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Lou Dobbs Tonight

President Bush Reaffirms Iraq Contract Decision; Interview With Chinese Premier Wen Jiabao; Iraqi Soldiers Quit

Aired December 11, 2003 - 18:00   ET

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

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


ANNOUNCER: This is LOU DOBBS TONIGHT for Thursday, December 11. Here now, Lou Dobbs.
LOU DOBBS, CNN ANCHOR: Good evening.

President Bush today strongly reaffirmed his decision to restrict billions of dollars of Iraqi reconstruction contracts to coalition partners. President Bush said the issue is very simple -- quote -- "Our people risked their lives," he said.

The U.S. decision has angered countries such as France, Germany and Russia, countries that had been excluded from the reconstruction effort, but President Bush said those countries can still help rebuild Iraq and they should begin by writing off the tens of billions of dollars in Iraqi debt.

Senior White House correspondent John King reports -- John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Lou, the president brushing aside the criticism today, scoffing at the notion that his decision somehow violates international law. Mr. Bush responded to questions about this at the final meeting of his Cabinet this year here at the White House.

The president says, in his view, sending the contracts to those who took the military and political risks, just common sense. Mr. Bush says, it's the right thing to do.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The taxpayers understand why it makes sense for countries that risk lives to participate in the contracts in Iraq. It's very simple. Our people risked their lives. Coalition, friendly coalition folks risked the their lives. And, therefore, the contracting is going to reflect that. And that's what the U.S. taxpayers expect.

(END VIDEO CLIP)

KING: Major war opponents like Germany, however, are outraged, the U.N. secretary-general today saying the administration was taking steps, in his view, that would only divide the world community again. France and Russia also upset.

But the former U.S. secretary of state says, Lawrence Eagleburger, says those countries should not be surprised at all that they are being excluded now.

(BEGIN VIDEO CLIP)

LAWRENCE EAGLEBURGER, FORMER SECRETARY OF STATE: I don't really much care if all those countries are miffed. What do they expect? They did nothing to support us in the Iraq war. Why should they now expect that we will turn over contracts to them. How big a strain is it? It will be a strain with our -- quote, unquote -- "traditional allies," but it was exactly the right thing to do.

(END VIDEO CLIP)

KING: Some outrage overseas. Some political criticism here at home as well.

Senator John Kerry of Massachusetts among the Democratic candidates for president who say this decision is, in their view, yet another diplomatic misstep by the Bush White House.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I think that limiting contracts to companies that gave aid is an enormous mistake. I think it borders on the stupid. It is counterproductive. It is the exact opposite of what we should be doing in order to bring other countries into the table.

(END VIDEO CLIP)

KING: But a strong defense of the policy again from Mr. Bush here at the White House today, Lou. Administration officials say the president believes in this policy and will stand by it. It does, however, come at an awkward time, just as the president asks former Secretary of State Jim Baker to travel to Paris, to Moscow, to Berlin to try to make the case that those countries now angry at the United States once again should forgive or at least reduce Iraq's huge debts racked up by the government of Saddam Hussein -- Lou.

DOBBS: John, as you have just reported, U.N. Secretary General Kofi Annan among those criticizing the president's decision today. Any White House reaction?

KING: Well, the White House says, simply, that this is right thing to do and that the White House has said all along that there would be consequences for not standing with the United States.

One interesting note, though, here, today, Lou, an indication -- the White House did not flatly come out and say it, but it did seem to suggest that, if those countries now stop criticizing Washington and perhaps take positive, significant step on the issue of Iraq's big long-term debts, that perhaps, as Scott McClellan, the White House press secretary, put it today -- quote -- "Circumstances could change" -- Lou.

DOBBS: Perhaps this will be one more lever to help the former secretary of state, James Baker, in those negotiations. John, John King, our senior White House correspondent, as always, thank you.

KING: Thank you.

DOBBS: A Pentagon audit has found that a subsidiary of the oil services firm Halliburton has substantially, substantially overcharged the U.S. military for fuel and other items in Iraq.

The Pentagon has not yet given details. But two congressmen say that the Halliburton subsidiary is charging the Army $2.65 a gallon for gasoline imported from Kuwait, while another agency imports gasoline for less than half that price. Halliburton, once headed by Vice President Dick Cheney, denies any price-gouging.

The Pentagon is expected to hold a news conference on this issue within the hour, but cameras, we are told, will not be allowed in that briefing.

In Iraq today, another suicide bomb attack against U.S. troops, the third in three days. Today, one American soldier was killed, 14 others were wounded in the town of Ramadi, 60 miles west of Baghdad. Insurgents also fired rockets and mortars at the coalition's compound in Baghdad tonight.

There has also been a major setback for American plans to establish a new Iraqi army. Many of the newly recruited Iraqi soldiers have quit.

Senior Pentagon correspondent Jamie McIntyre now has that story for us -- Jamie.

JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: Well, Lou, let's start with what's happening in Baghdad at this hour. We have been looking at the aftermath of what appears to be a rocket attack on the so-called Green Zone, the area where the Coalition Provisional Authority is.

According to our people in Baghdad, it does appear that there were at least two explosions. As many as four rockets hit the compound. And, as you noted, this came on a day when a suicide bomber driving a car bomb attacked the 82nd Airborne Division headquarters in Ramadi, one soldier killed, 14 wounded there.

But the U.S. military insists that improvements to security actually minimized the injuries. And, as you said, the efforts to create a new Iraqi army to help take over the country's security have suffered a setback. It's turned that about a third of the soldiers trained so far have resigned. Pentagon officials are portraying this as sort of a pay dispute. The starting salary, $60 a month for privates, was too low, officials said. And they're taking a look at that issue.

But others have suggested there's more to it than that.

(BEGIN VIDEO CLIP) HASSAN FATTAH, "IRAQ TODAY": It's been reported as being a squabble over money and issues like that. But I think it actually goes far, far deeper, to conditions and relationships between the CPA or the coalition and the Iraqi troops themselves. Remember, a lot of these are former military officers, former military staff of significant rank who are basically being told that you have to go back to being a private.

(END VIDEO CLIP)

MCINTYRE: So, this 700-man battalion that's supposed to start going to work to provide security, it looks like they have lost between 200 to 300 people to resignations. Again, the Pentagon says it's going to review the situation there. They have been touting that as the answer to Iraqi security.

And another really sad reminder of the security situation came yesterday, when our colleagues at "TIME" magazine, senior correspondent Michael Weisskopf and his veteran photographer, James Nachtwey, were injured when a grenade was thrown into their Humvee. They were accompanying U.S. military personnel in Baghdad, two U.S. soldiers also wounded in that.

Both of our colleagues are being transferred to the U.S. military hospital in Landstuhl, but again a remainder that many of the reporters who are covering the activities of the U.S. military are taking the same risks as U.S. soldiers -- Lou.

DOBBS: Jamie, thank you very much -- Jamie McIntyre, our senior Pentagon correspondent.

Turning now to another major story of the day, the worsening flu outbreak in this. The government has now purchased another 250,000 flu shot vaccines to combat the outbreak. It is the worst flu epidemic in years; 100,000 doses of adult vaccine are expected to be delivered this week; 150,000 doses of pediatric vaccine are not expected to arrive here until the new year.

The government bought this vaccine from overseas after two U.S. flu shot-makers ran out. Also today, the Centers for Disease Control almost doubled the number of states on its list of those with widespread flu activity; 24 states are now on the list. However, the CDC says the flu is present in all 50 states.

(BEGIN VIDEO CLIP)

DR. JULIE GERBERDING, DIRECTOR, CENTERS FOR DISEASE CONTROL: We don't have scientific evidence or epidemiologic evidence to suggest that this year's influenza outbreak is worst than it has been in past or that the strain is more virulent than strains that we've dealt with before. It's just simply too early in the course of the outbreak to say for sure how this will compare overall. But, obviously, the early start and the early widespread activity has given us a great deal of concern.

(END VIDEO CLIP) DOBBS: The flu outbreak has forced schools in Missouri, Ohio, Tennessee and Connecticut to close. As much as 30 percent of the students at some schools have been absent this week because of the flu.

My guest tonight is among those leading the fight against this spreading flu outbreak. Dr. Greg Poland is the director of vaccine research at the Mayo Clinic, joining us tonight from Rochester, Minnesota.

Doctor, good to have you here.

GREG POLAND, DIRECTOR OF VACCINE RESEARCH, MAYO CLINIC: Thank you.

DOBBS: First, this spread seems to be accelerating. When do you expect the flu outbreak to peak?

POLAND: These are very fickle sort of outbreaks, Lou. And they have probably peaked in states like Colorado, nowhere near peaking yet, is my guess, in the Midwest or in the East.

DOBBS: One of the things that has been, it seems to me, encouraging is, the number of deaths reported, at least, so far over the last week has certainly declined. Is that, in fact, the case, or is it your opinion that we should expect more?

POLAND: I think we'll have to expect more and for a number of reasons.

No. 1, once we see widespread activity, as we have now in the Midwest and on the East Coast, that tends to lag a little bit. Then you'll have hospitalizations and then you'll have the complications, such as death. The other thing is, we are starting to see a few cases of pneumonia, staphylococcal pneumonia, and even encephalitis after influenza. And those are, again, follow-on complications of influenza that we won't yet see for another few days to weeks.

DOBBS: The encephalitis, the pneumonia that follow on, as you put it, is it -- do you see more of it in this outbreak than you would have expected?

POLAND: Little hard to tell yet. It is a little bit early.

But what we are seeing is those complications in younger, otherwise healthy people, including a few deaths. That's a little bit different and it bears close watching.

DOBBS: Now, obviously, the fact that the United States has had to go abroad and buy vaccines to make up for a shortage, that has to be, first of all, if it isn't, it should be, it seems to me, very -- an embarrassment to the U.S. government, to everyone involved.

But is there a difference in that vaccine and the vaccine that had been administered up to this point? POLAND: No, none that I'm aware of. In fact, it's made by the same manufacturer. So I don't think there will be any difference at all in it.

DOBBS: And that vaccine, some of it not apparently to arrive, the pediatric vaccine, until the 1st of the year?

POLAND: Yes, I think that's right.

One thing that also bears mentioning is that, today, the CDC -- and I think appropriately so -- did release a statement saying that we will go back to a sort of prioritization as to who should get the vaccine, somewhat like we've done in past years when there were flu vaccine shortages. And that's important for the public and for the providers to know.

DOBBS: And, Doctor, quite simply, are we going to see this situation again or will we learn from the situation in future years?

POLAND: I think the biggest issue we face, Lou, is that we need better technology. We have the surveillance, but we don't yet have 21st century technology to rapidly make and distribute these vaccines. And that, to me, is the biggest issue that's got to get cured.

DOBBS: Dr. Greg Poland, as always, thanks for being with us.

POLAND: Thank you.

DOBBS: Coming up next, my exclusive interview with Chinese Premier Wen Jiabao, his first ever on American television, at the conclusion of his first ever official visit abroad as prime minister of China.

Also, "Broken Borders," controversial and conflicting proposals about the legal status of illegal aliens. Casey Wian will report.

And "America Works," our celebration of the men and women whose hard work keeps this country running. Tonight, we introduce you to a train conductor who has been keeping commuters on time and in line for 26 years. Peter Viles will have her story.

(COMMERCIAL BREAK)

ANNOUNCER: LOU DOBBS TONIGHT continues. Now, "Broken Borders."

DOBBS: U.S. and Mexican officials are negotiating an agreement that would allow legal Mexican immigrants to receive Social Security benefits, even if they return to Mexico. Critics say that move would encourage illegal immigrants. And, Tuesday, Homeland Security Secretary Tom Ridge suggested that there should be some sort of legal status for illegal aliens living in this country.

And yesterday, Border Security Undersecretary Asa Hutchinson said the Bush administration lacks a -- quote -- "firm policy position on illegal aliens."

Casey Wian reports from Los Angeles.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Homeland Security Secretary Tom Ridge seemed to signal this week that the Bush administration is prepared to accept amnesty for up to 10 million illegal aliens.

TOM RIDGE, HOMELAND SECURITY SECRETARY: I think there's a growing consensus that, sooner rather than later, we need to deal with the reality that these men, women and families are here, many contributing -- most contributing to their community, paying taxes, paying into Social Security. But we have to legalize their status.

WIAN: A White House official tells CNN the administration was not happy with the timing of Ridge's remarks. The White House was discussing amnesty for Mexican illegal aliens before September 11, 2001. And several amnesty or guest worker bills have been introduced in Congress, but that doesn't mean it will happen soon.

MARK KRIKORIAN, CENTER FOR IMMIGRATION STUDIES: The White House strategy seems to be to string the Mexicans along by telling them that they still want an amnesty, but not actually supporting any of the actual measures that are in Congress to amnesty illegal immigrants. So the result is inaction, paralysis.

WIAN: Other examples of the mixed message include a reported plan by the FDIC in 35 Chicago-area banks to offer mortgages to people without Social Security numbers, making it easier for illegal aliens to buy a home. Then there are the discussions between the Social Security Administration and Mexico that would give some legal Mexican immigrants access to more U.S. Social Security benefits and do the same for U.S. workers in Mexico.

Illegal aliens would continue to be denied benefits. Opponents, however, fear the prospect of a U.S. government check for life would encourage illegal immigration, especially with amnesty on the table.

DAVID JOHN, HERITAGE FOUNDATION: It would be very difficult. For one, they'd have to prove that they paid the taxes.

WIAN (on camera): The issue of amnesty for illegal aliens is potentially divisive to the Republican Party, because it's generally favored by many agricultural and business interests, but opposed by most Republican voters. The White House may be trying to keep the issue under wraps until after next year's presidential election.

Casey Wian, CNN, Los Angeles.

(END VIDEOTAPE)

DOBBS: Coming up next, my exclusive interview with Chinese Premier Wen in his first ever appearance on television. We talk about North Korea, rising tensions with Taiwan and, of course, the mounting U.S. trade deficit with China. And "America Works." Tonight, we ride the rails with a superconductor, a troubleshooter for the nation's second busiest railroad.

(BEGIN VIDEO CLIP)

SHARON CARLQUIST, CONDUCTOR, METRO NORTH: I'm a very outspoken person. I'm aggressive and I'm very independent. I love what I'm doing. I like to fix things. If there's a problem on board the train, I can see it and I like to plug it.

(END VIDEO CLIP)

DOBBS: Peter Viles will have her story, as we celebrate all Americans who make this country work.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: The Food and Drug Administration has set a deadline of tomorrow for every company that exports food to the United States to register with the government. That deadline comes just weeks after the FDA linked contaminated green onions from Mexico to an outbreak of hepatitis A in this country that killed three people in four states. While the new FDA program is designed to guarantee the safety of the food that we eat, there are growing doubts that it will.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Some 400,000 food suppliers have to register with the FDA by the end of this week and begin providing notice any time they send a shipment to the United States.

ROBERT BRACKETT, FOOD AND DRUG ADMINISTRATION: This will significantly improve the safety overall of the food coming into this country. It will give us the ability to look at those foods that have been a problem for food safety.

TUCKER: The final rules haven't been drafted, but the FDA is making the consequences clear.

SUSAN STOUT, GROCERY MANUFACTURERS OF AMERICA: From this point forward, if a facility is not registered or prior notice has not been given for the product coming into the U.S., it won't get into the U.S.

TUCKER: Maybe. Some 300,000 suppliers have yet to register. But perhaps that's because the deadline of December 12 is not really the deadline. There's a four-month grace period.

And there's another problem. Unlike the U.S. Department of Agriculture, which has had the authority to inspect foreign plants and facilities since 1914, the FDA cannot go into a foreign plant or farm unless invited. And not only do they lack critical authority.

CAROLINE SMITH DEWAAL, CENTER FOR SCIENCE IN THE PUBLIC INTEREST: FDA has far fewer inspectors and far fewer people devoted to food safety than our USDA does. So, even though USDA is inspecting fewer plants, they have almost 10 times as many inspectors to do that job. FDA continues to be grossly understaffed when it comes to food safety.

TUCKER: The Center For Science in the Public Interest and others say the answer's simple.

(END VIDEOTAPE)

TUCKER: Restructure the whole mess and instead of two agencies charged with food safety, put one in charge -- Lou.

DOBBS: What is the likelihood that any of these agencies will have any impact on what is in the soil of food that is imported from abroad?

TUCKER: That's easy. None.

DOBBS: Bill Tucker, thank you very much.

An important health warning tonight for women of child-bearing age. The Food and Drug Administration is advising them to limit the amount of tuna they eat because of concerns about mercury poisoning.

Tonight, a follow-up on our report on China's alleged dumping of furniture into this country. The Commerce Department today said it will open an investigation into whether Chinese furniture-makers are illegally pricing the furniture they sell in this country. That investigation comes at the request of U.S. furniture-makers, who are struggling to keep jobs in this country.

Coming up next, we continue to update the growing list of American companies who favor cheap overseas labor markets over American workers.

And tonight, my exclusive interview with Chinese Premier Wen Jiabao, his first on American television.

We'll have that and a great deal more still ahead. Please stay with us.

(COMMERCIAL BREAK)

ANNOUNCER: LOU DOBBS TONIGHT continues.

China today thanked President Bush for his comments on Taiwan this week and said Premier Wen's visit to the United States was a complete success.

In an exclusive interview with Premier Wen in Boston, I talked with him about a host of issues at the conclusion of his first-ever official visit outside China as prime minister.

(BEGIN VIDEOTAPE)

DOBBS: Mr. Premier, you've had a whirlwind visit to the United States, your first official visit as premier of China. Give us your impressions.

WEN (THROUGH TRANSLATOR): During my visit, I held talks with President Bush and other leaders of this country in a friendly, candid, cooperative and a constructive atmosphere. We had in-depth exchanges of ideas about China-U.S. relations, about major international questions, and reached a broad major understanding. And we are both of the view that the further strengthening and improvement of China-U.S. relations not only serves the interest of our two peoples, but is also conducive to peace and stability in the whole world.

To be sure, there are differences between our two countries, and it is hardly possible for us to see eye to eye with each other on 100 percent of things. But we can make 100 percent of effort to remove these differences and ensure smooth development of our constructive and cooperative relationship.

This visit for me has been a very pleasant experience. Although it is quite short -- it lasted only three days -- I attended up to 30 various functions and activities, and I reached out extensively to people of different circles in this country. I have brought with me the best of wishes of the Chinese people towards the American people, and I'm sure I will bring back to the Chinese people a positive message of the desire of the American people for the further development and growth of our relations.

DOBBS: Mr. Premier, one of the issues has been the rhetoric of President Bush from the time he took office. He move from statements about viewing China as a strategic competitor, to now, with the culmination of your visit, talking about diplomatic partners. If you would frame for us what you think this means as an understanding between you, your government, and President Bush.

WEN (THROUGH TRANSLATOR): We both believe that the China-U.S. bilateral relationship is the most important state-to-state relationship in our world. The development of our relations is conducive not just to peace and stability in Asia-Pacific, but also to peace and prosperity of the whole world.

We are of the same view that to have a mature bilateral relationship, both our two sides should work carefully to safeguard such a relationship. We cannot allow the bond of friendship between our two countries to be broken simply because of some minor problems. This would require strategic vision and strategic courage in the perception and handling of China-U.S. relations.

DOBBS: Mr. Premier, one of the tests, obviously, will come on the Korean Peninsula. Obviously, this United States government is critically interested in the elimination of the North Korean nuclear weapons program. Is there a common view on the part of the Chinese government? And is the Chinese government going to continue to take the lead in achieving that goal? WEN (THROUGH TRANSLATOR): China does not believe that the Korean Peninsula should have nuclear weapons. So therefore, we believe that the nuclear issue on the Korean Peninsula should be resolved through peaceful means and through diplomatic means in the interest of peace and stability on the peninsula.

Active efforts to promote the six-party talks represents the best channel for the peaceful resolution of this issue. The Chinese government will actively undertake various coordinating and mediating efforts to facilitate the six-party talks.

DOBBS: Mr. Premier, on another very sensitive issue which tensions are rising, Taiwan. Your government has made it very clear that it does not accept the referendum that is proceeding in Taiwan. What is your best judgment of the situation and your view as to what happens next?

WEN (THROUGH TRANSLATOR): The position of the Chinese government on a question of Taiwan has always been consistent. That is, we always follow the principle of peaceful reunification and one country, two systems. And that we have been doing a great deal. And we have been making our utmost effort and utmost sincerity to achieve this prospect.

However, such efforts by our side have met with the challenges from the Taiwan authority and from the Taiwan separatist forces. We respect the desire of the Taiwan people to develop and pursue democracy. However, we firmly oppose the attempts by certain spetaratist forces on Taiwan to pursue Taiwan independence under the disguise of promoting democracy in an attempt to cut off Taiwan from the mainland.

So we have expressed our firm determination and strength to safeguard state unity that is exactly designed to safeguard peace and stability in the Taiwan straits (ph) area.

We also made it very clear that as long as the slightest hope for peace exists, we will exert our utmost to strive for the peaceful reunification of the motherland. We appreciate the reaffirmation by President Bush of his one-China policy, and for his sending a clear signal to Taiwan separatist forces.

DOBBS: President Bush, Mr. Premier, also said that he wanted to preserve the status quo as a matter of U.S. policy. That is, status quo, vis-a-vis China, as well as Taiwan. The status quo, in your judgment, is it endangered by this referendum significantly?

WEN (THROUGH TRANSLATOR): The purpose of the so-called defensive referendum that Chen Shui-bian has been going after is to undermine the status quo. And it is designed to cut off Taiwan from the sacred territory of the Chinese motherland. So we have to have a clear understanding of the nature of what he's going after.

In fact, the democracy is just a disguise, an excuse. And so his efforts look to be quite deceptive. DOBBS: Mr. Premier, one of the talks - the most important talks in your early premiership has been with President Bush on the issue of trade. You are responsible for the entire vast Chinese economy. And one of the most difficult issues between our countries is the trade imbalance. Tremendous deficits, could reach $130 billion this year. Do you have the sense that you and President Bush have reached an understanding?

WEN (THROUGH TRANSLATOR): Firstly, I would like to say that the rapid expansion of trade between our two countries has benefited our two peoples. Twenty-five years ago, trade between our two countries was barely valued at 2.5 billion US dollars. But this year, two-way trade between us tops 100 billion US dollars.

Is it true to say that the development of trade only benefits one country at the expense of the other? Definitely not. Trade between our two countries has brought tremendous benefit to the people of both countries.

We should recognize the fact that the United States does have a sizeable deficit in trade with China. And so in a constructive approach I proposed to President Bush five proposals. Firstly, we seek mutual benefits and win-win results. We should look at the larger picture and larger interests of our trade. For each country, we should not just to consider our own interests, we should also take into account the interests of the other country.

Secondly, we should give priority to development, that is, reducing American imports from China is not a solution. We should expand instead U.S. exports to China. That would require a simultaneous effort by the United States to lift the various restrictions on exporting to the Chinese market.

Thirdly, the two countries should establish and improve a coordinating mechanism for the resolution of trade issues. I proposed this specifically to President Bush to raise the level of our joint committee on commerce and trade. On our side, this committee will now be headed by our vice premier, Mdme. Wu Yi, while on your side, Secretary Evans and Trade Representative Zoellick, will chair this commission.

Fourthly, the two countries should approach trade issues on the basis of equal consultations rather than imposing restrictions or sanctions..

Fifthly, economic and trade issues should not be politicized. President Bush expressed full agreement with all my five proposals. As far as I know, the two sides are making positive preparations for launching the inaugural session of the upgraded JCCT session next spring.

DOBBS: Mr. Premier, your sense of how quickly a trade balance, recognizing all of the elements that you have just enumerated, how quickly do you think a meaningful trade balance can be achieved between China and the United States? WEN (THROUGH TRANSLATOR): I think this will be an objective that would require some time and joint efforts by the two sides. We have demonstrated our utmost sincerity and we are very much ready to increase our imports from your country.

At the same time, we hope that United States will open more to China, especially in the high-tech sector.

DOBBS: President Bush in under considerable pressure, political pressure in the Congress to react with tariffs, to seek a change in the trade balance as quickly as possible, through political means. Do you believe that we will see that trade deficit eliminated to the point quickly enough so that it will not be a political problem for President Bush?

WEN (THROUGH TRANSLATOR): China has adopted active measures to address that. And we will continue to take such measures. The five- point proposal that I just listed represents an effort by senior leaders of the 2 countries to take a strategic look at where we are on this question. And we try to stand on higher ground in looking at these issues.

Naturally this would also require closer mutual understanding between the two countries. I want to point out the fact that the U.S. exports overall increased by 15 percent this year. But in the first 10 months of this year, its trade with China grew by 20 percent, whereas its trade with other countries only increased by about 2 to 3 percentage points. I should also say that the U.S. exports, to China in particular, have increased by fairly big margins. That is my first point.

Secondly, this year China's total trade, including imports and exports, is valued at about 800 billion US dollars, but our imports have been growing at a pace of more than 40 percent whereas exports only went up by 32 percent.

We also need to keep in mind the fact that when U.S. deficit against China -- trade deficit is increasing, China's trade deficit with other countries in Asia is also increasing. And so there is indeed a structural nature associated with the China-U.S. trade imbalance, and also that is a reflection of shifting commercial patterns and relations among different countries.

Despite that, we will still try to promote a balance in our bilateral trade in an active and positive approach. And our efforts will be applied not just in this time, in this quite extraordinary political time for the United States, but it will be extended for the long term.

DOBBS: Mr. Premier, I just want to say thank you for accelerating the progress toward that balance and accelerating the mutual understanding that's so important to both our peoples, we thank you very much, Premier Wen.

WEN (THROUGH TRANSLATOR): You can look forward to some measures that China is prepared to take quite soon. Thank you.

(END VIDEOTAPE)

DOBBS: Premier Wen Jiabao.

And turning to the other side of the issue, at least on the subject of Taiwan, despite strong warnings from the new diplomatic partners, Beijing and Washington, the president of Taiwan has refused to make any concessions on his plan to hold a referendum in March. In an exclusive interview with our Mike Chinoy in Taipei, President Chen said he still intends to hold that referendum, demanding China reduce its military threat against Taiwan.

(BEGIN VIDEO CLIP)

CHEN SHUI-BIAN, TAIWANESE PRESIDENT (through translator): We demand that the People's Republic of China immediately withdraw the missiles targeting Taiwan and also publicly renounce the use of force against Taiwan. This message is very clear. And it certainly has no bearings on the unification or independence issues. And I think the United States government understands this. And it's very clear that what they are concerned about, what they worry about, would not happen.

(END VIDEO CLIP)

DOBBS: President Chen also said the United States should respect the people of Taiwan and their right to pursue democracy and defend peace.

Coming up next, "Grange On Point." General David Grange will join me. We're going to be talking about the Army's readiness to fight another war, as it continues to fight global terrorism, terrorists and insurgents in Iraq and Afghanistan.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Our senior Pentagon correspondent Jamie McIntyre has just reported to us that the Pentagon now says a Halliburton subsidiary overcharged the U.S. military by $61 million for gasoline and other items in Iraq.

Turning now to "Grange On Point." The issue now: Is the Pentagon, and specifically the U.S. Army, ready to fight another war beyond Iraq and Afghanistan? Last week, military officials said two of the Army's 10 active-duty divisions will be ready for combat in another part of the world next year. Defense Secretary Donald Rumsfeld, however, disagrees with the assessment.

To settle all of that, we have asked none other than General David Grange to join us with "Grange On Point."

Dave, let me start with a simple issue. With those troops rotating out of Iraq and standing down from somewhere to three to six months, can the United States fight, effectively, a third war?

RETIRED BRIG. GEN. DAVID GRANGE, CNN MILITARY ANALYST: Well, Lou, I believe that the United States can. And it has in the past, even in situations that will be more challenging than the one today.

This is a monumental task, bringing back that size of an Army force, refitting it. There's a lot of weapons and equipment that's been ridden hard, some of the same stuff that was used in Desert Storm in '90 and '91. And giving the troops a break and getting them retrained for a different type of mission, possibly, for instance, maneuver warfare, which we experienced in the beginning of Iraq, and not counterinsurgency phase that they're in now, and get them ready.

But it's going to take a monumental effort to do that.

DOBBS: And we're talking about four divisions moving back, standing down, another four divisions rotating into Iraq. And that would leave us, by my count, at least, two divisions.

GRANGE: Well, two divisions. And, again, you're just -- the report only talks about divisions. There's a lot of separate brigade- size elements.

DOBBS: Right.

GRANGE: There's a lot of support, combat support, service support elements. So there's a lot of people involved in this equation.

And it's probably -- this hasn't been done at this size for years, this amount of trade-out at the same time still conducting a war.

DOBBS: One spokesman for the Pentagon saying that, of course, there are risks in this, but they are manageable risks. Are these the kind of risks, manageable or otherwise, that a superpower, the world's only superpower, spending $400 billion a year in its budget, should have to take on?

GRANGE: Well, it has to take on because the size of the force.

And to have the military, the quality of the military that we have today, it costs money. There's no -- there's no way to cut corners on it. Lives are at stake. Obviously, national security is at stake. And this is a military that, the readiness reports, the risks that we're talking about here, things are -- some things are measurable, like the number -- amount of the equipment you have, the number of troops, the type of troops.

The intangibles, family readiness, morale of troops, those type of things are hard to measure. And so, the risk involves many factors. And it's all about the risk management in a situation like this.

DOBBS: Risk management is one of those things I get a little nervous about when I hear the Pentagon talking about it, because the risks that, in this case, are not national security risks or military risks. They are actually organizational risks and readiness risks, in effect.

General, let's talk a lot more about this, because we know that there's going to be a lot more talk about it in Washington as well.

General David Grange, thanks, as always.

GRANGE: Thank you, Lou. To be continued.

DOBBS: Absolutely.

Coming up next: "Exporting America." Tonight, we continue to update you on the list of American companies we have confirmed to be sending jobs, American jobs, to cheap overseas labor markets.

And then your thoughts, including some advice on how the middle class can fight back against what some of you see as a very, very big squeeze against the middle class in this country -- that and a great deal more still ahead.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Taking a look now at some of your thoughts.

From Mesa, Arizona tonight: "The American middle class is being lost. Jobs are being exported. Illegals flood our domestic labor pool and deny gainful employment to legal citizens of this country. It is time for the American middle class to express themselves economically and verbally and purchase only those products labeled made in America by American workers" -- Larry Stephenson.

And on "Broken Borders," from Evergreen, Colorado: "How dare Tom Ridge entertain the notion of amnesty for people who broke our laws specifically knowing our U.S. borders are a joke. Ridge needs to resign" -- Jan Herron.

From Chicago, Illinois: "Regarding the remerging controversy about not allowing our nonparticipating allies to participate in Iraq rebuilding contracts and the threat of not forgiving Iraqi loans by these allies, perhaps they should be reminded they still owe the United States for the Second World War" -- Roger Flammang.

From Boulder Creek, California: "President Bush stated that only countries that risked their lives should get the contracts. The soldiers risking their lives in Iraq are not employees of Halliburton and will not be making money off the occupation" -- that from Mark DiPietro.

And from Butler, Pennsylvania: "Tell me again why it's safe for the government to purchase flu vaccines in a foreign country, but it's not all right for senior citizens to purchase their drugs in Canada" -- John West. And on "Exporting America," from South Elgin, Illinois: "Lou, if the experts are blaming the job problems on this supposed global economy, then why aren't the jobs of our elitist corporate leaders offered to their foreign competitors? I've got to believe they're just as capable of doing the job, and for only a fraction of what some CEOs are making here" -- Fred Siena.

We love hearing from you. E-mail us at LouDobbs@CNN.com.

Now "Exporting America." Each night, we update our list of U.S. companies exporting American jobs overseas, choosing to employ cheap foreign labor instead of American workers. We confirm the thousands of notifications we receive from you. And it is a process that is taking a while, because there are a huge number of companies that we are checking.

The companies confirmed now in yellow, as of today, these are the additions: 3Com, Fidelity Investments, International Paper, Lillian Vernon, Mattel, Mellon Bank, and Sapien (ph).

Keep sending the names of those companies you know to be exporting jobs to cheap foreign labor markets. The e-mail address, LouDobbs@CNN.com. And we will continue to update and report them here each evening right here.

On Wall Street today, the Dow above 10000 for the first time in more than a year and a half, the Dow jumping 86 points. The Nasdaq rose almost 38. The S&P gained 12.

No one is more excited about this than Christine Romans.

(LAUGHTER)

DOBBS: She's here with that and quite a few developments in corporate crime.

CHRISTINE ROMANS, CNN CORRESPONDENT: Well, Lou, a rally in stocks, but the wreckage of two years of corporate scandals still strewn about Wall Street and corporate America.

The Justice Department says KPMG is stalling an IRS probe into tax shelters. It says KPMG has demonstrated a concerted pattern of obstruction and noncompliance, threatening the integrity of an IRS investigation. KPMG claims it did not push these tax shelters, has claimed that for some time. But the government says there's literally thousands, volumes of evidence in KPMG files to the contrary, Lou.

DOBBS: Well, we know what happened to that other accounting firm, Arthur Andersen. This is also obstruction of justice, right?

ROMANS: Absolutely. Well, two years later

(CROSSTALK)

DOBBS: The allegation of it, at least.

ROMANS: The allegation is very similar to the Andersen allegation, yes.

DOBBS: And two attorneys generals getting tough on those mutual funds.

ROMANS: Absolutely.

Today, it was Massachusetts charging Prudential Securities with massive late trading, Lou, of mutual funds on behalf of its hedge fund customers, 1,100 trades in 2.5 years, netting $162 million. And source close to the negotiations says Alliance Capital is offering to cut its mutual fund fees as part of a settlement with New York Attorney General Eliot Spitzer over improper trading in Alliance funds.

And, Lou, from the trading floor to the executive suite, something is seriously awry with executive pay and executive paychecks have eroded public trusts in capitalism. So concludes the trade group that represents board members. The National Association of Corporate Directors says, boards need to spell out how and why executives are being paid and the pay plans should be kept as simple as possible.

So still not giving any complete concrete guidelines as to what is fair compensation, though, so no new ground broken there.

DOBBS: Not even like something between the average pay being something less than 1,000 times for the CEO?

ROMANS: No, no guidelines like that.

(LAUGHTER)

DOBBS: Thanks, Christine.

Coming up next, "America Works." Tonight, we introduce you to a train conductor. She's helping keep America on the right track.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: "America Works." Tonight, we want to introduce you to a lady who's worked hard for more than a quarter-century on one of this country's most busiest railroad lines.

Peter Viles has her story.

(BEGIN VIDEOTAPE)

CARLQUIST: Tickets onto Fordham. Fordham tickets, please.

PETER VILES, CNN CORRESPONDENT (voice-over): The Metro North railroad, a quarter of a million passengers a day and no one thanks them as often as Sharon Carlquist.

CARLQUIST: Thank you so much. That's your return. So don't lose that. You'll need that for coming back. VILES: Sharon is a special duty traveling conductor, which means she wears a bunch of hats, conductor, ticket taker, liaison between labor and management, all around troubleshooter.

CARLQUIST: I do try to give them a good, comfortable ride. And if that's telling somebody that's speaking very loudly on their cell phone, hey, you need to quiet down a little bit, we don't all want to hear your conversation.

VILES: Her career is a minor miracle. For 26 years, she's put up with cranky commuters.

CARLQUIST: Can we move these belongings right over here? OK.

VILES: And yet, she still has her Midwestern manners and common sense.

CARLQUIST: I'm from Missouri. And I'm very conservative. And I grew up knowing right and wrong.

VILES: Wrong, in Sharon's book, taking up more than one seat on a train, not saying please and thank you, not giving your all at work.

CARLQUIST: It's so, so important to have a smile on your face, to have a good, upbeat demeanor and a positive attitude.

VILES: How is this for positive attitude?

CARLQUIST: Long time no see!

UNIDENTIFIED MALE: How you doing?

CARLQUIST: I'm fine. How are you?

UNIDENTIFIED MALE: All right.

CARLQUIST: Good.

This is Joe the tailor. Don't I look spiffy?

This is Sean Chaw (ph). And she taught me CPR earlier this year.

VILES: If you can keep up with her.

CARLQUIST: Hold that elevator.

VILES: You'll find she's old-fashioned, proud of her railroad and proud of her office. But who wouldn't be proud of Grand Central Terminal?

(on camera): Why do you think you like your job so much?

CARLQUIST: Well, I'm a very energetic and upbeat person. And I just love what I'm doing. Look at the surroundings here. Look at the beautiful place that I work in.

VILES (voice-over): Peter Viles, CNN, New York.

(END VIDEOTAPE)

DOBBS: A perfect setting.

That's our show tonight. We thank you for being with us. For all of us here, good night from New York.

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





With Chinese Premier Wen Jiabao; Iraqi Soldiers Quit>


Aired December 11, 2003 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is LOU DOBBS TONIGHT for Thursday, December 11. Here now, Lou Dobbs.
LOU DOBBS, CNN ANCHOR: Good evening.

President Bush today strongly reaffirmed his decision to restrict billions of dollars of Iraqi reconstruction contracts to coalition partners. President Bush said the issue is very simple -- quote -- "Our people risked their lives," he said.

The U.S. decision has angered countries such as France, Germany and Russia, countries that had been excluded from the reconstruction effort, but President Bush said those countries can still help rebuild Iraq and they should begin by writing off the tens of billions of dollars in Iraqi debt.

Senior White House correspondent John King reports -- John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Lou, the president brushing aside the criticism today, scoffing at the notion that his decision somehow violates international law. Mr. Bush responded to questions about this at the final meeting of his Cabinet this year here at the White House.

The president says, in his view, sending the contracts to those who took the military and political risks, just common sense. Mr. Bush says, it's the right thing to do.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The taxpayers understand why it makes sense for countries that risk lives to participate in the contracts in Iraq. It's very simple. Our people risked their lives. Coalition, friendly coalition folks risked the their lives. And, therefore, the contracting is going to reflect that. And that's what the U.S. taxpayers expect.

(END VIDEO CLIP)

KING: Major war opponents like Germany, however, are outraged, the U.N. secretary-general today saying the administration was taking steps, in his view, that would only divide the world community again. France and Russia also upset.

But the former U.S. secretary of state says, Lawrence Eagleburger, says those countries should not be surprised at all that they are being excluded now.

(BEGIN VIDEO CLIP)

LAWRENCE EAGLEBURGER, FORMER SECRETARY OF STATE: I don't really much care if all those countries are miffed. What do they expect? They did nothing to support us in the Iraq war. Why should they now expect that we will turn over contracts to them. How big a strain is it? It will be a strain with our -- quote, unquote -- "traditional allies," but it was exactly the right thing to do.

(END VIDEO CLIP)

KING: Some outrage overseas. Some political criticism here at home as well.

Senator John Kerry of Massachusetts among the Democratic candidates for president who say this decision is, in their view, yet another diplomatic misstep by the Bush White House.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I think that limiting contracts to companies that gave aid is an enormous mistake. I think it borders on the stupid. It is counterproductive. It is the exact opposite of what we should be doing in order to bring other countries into the table.

(END VIDEO CLIP)

KING: But a strong defense of the policy again from Mr. Bush here at the White House today, Lou. Administration officials say the president believes in this policy and will stand by it. It does, however, come at an awkward time, just as the president asks former Secretary of State Jim Baker to travel to Paris, to Moscow, to Berlin to try to make the case that those countries now angry at the United States once again should forgive or at least reduce Iraq's huge debts racked up by the government of Saddam Hussein -- Lou.

DOBBS: John, as you have just reported, U.N. Secretary General Kofi Annan among those criticizing the president's decision today. Any White House reaction?

KING: Well, the White House says, simply, that this is right thing to do and that the White House has said all along that there would be consequences for not standing with the United States.

One interesting note, though, here, today, Lou, an indication -- the White House did not flatly come out and say it, but it did seem to suggest that, if those countries now stop criticizing Washington and perhaps take positive, significant step on the issue of Iraq's big long-term debts, that perhaps, as Scott McClellan, the White House press secretary, put it today -- quote -- "Circumstances could change" -- Lou.

DOBBS: Perhaps this will be one more lever to help the former secretary of state, James Baker, in those negotiations. John, John King, our senior White House correspondent, as always, thank you.

KING: Thank you.

DOBBS: A Pentagon audit has found that a subsidiary of the oil services firm Halliburton has substantially, substantially overcharged the U.S. military for fuel and other items in Iraq.

The Pentagon has not yet given details. But two congressmen say that the Halliburton subsidiary is charging the Army $2.65 a gallon for gasoline imported from Kuwait, while another agency imports gasoline for less than half that price. Halliburton, once headed by Vice President Dick Cheney, denies any price-gouging.

The Pentagon is expected to hold a news conference on this issue within the hour, but cameras, we are told, will not be allowed in that briefing.

In Iraq today, another suicide bomb attack against U.S. troops, the third in three days. Today, one American soldier was killed, 14 others were wounded in the town of Ramadi, 60 miles west of Baghdad. Insurgents also fired rockets and mortars at the coalition's compound in Baghdad tonight.

There has also been a major setback for American plans to establish a new Iraqi army. Many of the newly recruited Iraqi soldiers have quit.

Senior Pentagon correspondent Jamie McIntyre now has that story for us -- Jamie.

JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: Well, Lou, let's start with what's happening in Baghdad at this hour. We have been looking at the aftermath of what appears to be a rocket attack on the so-called Green Zone, the area where the Coalition Provisional Authority is.

According to our people in Baghdad, it does appear that there were at least two explosions. As many as four rockets hit the compound. And, as you noted, this came on a day when a suicide bomber driving a car bomb attacked the 82nd Airborne Division headquarters in Ramadi, one soldier killed, 14 wounded there.

But the U.S. military insists that improvements to security actually minimized the injuries. And, as you said, the efforts to create a new Iraqi army to help take over the country's security have suffered a setback. It's turned that about a third of the soldiers trained so far have resigned. Pentagon officials are portraying this as sort of a pay dispute. The starting salary, $60 a month for privates, was too low, officials said. And they're taking a look at that issue.

But others have suggested there's more to it than that.

(BEGIN VIDEO CLIP) HASSAN FATTAH, "IRAQ TODAY": It's been reported as being a squabble over money and issues like that. But I think it actually goes far, far deeper, to conditions and relationships between the CPA or the coalition and the Iraqi troops themselves. Remember, a lot of these are former military officers, former military staff of significant rank who are basically being told that you have to go back to being a private.

(END VIDEO CLIP)

MCINTYRE: So, this 700-man battalion that's supposed to start going to work to provide security, it looks like they have lost between 200 to 300 people to resignations. Again, the Pentagon says it's going to review the situation there. They have been touting that as the answer to Iraqi security.

And another really sad reminder of the security situation came yesterday, when our colleagues at "TIME" magazine, senior correspondent Michael Weisskopf and his veteran photographer, James Nachtwey, were injured when a grenade was thrown into their Humvee. They were accompanying U.S. military personnel in Baghdad, two U.S. soldiers also wounded in that.

Both of our colleagues are being transferred to the U.S. military hospital in Landstuhl, but again a remainder that many of the reporters who are covering the activities of the U.S. military are taking the same risks as U.S. soldiers -- Lou.

DOBBS: Jamie, thank you very much -- Jamie McIntyre, our senior Pentagon correspondent.

Turning now to another major story of the day, the worsening flu outbreak in this. The government has now purchased another 250,000 flu shot vaccines to combat the outbreak. It is the worst flu epidemic in years; 100,000 doses of adult vaccine are expected to be delivered this week; 150,000 doses of pediatric vaccine are not expected to arrive here until the new year.

The government bought this vaccine from overseas after two U.S. flu shot-makers ran out. Also today, the Centers for Disease Control almost doubled the number of states on its list of those with widespread flu activity; 24 states are now on the list. However, the CDC says the flu is present in all 50 states.

(BEGIN VIDEO CLIP)

DR. JULIE GERBERDING, DIRECTOR, CENTERS FOR DISEASE CONTROL: We don't have scientific evidence or epidemiologic evidence to suggest that this year's influenza outbreak is worst than it has been in past or that the strain is more virulent than strains that we've dealt with before. It's just simply too early in the course of the outbreak to say for sure how this will compare overall. But, obviously, the early start and the early widespread activity has given us a great deal of concern.

(END VIDEO CLIP) DOBBS: The flu outbreak has forced schools in Missouri, Ohio, Tennessee and Connecticut to close. As much as 30 percent of the students at some schools have been absent this week because of the flu.

My guest tonight is among those leading the fight against this spreading flu outbreak. Dr. Greg Poland is the director of vaccine research at the Mayo Clinic, joining us tonight from Rochester, Minnesota.

Doctor, good to have you here.

GREG POLAND, DIRECTOR OF VACCINE RESEARCH, MAYO CLINIC: Thank you.

DOBBS: First, this spread seems to be accelerating. When do you expect the flu outbreak to peak?

POLAND: These are very fickle sort of outbreaks, Lou. And they have probably peaked in states like Colorado, nowhere near peaking yet, is my guess, in the Midwest or in the East.

DOBBS: One of the things that has been, it seems to me, encouraging is, the number of deaths reported, at least, so far over the last week has certainly declined. Is that, in fact, the case, or is it your opinion that we should expect more?

POLAND: I think we'll have to expect more and for a number of reasons.

No. 1, once we see widespread activity, as we have now in the Midwest and on the East Coast, that tends to lag a little bit. Then you'll have hospitalizations and then you'll have the complications, such as death. The other thing is, we are starting to see a few cases of pneumonia, staphylococcal pneumonia, and even encephalitis after influenza. And those are, again, follow-on complications of influenza that we won't yet see for another few days to weeks.

DOBBS: The encephalitis, the pneumonia that follow on, as you put it, is it -- do you see more of it in this outbreak than you would have expected?

POLAND: Little hard to tell yet. It is a little bit early.

But what we are seeing is those complications in younger, otherwise healthy people, including a few deaths. That's a little bit different and it bears close watching.

DOBBS: Now, obviously, the fact that the United States has had to go abroad and buy vaccines to make up for a shortage, that has to be, first of all, if it isn't, it should be, it seems to me, very -- an embarrassment to the U.S. government, to everyone involved.

But is there a difference in that vaccine and the vaccine that had been administered up to this point? POLAND: No, none that I'm aware of. In fact, it's made by the same manufacturer. So I don't think there will be any difference at all in it.

DOBBS: And that vaccine, some of it not apparently to arrive, the pediatric vaccine, until the 1st of the year?

POLAND: Yes, I think that's right.

One thing that also bears mentioning is that, today, the CDC -- and I think appropriately so -- did release a statement saying that we will go back to a sort of prioritization as to who should get the vaccine, somewhat like we've done in past years when there were flu vaccine shortages. And that's important for the public and for the providers to know.

DOBBS: And, Doctor, quite simply, are we going to see this situation again or will we learn from the situation in future years?

POLAND: I think the biggest issue we face, Lou, is that we need better technology. We have the surveillance, but we don't yet have 21st century technology to rapidly make and distribute these vaccines. And that, to me, is the biggest issue that's got to get cured.

DOBBS: Dr. Greg Poland, as always, thanks for being with us.

POLAND: Thank you.

DOBBS: Coming up next, my exclusive interview with Chinese Premier Wen Jiabao, his first ever on American television, at the conclusion of his first ever official visit abroad as prime minister of China.

Also, "Broken Borders," controversial and conflicting proposals about the legal status of illegal aliens. Casey Wian will report.

And "America Works," our celebration of the men and women whose hard work keeps this country running. Tonight, we introduce you to a train conductor who has been keeping commuters on time and in line for 26 years. Peter Viles will have her story.

(COMMERCIAL BREAK)

ANNOUNCER: LOU DOBBS TONIGHT continues. Now, "Broken Borders."

DOBBS: U.S. and Mexican officials are negotiating an agreement that would allow legal Mexican immigrants to receive Social Security benefits, even if they return to Mexico. Critics say that move would encourage illegal immigrants. And, Tuesday, Homeland Security Secretary Tom Ridge suggested that there should be some sort of legal status for illegal aliens living in this country.

And yesterday, Border Security Undersecretary Asa Hutchinson said the Bush administration lacks a -- quote -- "firm policy position on illegal aliens."

Casey Wian reports from Los Angeles.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Homeland Security Secretary Tom Ridge seemed to signal this week that the Bush administration is prepared to accept amnesty for up to 10 million illegal aliens.

TOM RIDGE, HOMELAND SECURITY SECRETARY: I think there's a growing consensus that, sooner rather than later, we need to deal with the reality that these men, women and families are here, many contributing -- most contributing to their community, paying taxes, paying into Social Security. But we have to legalize their status.

WIAN: A White House official tells CNN the administration was not happy with the timing of Ridge's remarks. The White House was discussing amnesty for Mexican illegal aliens before September 11, 2001. And several amnesty or guest worker bills have been introduced in Congress, but that doesn't mean it will happen soon.

MARK KRIKORIAN, CENTER FOR IMMIGRATION STUDIES: The White House strategy seems to be to string the Mexicans along by telling them that they still want an amnesty, but not actually supporting any of the actual measures that are in Congress to amnesty illegal immigrants. So the result is inaction, paralysis.

WIAN: Other examples of the mixed message include a reported plan by the FDIC in 35 Chicago-area banks to offer mortgages to people without Social Security numbers, making it easier for illegal aliens to buy a home. Then there are the discussions between the Social Security Administration and Mexico that would give some legal Mexican immigrants access to more U.S. Social Security benefits and do the same for U.S. workers in Mexico.

Illegal aliens would continue to be denied benefits. Opponents, however, fear the prospect of a U.S. government check for life would encourage illegal immigration, especially with amnesty on the table.

DAVID JOHN, HERITAGE FOUNDATION: It would be very difficult. For one, they'd have to prove that they paid the taxes.

WIAN (on camera): The issue of amnesty for illegal aliens is potentially divisive to the Republican Party, because it's generally favored by many agricultural and business interests, but opposed by most Republican voters. The White House may be trying to keep the issue under wraps until after next year's presidential election.

Casey Wian, CNN, Los Angeles.

(END VIDEOTAPE)

DOBBS: Coming up next, my exclusive interview with Chinese Premier Wen in his first ever appearance on television. We talk about North Korea, rising tensions with Taiwan and, of course, the mounting U.S. trade deficit with China. And "America Works." Tonight, we ride the rails with a superconductor, a troubleshooter for the nation's second busiest railroad.

(BEGIN VIDEO CLIP)

SHARON CARLQUIST, CONDUCTOR, METRO NORTH: I'm a very outspoken person. I'm aggressive and I'm very independent. I love what I'm doing. I like to fix things. If there's a problem on board the train, I can see it and I like to plug it.

(END VIDEO CLIP)

DOBBS: Peter Viles will have her story, as we celebrate all Americans who make this country work.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: The Food and Drug Administration has set a deadline of tomorrow for every company that exports food to the United States to register with the government. That deadline comes just weeks after the FDA linked contaminated green onions from Mexico to an outbreak of hepatitis A in this country that killed three people in four states. While the new FDA program is designed to guarantee the safety of the food that we eat, there are growing doubts that it will.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Some 400,000 food suppliers have to register with the FDA by the end of this week and begin providing notice any time they send a shipment to the United States.

ROBERT BRACKETT, FOOD AND DRUG ADMINISTRATION: This will significantly improve the safety overall of the food coming into this country. It will give us the ability to look at those foods that have been a problem for food safety.

TUCKER: The final rules haven't been drafted, but the FDA is making the consequences clear.

SUSAN STOUT, GROCERY MANUFACTURERS OF AMERICA: From this point forward, if a facility is not registered or prior notice has not been given for the product coming into the U.S., it won't get into the U.S.

TUCKER: Maybe. Some 300,000 suppliers have yet to register. But perhaps that's because the deadline of December 12 is not really the deadline. There's a four-month grace period.

And there's another problem. Unlike the U.S. Department of Agriculture, which has had the authority to inspect foreign plants and facilities since 1914, the FDA cannot go into a foreign plant or farm unless invited. And not only do they lack critical authority.

CAROLINE SMITH DEWAAL, CENTER FOR SCIENCE IN THE PUBLIC INTEREST: FDA has far fewer inspectors and far fewer people devoted to food safety than our USDA does. So, even though USDA is inspecting fewer plants, they have almost 10 times as many inspectors to do that job. FDA continues to be grossly understaffed when it comes to food safety.

TUCKER: The Center For Science in the Public Interest and others say the answer's simple.

(END VIDEOTAPE)

TUCKER: Restructure the whole mess and instead of two agencies charged with food safety, put one in charge -- Lou.

DOBBS: What is the likelihood that any of these agencies will have any impact on what is in the soil of food that is imported from abroad?

TUCKER: That's easy. None.

DOBBS: Bill Tucker, thank you very much.

An important health warning tonight for women of child-bearing age. The Food and Drug Administration is advising them to limit the amount of tuna they eat because of concerns about mercury poisoning.

Tonight, a follow-up on our report on China's alleged dumping of furniture into this country. The Commerce Department today said it will open an investigation into whether Chinese furniture-makers are illegally pricing the furniture they sell in this country. That investigation comes at the request of U.S. furniture-makers, who are struggling to keep jobs in this country.

Coming up next, we continue to update the growing list of American companies who favor cheap overseas labor markets over American workers.

And tonight, my exclusive interview with Chinese Premier Wen Jiabao, his first on American television.

We'll have that and a great deal more still ahead. Please stay with us.

(COMMERCIAL BREAK)

ANNOUNCER: LOU DOBBS TONIGHT continues.

China today thanked President Bush for his comments on Taiwan this week and said Premier Wen's visit to the United States was a complete success.

In an exclusive interview with Premier Wen in Boston, I talked with him about a host of issues at the conclusion of his first-ever official visit outside China as prime minister.

(BEGIN VIDEOTAPE)

DOBBS: Mr. Premier, you've had a whirlwind visit to the United States, your first official visit as premier of China. Give us your impressions.

WEN (THROUGH TRANSLATOR): During my visit, I held talks with President Bush and other leaders of this country in a friendly, candid, cooperative and a constructive atmosphere. We had in-depth exchanges of ideas about China-U.S. relations, about major international questions, and reached a broad major understanding. And we are both of the view that the further strengthening and improvement of China-U.S. relations not only serves the interest of our two peoples, but is also conducive to peace and stability in the whole world.

To be sure, there are differences between our two countries, and it is hardly possible for us to see eye to eye with each other on 100 percent of things. But we can make 100 percent of effort to remove these differences and ensure smooth development of our constructive and cooperative relationship.

This visit for me has been a very pleasant experience. Although it is quite short -- it lasted only three days -- I attended up to 30 various functions and activities, and I reached out extensively to people of different circles in this country. I have brought with me the best of wishes of the Chinese people towards the American people, and I'm sure I will bring back to the Chinese people a positive message of the desire of the American people for the further development and growth of our relations.

DOBBS: Mr. Premier, one of the issues has been the rhetoric of President Bush from the time he took office. He move from statements about viewing China as a strategic competitor, to now, with the culmination of your visit, talking about diplomatic partners. If you would frame for us what you think this means as an understanding between you, your government, and President Bush.

WEN (THROUGH TRANSLATOR): We both believe that the China-U.S. bilateral relationship is the most important state-to-state relationship in our world. The development of our relations is conducive not just to peace and stability in Asia-Pacific, but also to peace and prosperity of the whole world.

We are of the same view that to have a mature bilateral relationship, both our two sides should work carefully to safeguard such a relationship. We cannot allow the bond of friendship between our two countries to be broken simply because of some minor problems. This would require strategic vision and strategic courage in the perception and handling of China-U.S. relations.

DOBBS: Mr. Premier, one of the tests, obviously, will come on the Korean Peninsula. Obviously, this United States government is critically interested in the elimination of the North Korean nuclear weapons program. Is there a common view on the part of the Chinese government? And is the Chinese government going to continue to take the lead in achieving that goal? WEN (THROUGH TRANSLATOR): China does not believe that the Korean Peninsula should have nuclear weapons. So therefore, we believe that the nuclear issue on the Korean Peninsula should be resolved through peaceful means and through diplomatic means in the interest of peace and stability on the peninsula.

Active efforts to promote the six-party talks represents the best channel for the peaceful resolution of this issue. The Chinese government will actively undertake various coordinating and mediating efforts to facilitate the six-party talks.

DOBBS: Mr. Premier, on another very sensitive issue which tensions are rising, Taiwan. Your government has made it very clear that it does not accept the referendum that is proceeding in Taiwan. What is your best judgment of the situation and your view as to what happens next?

WEN (THROUGH TRANSLATOR): The position of the Chinese government on a question of Taiwan has always been consistent. That is, we always follow the principle of peaceful reunification and one country, two systems. And that we have been doing a great deal. And we have been making our utmost effort and utmost sincerity to achieve this prospect.

However, such efforts by our side have met with the challenges from the Taiwan authority and from the Taiwan separatist forces. We respect the desire of the Taiwan people to develop and pursue democracy. However, we firmly oppose the attempts by certain spetaratist forces on Taiwan to pursue Taiwan independence under the disguise of promoting democracy in an attempt to cut off Taiwan from the mainland.

So we have expressed our firm determination and strength to safeguard state unity that is exactly designed to safeguard peace and stability in the Taiwan straits (ph) area.

We also made it very clear that as long as the slightest hope for peace exists, we will exert our utmost to strive for the peaceful reunification of the motherland. We appreciate the reaffirmation by President Bush of his one-China policy, and for his sending a clear signal to Taiwan separatist forces.

DOBBS: President Bush, Mr. Premier, also said that he wanted to preserve the status quo as a matter of U.S. policy. That is, status quo, vis-a-vis China, as well as Taiwan. The status quo, in your judgment, is it endangered by this referendum significantly?

WEN (THROUGH TRANSLATOR): The purpose of the so-called defensive referendum that Chen Shui-bian has been going after is to undermine the status quo. And it is designed to cut off Taiwan from the sacred territory of the Chinese motherland. So we have to have a clear understanding of the nature of what he's going after.

In fact, the democracy is just a disguise, an excuse. And so his efforts look to be quite deceptive. DOBBS: Mr. Premier, one of the talks - the most important talks in your early premiership has been with President Bush on the issue of trade. You are responsible for the entire vast Chinese economy. And one of the most difficult issues between our countries is the trade imbalance. Tremendous deficits, could reach $130 billion this year. Do you have the sense that you and President Bush have reached an understanding?

WEN (THROUGH TRANSLATOR): Firstly, I would like to say that the rapid expansion of trade between our two countries has benefited our two peoples. Twenty-five years ago, trade between our two countries was barely valued at 2.5 billion US dollars. But this year, two-way trade between us tops 100 billion US dollars.

Is it true to say that the development of trade only benefits one country at the expense of the other? Definitely not. Trade between our two countries has brought tremendous benefit to the people of both countries.

We should recognize the fact that the United States does have a sizeable deficit in trade with China. And so in a constructive approach I proposed to President Bush five proposals. Firstly, we seek mutual benefits and win-win results. We should look at the larger picture and larger interests of our trade. For each country, we should not just to consider our own interests, we should also take into account the interests of the other country.

Secondly, we should give priority to development, that is, reducing American imports from China is not a solution. We should expand instead U.S. exports to China. That would require a simultaneous effort by the United States to lift the various restrictions on exporting to the Chinese market.

Thirdly, the two countries should establish and improve a coordinating mechanism for the resolution of trade issues. I proposed this specifically to President Bush to raise the level of our joint committee on commerce and trade. On our side, this committee will now be headed by our vice premier, Mdme. Wu Yi, while on your side, Secretary Evans and Trade Representative Zoellick, will chair this commission.

Fourthly, the two countries should approach trade issues on the basis of equal consultations rather than imposing restrictions or sanctions..

Fifthly, economic and trade issues should not be politicized. President Bush expressed full agreement with all my five proposals. As far as I know, the two sides are making positive preparations for launching the inaugural session of the upgraded JCCT session next spring.

DOBBS: Mr. Premier, your sense of how quickly a trade balance, recognizing all of the elements that you have just enumerated, how quickly do you think a meaningful trade balance can be achieved between China and the United States? WEN (THROUGH TRANSLATOR): I think this will be an objective that would require some time and joint efforts by the two sides. We have demonstrated our utmost sincerity and we are very much ready to increase our imports from your country.

At the same time, we hope that United States will open more to China, especially in the high-tech sector.

DOBBS: President Bush in under considerable pressure, political pressure in the Congress to react with tariffs, to seek a change in the trade balance as quickly as possible, through political means. Do you believe that we will see that trade deficit eliminated to the point quickly enough so that it will not be a political problem for President Bush?

WEN (THROUGH TRANSLATOR): China has adopted active measures to address that. And we will continue to take such measures. The five- point proposal that I just listed represents an effort by senior leaders of the 2 countries to take a strategic look at where we are on this question. And we try to stand on higher ground in looking at these issues.

Naturally this would also require closer mutual understanding between the two countries. I want to point out the fact that the U.S. exports overall increased by 15 percent this year. But in the first 10 months of this year, its trade with China grew by 20 percent, whereas its trade with other countries only increased by about 2 to 3 percentage points. I should also say that the U.S. exports, to China in particular, have increased by fairly big margins. That is my first point.

Secondly, this year China's total trade, including imports and exports, is valued at about 800 billion US dollars, but our imports have been growing at a pace of more than 40 percent whereas exports only went up by 32 percent.

We also need to keep in mind the fact that when U.S. deficit against China -- trade deficit is increasing, China's trade deficit with other countries in Asia is also increasing. And so there is indeed a structural nature associated with the China-U.S. trade imbalance, and also that is a reflection of shifting commercial patterns and relations among different countries.

Despite that, we will still try to promote a balance in our bilateral trade in an active and positive approach. And our efforts will be applied not just in this time, in this quite extraordinary political time for the United States, but it will be extended for the long term.

DOBBS: Mr. Premier, I just want to say thank you for accelerating the progress toward that balance and accelerating the mutual understanding that's so important to both our peoples, we thank you very much, Premier Wen.

WEN (THROUGH TRANSLATOR): You can look forward to some measures that China is prepared to take quite soon. Thank you.

(END VIDEOTAPE)

DOBBS: Premier Wen Jiabao.

And turning to the other side of the issue, at least on the subject of Taiwan, despite strong warnings from the new diplomatic partners, Beijing and Washington, the president of Taiwan has refused to make any concessions on his plan to hold a referendum in March. In an exclusive interview with our Mike Chinoy in Taipei, President Chen said he still intends to hold that referendum, demanding China reduce its military threat against Taiwan.

(BEGIN VIDEO CLIP)

CHEN SHUI-BIAN, TAIWANESE PRESIDENT (through translator): We demand that the People's Republic of China immediately withdraw the missiles targeting Taiwan and also publicly renounce the use of force against Taiwan. This message is very clear. And it certainly has no bearings on the unification or independence issues. And I think the United States government understands this. And it's very clear that what they are concerned about, what they worry about, would not happen.

(END VIDEO CLIP)

DOBBS: President Chen also said the United States should respect the people of Taiwan and their right to pursue democracy and defend peace.

Coming up next, "Grange On Point." General David Grange will join me. We're going to be talking about the Army's readiness to fight another war, as it continues to fight global terrorism, terrorists and insurgents in Iraq and Afghanistan.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Our senior Pentagon correspondent Jamie McIntyre has just reported to us that the Pentagon now says a Halliburton subsidiary overcharged the U.S. military by $61 million for gasoline and other items in Iraq.

Turning now to "Grange On Point." The issue now: Is the Pentagon, and specifically the U.S. Army, ready to fight another war beyond Iraq and Afghanistan? Last week, military officials said two of the Army's 10 active-duty divisions will be ready for combat in another part of the world next year. Defense Secretary Donald Rumsfeld, however, disagrees with the assessment.

To settle all of that, we have asked none other than General David Grange to join us with "Grange On Point."

Dave, let me start with a simple issue. With those troops rotating out of Iraq and standing down from somewhere to three to six months, can the United States fight, effectively, a third war?

RETIRED BRIG. GEN. DAVID GRANGE, CNN MILITARY ANALYST: Well, Lou, I believe that the United States can. And it has in the past, even in situations that will be more challenging than the one today.

This is a monumental task, bringing back that size of an Army force, refitting it. There's a lot of weapons and equipment that's been ridden hard, some of the same stuff that was used in Desert Storm in '90 and '91. And giving the troops a break and getting them retrained for a different type of mission, possibly, for instance, maneuver warfare, which we experienced in the beginning of Iraq, and not counterinsurgency phase that they're in now, and get them ready.

But it's going to take a monumental effort to do that.

DOBBS: And we're talking about four divisions moving back, standing down, another four divisions rotating into Iraq. And that would leave us, by my count, at least, two divisions.

GRANGE: Well, two divisions. And, again, you're just -- the report only talks about divisions. There's a lot of separate brigade- size elements.

DOBBS: Right.

GRANGE: There's a lot of support, combat support, service support elements. So there's a lot of people involved in this equation.

And it's probably -- this hasn't been done at this size for years, this amount of trade-out at the same time still conducting a war.

DOBBS: One spokesman for the Pentagon saying that, of course, there are risks in this, but they are manageable risks. Are these the kind of risks, manageable or otherwise, that a superpower, the world's only superpower, spending $400 billion a year in its budget, should have to take on?

GRANGE: Well, it has to take on because the size of the force.

And to have the military, the quality of the military that we have today, it costs money. There's no -- there's no way to cut corners on it. Lives are at stake. Obviously, national security is at stake. And this is a military that, the readiness reports, the risks that we're talking about here, things are -- some things are measurable, like the number -- amount of the equipment you have, the number of troops, the type of troops.

The intangibles, family readiness, morale of troops, those type of things are hard to measure. And so, the risk involves many factors. And it's all about the risk management in a situation like this.

DOBBS: Risk management is one of those things I get a little nervous about when I hear the Pentagon talking about it, because the risks that, in this case, are not national security risks or military risks. They are actually organizational risks and readiness risks, in effect.

General, let's talk a lot more about this, because we know that there's going to be a lot more talk about it in Washington as well.

General David Grange, thanks, as always.

GRANGE: Thank you, Lou. To be continued.

DOBBS: Absolutely.

Coming up next: "Exporting America." Tonight, we continue to update you on the list of American companies we have confirmed to be sending jobs, American jobs, to cheap overseas labor markets.

And then your thoughts, including some advice on how the middle class can fight back against what some of you see as a very, very big squeeze against the middle class in this country -- that and a great deal more still ahead.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Taking a look now at some of your thoughts.

From Mesa, Arizona tonight: "The American middle class is being lost. Jobs are being exported. Illegals flood our domestic labor pool and deny gainful employment to legal citizens of this country. It is time for the American middle class to express themselves economically and verbally and purchase only those products labeled made in America by American workers" -- Larry Stephenson.

And on "Broken Borders," from Evergreen, Colorado: "How dare Tom Ridge entertain the notion of amnesty for people who broke our laws specifically knowing our U.S. borders are a joke. Ridge needs to resign" -- Jan Herron.

From Chicago, Illinois: "Regarding the remerging controversy about not allowing our nonparticipating allies to participate in Iraq rebuilding contracts and the threat of not forgiving Iraqi loans by these allies, perhaps they should be reminded they still owe the United States for the Second World War" -- Roger Flammang.

From Boulder Creek, California: "President Bush stated that only countries that risked their lives should get the contracts. The soldiers risking their lives in Iraq are not employees of Halliburton and will not be making money off the occupation" -- that from Mark DiPietro.

And from Butler, Pennsylvania: "Tell me again why it's safe for the government to purchase flu vaccines in a foreign country, but it's not all right for senior citizens to purchase their drugs in Canada" -- John West. And on "Exporting America," from South Elgin, Illinois: "Lou, if the experts are blaming the job problems on this supposed global economy, then why aren't the jobs of our elitist corporate leaders offered to their foreign competitors? I've got to believe they're just as capable of doing the job, and for only a fraction of what some CEOs are making here" -- Fred Siena.

We love hearing from you. E-mail us at LouDobbs@CNN.com.

Now "Exporting America." Each night, we update our list of U.S. companies exporting American jobs overseas, choosing to employ cheap foreign labor instead of American workers. We confirm the thousands of notifications we receive from you. And it is a process that is taking a while, because there are a huge number of companies that we are checking.

The companies confirmed now in yellow, as of today, these are the additions: 3Com, Fidelity Investments, International Paper, Lillian Vernon, Mattel, Mellon Bank, and Sapien (ph).

Keep sending the names of those companies you know to be exporting jobs to cheap foreign labor markets. The e-mail address, LouDobbs@CNN.com. And we will continue to update and report them here each evening right here.

On Wall Street today, the Dow above 10000 for the first time in more than a year and a half, the Dow jumping 86 points. The Nasdaq rose almost 38. The S&P gained 12.

No one is more excited about this than Christine Romans.

(LAUGHTER)

DOBBS: She's here with that and quite a few developments in corporate crime.

CHRISTINE ROMANS, CNN CORRESPONDENT: Well, Lou, a rally in stocks, but the wreckage of two years of corporate scandals still strewn about Wall Street and corporate America.

The Justice Department says KPMG is stalling an IRS probe into tax shelters. It says KPMG has demonstrated a concerted pattern of obstruction and noncompliance, threatening the integrity of an IRS investigation. KPMG claims it did not push these tax shelters, has claimed that for some time. But the government says there's literally thousands, volumes of evidence in KPMG files to the contrary, Lou.

DOBBS: Well, we know what happened to that other accounting firm, Arthur Andersen. This is also obstruction of justice, right?

ROMANS: Absolutely. Well, two years later

(CROSSTALK)

DOBBS: The allegation of it, at least.

ROMANS: The allegation is very similar to the Andersen allegation, yes.

DOBBS: And two attorneys generals getting tough on those mutual funds.

ROMANS: Absolutely.

Today, it was Massachusetts charging Prudential Securities with massive late trading, Lou, of mutual funds on behalf of its hedge fund customers, 1,100 trades in 2.5 years, netting $162 million. And source close to the negotiations says Alliance Capital is offering to cut its mutual fund fees as part of a settlement with New York Attorney General Eliot Spitzer over improper trading in Alliance funds.

And, Lou, from the trading floor to the executive suite, something is seriously awry with executive pay and executive paychecks have eroded public trusts in capitalism. So concludes the trade group that represents board members. The National Association of Corporate Directors says, boards need to spell out how and why executives are being paid and the pay plans should be kept as simple as possible.

So still not giving any complete concrete guidelines as to what is fair compensation, though, so no new ground broken there.

DOBBS: Not even like something between the average pay being something less than 1,000 times for the CEO?

ROMANS: No, no guidelines like that.

(LAUGHTER)

DOBBS: Thanks, Christine.

Coming up next, "America Works." Tonight, we introduce you to a train conductor. She's helping keep America on the right track.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: "America Works." Tonight, we want to introduce you to a lady who's worked hard for more than a quarter-century on one of this country's most busiest railroad lines.

Peter Viles has her story.

(BEGIN VIDEOTAPE)

CARLQUIST: Tickets onto Fordham. Fordham tickets, please.

PETER VILES, CNN CORRESPONDENT (voice-over): The Metro North railroad, a quarter of a million passengers a day and no one thanks them as often as Sharon Carlquist.

CARLQUIST: Thank you so much. That's your return. So don't lose that. You'll need that for coming back. VILES: Sharon is a special duty traveling conductor, which means she wears a bunch of hats, conductor, ticket taker, liaison between labor and management, all around troubleshooter.

CARLQUIST: I do try to give them a good, comfortable ride. And if that's telling somebody that's speaking very loudly on their cell phone, hey, you need to quiet down a little bit, we don't all want to hear your conversation.

VILES: Her career is a minor miracle. For 26 years, she's put up with cranky commuters.

CARLQUIST: Can we move these belongings right over here? OK.

VILES: And yet, she still has her Midwestern manners and common sense.

CARLQUIST: I'm from Missouri. And I'm very conservative. And I grew up knowing right and wrong.

VILES: Wrong, in Sharon's book, taking up more than one seat on a train, not saying please and thank you, not giving your all at work.

CARLQUIST: It's so, so important to have a smile on your face, to have a good, upbeat demeanor and a positive attitude.

VILES: How is this for positive attitude?

CARLQUIST: Long time no see!

UNIDENTIFIED MALE: How you doing?

CARLQUIST: I'm fine. How are you?

UNIDENTIFIED MALE: All right.

CARLQUIST: Good.

This is Joe the tailor. Don't I look spiffy?

This is Sean Chaw (ph). And she taught me CPR earlier this year.

VILES: If you can keep up with her.

CARLQUIST: Hold that elevator.

VILES: You'll find she's old-fashioned, proud of her railroad and proud of her office. But who wouldn't be proud of Grand Central Terminal?

(on camera): Why do you think you like your job so much?

CARLQUIST: Well, I'm a very energetic and upbeat person. And I just love what I'm doing. Look at the surroundings here. Look at the beautiful place that I work in.

VILES (voice-over): Peter Viles, CNN, New York.

(END VIDEOTAPE)

DOBBS: A perfect setting.

That's our show tonight. We thank you for being with us. For all of us here, good night from New York.

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





With Chinese Premier Wen Jiabao; Iraqi Soldiers Quit>