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CNN LOU DOBBS MONEYLINE
CORRECTED COPY, U.S. Experts: Truck in Iraq Could Be Mobile Biolab
Aired May 6, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CORRECTED COPY
LOU DOBBS, HOST: Wolf, aren't you going to say that's not a scientific poll?
WOLF BLITZER, CNN ANCHOR: It is a nonscientific poll.
DOBBS: Wolf, thank you very much. Good evening, everyone.
Tonight the United States may be ready to declare its found evidence that Iraq produced weapons of mass destruction. U.S. experts say a truck found in northern Iraq could well be a mobile, biological weapons laboratory. Our senior Pentagon correspondent, Jamie McIntyre, will report on that.
And former defense secretary and regular contributor to this broadcast, William Cohen, will be here. We'll be talking about the political and economic reconstruction of Iraq.
Tornado warnings in effect tonight in parts of the south. Communities there struggling to clean up from tornadoes over the past three days. At least 39 people have been killed.
We'll have reports from Jennifer Coggiola in Jackson, Tennessee, and Ed Lavandera in Pierce City, Missouri.
And today, President Bush told Congress he wants action now on his proposals for big tax cuts, but the Democrats today put forward an alternative to boost the economy.
The chairman of the House Ways and Means Committee, Congressman Bill Thomas, will be here to talk about why action, not talk, will create jobs.
Tonight the United States may be in possession of the first evidence that Iraq developed and deployed weapons of mass destruction. Weapons experts are now examining a truck that contained equipment for the making of biological agents. This truck was found near the northern Iraqi city of Mosul. Senior Pentagon correspondent, Jamie McIntyre, has the story.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, SENIOR PENTAGON CORRESPONDENT (voice-over): The Pentagon says it can now back up a key claim made by Secretary of State Colin Powell to the United Nations before the war that Iraq had put biological weapons laboratories on wheels.
COLIN POWELL, SECRETARY OF STATE: We know that Iraq has at least seven of these mobile biological agent factories.
MCINTYRE: Sources say one of two trucks turned over to the U.S. Military in late April closely matches drawings of a mobile bio lab shown by Powell in February, right down to some of the fermenting vats depicted inside. No bio agents were found. Officials suggest that may be because the truck had been scrubbed clean with a caustic agent.
Frustrated so far in its search for WMD, sources say the Pentagon plans to point to the truck as evidence that, at the very least, Iraq maintained the means to produce germ warfare, even as U.N. inspections continued.
Asked about what the discovery proves, President Bush said he'd leave that to the experts.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: One thing we know is that he had a weapons program. We also know he spent years trying to hide the weapons program. And over time, the truth will come out.
MCINTYRE: Privately, some Pentagon officials are saying the U.S. no longer expects to find weaponized chemicals or germs in Iraq, especially since they were not used on the battlefield as expected. The search now is concentrating on finding raw materials, the germs and nerve gas that would go inside the weapons.
And publicly, some U.S. officials appear to be lowering the bar, subtly suggesting it may be enough to prove Iraq simply had banned weapons in the recent past.
POWELL: Even if we don't find weapons, we can find out what happened to that material.
(END VIDEOTAPE)
MCINTYRE: So how much time does the United States have to find Iraq's weapons of mass destruction? According to one senior Pentagon official, about two months. He figures that's how long it'll be before it'll be just too late to keep saying be patient. Lou?
DOBBS: Jamie, the president, the entire administration and, of course, General Tommy Franks all said they were certain they would find weapons of mass destruction. Is there concern there at the Pentagon that the search has not, to this point, produced weapons of mass destruction or at least significant evidence of them?
MCINTYRE: I'd say there is concern. It varies from person to person. Some people have a pretty high degree of confidence still in the U.S. intelligence. It says there are weapons there, they just believe they are so well hidden they can't find them.
Other people are -- even if they believe the weapons are there, are increasingly concerned they won't find them and won't be able to produce that smoking gun.
So, you know, they still feel they have some time, that the public, the world is going to cut the Pentagon some slack for some period of time, but they realize that they can't go on forever without producing the key evidence.
DOBBS: Jamie, thank you very much. Jamie McIntyre, our senior Pentagon correspondent.
Officials in Iraq are investigating what could well be the biggest bank robbery of all time. An American official said a billion dollars was taken from Iraq's Central Bank just hours before coalition forces began bombing Iraq.
"The New York Times" reported one of Saddam Hussein's sons, Qusay, was responsible for the looting of the bank, but officials could not confirm the report. People living close to that bank said they saw men loading what appeared to be the money onto 18-wheeler trucks on March 18th.
President Bush today announced that former diplomat Paul Bremer will be his special envoy to Iraq. Bremer is a former head of counterterrorism at the State Department. Bremer will supervise U.S. efforts to build a democratic government in Iraq. Senior White House correspondent John King reports.
(BEGIN VIDEOTAPE)
JOHN KING, SR. WHITE HOUSE CORRESPONDENT (voice-over): In the Oval Office, the president introduced his new right-hand man for post- war Iraq, veteran State Department diplomat, L. Paul Bremer.
BUSH: He's a man with enormous experience. He's a person who knows how to get things done. He's a can-do type person.
KING: Unspoken was that the appointment reflects a shake up in post-war planning. The initial plan called for retired Army General Jay Garner to run Iraq and report to the wartime commander, General Tommy Franks.
White House envoy Zalmay Khalilzad was to help Garner with shaping Iraq's post-war politics. Now Bremer takes the political lead as the president's special envoy and Iraq's civilian administrator, reporting directly to Rumsfeld. Garner remains as the director of reconstruction and humanitarian efforts, but Bremer is senior to Garner in the new flow chart.
BUSH: We appreciate so very much your willing to sacrifice, not only on behalf of our country, but the people of Iraq who deserve a free and democratic society. Good luck to you.
KING: Bremer served in the State Department for 23 years under six secretaries of state, and his duties included ambassador to the Netherlands and ambassador-at-large for counterterrorism.
Garner began the difficult work of assembling an interim Iraqi authority with the goal of handing significant control back to Iraqis by the end of the month. Bremer now takes charge of that process with no change in the timetable.
(END VIDEOTAPE)
Now, the reasons for the shake up differ, depending on who and where in the administration you ask. At the Pentagon, they say the plan's always envisioned a more senior civilian leader heading in once the security situation improved, while here at the White House, some officials say the president decided to send Ambassador Bremer in because he believes the delicate political challenge can be better handled by a veteran diplomat than a retired general. Lou?
DOBBS: Why the change, then, at this point, this coming apparently within just the past week, in the thinking of the White House, John?
KING: Well, Lou, again, depending on which building in the government, in the administration, you ask, you get a different answer. Officials here at the White House say this decision was made by the president, the vice president, Secretary Rumsfeld, Secretary Powell, and Condoleezza Rice. In private discussions, some even very top aides say they know little about what was discussed in the end.
The bottom line is this. They do believe they need more of an eloquent, if you will, front man, a public face for the United States inside Iraq.
Some here at the White House say they did not think General Garner was up to that job, being an ambassador as well as the head of reconstruction. They believe Mr. Bremer is that person. He has the television skills. They also believe he has the political skills to deal with the very difficult controversies we have seen, who gets what role in the interim Iraqi administration. They say a diplomat's better for the job, and they believe Mr. Bremer can handle the politics, but there are some disagreements between the White House, the Pentagon, and the State Department about how all this happened.
DOBBS: And John, a big day for the personnel department at the White House. The resignation of OMB director, Mitch Daniels. What can you tell us about that?
KING: Well, Mitch Daniels, Lou, had told the president for some time that he was preparing to step down because he wants to go back to Indiana. He is most likely almost certain to run for governor when he gets home to Indiana.
Here at the White House, they credit Mitch Daniels not only with shaping the budget, but also with helping put together the new Department of Homeland Security. One aide joked this morning that even Republicans on Capitol Hill would be popping Champagne.
If it was spending on a program the president didn't like, Mitch Daniels was known to be very aggressive in trying to get that spending ripped out of the budget. He made some enemies even among Republican friends, if you will, on Capitol Hill. The president paid tribute to him today, and the president stopping in Indiana next week for an economic event. Look for him to pay tribute in Mitch Daniels' home state as well.
DOBBS: John, thank you very much. John King, our senior White House correspondent.
A senior U.S. official today said Iran has done little to cooperate with the United Nations inspectors examining its nuclear program. The official told the Reuters news agency that nothing suggests the Iranians are being transparent about those nuclear activities. Iran today repeated its claim that its nuclear program is solely for peaceful purposes.
U.S. officials hope the presence of U.S. forces in neighboring Iraq and Afghanistan, of course, will convince Iran to cooperate with the United Nations.
The two countries that most recently became proven nuclear powers are attempting to improve their relationship. Pakistan today said it will go along with India's proposal to restore full diplomatic relations between the two countries. Pakistan and India also plan to restore air, bus, and train links and to resume sports competition between the two countries.
Also today, Pakistan said it hopes the United States will relieve another almost $2 billion in debt. Kitty Pilgrim reports.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNNfn CORRESPONDENT (voice-over): Pakistan is crying for help. The United States signed an agreement with Pakistan last month to write off a billion dollars in debt. Now Pakistan is talking about asking for another $1.8 billion writedown. Some say it's money well spent.
AYESHA JALAL, TUFTS UNIVERSITY: Only last month, the U.S. wrote off a billion dollars, and we've seen some rather positive results since then. Not only have we seen the arrest of some key members of al Qaeda, but also peace initiatives by Pakistan in terms of India.
PILGRIM: But some say it's too much.
DANA DILLON, THE HERITAGE FOUNDATION: When we write off that $1.8 billion, then that will set a precedent for other countries that are much more highly indebted and owe us more money.
PILGRIM: Some advocate a tough negotiation to get tangible progress on the dangerous relationship with India and to make sure Pakistan's nuclear capacity is not misused.
STEVE COHEN, BROOKINGS INSTITUTION: Debt relief and possible aid for Pakistan would be one of the carrots we can offer them, but clearly we should be offering carrots, as well as potential sanctions, to get them to be more forthcoming in a dialogue with India and to relax some of their hard-line positions, as the Indians hopefully will relax some of their hard-line positions.
PILGRIM: Pakistan was a key ally in the fight against Al Qaeda. For president Musharraf, this was a tough position. The war in Afghanistan was unpopular at home in Pakistan.
Part of current U.S. funding is to help education and deter extremism. The United States is donating $100 million over five years to the country's education system. The country's 10,000 religious schools, or madrassas, are often cited as a breeding ground for radical Islam.
(END VIDEOTAPE)
Pakistan has been aided by the international community. The Paris Club of bilateral donors has rescheduled $12.5 billion in debt. Lou?
DOBBS: Kitty, thank you very much. Kitty Pilgrim.
Turning to the severe weather affecting much of this country, tornado warnings today again issued in states trying to recover from storms that have killed at least 39 people now. Meteorologists said most of the tornadoes are developing in the same places as were hit this weekend.
Tornado conditions moved into the Atlanta region today and caused delays at Hartsfeld International Airport.
Two reports now on the recovery effort and the latest threats. Jennifer Coggiola in Jackson, Tennessee. Ed Lavandera in Pierce City, Missouri. Jennifer, what is the latest from Jackson tonight?
JENNIFER COGGIOLA, CNN CORRESPONDENT: I do have some updates. I want to show you a quick picture, though, just so you get an idea of what downtown Jackson looks like.
If you look at the destruction around me, specifically this brick building up over my shoulder to the right, that's the new Southern Hotel. That's a government-subsidized home for the elderly. You can see the entire right half was right in the path of the hurricane that came and blew through downtown Jackson.
Now, I did speak to both the mayor of Madison County and the mayor of the city of Jackson here, and they said there are still 18,000 residents that don't have power, and they should have them by the end of the week.
The water situation is improving. They're still working on getting power at the water facility treatment plant, which serves about 30,000 residents around here. Phones and cable are still out.
Now, the governor brought us in earlier today, did take a flyover over the city of Madison -- or rather, Jackson, and he came forward and said that it looks like there's an estimated $9 million for cleanup of Madison county, but that does not include the city of Jackson. He is expected to declare Jackson a state of emergency by the end of the week.
If you're seeing these pictures, you can see everything from downtown historical buildings that were just demolished, trailer homes literally vanished. There's also a Procter & Gamble plant here that makes Pringles Potato Chips, and the roof of that building was utterly destroyed. Lou?
DOBBS: Jennifer, thank you.
We go now to Ed Lavandera in Pierce City, Missouri, where many historic buildings were badly damaged in those storms. Ed, what is the situation in Pierce City tonight?
ED LAVANDERA, CNN CORRESPONDENT: Well, Lou, the officials here in Pierce City learning that they will be getting in a few hours the federal assistance that they've been -- they will want to begin the cleanup process here. FEMA, the Federal Emergency Management Agency, will be setting up a mobile shop here where they will be able to pass out the money that will be needed to clean up the mess here that you see behind me. This is the armory in downtown Pierce City, where the one person who died in this thing died in this building here.
Now, a lot of the other cleanup efforts will go to the physical, either demolition or restoration at this point, of many of these downtown buildings. It's not exactly clear at this point which buildings will be able -- will be saved or which ones will have to be demolished. There are still engineers going through these buildings to check out just how strong they still might be. So, there's still quite a lot of work to do.
Many of the business owners here in Pierce City have had the chance today to be escorted through their businesses to recover and salvage what they can. Very strict rules as to what they can and can't take out just because these buildings are in such terrible shape at this point.
And also, the residents of this town have been doing a lot of this same thing, going into their homes, about 100 homes here have been damaged. So, the families here spending a lot of time going through that, picking out what they can at this point.
The clouds have returned here to Pierce City. It had been a relatively sunny day and a rather warm day with the ominous clouds returning here. There had been some threats and a potential for more severe weather here today. So, many of the people keeping a close eye on the sky here. Lou, back to you.
DOBBS: Ed, thank you very much. Ed Lavandera from Pierce City, Missouri. Hard hit, as Ed Lavandera reported.
Still ahead here tonight, the next phase of the tax battle. I'll be talking with the House Ways and Means Committee Chairman, Congressman Bill Thomas. We'll be talking about his plan to put $10 million in the pockets of low- and middle-income American families.
And Iraq's former ambassador to the United Nations back in the news. Mohammed Aldouri now has some harsh things to say about the man he served for so long, Saddam Hussein. We'll have what he said in just a moment.
(COMMERCIAL BREAK)
DOBBS: The Federal Reserve Open Market Committee today left interest rates unchanged. However, it did signal that more rate cuts could be needed in the future and, in fact, expressed some concern about the possibility of deflation. The Fed funds rate has been at 1.25 percent since November. The Fed began cutting gradually from six percent back in March of 2001.
In the statement today, Fed Chairman Greenspan and fellow policymakers said recent readings on production and employment have been disappointing, but they noted the situation with Iraq has produced lower oil prices and higher consumer confidence.
The Fed went on to warn that, quote, "The probability of an unwelcome substantial fall in inflation, though minor, exceeds that of a pick up in inflation from its already low level." considering that, the Fed said, "The balance of risks is weighted toward weakness over the foreseeable future."
The stock market took a look at all of that and dismissed it and held on to most of the gains after the Fed statement. The Dow rose almost 57 points. The Nasdaq added 20 points. The S&P 500 rose almost one percent.
Christine Romans is here with more on the day's activity, The broader dimensions of the market. Christine?
CHRISTINE ROMANS, CNNfn CORRESPONDENT: Well, Lou, that's a 3 1/2-month high for the Dow Jones industrials average. Volume today, 1.6 billion shares. And the S & P 500 is at a five-month high.
At the Big Board 138 stocks hitting new 52-week highs. Today only six new lows. That's a trend, Lou, that's held for several weeks now. Two stocks rose for every one that fell.
Now, as these sorts of indicators remain strong, the spring stock rally is attracting new believers every day. For the year, the Dow up three percent now, the S&P 500 has gained more than six percent. The Nasdaq up 14 percent this year.
Now, that leading economic indicator, the Dow Jones transportation average, is up more than 7 percent this year, up 23 percent since the lows hit in March when oil prices spiked.
Meanwhile, technology accounted for a third of today's S&P rally. Computer-related stocks soaring ahead of Cisco's profit report. Cisco earnings after the bell rose 35 percent, though sales fell 4 percent. Cisco shares are up sharply.
Already, Lou, some fret that until revenue grows, more stock gains for some of these tech names like Cisco could be difficult, but a good run so far. DOBBS: So far, so good. Single-digit gains, not bad. Christine, thank you very much. Christine Romans.
Well, it has now been 519 days since Enron filed for bankruptcy, the departure point, if you will for the worst corporate corruption scandal in our country's history. Fifteen Enron executives have now been charged. Another 50 corporate executives have been charged throughout the country. No one has been sent to jail, and we should point out that no one has even been convicted. But it is a story, as they say, in progress.
When we continue, NASA coming closer tonight to finding the cause of the shuttle, "Columbia," disaster. We'll have the details.
And former Defense Secretary, William Cohen, will join us on the rebuilding of Iraq and the remaining threat from North Korea. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Mohammed Aldouri, Iraq's former ambassador to the United Nations, expressed his most recent opinion about Saddam Hussein in an interview published today in "The Gulf News". Aldouri said he never agreed with how Saddam Hussein treated the people of Iraq. Aldouri said, "Tyranny contradicts my nature and beliefs." He went on to say, "Saddam was simply a tyrant. I've also differed with the regime. I represented my country because there was no way of saying no and because I thought I could serve my country."
As we reported, President Bush today named counterterrorism expert, former ambassador Paul Bremer, as presidential envoy to Iraq. Bremer's expected to play a key role in establishing an Iraqi government.
Joining me now to talk about the reconstruction of Iraq and North Korea, former defense secretary, frequent contributor to this broadcast, regular follow and contributor, I should say, William Cohen. Bill, good to have you here.
WILLIAM COHEN, FORMER DEFENSE SECRETARY: Good evening, Lou.
DOBBS: First, the appointment of Bremer. Do you like him? Do you think he's well qualified for this job?
COHEN: Oh, he's an exceptionally well-qualified individual. He's had vast experience in the State Department, also focusing upon counterterrorism. He will be very hard nosed, a tough-minded individual who will bring a great deal of discipline, as well as diplomacy, in that job. So, I think that's an outstanding choice.
DOBBS: As John King reported earlier in this broadcast, there is obviously some contention between Defense and State over Iraq and its administration. This represents a departure from what we had been led to believe would be the direction that the U.S. government would follow in Iraq. What do you make of it? COHEN: Well, it's been characterized as a handover from the military to civilian authority but, of course, Jay Garner is a retired military and has been functioning as a civilian. So, it's really handing it over from civilian to civilian.
But I think it represents the president's desire to put a different face, as John King mentioned earlier, on the Iraqi reconstruction effort and especially on the political construction. And I think you need an individual such as Jerry Bremer to articulate that vision and to be a public spokesman for the effort.
So, I think the president wanted to put a different imprint upon the effort, understanding that we need to act fairly quickly. Time is not on our side as far as filling the void and the vacuum that can be filled, and will attempt to be filled, by those Muslim radicals, as such, or extremists who want to take control of the country.
So, this is something that has to be moved fairly quickly, and Jay Bremer's an outstanding choice to help move that process along.
DOBBS: And it's obvious that that vacuum can neither be filled nor managed without the presence, and significant presence, of U.S. military force. How long do you think this process is going to take, or is it, in your judgment, all but impossible to know how long it will take?
COHEN: Well, we need security to be sure, and our military's going to continue to play an important role in maintaining that security. Aided by others, I might add. Poland is now eager to participate in that peacekeeping role. There will be others who will also join in that effort.
So, you need security, but you also now need political stability. And the two have to go hand in hand. And so, no one can put an actual time frame on it, but the sooner we can, quote, internationalize the security arrangement, more and more people helping to take over on the security side, and then to accelerate the political dynamic in terms of getting a national assembly established on an interim basis, getting most of that national assembly comprised of local Iraqis, with outside the so-called opposition groups who were in exile also playing a major role, getting that started in the next few weeks will be critically important.
DOBBS: Bill, I want to quickly turn your attention, if I may, to two subjects. First, the road map. We now have a vision for the process toward resolution of the Israeli-Palestinian conflict. Are you hopeful on that issue?
COHEN: Well, we have the way. The question is do we have the will? This is going to require the president to really come down hard on both sides. And without the president doing that, then I think it's wishful thinking on our part.
We must have a stop to the terrorism as best we can. We're going to call upon the new prime minister of Palestine to exert whatever authority he can to stop the acts of terrorism. We're going to have to call upon Ariel Sharon to stop the settlements and to put a freeze on them. There has to be some reciprocity involved on a very early basis if...
DOBBS: A rollback of those settlements to the 1967 borders?
COHEN: That will have to come as well, but a freeze certainly at the very beginning and then, ultimately, the rollback, but that freeze should come up front. Otherwise, the Palestinians will see that -- or charge at least, that there's no effort being made on the part of the Israelis and, therefore, there will be little incentive for them to stop what they've been doing, and that has to stop.
DOBBS: On the subject of North Korea, while it's impossible for any of us to know what is happening behind the scenes, it has been quiescent since Assistant Secretary Kelly said, basically, no way to some rather outrageous propositions on the part of Kim Jong Il's representatives. Where do we go from here?
COHEN: Well, there was an interesting story that was floated at least in "The New York Times" recently that the administration allegedly is going to concede that they can't really reach an agreement, a verifiable and really enforceable agreement, with the North Koreans and, therefore, to concede the manufacture of nuclear materials and then to try to stop it from being disseminated.
If that's the case, I think that we're in for a great deal of difficulty, not only with North Korea but with our allies from South Korea and especially Japan. And I would hope that that would not be the position, but it remains unclear at this point.
DOBBS: What would you do?
COHEN: I would continue to try to bring about an agreement with very, very intrusive inspection regime. I would bring about pressure, hopefully, with the Chinese, and I've talked to Chinese officials about their desire to equally get involved now in preventing North Korea from developing nuclear materials and weapons. And I'd bring the Russians in as well. And to try to prevent that if at all possible with all sorts of sanctions and enforcement cooperation from various countries who have an interest.
DOBBS: Let's get to the bottom line. You talked about will earlier in conjunction with the Israeli-Palestinian conflict.
COHEN: Right.
DOBBS: As you know better than most, what is ultimately at issue here is the will of the United States to enforce that constraint on nuclear weapons in North Korea. Would you use as a last resort, obviously, military force against North Korea?
COHEN: Well, I would not take that off the table. That would certainly be one of the options the president could finally pursue. It would not be, certainly, the first or the second, but I think it will remain as an option to the president should it become necessary, but right, now diplomacy, economic issues, sanctions, other types of enforcement mechanisms before we get to the military option.
DOBBS: Bill Cohen, thank you very much, as always. Good to talk with you.
COHEN: My pleasure.
DOBBS: And that brings us to the question of the night. How important is it to U.S. credibility that Iraqi weapons of mass destruction be found? Very, somewhat, or not at all? Cast your vote at cnn.com/moneyline. We'll have the preliminary results coming up later in the broadcast.
The results of yesterday's poll question, whose opinion do you value most on the issue of tax cuts? Eighteen percent said President Bush. Two percent said Treasury Secretary Snow. Thirty-three percent said Fed Chairman Greenspan. Forty-seven percent of you said billionaire Warren Buffett.
When we continue, our thought of the day on the ultimate ambition of mankind.
And the Pep Boys finally respond to a lawsuit filed by a Navy reservist who says he was fired because of his military obligations.
And thousands of sailors met their ultimate ambition as they sailed into their home ports today. For some, that meant a home away from home. Rebecca MacKinnon will report.
(COMMERCIAL BREAK)
(NEWSBREAK)
DOBBS: Arthel, thank you. The USS Abraham Lincoln returned home today from an historic deployment. The Lincoln and its remaining 3,000 sailors were greeted by a crowd of thousands at the home port of Everett, Washington.
The Lincoln was at sea for nearly ten months, one of the longest deployments since Vietnam. It launched thousands of sorties in the war against Saddam Hussein. The Lincoln was also the setting for President Bush's dramatic landing in a fighter jet off San Diego last week and his address to the nation.
Sailors from the USS Kitty Hawk also enjoying their first day back home. The carrier returned home to its home port of Yokosuka Naval Base in Japan, thousands of people there to greet the sailors.
Rebecca MacKinnon reports.
(BEGIN VIDEOTAPE)
REBECCA MACKINNON, CNN CORRESPONDENT (voice-over): After more than 100 days at sea, Roger Goetz and his wife Naoko (ph) are reunited. He meets his newborn son Theodore, also called Yuki (ph) for the very first time. ABHZ. ROGER GOETZ, NEW FATHER: He is absolutely beautiful. She sent me pictures on my e-mail and he looked beautiful on that but two times better in person.
MACKINNON: Emotional reunions in Yokosuka, Japan, home away from home.
(on camera): The Kitty Hawk is the only aircraft carrier battle group whose home port is not in the United States and that means that homecoming for these sailors is a little bit different than homecoming for sailors on other carriers.
CAPT. THOMAS PARKER, COMMANDING OFFICER: I need everyone to be on their best behavior tomorrow and always as we represent the United States in a foreign country.
MACKINNON: A captain's warning to sailors before going ashore.
PARKER: The Japanese people have gone out of their way to make us feel welcome here. We are there as guests of the people of Japan and everything we can do to prevent any strains on that relationship I'm anxious to do.
MACKINNON: Bombing missions launched from the Kitty Hawk helped win the war in Iraq, a war Japan's government supported. But not all people in Japan did, as three small protest boats made clear.
This protester hopes the U.S. won't attack North Korea next. Still, fear of a North Korean attack on Japan is a big reason why the Kitty Hawk's presence is welcomed here.
REAR ADM. MATTHEW MOFFIT, STRIKE FORCE COMMANDER: The Korean War is now on hold. Our ability to respond is really important to the commanders that are confronted by this particular challenge, and so that's why we feel our presence here is very important.
MACKINNON: But, for now, future missions and potential wars are the last thing these happy young families want to think about.
Rebecca MacKinnon CNN, Yokosuka, Japan.
(END VIDEOTAPE)
DOBBS: In March, we reported to you the story of a Navy reservist suing Pep Boys, the reservist contending he was fired because of his military obligations. Pep Boys refused comment in that first report but the company is talking now.
Bill Tucker reports.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNNfn CORRESPONDENT (voice-over): The case between Pep Boys and Navy Reservist Eric Bolatis (ph) remains unsettled. Bolatis says he was fired last June because of duties with the U.S. Navy Reserves. Manny, Moe, and Jack, after refusing comment on the allegations in March, now want it known Bolatis' reserve duty obligations had nothing to do with why he was fired. A copy of Bolatis' termination papers, obtained by MONEYLINE, show he was fired for "serious negligence, insubordination, misconduct in violation of company policy."
Internal documents show that between September, 2001 and June, 2002, Bolatis was demoted from district manager to store to manager to store first assistant because of problems related to his job performance.
The documents also show written notice of Bolatis' performance evaluation which was negative, signed by Bolatis prior to his first demotion, and they include written notices from Pep Boys to Bolatis that he either failed to follow company policy or company procedures.
After MONEYLINE first told you the story of Eric Bolatis, Pep Boys says it was besieged by angry e-mails and phone calls about the way the company treated the reservist. Ironically, according to Pep Boys, the company currently has more than 40 employees on active reserve duty.
FRED STAMPONE, CHIEF ADMIN. OFF. PEP BOYS: We eagerly await the return of our military reservists, not only to their country, to their families, but to their jobs and we're holding those positions open and we're really looking forward for their return and we hope and pray that they return safely.
(END VIDEOTAPE)
TUCKER: Last year, Pep Boys was cited by the National Committee for the Employer Support of the Guard and Reserve for their service and support of the Guard and Reserve. And, Lou, I should mention that we did make repeated attempts to contact Bolatis' attorney but she did not return our phone calls.
DOBBS: Bill, thank you very much, Bill Tucker.
Well, turning now to our "Thought of the Day:" There is a loftier ambition than merely to stand high in the world. It is to stoop down and lift mankind a little higher. Henry Van Dyke, U.S. Ambassador to both the Netherlands and Luxembourg.
Still ahead here, tonight's "Quote of the Day" from a well-known Democrat who says the Republican tax plan fails on just three key points, this as both parties come out and battle over taxes.
Our Senior political analyst Bill Schneider will break down those proposals.
And, one California town proposes to cut crime by telling criminals simply keep out. Casey Wian will tell us if that novel approach works. Stay with us.
(COMMERCIAL BREAK) AARON BROWN, CNN ANCHOR: Here's what we're working on tonight for "NEWSNIGHT." We'll look at the impact of today's ruling in the Lee Malvo sniper case. His confession will be heard.
Also tonight, Caroline Kennedy on patriotism, that's "NEWSNIGHT," CNN tonight, 10:00 p.m. Easter.
DOBBS: The battle over tax cuts underway on Capitol Hill. Senate Republicans have put forward one plan. The Democrats call that a gimmick. We had hoped to talk with House Ways and Means Committee Chairman Bill Thomas but late committee business, in fact, the markup of the tax legislation has kept him away for the evening.
We will have the congressman with us just as soon as he can be available. We can tell you that the battle over tax cuts has quite a few twists as you might expect ahead.
Jonathan Karl reports now on those competing tax cut proposals.
(BEGIN VIDEOTAPE)
JONATHAN KARL, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Senate Republicans have their plan.
SEN. BILL FRIST, (R-TN), MAJORITY LEADER: We'll get a great piece of dividend legislation that the president can sign in the next few weeks.
KARL: Democrats have their plan.
SEN. TOM DASCHLE (D-SD), MINORITY LEADER: It provides $300 for each adult, $300 each for the first two children.
KARL: The two parties are miles apart but the Republican and Democratic plans actually have something in common. Both are temporary and neither has the votes to pass.
The Republican version would cut the dividend tax for just three years. Moderate Republicans, like Olympia Snowe, say that is a gimmick to hide the real cost of the tax cut, and amazingly the author of the proposal agrees.
SEN. CHARLES GRASSLEY (R-IA), FINANCE CMTE. CHAIRMAN: Well, she's absolutely right. It's a gimmick from the standpoint that the best tax policy would be to have the 10-year tax policy that you can under reconciliation, but there's also the anxiety that we all have to recognize because there are not jobs being created.
KARL: Without the support of the moderate Republicans, though, Grassley's plan won't fly. The Democratic plan has even less support.
Meanwhile, over in the House, GOP leaders are charging forward with yet another plan, a proposal to cut capital gains taxes that may pass in the House but probably doesn't have a prayer of passing in the Senate.
(END VIDEOTAPE)
DOBBS: Congressional Correspondent Jonathan Karl reporting four different tax cut plan now on Capitol Hill.
Our senior political analyst Bill Schneider joins us and, Bill let's address first of all the issue of do the wealthy get the big tax break here? Who gets what?
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, the Democrats claim that their tax breaks are specifically targeted to lower and middle-income taxpayers, and the Republican plans give most of the benefits to the rich, which I think most people, most analysts would agree they do because the tax cut on dividends, which the Republican plans include, would benefit of course mostly high income taxpayers.
But Republicans would argue well, you know, the rich pay most of the taxes, so if we're going to have a tax cut most of it should go to the people who pay most of the taxes.
The Democrats say these plans are just tax breaks for the rich and, apparently, most Americans do believe that because look we've got this strange spectacle going on of a president coming out of a successful war at a peak of popularity traveling around the country trying to sell a tax cut? What's wrong with that picture?
What's wrong with that picture is a lot of voters are very skeptical about this tax cut, precisely because they've heard the Democrats call it time and again a tax break for the rich.
DOBBS: Polls show popular support for the tax cut or not?
SCHNEIDER: Polls show a split. Americans are skeptical. They're divided over this tax cut. It's going to be - it is a tough sell.
DOBBS: What kind of country is this when we split over tax cuts? How affordable are these plans? I mean we have, for goodness sakes, I mean we've got $300 billion worth of stimulus in this economy already as a result of the deficit. How affordable are these plans and do most of the people you've talked with think it really matters?
SCHNEIDER: Well, the plans come with very different price tags ranging from $152 billion over ten years and the plan that the Senate Democrats are rallying around, to the president's initial request way up there at $726 billion.
Now, the top one and the bottom one, they ain't going to pass, just as Jonathan Karl reported. It will be somewhere in that middle range. The president now says he'll settle for $550 billion. The Senate Republicans are saying no, no, only $350 billion.
The reason for all this debate is that, as you just indicated, the deficits are back big time, a record deficit. Some say it will go as high as $500 billion, and the polling reveals something very interesting. The worse shape you think the economy is in the less, the less you support a tax cut, isn't that strange? People don't see the tax cut as a solution for a bad economy. They think if the economy is bad we can't afford a tax cut.
DOBBS: In your judgment, which of these tax cuts best stimulates the economy in the shortest possible term?
SCHNEIDER: Lou, I don't know and economists don't know and the odd thing...
DOBBS: Oh, Bill, don't tell me.
SCHNEIDER: Nobody knows. There are a lot of mysteries about this. The original tax cut that Bush proposed wasn't supposed to be an economic stimulus plan at all.
DOBBS: It's a growth plan.
SCHNEIDER: Some people don't even like to even use the words economic stimulus because those are Democratic words.
DOBBS: Yes.
SCHNEIDER: But now with the poor economy they have to talk about doing something, so they say if you cut taxes, especially for the wealthy, they'll invest the money and it will produce jobs. The Democrats say no, if you cut taxes for lower and middle-income people they'll spend the money and it will produce jobs. Of course, they may end up paying off debts, which won't mean a great deal at all.
The answer is nobody really knows exactly what's going to happen. There is a great mystery about this economy right now. The economy is growing but it's a jobless recovery and economists will say how can that happen? How can you have an economy growing but unemployment growing at the same time? The reason seems to be that productivity is growing, so since you can get more output out of a worker you don't have to hire more people and that's the strange thing.
DOBBS: That gets a little complicated because productivity typically rises in lower employment environments irrespective of true gains in productivity.
SCHNEIDER: I'll tell you the political fact is very simple, voters don't respond to productivity. They respond to jobs and that's what the president is talking about.
DOBBS: That's exactly right and, if I can just add a couple quick points, you said it might not be helpful to lower income working families in this country because they'll just pay off their debts but that would, if you will, reload. That gives them more ammunition and I'm not certain that I would agree with those who would suggest that.
It's going to be interesting this debate and it's going to be interesting to cut through all of the nonsense and get to the real issue which is, as you properly suggest, creating a recovery that will drive jobs and employment, Bill Schneider, as always, great to have you with us. SCHNEIDER: Sure, Lou.
DOBBS: Bill's report brings us to the "Quote of the day," or quote of the evening. A Democrat out on the Hill today pushing her party's alternative tax plan, which Bill Schneider has told us won't even make it to viability, the quote is:
"It will strengthen the economy without adding to the long-term deficit. It will be fair in terms of who benefits from the tax plan. It will be fiscally sound in that it will be paid for and it will be fast-acting in creating one million jobs this year. The Republican plan fails on all three scores."
That statement from House Minority Leader Nancy Pelosi and even others have written off that plan as political viable. Let's wait and see. We're approaching an election year. All sorts of things can happen.
And, a reminder now to vote in our poll tonight, the question: "How important is it to U.S. credibility that Iraqi weapons of mass destruction be found, very, somewhat, not at all?" Cast your vote, cnn.com/moneyline. We'll have the preliminary results for you a little later in this broadcast.
And, when we come back, what if you could keep your neighborhood safe from crime by making it off limits to criminals? That is exactly what one California city is trying to do. Casey Wian will have the story for us.
And, we'll share you thoughts, including some reaction to billionaire Warren Buffett and his opposition to the president's tax cut proposal. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Prosecutors in one California city faced with budget cuts and rising crime have come up with an interesting crime fighting technique. Instead of barring convicted criminals, they're going to completely bar them from certain parts of town.
Casey Wian has the story.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNNfn CORRESPONDENT (voice-over): Lancaster is a suburban desert city, 65 miles north of Los Angeles. Its heritage is aerospace and agriculture, but with pockets of big city trouble.
DAVID BERGER, DEPT. D.A., L.A. COUNTY: The area we're going to turn in towards is - this is the zone, target area one. There have been a number of firearms incidents around here mostly associated with gangs and gangs trying to maintain their drug territories.
WIAN: Gang graffiti marks garage walls, even neighborhood watch signs. From misdemeanors to murders it's the roughest part of town. (on camera): Last year more than 200 crimes were reported in this neighborhood, which is a little more than a mile square. More than half of those were drug related offenses.
(voice-over): County Prosecutor David Berger is leading an effort to keep criminals out by making this dozen block neighborhood off limits to people on probation or parole.
This resident whose well-kept house displays the blue star of a family member in combat supports the idea.
UNIDENTIFIED FEMALE: I think this is where they're going to come because it's the lower end of the market and you can afford this over here and I don't want them. I have kids. I don't want them here.
WIAN: Others call the plan unfair.
UNIDENTIFIED MALE: They already paid their debt to society, you know.
WIAN: Constitutional questions do remain.
ERWIN CHEMERINSKY, USC LAW PROFESSOR: What if a person holds a job in that area of the city who wants to visit a parent or a best friend or go to a restaurant in that area of the city? Also, we know from experience in other places like Cincinnati that these kinds of ordinances are often used by the police to harass individuals.
WIAN: Cincinnati adopted a law to keep drug offenders out of a high crime area in 1996 but later overturned in court. Some locals said the policy fueled tensions that led to riots.
Laws in Portland, Oregon, barring prostitution and drug offenders from certain areas have survived court challenges.
UNIDENTIFIED MALE: Because there's really only one reason to be there and it's not to visit your aging mama or your dear auntie or your granddad. It's to go and buy drugs and everybody knows that.
WIAN: Lancaster's City Council votes on the proposal this month. If approved, keep out signs will be posted in August.
Casey Wian CNN, Lancaster, California.
(END VIDEOTAPE)
DOBBS: When we come back, we'll have the preliminary results of tonight's poll question and your answers and we'll also share some of your thoughts. Stay with us.
(COMMERCIAL BREAK)
DOBBS: The preliminary results now of tonight's poll question: "How important is it to the United States credibility that Iraqi weapons of mass destruction be found?" Seventy-seven percent of you said very important, 12 percent said somewhat important, only 11 percent said not at all. And, a reminder, you have 23 hours to cast your vote. The final results will be brought to us all tomorrow evening.
Now, let's take a look at some of your thoughts. Many of you wrote in about last night's poll question. The question was: "Whose opinion do you value most on the issue of tax cuts, the president, Treasury Secretary Snow, Fed Chief Greenspan, or Warren Buffett?"
K. Sirridge from Paradise Valley, Arizona voted for the commander-in-chief: "Being as President Bush and his administration were correct in the outcome of our action in Iraq, I give him my support for his tax relief plan. It appears he deserves the opportunity to correct the economy as he sees fit."
Linda Jimenez from Rio Rancho, New Mexico, however, voted for Warren Buffett. "As a rich man, even he says the tax cut is unfairly targeted to the most affluent and that is unfair."
G. Shafer disagreed, saying: "If Warren Buffett doesn't want the rest of us to have a tax cut maybe he can donate a couple of hundred dollars to every taxpayer in the country each year. Maybe he doesn't need a tax cut, but we do."
And Peter Wormer from Altedena, California wrote about the $900 million bank robbery from Iraq's Central Bank:
"Qusay stole $1 billion from the bank in Iraq. Why is everybody so worked up? He didn't do any worse than the board members of Webvan, Enron, WorldCom, et cetera. The federal prosecutors would go a long way towards restoring faith on Wall Street by continuing to go after those high-priced felons. I, for one, will not breathe easier until I see CEOs splitting rock in the hot Texas sun." Sounds like a song.
And finally, Hugh Gray of Madison, Alabama wrote: "Lou, instead of asking other folks to present their view on the soundness of the president's tax cut package, how about telling us your views?" Thanks for the suggestion, Hugh. I can't resist and tomorrow here I'll do just that.
We love hearing from you. Please share your thoughts with us. E-mail us at loudobbs@cnn.com.
Thanks for being with us tonight. Tomorrow our guests include Robert Kennedy, Jr., syndicated columnist Arianna Huffington, two of the sponsors of a new ad campaign targeting the car industry and its dependence on Middle East oil, and Dr. Anita Rachlis of the University of Toronto joins me as we talk about the new study on the SARS virus and its spread. That's tomorrow night, for all of us here goodnight from New York.
"LIVE FROM THE HEADLINES" with Paula Zahn coming up here next.
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