so nice and they're great people. So I love it here, it's nice, beautiful, mountains. Where I live at there aren't mountains like this, so this is a big change for me. So it's real nice, ma'am.

ARRAF: Although it seems tranquil, away from the front lines, Kurds aren't entirely out of danger. On Monday Iraq launched at least two missiles into Kurdish-controlled territory. This one falling in the small town of Qurei (ph). The target was believed to be the regional administrative center of Salah Hudin (ph), just a few kilometers away.

It damaged a house and showered the area with missile fragments. The occupants of the house were awake for predawn prayers and escaped unhurt. In this town, though, where many people had fled from the cities, fearing the bigger centers would be attacked, it was a reminder that almost nowhere is safe.

(on camera): And a reminder that this war could take many more unpredictable turns.

Jane Arraf, CNN, reporting from Kalak in northern Iraq.

(END VIDEOTAPE)

DOBBS: Jane Arraf reporting from northern Iraq.

Now in central Iraq, Baghdad we want to show you the night skies over Baghdad -- more explosions. We are told those attacks continue through the southern outskirts of Baghdad tonight and there you see those pictures of Baghdad at 3:51. Now because of a change in time it is nine hours ahead of us.

We also want to show you CENTCOM in Qatar, where we are awaiting a briefing by General Vincent Brooks. We were told almost an hour ago that that would be coming up in 15 minutes. Our senior White House Correspondent John King says that General Brooks will be issuing a statement on the -- excuse me -- the retrieval of U.S. military personnel from Iraq. We don't have any more details than that, but we will be bringing you, of course, the general's statement as soon as he appears at that podium.

Coming up next here, her career has thrived on controversy, but now Madonna may be having second thoughts about her latest video message.

And the European backlash against all things American is spreading beyond a boycott of well-known brands. Those stories and more still ahead. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Retail stores and restaurants in Europe striking back at the United States and Britain. Ten owners of French restaurants in Germany are banning U.S. brands such as Coca-Cola, Marlboro cigarettes, and others. Those products, when sold in Europe are incidentally produced by European factories. The anti-war sentiment in Germany has even made its way into a doctor's office, where a 61- year-old dermatologist has refused to treat American and British patients.

Pop singer Madonna has built her career on controversy, but now she's taking some steps to at least mitigate controversy in the release of a new video, a video in which she tosses a hand grenade to a President Bush look-alike. Denise Quan reports.

(BEGIN VIDEOTAPE)

(MUSIC)

DENISE QUAN, CNN CORRESPONDENT (voice-over): For 20 years she's pushed buttons.

(MUSIC)

QUAN: Now Madonna has pulled her latest music video, "American Life," which was to have made its U.S. debut this Friday, amid concerns the message would be misunderstood. In fact, Warner Brothers distributed two excerpts from the video, then asked for them back. Even last week the pop icon seemed anxious about how audiences would react.

MADONNA: I'm feeling like, you know, come on, just wait until you see it before you make a decision about it.

QUAN: According to early reports, the video was initially a searing attack on war designed to shock and awe viewers, but it was toned down after the first bombs dropped on Baghdad.

(on camera): The story that I had kind of seen was that originally, before the video was reedited, it was pretty sharply critical of President Bush and a pretty strong...

MADONNA: Absolutely not.

QUAN: ... anti-war statement.

MADONNA: I mean, it's still -- I think it still has anti-war sentiments about it because at the end of the day I would prefer that, you know, we work things out. Now we're at war, and all we can do is, you know, support our country and pray for the soldiers to get home.

QUAN (voice-over): The video had a political message, but it also questioned American ideals.

(SONG): I got a lawyer and a manager, an agent and a chef, three nannies, an assistant and a driver and a jet.

MADONNA: We are so lucky as Americans to have the freedoms that we have and the capabilities and, you know, the freedom to be whoever we want to be, but at the same time, you know, all these values that we have, you know, are they the things that will bring us happiness?

I feel like the world is in a state of chaos and we need to do things that are going to heal people and bring them together. And so just being provocative for the sake of being provocative doesn't really interest me right now.

QUAN (on camera): So is the next single going to be a little bit lighter in tone?

MADONNA: Yes. Definitely. Yes.

(END VIDEOTAPE)

QUAN: I know it's hard to believe that Madonna was not looking to be controversial this time out. In fact, when she sat down for our interview the first thing she said was that she was trying to avoid controversy. She also admits that she has courted it at various times in her career, but that this was not one of them -- Lou.

DOBBS: Yes, after watching what has happened to the Dixie Chicks, Denise, I think probably the lesson was not lost on a very savvy marketing talent as well as entertainer in Madonna.

QUAN: Absolutely. In fact, she sold 150 million albums worldwide, so she's no slouch when it comes to marketing her own records. And incidentally, now people know that she has one that's coming out on April 22.

DOBBS: With reiteration, Denise Quan, thank you very much.

QUAN: No problem, Lou.

DOBBS: Warner Brothers today announced it's changing its newspaper advertisements for the feature film "What A Girl Wants." the original ad, which will remain intact for billboards and here on the Warner Brothers home page depicts the star of the movie holding up her hand, making a peace sign. The new ad alters the image to remove the peace sign. A Warner Brothers spokesperson said the company is shifting its strategy to avoid any perception of a political statement in a non-political film.

We're going now to our senior Pentagon Correspondent Jamie McIntyre -- Jamie.

MCINTYRE: Well, Lou, we can confirm now from Pentagon sources that the -- tonight begins the major ground offensive of this war against at least two Republican Guard divisions south of Baghdad, the Medina Division and the -- I'm sorry, the other name escapes me at the moment. The one that's located at Al Kut, which is the Baghdad division -- I'm sorry.

(CROSSTALK)

MCINTYRE: Those two divisions are being targeted. The Baghdad division by U.S. Marines, and the Medina Division by members -- elements of the 3rd Infantry Division backed up, of course, by assault helicopters and other elements as well. But I understand that Secretary Rumsfeld is talking now. Maybe we should listen to him.

DOBBS: Jamie, he's not quite ready to talk. Jamie, the Baghdad division and the Medina Division are under attack, then by the 3rd Infantry, is that correct?

MCINTYRE: Right. And there have been assaults against these divisions' so-called probing assaults, but this is an all-out attack. This is not the kind of thing where they attack and then stop. This is the kind of thing where they continue to fight until it's over.

DOBBS: OK, Jamie. Jamie McIntyre, thank you. And as Jamie just indicated, the secretary of defense is about to speak. Paula Zahn and Wolf Blitzer will be coming up next here. There you see -- I see Senator John Warner and the secretary of defense. Let's wait just a moment, if we may and listen in.

(INTERRUPTED BY LIVE EVENT)

DOBBS: This is Senator John Warner, the chairman of the Senate Armed Forces Committee. the gentleman he's referring to as Duncan is Duncan Hunter, the congressman Duncan Hunter, the chairman of the House Armed Services Committee. Obviously there with the Joint Chiefs Chairman Richard Myers, General Richard Myers and Secretary of Defense Rumsfeld.

I'm Lou Dobbs, here in New York. We're going to turn it over now to Paula Zahn and Wolf Blitzer.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com



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