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CNN LOU DOBBS MONEYLINE
International Mediators Present Road Map to Middle East Peace
Aired April 30, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, HOST: Good evening, everyone.
International mediators today launched an initiative to bring peace to the Middle East after more than half a century of conflict. The plan delivered to Israel Prime Minister, Ariel Sharon, and the new Palestinian prime minister, Mahmoud Abbas. That plan could lead to a Palestinian states creation in two years.
Kelly Wallace reports from Jerusalem.
(BEGIN VIDEOTAPE)
KELLY WALLACE, CNN CORRESPONDENT (voice over): Presentations diplomats hope will be about more than symbolism. The newly sworn in Palestinian Prime Minister, Mahmoud Abbas, receives a copy of the internationally backed peace plan called the road map. Ninety minutes earlier, the U.S. ambassador to Israel drives to Prime Minister Sharon's Jerusalem residence to give him his copy.
The goal of the three-year, three-phase plan is a democratic Palestinian state by 2005 and a guarantee of Israel's security. Getting there won't be easy. Both sides must take steps they have long resisted and are already expressing different interpretations about what should happen next.
The Palestinians say the road map should be implemented immediately without any changes.
NABIL SHA'ATH, PALESTINIAN FOREIGN AFFAIRS MINISTRY: The road map cannot succeed unless people see that as we were implementing, Israel is also implementing.
WALLACE: But Israelis say they want to see more than a dozen changes and say there should be an end to Palestinian terror attacks before any other steps are taken.
GIDEON MEIR, ISRAELI FOREIGN MINISTRY: There is a sequence in the road map, and the sequence is calling first and foremost, a stop to terror.
WALLACE: Attacks such as the early morning suicide bombing outside a Tel Aviv cafe, which left three innocent civilians dead. Two radical Palestinian groups have claimed responsibility.
(END VIDEOTAPE) WALLACE: There was also violence on this day in the Palestinian territories. Four Palestinians killed. One of those believed to be an innocent Palestinian woman according to Palestinian security forces.
And, with this backdrop of this violence, the question and the challenge facing international diplomats is whether this road map will ultimately get the two sides on some path to peace -- Lou.
DOBBS: Kelly, thank you very much. Kelly Wallace live from Jerusalem.
Over the past half hour, President Bush has said that the road map is the beginning of a long process toward the achievement of peace. President Bush said he looks forward to spending time and energy on moving this initiative forward. Senior White House Correspondent, John King, joins me now with the story -- John
JOHN KING, SENIOR WHITE HOUSE CORRESPONDENT: And, Lou, significant in what the President said a short time ago in the Oval Office -- he's appearing with the Colombian president -- Mr. Bush says he believes there's a lesson in the Iraq war. This administration, of course, long has accused Iran and Syria of supporting Hamas, Islamic Jihad. Other terrorist groups operating in the Palestinian territories blamed for attacks like yesterday's tragic bombing in Tel Aviv.
Mr. Bush says those countries should be on notice following the military success in Iraq.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The war on Iraq has made it absolutely clear that those who harbor terrorists, fund terrorists or harbor weapons of mass destruction will be held to account. That, in itself helps, to create the conditions to move peace forward.
(END VIDEO CLIP)
KING: Mr. Bush says Israel will have to make sacrifices as well, but perhaps equally as significant as the warning to Syria and Iran, this president has never tried to hide his contempt for Yasser Arafat, the Palestinian leader. In fact, Mr. Bush refused to publish the road map until Yasser Arafat was moved to the sidelines and a new Palestinian prime minister, Mahmoud Abbas, was confirmed into office.
Mr. Bush, for the first time today in 27 months as president, said there was a Palestinian leader he could trust, that he looked forward to dealing with, and that he believed was committed to cracking down on terrorist groups.
The question now, Lou, is how much time and energy will this president put into the effort? The administration's push begins with a trip by Secretary of State Powell to the region next week, but Mr. Bush will send on that trip an invitation to the Palestinian prime minister to come here to the White House, and administration aides say despite the many skeptics, this President is prepared to dedicate the time and energy it takes to enforce the road map he put out in public today -- Lou.
DOBBS: John, if we may, let's deal a bit with the question that you raise. Is there a sense there at the White House that President Bush is going to be sustained and vigorous in the effort here?
KING: They say he is here at the White House. They say the President is committed anyway to the Israeli-Palestinian issue, but they also say this President is well aware in the early days in post- war Iraq that there was a great deal of skepticism across the Arab world as to this administration's motives across the entire region.
They know one way, of course, is to get Iraq up and running, but they know the biggest question across the Arab world is will this administration ever put pressure on Israel. Will this president mount a sustained effort to get the road map, or any peace plan, implemented?
This White House says, yes. The question is when there are bumps in the road and delays and problems, and everybody knows there will be, how will this President respond? Ari Fleischer earlier today saying watch, this President will keep the promise.
DOBBS: John, thank you very much. John King, our senior White House correspondent reporting.
Britain, this country's closest ally in the war against Saddam Hussein, praised this new Middle East peace plan. Foreign Secretary Jack Straw said the blueprint offers the chance of a just and lasting peace.
(BEGIN VIDEO CLIP)
JACK STRAW, BRITISH FOREIGN SECRETARY: Israeli and Palestinian leaders will now, I hope, be able to back the words of the road map with their deeds, and we wish them well in this endeavor. If the dialogue is to prevail, we'll need visionary leadership and courageous statesmanship from both sides.
(END VIDEO CLIP)
DOBBS: The road map is the latest in a series of U.S. attempts to broker a peace deal in the Middle East. Former senate majority leader, George Mitchell, presented a plan two years ago calling for a cease fire and negotiations between Israel and the Palestinians.
George Mitchell joins me now. Good to have you with us.
GEORGE MITCHELL, FORMER SENATE MAJORITY LEADER: Thanks, Lou, for having me.
DOBBS: There is a sense about this blueprint, this road map, that perhaps something is different this time. What is your view? MITCHELL: I think two things are different. First, there is a clear and unequivocal commitment by the United States government and the President to become personally involved on a sustained basis. That has not previously existed.
Secondly, there is the consequence of two-and-a-half years of violence, more than 2,000 Palestinians killed, more than 700 Israelis killed, and a clear recognition by both sides that they're not going to get what they want through the use of violence.
DOBBS: The presence of U.S. forces in Iraq and a large presence now moving from Saudi Arabia to Qatar, is this going to be helpful? This obvious presence of U.S. force, this projection of U.S. force, beyond the normal levels, will this be helpful in the process?
MITCHELL: Not a direct way because there's no possibility of United States Military incursion into the Israeli-Palestinian conflict. There's no likelihood that a large American military force is going to go in and try to create a peace.
Indirectly, of course, it points out the importance that the United States places on the region, the amount we have invested in both men, material, and really time and effort. And so, I think it can be helpful if there is a sustained effort.
DOBBS: For example, the President today focusing on those terrorist states, and among those -- principle among those, certainly, Syria and Iran. To the degree that state-sponsored terrorism and there is, as we all must acknowledge here, no terrorism possible either in Palestine or Israel, or frankly anywhere else at the level we have seen, that doesn't require state sponsorship.
To that degree, do you think it can be mitigated by the presence of U.S. force?
MITCHELL: I think it could be, but again, I don't think the United States is likely to conduct a military operation against either Syria or Iran, which have been the principle supporters of the effort on the north border of Israel.
I do think it will be helpful, but the real key is whether the parties are now ready to accept this principle. You can't end it through the use of force. The current situation is untenable. The Israeli haves a state. What they want is security. The Palestinians don't have a state, and they want one.
I think in order to get what they want, each side must be prepared to accommodate the central concern of the other. The Palestinians have to accept the Israelis need security. The Israelis must accept the Palestinian state.
DOBBS: Right now, on the television screen, as our viewers read it, Israelis calling for 15 changes, at least, in the road map. Mahmoud Abbas, obviously, will have his own set of preferences. This is a negotiation process that's begun perhaps more energetic simply because both parties here realize this time it's for real. What do you think?
MITCHELL: It's going to be very difficult. This is just the first day, and you have differences. In northern Ireland, Lou, we had 700 days of failure and one of success. It doesn't happen over night, and there are going to be setbacks.
John King identified a key point. Clearly, the administration is on board now, but when things are tough, when it's discouraging, it's difficult, people are...
DOBBS: You don't think this is tough, do you?
MITCHELL: Then you have to stay with it. Perseverance and patience are central to the making of peace in these conflict situations.
DOBBS: Ariel Sharon, some would see him as resolute. Obviously, the Palestinians perhaps would see him as intractable. Mahmoud Abbas, how will we see him?
MITCHELL: Well, he has a tough job ahead of him. The Americans and the Israelis like him. That isn't necessarily the best endorsement for the Palestinians. He has to crack down. That's an essential first step, but it will be fatal for him if all that happens is a crack down because he will be seen as the enforcer of the occupation. He has got to crack down, and he has got to get movement on the other steps so that a Palestinians can see that they're not getting a state through violence. There is a peaceful alternative to it. That's what they have to see before them.
DOBBS: And likewise, the Israelis will not have peace without dealing with the issue of the 67 borders.
MITCHELL: I don't think the Israelis are going to have the security they want and their people deserve until there is recognition and acceptance of a Palestinian state.
DOBBS: OK. Senator George Mitchell. We thank you very much.
MITCHELL: Lou, thanks for having me.
DOBBS: Later this hour, we will be talking about this latest initiative. We'll be talking with Ed Abington, a former U.S. council general in Jerusalem. He is a consultant now to the Palestinian authority.
And this brings us to tonight's poll question. How optimistic are you about the prospective this time of resolving the Israel- Palestinian conflict? Very, somewhat or not at all? Cast your vote at cnn.com/moneyline. We'll have the preliminary results for you later in the broadcast.
And the final results of yesterday's poll question, consumer confidence rose this month compared to six months ago. Is your confidence overall higher, the same, or lower? Thirty-two percent said higher, 21 percent said the same, 47 percent said lower. Running just about even in outlook.
Still ahead tonight, the thought of the day from a driven man that knew something about success.
Also tonight, the al Qaeda operative suspected in the bombing of the USS Cole has been captured. National Security Correspondent, David Ensor, will report.
And a shipment of nuclear materials for North Korea is intercepted, and a German man is under arrest. That story is coming up.
And...
(BEGIN VIDEO CLIP)
DONALD RUMSFELD, SECRETARY OF DEFENSE: Take great pride in your accomplishment, not only for what you have done, but also, for how you've done it. You've done it well.
(END VIDEO CLIP)
DOBBS: Defense Secretary, Donald Rumsfeld, in Iraq, gives praise for U.S. troops in Baghdad. Pentagon Correspondent, Barbara Starr, with him. Her story coming up.
(COMMERCIAL BREAK)
DOBBS: National security correspondent, David Ensor, reports.
(BEGIN VIDEOTAPE)
DAVID ENSOR, NATIONAL SECURITY CORRESPONDENT (voice-over): Whalid ba Attash, also known as Kahlad (ph) or Toufik (ph), was the mastermind of the attack on the USS Cole in Yemen in 2000, U.S. officials say, and they are calling his capture Tuesday by Pakistani authorities "extremely significant.
BUSH: He's a killer. He was one of the top al Qaeda operatives. He was right below Khalid Sheikh Mohammed on the organizational chart of al Qaeda. He is one less person that people who love freedom should worry about.
ENSOR: Attash was Osama Bin Laden's chief bodyguard for some years, a trusted lieutenant who lost one foot during fighting in Afghanistan. Like Bin Laden, he is a Saudi Arabian national of Yemeni origin.
Along with five other suspected al Qaeda members, Attash was captured in the teaming city of Karachi, the same place another al Qaeda leader, Ramsi Ben Alshiba (ph) was caught after a gun battle.
Two former operation chiefs, Khalid Sheikh Mohammed and Abu Zubaida, were also captured in Pakistani cities, and U.S. officials say most of al Qaeda's remaining leadership may well be in Pakistani cities, too, though the top two leaders, Bin Laden and Aman Al-Zawari (ph), are believed to be in the remote area of the Pakistani-Afghan border.
Attash also met with two of the 9/11 hijackers in Malaysia in January of 2000, and officials say he was the intermediary between them Khalid Sheikh Mohammed, the 9/11 mastermind.
(END VIDEOTAPE)
ENSOR: Most importantly, U.S. officials are saying, Attash may know about plans for future al Qaeda attacks, so his capture could save lives, they say, and for that reason, it's being described by one official as a very big deal -- Lou.
DOBBS: Thank you, David. David Ensor, our national security correspondent, reporting from Washington.
When we continue here, Defense Secretary Donald Rumsfeld is in Baghdad, and he had strong messages for the U.S. troops there. Pentagon Correspondent, Barbara Starr, is with the defense secretary and will report from Baghdad.
Then building a solid foundation for peace between Israelis and Palestinians. Kitty Pilgrim will report how a focus on economic development in the region could certainly help in the region.
And another billion dollar accounting blunder from one of the stars of the corporate criminal drama. Jan Hopkins will have a full wrap up for us of the latest in the crack down or corporate criminals.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
RUMSFELD: The fact that you folks are so disciplined, so well trained, so well equipped, so courageous, and so determined, and the loss of life -- of innocent life -- was minimal because of the precision and the speed, so when people are writing the history books, you're going to be in it.
(END VIDEO CLIP)
DOBBS: Secretary Rumsfeld in Baghdad delivering his personal thanks to U.S. forces for their role in bringing down the regime of Saddam Hussein. Pentagon correspondent Barbara Starr reports.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice over): Nearly 20 years after Donald Rumsfeld came to Baghdad as Middle East peace envoy, he returned. This time, putting on an armored vest and ride in a military convoy through the city, the most senior U.S. official to visit.
At Baghdad International Airport, he thanked the troops, but said the job wasn't over just yet.
RUMSFELD: We have to help Iraqis restore their basic services. And we have to help provide conditions of stability and security so that the Iraqi people can form an interim authority, an interim government, and then, ultimately, a free Iraqi government based on political freedom, individual liberty, and the rule of law.
STARR: Along the road, some Iraqis waved. Some stared. Impossible to tell if they knew what was happening. Security tight at all times. Military helicopters overhead.
The secretary went to a power station for a briefing on progress in restoring electricity. The lights now back on in half the city, U.S. officials say. But without full power, there are still problems. Sanitation services not functioning, and the civilian coordinator, Retired General, Jay Garner, insisting there is no humanitarian crisis.
GENERAL JAY GARNER (RET.), U.S. CIVIL ADMINISTRATION FOR IRAQ: You all are reporting a lot about some demonstration stuff. Yes, there's some demonstrations. That's the first step in democracy. You are allowed to disagree.
STARR: Still, General Garner later said parts of Baghdad remain unstable. Militias need to be brought under control. The problems for the people, he conceded, remain very real. Even so, the hope is to begin to have Iraqis take control of some government functions within weeks.
And military commanders, who met with the secretary at a bombed out palace, warned there is still criminal activity. Saddam Hussein allegedly flooded the streets with weapons before the war. U.S. soldiers now find themselves removing 40 truckloads of weapons and ammunition each day from Baghdad.
STARR (on camera): It's been an extraordinary day here in Iraq. Defense Secretary Rumsfeld coming to this capital city that U.S. forces conquered so quickly. Here at this bombed out palace of Saddam Hussein, now a military base, he is meeting with his commanders to discuss the security situation, the progress in the reconstruction, and beginning to think about just how soon U.S. Military forces might be able to return home. But those commanders warning that an U.S. presence will be required for sometime to come.
Barbara Starr, CNN, Baghdad.
(END VIDEOTAPE)
DOBBS: President Bush tomorrow will announce that major combat operations in Iraq have ended. The President will make his announcement aboard the ship that you are looking at right now. That's the flight deck of the USS Abraham Lincoln. These are live pictures.
Now, the President will fly to the Lincoln. He'll land on the deck of the Lincoln about 100 miles out at sea at the time. And the White House says the address will not be, certainly, a victory speech because hostilities of a lesser scale certainly continue in Iraq. Federal Reserve Board Chairman Alan Greenspan said the end of the war should help the economy gradually improve. However, Greenspan told the House Financial Services Committee the timing and the extent of that improvement is still unclear.
(BEGIN VIDEO CLIP)
ALAN GREENSPAN, CHAIRMAN, FEDERAL RESERVE BOARD: Six weeks after the beginning of the war, we have only limited readings on broader economic conditions, and that information has been mixed. Households appear to have become somewhat less apprehensive about the economic outlook in recent weeks, though reports from businesses have not exhibited a similar improvement in tone.
(END VIDEO CLIP)
DOBBS: The Fed chairman also reiterated his support for the President's proposed dividend tax cut. Overall, Alan Greenspan's comments positive on the economy.
The market today, well, it was down slightly, but posted the best month of the, well, since last October. Christine Romans joins us now with more on these markets. Christine?
CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, the DOW up six percent in the month of April, and the best sectors this month are among the leading sectors this year. Airline, retail, Internet, and media stocks.
Topping the list of S&P 500 winners this month, AMR, parent of American Airlines, now is up 175 percent, but keep in mind that's a stock trading below $5, as is Dynegy, which soared this month reporting its first profit in a year. And beaten down Ford returned almost 40 percent for investors this month.
Now, in the DOW, impressive returns for financials like J.P. Morgan Chase. Also, McDonald's, Home Depot, and SBC Communications.
Now, the earnings season is almost over, four-fifths of the S&P 500 companies have reported. Profit coming in up 12.3 percent. Revenue now up almost 9 percent. Lou, revenue growth has been stronger than many hoped.
Tomorrow, we'll hear from Exxon-Mobil. Oil profits expected to be blockbuster and could drive overall results higher still. Exxon- Mobil operating profit expected to be up 125 percent, Lou.
DOBBS: Impressive. Ford was up what?
ROMANS: Forty percent for the month.
DOBBS: Forty percent, and there's a reason I brought that up. All right, Christine. Thanks a lot. Christine Romans.
Our thought of the day tonight. We turn to the topic of money. The quote, if money is your hope for independence, you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience and ability. The thought from a man that certainly had all of the above, Henry Ford, the founder of Ford Motor Company.
Still ahead, the uncertain future in the Middle East, an international effort toward peace is building. Ed Abington, consultant to the Palestinian authority, is our guest.
Then, a new aggressive time line for NASA to resume manned missions in space. John Zarella will have this special report.
And if you've ever placed a bid at an online auction site, you may have been the victim of an elaborate scam. We'll have the story.
A great deal more still ahead. Stay with us.
(COMMERCIAL BREAK)
(NEWS BREAK)
DOBBS: Charles, thank you very much.
The Israeli-Palestinian conflict has cost lives. It has cost a great deal of money as well. The economies of both the Israelis and the Palestinians devastated as a result of the cycle of violence.
Kitty Pilgrim now reports.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN ANCHOR (voice-over): From an economic perspective, it's high time to talk peace. The Israeli economy is the worst it's been in decades, and the Palestinians are barely surviving.
Since, September 2000, the drop-off in business activity, direct foreign investment, and tourism has cost the region $5.4 billion.
In the Palestinian territories, half the work force is without a job and two-million people live on less than $2 a day.
MEYRAV WURMSER, HUDSON INSTITUTE: The fact that Palestinians are under closure means that they could not come and work in Israel. So both economies suffered.
JACK STRAW, BRITISH FOREIGN MINISTER: There is a clear choice here. Either the Palestinians and Israeli peoples continue into this vortex of decline and more violence, or, with the help of the international community, they're able to build their way out of it.
PILGRIM: Israel is the largest aid recipient of the United States, $3 billion a year, with an additional request for a billion in security aid and $9 billion in loan guarantees.
The Palestinian territories receives a fraction of that, some $75 million, but some say ultimately it will take political will, not money. GARY HUFBAUER, INSTITUTE FOR INTERNATIONAL ECONOMICS: The money is not going to make the difference. It's these leaders looking at the signs and seeing this is their best opportunity forward out of this, and they have to make that political judgment.
(END VIDEOTAPE)
PILGRIM: Seven hundred thousand public-sector workers walked out in Israel today, a protest over a new austerity plan in Israel. Public discontent over the economic situation in Israel is growing, and experts say the public understands the economy ills are clearly linked to the violence -- Lou.
DOBBS: Kitty, thank you very much.
Kitty Pilgrim.
Joining me now to discuss the new initiative in the Middle East, Ed Abington, the U.S. consul general in Jerusalem, and he is now a consultant to the Palestinian Authority.
Good to have you with us, Ed.
ED ABINGTON, FORMER U.S. CONSUL GENERAL IN JERUSALEM: Thanks for having me, Lou.
DOBBS: Let me ask you the same question I asked George Mitchell earlier. Is there, in your judgment, a difference in tone, a brighter prospect for success in this new initiative?
ABINGTON: I think so. I think that, with the installation of Mahmoud Abbas as the prime minister, the diplomatic logjam of one year has been broken. The road map was presented today, and, quite clearly, there's going to be a new international push to try to bring Israelis and Palestinians back to negotiations.
DOBBS: The -- within hours, as you know, of the swearing-in...
ABINGTON: Right.
DOBBS: ... of the new prime minister, Mahmoud Abbas, violence in Tel Aviv, death, more destruction. Can he, in your judgment, control this violence to the point at least that this process can be moved to resolution?
ABINGTON: I think that, clearly, he has to deal with security, and he made clear in his statement to the Palestinian parliament that he plans to do so.
But we have to recognize that his capabilities are limited. Much of the security infrastructure, particularly on the West Bank, has been destroyed over the last two years. He will need the help of the United States, the Jordanians, the Egyptians to restructure, to rebuild his security services, and he's going to need help and cooperation from Israel. I think what's important is that he start out and that he establish credibility, and, by establishing credibility, he will give himself some space with the Israelis to move forward on security. But it's going to be an easy task.
DOBBS: We know it's -- Ed, I mean, for us to say, as Senator Mitchell and I said, as you say, as everyone is aware, this is not going to be easy.
ABINGTON: Yes.
DOBBS: But we also know that the terrorism that is conducted against the State of Israel and its citizens are by definition state supported. No one can commit terrorism at the levels that have been conducted against Israelis over all of these years without the help of state governments. And I'm not talking simply winks and nods either.
Is the Palestinian Authority prepared to move ahead and confront directly those issues as well?
ABINGTON: You know, that's not...
DOBBS: It's not part of the road map, but...
ABINGTON: Right, right.
DOBBS: ... it is part of the subtext.
ABINGTON: No, I understand your point. But, you know, that's really not the job of the Palestinian Authority. They do not have influence with Syria or with Iran. That's basically the job of the United States, and that's one reason that Colin Powell is going to Baghdad -- or going to Damascus in a couple of days.
He wants to make clear to the Syrians that this is a new environment, that the Syrian toleration of the presence of Hamas offices and Islamic Jihad offices in Damascus is no longer acceptable, and I hope that the Syrians will listen very carefully to what Secretary Powell says.
DOBBS: Is it your judgment, Ed, that there -- that the presence of U.S. forces, the projection of U.S. force, and its policies -- new policies in the Middle East will have the desired affect?
ABINGTON: I think that the presence of U.S. forces in Baghdad, the war in Iraq -- it created, obviously, a new strategic environment in the Middle East. I think that the Syrians are going to listen very carefully to what Secretary Powell says. I assume that we're sending the same message through various channels to the Iranians.
But, you know, let's not make mistake about it. It's going to be difficult to deal with this, but, fundamentally, Lou -- fundamentally, the violence comes from the clash between Israelis and Palestinians...
DOBBS: Oh, absolutely.
ABINGTON: ... in the West Bank and Gaza.
DOBBS: That is certainly, at least, the site of that violence. Also, as Kitty Pilgrim reported, the necessity -- even before we move to some of the benchmarks in this road map, the necessity to begin investment --significant investment for the Palestinians in particular but, certainly, also, the Israelis -- do you believe that there is sufficient support in the region and with the members of the quartet to make that a reality for the benefit Palestinians, again, principally?
ABINGTON: If we can move beyond where we are today -- and that's why it's important that this logjam has been broken -- the Israelis, I think, are willing to take steps to better the lives of Palestinians, on freedom of movement, on economic issues, remittance of revenues, and so forth.
But it's going to take a long time to rebuild the Palestinian economy, and it's going to take a lot of international assistance, including from Arab countries. But, if we can reach a stage where there is a viable peace process between Israelis and Palestinians, I think the rebuilding will happen.
DOBBS: Ed Abington, thank you for being with us.
ABINGTON: Thank you very much, Lou.
DOBBS: Turning to tonight's MONEYLINE poll question: How optimistic are you about the prospects this time of resolving the Israeli-Palestinian conflict -- very, somewhat, or not at all? Please cast your vote at cnn.com/moneyline. We'll have the preliminary results for you a little later in the broadcast.
Turning now to this evening's quote of the day, the Israeli foreign ministry spokesman today voiced concerns about this latest road map for peace in the Middle East.
Mark Sofer said to the Associated Press, quote, "It is crucial that we do not talk peace by day and have Israelis blown up by night. We call on the new Palestinian prime minister to implement in practice what he has preached in public."
Coming up next, a failed connection could mean big troubles for bankrupt Global Crossing. Jan Hopkins will have that story and more.
And NASA unveils an ambition plan for the future of this country's space program. John Zarrella has the story.
And America's film and television industries bringing their business back to Hollywood after years of producing films abroad. Casey Wian reports on what's behind a Hollywood revival.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Well, it's now been 513 days since Enron filed for bankruptcy. Fifty executives in all of corporate America have now been criminally charged. Another seven Enron executives have been charged, and many of you, like those of us here, seem to want to also count the number of people who have actually been sent to jail. The count there still zero.
Enron's former CFO is facing new charges. Andrew Fastow last fall was indicted on 78 counts -- count them, 78 -- of wire fraud, money laundering, and conspiracy.
Jan Hopkins is here now and has the latest for us in corporate crime watch -- Jan.
JAN HOPKINS, CNN ANCHOR: Well, Lou, things are definitely heating up.
We have learned that the Justice Department is expected to announce more charges tomorrow against the Enron's former CFO, Andrew Fastow. Charges could also be filed against two others connected with Fastow, perhaps including his wife.
Separately, charges are expected against at least five more former Enron broadband employees.
Tyco has found more accounting problems at the company. As a result, the company is taking a billion-dollar charge, half because of more conservative accounting and half because of problems in the ADT division.
Tyco now says it believes it has identified all or nearly all of its leftover accounting issues, but you might remember Tyco also assured investors in January that its accounting issues were over.
So far, the former CEO, CFO, and general counsel of Tyco have been charged in connection with at least $600 million in fraud.
Martha Stewart's legal problems continue to hurt her company's bottom line. Martha Stewart Omnimedia lost $7-1/2 million last quarter. The company officials say that Stewart's legal problems are the biggest single factor hurting results, and Stewart told investors today she didn't know when her legal problems would be resolved. She is being investigated for her sale of ImClone stock.
And bankrupt Global Crossing is losing its Hong Kong investor. Hutchison Whampoa withdrew its offer to buy a piece of the company after the U.S. government launched an investigation into the telecom company's ties to China.
Singapore Telecom will now double its investment in Global Crossing, and U.S.-based IDT is also interested in buying Global Crossing. IDT has been raising questions about whether national security is jeopardized when a foreign company buys an U.S. telecom company -- Lou.
DOBBS: Well, as you know, there are a lot of people in this city, on Wall Street, and in corporate America who say it's a very good thing that Hutchison Whampoa pulled out of that deal because of the relationships with other governments.
HOPKINS: Right. A lot of heat.
DOBBS: Absolutely.
Jan Hopkins.
Thank you.
Tonight, three members of the crew of the International Space Station are preparing for a trip home. The two Americans and one Russian -- well, they're going to return home Saturday. They'll be traveling in a Russian Soyuz spacecraft. Americans Kenneth Bowersox and Donald Pettit say they're well prepared, having had extensive training time in the Soyuz program.
The return trip aboard the Soyuz, of course, made necessary by the shuttle Columbia disaster in February. NASA grounded all the shuttles after that accident. But the agency now promises to have the program up and running again much sooner than many had expected.
John Zarrella reports.
(BEGIN VIDEOTAPE)
JOHN ZARRELLA, CNN MIAMI BUREAU CHIEF (voice-over): NASA administrator Shawn O'Keefe says he believes space shuttles could be flying again sooner than most people expected.
SHAWN O'KEEFE, NASA ADMINISTRATOR: There shouldn't be anything that would be an out-and-out show stopper, so we're hopeful and continuing planning for the prospect that we could be returned to flight by as early as the end of this year.
ZARRELLA: O'Keefe, the keynote speaker at the Annual Space Congress Conference in Cape Canaveral, said he wants to be ready to implement the recommendations of the Columbia accident investigation board as soon as their final report is out this summer.
(on camera): Once shuttles are flying, completion of the International Space Station will be the priority. That will take another six shuttle flights. For now, the Russians will be doing the heavy lifting.
(voice-over): A Russian Soyuz spacecraft is handling the current and likely the next station crew change-out. Additional unmanned resupply missions may be added, O'Keefe, says to bring up food and water for the two-man crew.
O'KEEFE: The best we can do with even that accelerated a pace is maintain a crew of two, which essentially keeps the lights on and the fluids moving and the power generation going and a little bit of the science activity that is -- was the purpose why we built it.
ZARRELLA: Despite the Columbia accident, NASA remains committed to human and robotic missions. A flight to the moons of Jupiter is planned for 2011. For the first time, nuclear technology will be used for spacecraft propulsion to get to the planet more quickly and visit rather than just driving by.
CHRIS SCOLESE, NASA DEPUTY ASSOCIATE ADMINISTRATOR: With this, we can go to Jupiter, for instance, and we can visit one moon, do all the science we need to do there, then go to another moon.
ZARRELLA: But the next planetary visit will be a lot nearer to earth. Twin Mars Rovers will head to the red planet this summer. With the shuttle grounded and the last Mars mission a failure, success this time around would go a long way toward restoring confidence in the space program.
John Zarrella, CNN, Cape Canaveral, Florida.
(END VIDEOTAPE)
DOBBS: Coming up, according to one official, it could be lights out for network television as you know it. Peter Viles will have that surprising story next.
Also, the threat of the SARS virus continues to escalate despite efforts at containment. We'll bring you the latest on the deadly virus.
And the home of the American movie industry is preparing for a sequel of sorts. Casey Wian will have our special report on the revival -- its most recent revival -- of Hollywood.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: The Federal Communications Commission is quietly gearing up for what could be a historic vote on media deregulation that would ease some of the rules that prevent media giants them from growing larger. The chairman of the FCC says broadcast television is, in his opinion, in deep trouble and could be headed, in fact, for extinction.
Peter Viles reports.
(BEGIN VIDEOTAPE)
KIMBERLY CALDWELL, "AMERICAN IDOL" CONTESTANT: Come to my window...
PETER VILES, CNN CORRESPONDENT (voice-over): A strange turn in the ongoing debate about the future of media regulations and television.
The chairman of the FCC, Michael Powell, claiming that old- fashioned, over-the-air television could be in real trouble if it doesn't get some regulatory relief.
Powell telling "The Financial Times," quote, "There is a real worry about the long-term survivability of free, over-the-air television," adding, quote, "I think there is a very easy way for it to collapse."
Everyone knows cable TV is nipping at the networks' heels, but nobody's been talking about a collapse.
GENE KIMMELMAN, CONSUMERS UNION: I'm astounded that the chairman of the FCC just doesn't have his facts right. His own staff has issued a report showing that the TV networks and local affiliates are earning profit margins almost three times higher than the S&P 500. These are companies that get their airwaves for free from Congress.
VILES: The truth is that, even though cable continues to gain on the networks, most over-the-air TV stations are profitable and broadcast networks, including Rupert Murdoch's Fox and Sumner Redstone's CBS, want the freedom to buy even more stations, in part so they'll have more money to produce better network programming to fight off the cable challenge.
JILL RUTICK, SMITH BARNEY: You've seen a lot of reality TV shows coming to the market, which tend to be a lower-priced option for the networks, and less investment than perhaps some dramas or comedies, and that might begin to shift over time, if the economic profile improves with consolidation in the TV station front.
VILES: One way to allow that lift: the current station ownership gap, which limits networks to owning stations covering 35 percent of the nation. Another possible easing step: allowing the same company to own a newspaper and a TV station in the same market.
(END VIDEOTAPE)
VILES: Now the big media expansion agenda goes beyond the United States. Viacom's Sumner Redstone recently suggested lifting foreign ownership restrictions that would make it easier for U.S. companies to buy media properties in Europe -- Lou.
DOBBS: And, in the short term, that would benefit principally whom?
VILES: Well, the buyers these days are Viacom and Fox. Fox, in fact, closed today on a Eur -- an Italian pay-TV system.
DOBBS: So I -- it's just mind boggling that Michael Powell would say that they're -- it's a collapse.
VILES: This is a stronger case for deregulation than the broadcasters themselves have made.
DOBBS: And remarkably -- we talk about deregulation, but let's be clear. What we're talking about is greater concentration of media power in the hands of fewer people.
VILES: Sure, sure. Fox and Viacom both against that 35-percent limit. They want to go higher.
DOBBS: We should point we work for a fairly highly concentrated media company ourselves... VILES: Exactly.
DOBBS: AOL Time Warner.
All right. Thanks very much.
Peter Viles.
Turning now to the SARS virus, Severe Acute Respiratory Syndrome. The crisis in China continues to escalate.
Beijing is now reporting more than 100 new SARS infections each day, and Beijing's mayor says the outbreak threatens to overwhelm its hospitals. Globally, the number of SARS cases grew 32 percent over the past week to almost 6,000 people.
Three hundred seventy people have now died. That is a death rate of 6.6 percent. Now we want to point out that that growth rate in the disease is principally within China.
In Toronto where health officials from around the world met today, two new deaths were reported. Fear of SARS and instability overseas has many American industries choosing to stay home, and Toronto, in recent years, had become a major draw for Hollywood movie producers.
But the SARS scare in Toronto changing, at least influencing the change of all that. That's just one factor behind what has been a remarkable and recent revival in Hollywood.
Casey Wian has the story.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): Filming is underway in Los Angeles for the big-screen comedy, "Johnson Family Vacation." Like many Hollywood productions, it's bucking the recent trend toward filming overseas.
ERIC RHONE, "JOHNSON FAMILY VACATION": We understand the importance of keeping these dollars here in America, providing jobs for people and for their families and making sure that we support this city and this nation at all costs.
WIAN: Applications for location shoots are piling up at Los Angeles's film permitting agency. In February and March, local production days jumped 15 percent over the same period last year. One reason: travel fears.
LINDSLEY PARSONS, JR., ENTERTAINMENT IND. DEV. CORP.: There's a lot of concern with terrorism, travel. There is a lot of pictures that were planning on going into European countries, some of the Arab countries. Well, they have changed their plans.
WIAN: SARS is another factor. For years, Los Angeles has lost business to Toronto because of its lower costs. The SARS outbreak there is now bringing productions back.
FRANK SCHERMA, PRESIDENT, RADICAL MEDIA: The fear all of a sudden of the SARS thing -- everybody said, well, let's stay a little bit closer to home, let's try to see how we can spend our money here in town.
WIAN: While fears of SARS and terrorism may be easing, recent declines in the dollar against Canadian and European currencies have narrowed the cost advantages of foreign locations, and so have state tax incentives for productions staying in California.
(on camera): Two thousand three is on pace to be the busiest year ever for film and TV production in Los Angeles. Local industry is expected to create about 5,000 new jobs this year.
(voice-over): From grips to producers, Hollywood's job market is hot.
VANCE VAN PETTEN, PRODUCERS GUILD OF AMERICA: We find jobs for our members, and we have every week an e-mail posting that goes out to all -- nearly 2,000 members, and, usually, we average two to three new jobs every week. In the last several weeks, we have been averaging now seven to 10 listings.
WIAN: Though Hollywood employment is still 20,000 jobs short of its 1999 peak, it's a start.
Casey Wian, CNN, Los Angeles.
(END VIDEOTAPE)
DOBBS: There's still time to vote in our poll question. We'll show you the preliminary results coming up here next. We'll share some of your thoughts as well. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Now the preliminary results of our poll. The question: How optimistic are you about the prospects this time of resolving the Israeli-Palestinian conflict?
Sixteen percent of you said very optimistic. Thirty-two percent said somewhat optimistic. Fifty-two percent said not at all.
We'll have the final results of the poll tomorrow night.
Taking a look at some of your thoughts now. Tonight, a lot of you are comparing corrupt corporate executives these days to another notorious group.
Jerry Wilkerson of Illinois wrote in to say, "Today, we learned from the chairman of the SEC and the attorney general of New York that the hefty rackets perpetrated nowadays come from the lads that work around Wall Street. No mask and gun are used in their holdups."
Jay Dull of Florida agrees. "I'm having trouble differentiating between some of the corporate CEOS (and boards of directors) and the Mafia family wears slick, silk suits and the CEOs and board members, pinstriped suits.
John Rupp is concerned about all that and greed. "Executive compensation has become a racket and a con game, one that is economically distortive, morally bankrupt, and socially divisive. It tops the list of the corporate reform agenda. Until it's fixed, faith in American capitalism cannot be restored."
I agree in large part, John. We definitely have to get executive pay under control.
Connie Brashears of Ohio wrote to say, "All of this of accountability and the rule of law and yet not one has been seen in an orange jumpsuit yet and probably never will be."
I'm more hopeful than you about that, Connie, but authorities have to move on these crooks.
And on the North Korean crisis, finally, Stephen Muehleisen of Tennessee said, "Mr. Dobbs, as much as blackmail disgusts me, doesn't North Korea have us over a barrel given the alternatives? Also, couldn't this be used to open up the regime?"
Well, there's still a lot of questions, Steve, and I doubt it. The United States has done the right thing to engage in multilateral talks with the North Koreans, but, really, the successful resolution of this crisis is almost totally dependent upon the actions of China, which supports the regime of Kim Jung Il.
I'm Lou Dobbs. Thanks for being with us tonight.
Tomorrow, our guests will include noted First-Amendment attorney. Floyd Abrams will tell us why ratings agencies are -- should be considered more like newspapers and television stations. And Niall Ferguson, the author of "Empire," tells us why America is a reluctant empire often in denial.
For all of us here, good night from New York City.
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