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CNN Wolf Blitzer Reports

Bush Suggests Halliburton Overcharged for Contracts in Iraq; Michael Jackson's Family Speaks Out; Interview With Al Sharpton

Aired December 12, 2003 - 17:00   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.


WOLF BLITZER, HOST: Happening now, Halliburton, the huge oil services company once run by Vice President Dick Cheney, President Bush suggests it has overcharged U.S. taxpayers for contracts in Iraq. Some of his top aides, though, seem to disagree. Who's right?
Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Stuck with the bill, the defense secretary on the defensive.

DONALD RUMSFELD, DEFENSE SECRETARY: We've got auditors that crawl all over these things.

BLITZER: On the offensive, Michael Jackson's family speaks out.

Al Sharpton, he's lagging behind, does he still feel good?

After Iraq learning to cope...

UNIDENTIFIED MALE: I was leading my convoy that day and like I usually do and found the first landmine.

BLITZER: On the slope.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Friday, December 12, 2003.

BLITZER: Three late-breaking stories put Iraq and the war on terror right in the spotlight. The price at the pump for U.S. troops in Iraq has Halliburton in the hot seat and President Bush today put Vice President Cheney's old company on notice about possible, repeat possible overcharges.

The U.S. Army's Old Guard trades its dress blues for camouflage and ceremonial duty for possible combat.

And a U.S. Army officer is punished for the violent interrogation of an Iraqi detainee which led to information about a planned ambush.

We have reporters standing by covering all of these stories, CNN's Suzanne Malveaux, she's over at the White House. Kathleen Koch, she's here in our Washington studio and Alphonso Van Marsh he's in Tikrit right in Iraq.

But we begin with President Bush fending off concerns about Vice President Cheney's old company.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all for coming. Please be seated.

BLITZER (voice-over): What was supposed to be a short announcement of a HUD secretary nominee turns quickly into an impromptu news conference, the president on the defensive but calmly saying any issues with Halliburton over contracts in Iraq will be ironed out.

BUSH: And if there's an overcharge like we think there is we expect that money to be repaid.

BLITZER: But even that statement contradicts what the president's own defense secretary said earlier in the day when asked about a Pentagon audit which raised questions about Halliburton's alleged $61 million overcharge to the U.S. government to bring gasoline into Iraq from Kuwait.

RUMSFELD: There was no overpayment to any company. My understanding is it may be a disagreement between the company and the Department of Defense.

BLITZER: Halliburton, the oil services company headed by Dick Cheney before he became vice president. Controversy has surrounded Halliburton for months since it won a post-war contract with the U.S. Army Corps of Engineers with no competitive bidding.

This week a routine audit questioned whether a Halliburton subsidiary overpaid a Kuwaiti subcontractor for gasoline but there is no allegation that Halliburton unduly profited from the overpriced gas.

In a statement, Halliburton's current president says: "We expect and want continuing reviews and audits that detail our work in Iraq. We welcome a thorough review of any and all of our government contracts."

The president makes the point twice the matter is being looked into.

BUSH: I expect anybody doing business with the United States government to be transparent and to give the taxpayers a good return on their money. That's what I expect and if anybody is overcharging the government we expect them to repay that money.

BLITZER: Auditors found another potential Halliburton overcharge of $67 million to build dining facilities in Iraq but they say that seems to be a billing error.

(END VIDEOTAPE) BLITZER: Let's go live to the White House CNN's White House Correspondent Suzanne Malveaux is standing by. Suzanne, how much of a political problem potentially is this whole Halliburton issue for the president?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, we've heard today from the Democratic presidential hopefuls who are all saying this is just another example of this administration putting big business and special interests over the American people.

They also accuse the Bush administration of using taxpayers' dollars to line the pockets of Halliburton executives but quietly and behind the scenes the Democratic aides that I spoke to say that they really don't think that this is going to have too much damage to the White House. They don't think it's going to stick that it is too far removed.

They say the one thing they think will happen, perhaps, is that they'll put more pressure on the administration to make that bidding process more open and transparent. It's something the Bush administration says it's already going to do -- Wolf.

BLITZER: And finally, Suzanne, what about the whole issue of contracts for prime business deals in Iraq, any shift over the past 24 hours as far as the president is concerned?

MALVEAUX: Well, certainly there's no shift. There's a lot of murkiness in all of this over the last 24 hours, 48 hours and who is going to get what, who is going to make that list?

This becomes really a political football for this president and the administration at the time when there's at least a perception many say that you have Halliburton, this American company that gets a lucrative contract without any kind of competition that perhaps it is overcharging.

At the same time you're denying some of these countries France, Germany, as well as Russia and even Canada that supported this administration that's being denied some of those projects.

BLITZER: Suzanne Malveaux at the White House, thanks Suzanne very much.

Moving on now they're putting their dress blues away and putting on desert camouflage. The U.S. Army orders its ceremonial Old Guard to deploy for possible combat.

CNN's Kathleen Koch is here with me. She's joining us now live with more on the story. Kathleen, what's going on?

KATHLEEN KOCH, CNN CORRESPONDENT: Wolf, I suppose you could call it a sign of the times just an illustration of how stretched thin the U.S. military is today and Defense Secretary Donald Rumsfeld himself today used the adjective "stressed."

So, a regiment of the Old Guard that normally engages only in ceremonial duties is sending one of its companies to join the fight against terrorism in the Horn of Africa. People, of course, are most familiar with seeing Old Guard soldiers as (unintelligible) caskets at Dover Air Force Base in Delaware, attending military burials at Arlington Cemetery or standing watch over the Tomb of the Unknowns.

Though it is an infantry unit that does train on a regular basis this is the first time since the Vietnam War that its companies have been sent on duty overseas. Another company left a couple of months ago and one from Fort Myers here just near Washington is leaving in a few days.

A spokesman says that though the Old Guard doesn't normally deploy this way its members are indeed very motivated to join the fight against terrorism. Soldiers from the Old Guard, Wolf, were the very first on the scene at the Pentagon after the 9/11 attacks.

BLITZER: Underscoring the military perhaps a little bit stretched thing right now. Kathleen Koch thanks very much for that report.

Now to the case which has had emotions running very high among U.S. troops in Iraq as well as here on the home front, a U.S. Army officer has been punished, punished for a violent interrogation of an Iraqi detainee who then gave information about a planned ambush.

Let's go live to CNN's Alphonso Van Marsh. He's joining us from Tikrit, what's happening Alphonso?

ALPHONSO VAN MARSH, CNN CORRESPONDENT: Hi there, Wolf.

Yes, we're getting word from the lawyer for Lieutenant Colonel Allen West that the commanding general for the 4th Infantry Division here has decided to go with an Article 15. That's an administrative punishment for West's admitted assault and threatening to kill an Iraqi detainee.

Now, according to that lawyer the U.S. military will dock $2,500 of West's pay per month for two months and West will also be assigned to the rear detachment of the 4th Infantry Division back in the United States and he'll hold that position as his papers, his request to retire are processed and his lawyer says that despite this punishment he expects that West's benefits for retirement and his pension will stand.

Now West has had a lot of supporters, as well as some critics. Military prosecutors have said that his tough interrogation techniques pretty much amount to torture and wanted him court-martialed.

Now an intelligence officer that worked with West out here says that she's sure that West has more supporters than critics.

(BEGIN VIDEO CLIP)

CAPT. SHARY DAY, U.S. ARMY: The American people back home understand because they have brothers and sisters and mothers and fathers dying over here for a greater cause. (END VIDEO CLIP)

VAN MARSH: Now we understand that we tried to get in touch with military officials here for comment but our calls were not returned. The U.S. military may face some criticism for this Article 15 decision because it may be perceived that the U.S. military is condoning this kind of unsavory interrogation technique -- Wolf.

BLITZER: Alphonso Van Marsh reporting from Tikrit on a sensitive story. Thanks, Alphonso, very much.

Forced to curtail its mission in Iraq the United Nations may also have to pull out of Afghanistan. That's the message from the United Nations top official there. Lakdar Brahimi telling the Associated Press increasing violence is making security conditions for United Nations staffers there, and I'm quoting, "unacceptable." He says if those conditions don't improve "we will go away."

Funding terrorism, Hamas, where is the source of the group's cash coming from and is it getting into the hands of terrorists, a CNN exclusive investigation that's coming up.

And can Scott Peterson get a fair trial in his hometown? Why his lawyers say no way.

Some satisfaction though from Mick Jagger, hear what the rocker now has in common with Paul McCartney and Elton John, all of that coming up, first though today's News Quiz.

(BEGIN VIDEO CLIP)

BLITZER (voice-over): With which song did the Rolling Stones first top the American charts, "Start me up," "Satisfaction," "Some Girls," "Honky Tonk Woman," the answer a little later.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BLITZER: Members of Michael Jackson's family fight back. Hear what they're saying about the pop star and his three children.

(COMMERCIAL BREAK)

BLITZER: Michael Jackson's family is going on the offensive speaking out on behalf of the pop star who's accused of child molestation for the second time in ten years.

CNN's Mike Brooks has the latest now from the CNN Center in Atlanta. Mike, what's going on?

MIKE BROOKS, CNN LAW ENFORCEMENT CORRESPONDENT: Good evening, Wolf.

Both Michael Jackson's parents as well as his brother Jermaine are speaking out on behalf of the King of Pop. (BEGIN VIDEOTAPE)

BROOKS (voice-over): Michael Jackson's parents have now spoken out in support of their son. In an interview with the British Television Network, ITV1, Katherine and Joe Jackson said that if Michael's three children were taken away from him as a result of his pending court case they are prepared to adopt them.

Katherine Jackson said: "I hope they don't try to take his children. That would be devastating to him but if they do I'd be right there."

Joe Jackson agreed, saying: "We know what we can do. They're my grandkids. I have to."

Katherine Jackson expressed concern for her three grandchildren following in the entertainment footsteps of their father. She said: "If it is going to cause them as much pain as it's cause Michael, I'd rather them not."

Asked about Michael Jackson's arrest on November 20 for child molestation, Katherine Jackson told ITV: "Some people are trying to accuse him of being a pedophile and that is not true. And they need to stop."

Joe Jackson said: "He's the biggest entertainer in the world and they don't like that. Believe me, they do not like that."

Michael Jackson's brother, Jermaine, says he thinks Michael has been getting a raw deal from the beginning. On the day that Michael was arrested and booked Jermaine Jackson had this to say by phone to CNN.

JERMAINE JACKSON, BROTHER OF MICHAEL JACKSON (via telephone): I am sick and (expletive) tired of everybody saying these things about my family. We will fight and we will stand up and everybody that knows this family around the world will support us because at the end of the day this is nothing but a modern day lynching. This is what they want to see, him in handcuffs. You got it.

(END VIDEOTAPE)

BROOKS: In a recent television interview, Jermaine Jackson complained about the treatment his brother received during the arrest and booking process at the Santa Barbara County Jail. The sheriff's office on a statement on their Web site said Michael Jackson was "treated with courtesy and professionalism throughout the process."

At a news conference after the entertainer was released on bail, Mark Geragos, Jackson's attorney, did publicly thank members of the sheriff's department for the way they handled the whole process.

And I spoke a short time ago with Chris Pappas, the spokesperson for the sheriff's office and he said no complaints have been received by his office by either Michael Jackson or his attorney Mark Geragos -- Wolf. BLITZER: All right, very interesting, Mike Brooks reporting from the CNN Center. Thank you very much.

A back and forth day in court in the Scott Peterson case over a truck, Rusty Dornin she'll join us live. We'll also speak with our legal analyst Christopher Darden.

And is Al Sharpton ready to be president of the United States? Is the country ready for Al Sharpton? I'll talk to him live.

And what exactly is this man doing to the new prime minister of Canada? Stay with us.

(COMMERCIAL BREAK)

BLITZER: Scott Peterson's truck was at the center of a hearing today in the closely-watched case. Prosecutors who had the vehicle for almost a year now want to buy it.

CNN's Rusty Dornin is outside the courthouse in Modesto. She's joining us now live with these strange developments. What's going on Rusty?

RUSTY DORNIN, CNN CORRESPONDENT: Well, Wolf, if you remember Scott Peterson's truck was seized about two days after Laci Peterson disappeared and prosecutors were arguing they wanted to hang onto it because they said it would be a more direct impact on jurors if they could show it to them firsthand.

They're planning to argue that the truck was used to ferry Laci Peterson's body from the home to the warehouse and possibly to San Francisco Bay but the defense wanted it back.

They said look it's been a financial burden on this family. They've been making the payments on it. They want to get it back and be able to sell it. Well then prosecutors offered a proposition that the defense was very amused by.

(BEGIN VIDEO CLIP)

VOICE OF RICK DISTASSO, DEPUTY DISTRICT ATTORNEY: But the People are willing to actually just pay the fair market value for the truck. You know we'd ask the court to keep that, I mean to allow us to keep that and that seems to be the, you know, money seems to be the issue with the defense. Mr. Geragos said that he wanted to, you know, think about that and talk to the parties about that. What I'm asking though is...

MARK GERAGOS, DEFENSE ATTORNEY: Mr. Distasso wants to turn into a used truck salesman at this point.

DISTASSO: Yes, I'm trying to avoid that actually.

(END VIDEO CLIP)

DORNIN: Prosecutors are also trying to avoid taking this trial somewhere else so they are busy making up surveys in case of the change of venue but they're surveying people here in Stanislaus County and Los Angeles and Sacramento asking people how much they know about this case, what do they think? Do they think Scott Peterson is guilty, that sort of thing?

They want to prove that the exposure is uniform over all of those areas. The defense, of course, is claiming it's just been too intense for local residents and the trial must be moved elsewhere.

They'll file a motion on that on Monday and then there will be a hearing on the change of venue issue on January 8. Now also the defense motion -- the hearing on the 8.

And there's also right outside the courthouse there was a press conference about a blood donation that's going to be going on right before the anniversary of Laci Peterson's disappearance. It's going to be in her memory, a blood drive from December 21 through the 23rd. Sharon Rocha, her mother, was supposed to announce that but apparently she was too ill to attend.

The trial is scheduled, of course, for January 26 but that's a date that is likely to be delayed for perhaps months -- Wolf.

BLITZER: All right, Rusty Dornin thanks very much.

Let's get some expert analysis now of today's developments. Chris Darden is a former prosecutor, best known for his role in the O.J. Simpson murder case. He's now a legal analyst for us here at CNN. Chris is joining us live.

First of all, Chris, on the truck, have you ever seen a situation where the prosecution is ready to buy a truck like this?

CHRIS DARDEN, CNN LEGAL ANALYST: No, I've never seen a situation like that and I got to say this. Even though the prosecution is offering to pay the fair market value of that truck, you know, it may not be the Kelly Blue Book price. This is a very high profile case and that truck may be worth far more than any other similar truck because it's involved in the Peterson case.

BLITZER: Why is that truck so important to the prosecution?

DARDEN: You know I don't know and I don't think it ought to be all that important to the prosecution. I'm sure that they've taken several photos of the truck, the interior. They diagrammed it. They've probably videotaped and filmed the truck.

And in this day of digital photography you can still make a very, very effective presentation via slides and the like in a courtroom and in front of a jury. So, I can't imagine why they think having that truck is so important.

BLITZER: What about the change of venue. You know California law, precedent. How likely is that going to happen?

DARDEN: Well, we're going to have to wait and see what the surveys indicate. You know Geragos will file a motion with the court stating his belief that there is no reasonable probability that Scott Peterson can receive a fair trial in Stanislaus County.

At that point, the court will conduct a hearing. They'll look at some of these surveys. They'll examine the pretrial publicity and look to see whether or not potential jurors have developed or come to a certain belief as to Scott Peterson's guilt.

And I got to tell you I can recall hearing of and reading surveys months ago wherein the local population in that county was something like 80 to 20 percent in favor of Scott Peterson's guilt in this case.

And so I would think that it might be likely that the case might be moved but we're going to have to see. We've had a lot of publicity here in Los Angeles on the case.

BLITZER: Because this case has gotten a lot of publicity all over the United States.

DARDEN: That's true.

BLITZER: Who's to think it would be any different if it were moved to L.A. as opposed to Modesto is that the argument the prosecution would make?

DARDEN: Well, yes, that is the argument that the prosecution would make. You know statutorily jurisdiction in this case is proper not only in Stanislaus County but it's also proper in Contra Costa County, my old hometown of Richmond, California where the bodies were actually found. So, you know, there are some possibilities here and some room for the judge to wiggle in terms of moving this case out of Stanislaus County.

BLITZER: You hard Rusty say January 26. That's never going to happen that date. This trial is going to be pushed perhaps months and months down the road. Is she right?

DARDEN: I think so. You know, I'd probably calendar this for August 26 if I were the judge.

BLITZER: Just tell us briefly why will it take so long to come to trial?

DARDEN: Well, there's a lot of work that has to be done, a lot of pretrial preparation. Experts have to be hired. Transcripts have to be summarized. I'm sure there's more investigation that will have to be done and then, too, you never know, you never know whether or not more evidence might surface between now and the trial date.

BLITZER: All right. Chris Darden thanks very much and welcome to CNN by the way.

DARDEN: Thank you.

BLITZER: Here's your turn to weigh in on this story. Our web question of the day is this. "Should there be a change of venue in the Scott Peterson trial"? You can vote right now, cnn.com/wolf. We'll have the results later this hour.

While you're there, though, I'd love to hear directly from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's where you can read my daily online column as well, cnn.com/wolf.

Does Howard Dean have what it takes to win the Democratic nomination for president?

(BEGIN VIDEO CLIP)

JIMMY CARTER, FORMER PRESIDENT OF THE UNITED STATES: I think at least at the present time his chances in Iowa and New Hampshire look quite good.

(END VIDEO CLIP)

BLITZER: Former President Jimmy Carter speaking candidly about Dean's chances.

Plus, he got the laughs on "Saturday Night Live" but can Al Sharpton get the votes? I'll speak with him live, and this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hamas uses the charitable acts that it does not only to do some good but also to recruit, also to infiltrate and also to promote its agenda.

(END VIDEO CLIP)

BLITZER: Funding Hamas, a CNN exclusive investigation where the group is getting its money.

(COMMERCIAL BREAK)

BLITZER: We're following several developments along the 2004 campaign trail. One candidate goes on a date while others compete for key endorsements. Still to come a presidential candidate in our hot seat. I'll talk live with the Reverend Al Sharpton.

Also, royal news on a Rolling Stone, all of that coming up.

First though the answer to today's News Quiz.

(BEGIN VIDEO CLIP)

BLITZER (voice-over): Earlier we asked: "With which song did the Rolling Stones first top the American charts"? The answer, "Satisfaction." The year was 1965 and "Satisfaction" topped the charts becoming the Rolling Stones' first one single in America. It knocked Sonny and Cher's "I Got You Babe" from the top spot.

(END VIDEO CLIP)

(COMMERCIAL BREAK) BLITZER: Welcome back to CNN. Coming up, a CNN exclusive investigation. Who's funding Hamas? The surprising answer. First, though, a quick check of the latest headlines.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): A man who was questioned in connection with last summer's sniper attacks in West Virginia has been arrested in connection with an earlier shooting. 46-year-old Brian Caldwell (ph) is charged with attempted murder for allegedly shooting at a utility worker in February. Authorities say Caldwell was questioned last August about the deadly sniper attacks that month but police found no evidence linking him to those crimes.

A murder suspect in Hammond, Indiana has entered a not guilty plea. 49-year-old David Maust was arrested after authorities found the remains of three teenagers buried in the basement of his apartment house. Maust has a criminal record that includes a conviction for the murder of a teenage boy in Illinois. At his arraignment today, he told the judge he wants to serve as his own attorney.

A prominent health expert says the U.S. flu outbreak is well on its way to becoming an epidemic, even though it is not an epidemic yet. The outbreak has people lining up for vaccinations even in states like Florida where the flu is not yet wide spread. Dr. Bill Schaffner of Vanderbilt University predicts that as more cases occur, the outbreak is going to become a noteworthy epidemic.

(END VIDEOTAPE)

BLITZER: Now a CNN exclusive investigation. The United States continuing its efforts to stop the flow of money to Hamas. Officials say even though some of the money is used for Palestinian relief projects, it also promotes terrorism. CNN senior international correspondent Sheila MacVicar has details.

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN SR. INTERNATIONAL CORRESPONDENT (voice- over): The mortars, the gunmen, the suicide bombers, the chanting crowd of supporters bearing the body of another slain militant to his burial ground. This is another face of Hamas. Its hearts and minds campaign among desperately poor people. Food for people who have few resources to buy their own.

Kindergartens and schools that Israel charges build support for Hamas and its tactics, part of a social welfare system far better than anything else offered in the Palestinian territory. "We get nothing from the authorities," says this woman. "We're lucky to have this." But not for much longer. Juan Zahate is the U.S. treasury official charged with combating terrorist funding.

JUAN ZAHATE, DEPUTY TREASURY SECRETARY: Hamas uses the charitable acts that it does not only to do some good but also to recruit, also to infiltrate and also to promote its agenda. MACVICAR: The entire structure, military, political, charitable with a budget estimated by Israeli military intelligence of millions of dollars now labeled by the U.S. and European governments as a terror organization.

ZAHATE: Hamas uses the infrastructure, the buildings, the organizations, its drivers, its cars, to facilitate Hamas terrorist activities. Israelis, for example, have uncovered caches of weapons under Hamas-run preschool playgrounds.

MACVICAR: When Israeli forces killed a Hamas activist. In his car, they found a trove of documents. Senior Israeli military intelligence sources tells CNN these documents and others, still classified information, show a link between the funding of Hamas charities and Hamas military activities.

The Al Noor (ph) charity, they say, was a front headed by the chief of Hamas' military wing. He was killed this summer in an Israeli bombing. The charity, the Israelis say, was used to launder money to carry out terror attacks. The Al Noor charity declined any comment.

ZAHATE: A dollar in one pocket is the same as the dollar in another pocket in terms of the organization and we've tried to stem the flow of funds in that regard.

MACVICAR: Where does the money come from? The U.S. says an official Palestinian document captured in Israeli military raids seemed to confirm that the major source of Hamas funding remains Saudi Arabia. That, in spite of the Saudis own war against terrorists.

MACVICAR: The Saudis do not see what's happening to them as the same thing as what Hamas (unintelligible) do.

MACVICAR: Under pressure from the U.S., the Palestinian authority has moved to close Hamas charities and freeze dozens of Hamas-associated bank accounts. There is little to replace them and so the Palestinian authority is now supporting more needy families but not all.

ZAHATE: The international donor community needs to step in and fill that gap.

MACVICAR: In Gaza, after Israel demolished houses in October, thousands were made homeless. The U.N. has only half the money it says it needs to rebuild here. Hamas-associated charities handed out checks, but with Hamas bank accounts frozen, when people like Ahmed Radwan (ph) went to cash the checks, they came away empty handed and humiliated.

UNIDENTIFIED MALE (through translator): These people are laughing at us. Look at this check. It's for $200. They promised us more but I can't even cash this.

MACVICAR: Within weeks families were desperate. There were demonstrations. Palestinians threw stones at the buildings of the Palestinian authority. Counterterrorism experts and senior Israeli military sources say the impact of the freezing of the bank accounts on Hamas activities has been, quote, "devastating." But they also say that Hamas has begun to move money in other, more difficult to trace ways.

Money, the Israelis say, is being channeled through new bank accounts and wired from one place to another. And there is cash. Months after the bank accounts were frozen, this Hamas charity was handing out American dollars. Charity officials say they distributed $30,000 in one evening. Money, we are told, that was raised in Gaza from charitable donations, money that did not need to pass through a bank or across the border, the demonstration that there is still more than enough money to continue to pay for terror attacks and to continue to buy support. Sheila MacVicar, CNN, Gaza.

(END VIDEOTAPE)

BLITZER: Hamas and the Palestinian authority recently had discussions about a cease fire with the Israelis, but the talks ended inconclusively. Sources tell Sheila MacVicar, the authorities' financial pressure on Hamas was the major stumbling block.

Is he the reverend with the right stuff? Up next, I'll speak live with presidential candidate, the Reverend Al Sharpton.

Regaining life after losing limbs. From the front lines in Iraq to the slopes of Colorado. Meet soldiers taking life back one step at a time.

Dog eye view. The power pooch gets up close and low down. We'll tag along and tell you why.

First, a quick look at some other news making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Canada has a new prime minister, Paul Martin. He's a former finance minister and a long-time leader in the Liberal Party. Martin replaces Jean Chretien, who is retiring after 10 years.

Jury deliberations have begun in the closely-watched trial in Britain. A former school caretaker, Ian Huntley, is charged with the murder of two 10-year-old girls last summer whose disappearance sparked a nationwide search. Huntley's girlfriend, a teacher's assistant who taught both girls, is also on trial, accused of covering up the alleged crime.

Leaders of European Union nations are in Brussels trying to hammer out a constitution. They're hoping the new charter will strengthen ties within the union and increase its political clout. Negotiators have agreed to scale back plans for an EU military command which raised U.S. concerns about NATO unity.

Venice's historic opera house called "The Phoenix" is poised to rise from its ashes. It is scheduled to reopen this weekend after a seven-year $90 million restoration. The building, which dates from 1792, was badly damaged in a 1996 fire.

And call him Sir Mick. 60-year-old Mick Jagger was knighted today by Prince Charles at Buckingham Palace. The Rolling Stones front man said it's all very nice as long as you don't take it too seriously. And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: President's weighing in, a candidate on a date, and the endorsement wars. I can only be talking about what's happening "On the Trail."

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Endorsement fever. Catch it. The Democrats certainly have. Some on the hunt for new backers. Others still sorting through the Gore fallout.

Joe Lieberman's campaign, seemingly energized by losing Al Gore's endorsement to Howard Dean. Lieberman's camp reports an infusion of new money and shouts of "give'em hell Joe" at events.

Meanwhile, Gore's eldest daughter coming to dad's defense. Karenna Gore Schiff tells "The New York Daily News" her father did not blindside Lieberman. Quote -- "I was with him that night as he was trying to get Lieberman on the phone, the whole night. He was calling literally every few minutes." She says Al Gore couldn't get Lieberman on the phone.

The story leaked out to the news media. Problem is, it leaked at 4:45 in the afternoon.

The Democratic frontrunner himself, running hard through Iowa today, a town hall meeting on special interests. CNN's John Mercurio reports the influential liberal senator, Tom Harkin of Iowa, now leaning toward endorsing Howard Dean, a move Dick Gephardt and his labor friends are trying to head off.

But the Dean steamroller keeps building momentum. He may not have an endorsement from former President Jimmy Carter yet, but check out Carter's comments to Larry King, on Dean's rep as an ultra- liberal.

JIMMY CARTER, FORMER PRESIDENT OF THE UNITED STATES: I think Howard Dean is inherently a very conservative political person.

BLITZER: Another former president being courted. Bill Clinton gets a call from his former general, Wesley Clark, who tells "New York Times" editors he just buzzed Mr. Clinton to say hello.

Presidents don't need endorsements, but cash always welcome. Dick Cheney fund-raising in Kansas City and Jackson, Mississippi today.

Dennis Kucinich doesn't get an endorsement but does get a date. The only bachelor in the presidential race dines with Gina Marie Santore. She beats dozens of other women out in an Internet contest for a date with Kucinich. But AP reports she still lives with her boyfriend.

As the world turns for the 2004 candidates on the trail.

(END VIDEOTAPE)

BLITZER: A CNN-"USA Today" Gallup poll last weekend showed the Reverend Al Sharpton trailing all but one of the other Democratic presidential candidates, but that doesn't mean he's easy to overlook. Sharpton's zingers in the debates and his recent appearance on NBC's "Saturday Night Live" have kept him very much in the public eye. We'll be checking in with all the candidates from time to time as this campaign continues. Al Sharpton is joining us today from Cincinnati. Reverend Sharpton, thanks very much for joining us.

What do you make of the decision for Howard Dean and Al Gore to get together in Harlem, your neck of the woods, for this highly publicized endorsement?

REV. AL SHARPTON (D), PRESIDENTIAL CANDIDATE: I think what was interesting is they had more reporters than people. I think that if one is going to influence an election, he ought to involve the people that you are trying to influence.

I think endorsements are fine. What I took exception to, which I raised in the New Hampshire debate, is people saying that because of the endorsements that others should then pull out and rally around who they endorse. That's bossism. People ought to endorse and work for who they want, but they ought not tell other people that they ought to submit to their particular point of view. I don't think that that is a democratic process that this party can afford.

BLITZER: Is Howard Dean making any in roads in the African- American community?

SHARPTON: Well, I mean, I don't see any inroads. But again, I'm not trying to run Mr. Dean's campaign, or anyone else's campaign. I'm running my own.

And I think that clearly we have been able to set up an infrastructure nationally. We just made the ballot today in Virginia. The Quinnepiac (ph) poll yesterday has me tied with John Kerry. I'm number two in some polls in South Carolina.

I'm more focused on the Sharpton for president campaign and the issues of importance to us. I'm the only major candidate that's talking about a withdrawal in Iraq. I was surprised the other night that even Mr. Dean said that we must continue occupation for years. I think that's a fundamental wrong position.

I'm concentrating on domestic issues. I'm in Cincinnati, where we recently had another police killing. So I'm more focused on what I'm doing than trying to manage someone else's campaign.

BLITZER: Dennis Kucinich says the U.S. should withdraw immediately as well. Is he not a major candidate?

SHARPTON: Absolutely. And I think that he and I agree. But what I have not seen is some of the candidates that have said they are against the war, but yet they say we must maintain occupation. I don't see how you can be against going in but then say we must stay in when we had no basis and no real authority, moral authority, to be there in the first place. And I think that the war continues as long as there is occupation. There must be responsible withdrawal. But there must be immediate withdrawal.

BLITZER: You are doing very well in South Carolina, as you point out. The polls show you doing very well. There is expected to be a large African-American turnout in South Carolina. Are you making any inroads at all with white voters?

SHARPTON: Absolutely. You know, one of the things, Wolf, that has always been underestimated is our support in the white community. When I ran for mayor of New York, I got one out of every three Democratic votes. I got 33 percent of the vote. Blacks as a whole only make up 26 percent of the population. So to get that, that would mean I have had to get every black vote, and then some white votes. And clearly I got a lot more than just some white votes, and some blacks didn't vote for me.

We will surprise a lot of people with the cross-section of people that will vote for us based on the issues and based on the will of many people to pull this party back to the basic rules of defending working people, neighbor, and people of color, and gays and lesbians. I've run a campaign that has been unequivocal in saying that the parties run to the right has been a ruination of the party. And it has resonated in many communities. And I am seeing that.

I was last night -- spoke at a rally in Oakland, California. Many whites came to the rally. Today I did a book signing in Cincinnati on my way to a rally now. And many whites are responding. So those that tried to -- first they said I couldn't get blacks nationally. Now when polls indicate I'm leading among African- American voters, they are saying I can only get African-American voters. They keep limiting us. We will not live by those limitations.

BLITZER: Reverend Sharpton, you were great on "Saturday Night Live" the other night. A lot of viewers loved you. They were surprised by how talented you are. We'll show our viewers a little bit of your impersonation of James Brown, a man you know quite well. What does that performance, that appearance on "Saturday Night Live" do for you and your campaign?

SHARPTON: I think that my judgment was if Bill Clinton can go on "Arsenio Hall" and don dark shades and blow a sax in '92 to show himself more human and reaching out, then Al Sharpton can do "Saturday Night Live" and do the same thing. And I might add, every candidate just about in this race wanted to do it. Some called and tried to do a cameo on my night, because it just makes sense to show America that you can laugh at yourself, even though you may be firm and passionate about your views.

BLITZER: All right. Reverend Sharpton, let me just say one thing. If the political thing doesn't work out, you always got the show business you can fall back on.

SHARPTON: Well, I left show business to do politics. And you know, sometimes I find people more honest in show business. At least they know when the show is over. We can't convince President Bush when it's curtains.

BLITZER: All right, the Reverend Al Sharpton, we loved you on "Saturday Night Live." You were great.

SHARPTON: Thank you.

BLITZER: Just back from Iraq. U.S. servicemen struggle -- struggling to restart their lives.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I was leading my convoy that day, and -- like I usually do -- and found the first land mine.

(END VIDEO CLIP)

BLITZER: And they hit the slopes with a new attitude.

Plus, who let the dog out? The nation's first pet plays holiday host over at the White House.

(COMMERCIAL BREAK)

BLITZER: Ski season is here, and for one group of skiers and snowboarders it is a season unlike any other. They're U.S. servicemen back from Iraq where their lives changed forever in just an instant. CNN's Elaine Quijano explains.

(BEGIN VIDEOTAPE)

ELAINE QUIJANO, CNN CORRESPONDENT (voice-over): Far away from the battlefields of Iraq, on the idyllic slopes of Breckenridge, Colorado...

UNIDENTIFIED MALE: When I'm coming down the hill I don't feel like I'm an amputee. I feel like I'm like all the rest of the snowboarders out there.

QUIJANO: Nine wounded American servicemen are learning to cope with a new set of circumstances.

UNIDENTIFIED MALE: I was a Calvary troop commander in Iraq, in the war and that's where I received my injury.

QUIJANO: About six months ago, Army Captain David Rozelle lost his right foot.

CAPT. DAVID ROZELLE, U.S. ARMY: I was leading my convoy that day, like I usually do, and found the first land mine.

QUIJANO: But like the other disabled participants at the Hartford Ski Spectacular, he's learning to adjust one movement at a time.

Along with the exhilaration comes inspiration. After a land mine in Iraq blew up his humvee, Iowa National Guardsman B.J. Jackson lost both his lower legs. But in Colorado Jackson has found a reason to inspire and be inspired, a 6-year-old named Jonah.

SPC. ROBERT "B.J." JACKSON, IOWA NATIONAL GUARD: He's not the only one missing his leg.

QUIJANO: Those moments mirror the experiences of men like Kirk Bauer. He's one of the disabled Vietnam veterans behind Disabled Sports USA which organized this ski event.

KIRK BAUER, DISABLED SPORTS USA: For me, it was skiing that got me back and turned my head around, started showing me all the possibilities that there were still in life.

QUIJANO: Possibilities that Navy Corpsman Brian Alaniz wants to see. A land mine shattered the bones in Alaniz's leg beyond repair as he knelt down to help an injured marine in Iraq. We spoke with him at Bethesda Naval Medical Center shortly before he left for Colorado.

BRIAN ALANIZ, U.S. NAVY: Just being around more amputees is helpful. To be able to talk with them, around here. I'll go out in shorts and people look at you different. Over there you're more accepted.

QUIJANO: Accepted, understood, encouraged.

UNIDENTIFIED MALE: You can be active again. You can be all that you want to be with that disability.

QUIJANO: And empowered to reclaim their lives. Elaine Quijano, CNN, Washington.

(END VIDEOTAPE)

BLITZER: Thank you for a good story like that.

Barney on the prowl. The hound is on the run bringing us a rare view of the White House holiday.

That and the result of our web question of the day, all that, is coming up next.

(COMMERCIAL BREAK)

BLITZER: Those are the results of our web question of the day. Remember, this is not a scientific poll. The presidential pooch provides our first picture of the day. The first dog is out with his latest video, a tour of the White House and its Christmas decorations. It's called Barneycam 2: Barney Reloaded. As the Spanish terrier makes the rounds of the mansion, other residents make guest appearances. Barney showed his video to kids in the local hospital today accompanied by the first lady. You can see it at www.White House.gov.

Let's get to some of our e-mail. Robert writes this, "The U.S. should be trying to get more participation in Iraq rather than punishing its former allies. Follow the money, who profits from Bush's policies? Halliburton and Bush's supporters. Who foots the bill? The American Taxpayers.

RLM disagrees, "France, Germany and Russia, no way should they share in any contracts. The old policy of no play, no pay is right. Maybe the next time, they will be more willing to help out."

A reminder, we're here weekdays 5:00 pm as well as noon Eastern. I'll see you Sunday on "LATE EDITION." Among my guests, the Health and Human Services secretary, Tommy Thompson, Sunday noon Easter. "LOU DOBBS TONIGHT" starts right now.

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





Iraq; Michael Jackson's Family Speaks Out; Interview With Al Sharpton>


Aired December 12, 2003 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST: Happening now, Halliburton, the huge oil services company once run by Vice President Dick Cheney, President Bush suggests it has overcharged U.S. taxpayers for contracts in Iraq. Some of his top aides, though, seem to disagree. Who's right?
Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Stuck with the bill, the defense secretary on the defensive.

DONALD RUMSFELD, DEFENSE SECRETARY: We've got auditors that crawl all over these things.

BLITZER: On the offensive, Michael Jackson's family speaks out.

Al Sharpton, he's lagging behind, does he still feel good?

After Iraq learning to cope...

UNIDENTIFIED MALE: I was leading my convoy that day and like I usually do and found the first landmine.

BLITZER: On the slope.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Friday, December 12, 2003.

BLITZER: Three late-breaking stories put Iraq and the war on terror right in the spotlight. The price at the pump for U.S. troops in Iraq has Halliburton in the hot seat and President Bush today put Vice President Cheney's old company on notice about possible, repeat possible overcharges.

The U.S. Army's Old Guard trades its dress blues for camouflage and ceremonial duty for possible combat.

And a U.S. Army officer is punished for the violent interrogation of an Iraqi detainee which led to information about a planned ambush.

We have reporters standing by covering all of these stories, CNN's Suzanne Malveaux, she's over at the White House. Kathleen Koch, she's here in our Washington studio and Alphonso Van Marsh he's in Tikrit right in Iraq.

But we begin with President Bush fending off concerns about Vice President Cheney's old company.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all for coming. Please be seated.

BLITZER (voice-over): What was supposed to be a short announcement of a HUD secretary nominee turns quickly into an impromptu news conference, the president on the defensive but calmly saying any issues with Halliburton over contracts in Iraq will be ironed out.

BUSH: And if there's an overcharge like we think there is we expect that money to be repaid.

BLITZER: But even that statement contradicts what the president's own defense secretary said earlier in the day when asked about a Pentagon audit which raised questions about Halliburton's alleged $61 million overcharge to the U.S. government to bring gasoline into Iraq from Kuwait.

RUMSFELD: There was no overpayment to any company. My understanding is it may be a disagreement between the company and the Department of Defense.

BLITZER: Halliburton, the oil services company headed by Dick Cheney before he became vice president. Controversy has surrounded Halliburton for months since it won a post-war contract with the U.S. Army Corps of Engineers with no competitive bidding.

This week a routine audit questioned whether a Halliburton subsidiary overpaid a Kuwaiti subcontractor for gasoline but there is no allegation that Halliburton unduly profited from the overpriced gas.

In a statement, Halliburton's current president says: "We expect and want continuing reviews and audits that detail our work in Iraq. We welcome a thorough review of any and all of our government contracts."

The president makes the point twice the matter is being looked into.

BUSH: I expect anybody doing business with the United States government to be transparent and to give the taxpayers a good return on their money. That's what I expect and if anybody is overcharging the government we expect them to repay that money.

BLITZER: Auditors found another potential Halliburton overcharge of $67 million to build dining facilities in Iraq but they say that seems to be a billing error.

(END VIDEOTAPE) BLITZER: Let's go live to the White House CNN's White House Correspondent Suzanne Malveaux is standing by. Suzanne, how much of a political problem potentially is this whole Halliburton issue for the president?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, we've heard today from the Democratic presidential hopefuls who are all saying this is just another example of this administration putting big business and special interests over the American people.

They also accuse the Bush administration of using taxpayers' dollars to line the pockets of Halliburton executives but quietly and behind the scenes the Democratic aides that I spoke to say that they really don't think that this is going to have too much damage to the White House. They don't think it's going to stick that it is too far removed.

They say the one thing they think will happen, perhaps, is that they'll put more pressure on the administration to make that bidding process more open and transparent. It's something the Bush administration says it's already going to do -- Wolf.

BLITZER: And finally, Suzanne, what about the whole issue of contracts for prime business deals in Iraq, any shift over the past 24 hours as far as the president is concerned?

MALVEAUX: Well, certainly there's no shift. There's a lot of murkiness in all of this over the last 24 hours, 48 hours and who is going to get what, who is going to make that list?

This becomes really a political football for this president and the administration at the time when there's at least a perception many say that you have Halliburton, this American company that gets a lucrative contract without any kind of competition that perhaps it is overcharging.

At the same time you're denying some of these countries France, Germany, as well as Russia and even Canada that supported this administration that's being denied some of those projects.

BLITZER: Suzanne Malveaux at the White House, thanks Suzanne very much.

Moving on now they're putting their dress blues away and putting on desert camouflage. The U.S. Army orders its ceremonial Old Guard to deploy for possible combat.

CNN's Kathleen Koch is here with me. She's joining us now live with more on the story. Kathleen, what's going on?

KATHLEEN KOCH, CNN CORRESPONDENT: Wolf, I suppose you could call it a sign of the times just an illustration of how stretched thin the U.S. military is today and Defense Secretary Donald Rumsfeld himself today used the adjective "stressed."

So, a regiment of the Old Guard that normally engages only in ceremonial duties is sending one of its companies to join the fight against terrorism in the Horn of Africa. People, of course, are most familiar with seeing Old Guard soldiers as (unintelligible) caskets at Dover Air Force Base in Delaware, attending military burials at Arlington Cemetery or standing watch over the Tomb of the Unknowns.

Though it is an infantry unit that does train on a regular basis this is the first time since the Vietnam War that its companies have been sent on duty overseas. Another company left a couple of months ago and one from Fort Myers here just near Washington is leaving in a few days.

A spokesman says that though the Old Guard doesn't normally deploy this way its members are indeed very motivated to join the fight against terrorism. Soldiers from the Old Guard, Wolf, were the very first on the scene at the Pentagon after the 9/11 attacks.

BLITZER: Underscoring the military perhaps a little bit stretched thing right now. Kathleen Koch thanks very much for that report.

Now to the case which has had emotions running very high among U.S. troops in Iraq as well as here on the home front, a U.S. Army officer has been punished, punished for a violent interrogation of an Iraqi detainee who then gave information about a planned ambush.

Let's go live to CNN's Alphonso Van Marsh. He's joining us from Tikrit, what's happening Alphonso?

ALPHONSO VAN MARSH, CNN CORRESPONDENT: Hi there, Wolf.

Yes, we're getting word from the lawyer for Lieutenant Colonel Allen West that the commanding general for the 4th Infantry Division here has decided to go with an Article 15. That's an administrative punishment for West's admitted assault and threatening to kill an Iraqi detainee.

Now, according to that lawyer the U.S. military will dock $2,500 of West's pay per month for two months and West will also be assigned to the rear detachment of the 4th Infantry Division back in the United States and he'll hold that position as his papers, his request to retire are processed and his lawyer says that despite this punishment he expects that West's benefits for retirement and his pension will stand.

Now West has had a lot of supporters, as well as some critics. Military prosecutors have said that his tough interrogation techniques pretty much amount to torture and wanted him court-martialed.

Now an intelligence officer that worked with West out here says that she's sure that West has more supporters than critics.

(BEGIN VIDEO CLIP)

CAPT. SHARY DAY, U.S. ARMY: The American people back home understand because they have brothers and sisters and mothers and fathers dying over here for a greater cause. (END VIDEO CLIP)

VAN MARSH: Now we understand that we tried to get in touch with military officials here for comment but our calls were not returned. The U.S. military may face some criticism for this Article 15 decision because it may be perceived that the U.S. military is condoning this kind of unsavory interrogation technique -- Wolf.

BLITZER: Alphonso Van Marsh reporting from Tikrit on a sensitive story. Thanks, Alphonso, very much.

Forced to curtail its mission in Iraq the United Nations may also have to pull out of Afghanistan. That's the message from the United Nations top official there. Lakdar Brahimi telling the Associated Press increasing violence is making security conditions for United Nations staffers there, and I'm quoting, "unacceptable." He says if those conditions don't improve "we will go away."

Funding terrorism, Hamas, where is the source of the group's cash coming from and is it getting into the hands of terrorists, a CNN exclusive investigation that's coming up.

And can Scott Peterson get a fair trial in his hometown? Why his lawyers say no way.

Some satisfaction though from Mick Jagger, hear what the rocker now has in common with Paul McCartney and Elton John, all of that coming up, first though today's News Quiz.

(BEGIN VIDEO CLIP)

BLITZER (voice-over): With which song did the Rolling Stones first top the American charts, "Start me up," "Satisfaction," "Some Girls," "Honky Tonk Woman," the answer a little later.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BLITZER: Members of Michael Jackson's family fight back. Hear what they're saying about the pop star and his three children.

(COMMERCIAL BREAK)

BLITZER: Michael Jackson's family is going on the offensive speaking out on behalf of the pop star who's accused of child molestation for the second time in ten years.

CNN's Mike Brooks has the latest now from the CNN Center in Atlanta. Mike, what's going on?

MIKE BROOKS, CNN LAW ENFORCEMENT CORRESPONDENT: Good evening, Wolf.

Both Michael Jackson's parents as well as his brother Jermaine are speaking out on behalf of the King of Pop. (BEGIN VIDEOTAPE)

BROOKS (voice-over): Michael Jackson's parents have now spoken out in support of their son. In an interview with the British Television Network, ITV1, Katherine and Joe Jackson said that if Michael's three children were taken away from him as a result of his pending court case they are prepared to adopt them.

Katherine Jackson said: "I hope they don't try to take his children. That would be devastating to him but if they do I'd be right there."

Joe Jackson agreed, saying: "We know what we can do. They're my grandkids. I have to."

Katherine Jackson expressed concern for her three grandchildren following in the entertainment footsteps of their father. She said: "If it is going to cause them as much pain as it's cause Michael, I'd rather them not."

Asked about Michael Jackson's arrest on November 20 for child molestation, Katherine Jackson told ITV: "Some people are trying to accuse him of being a pedophile and that is not true. And they need to stop."

Joe Jackson said: "He's the biggest entertainer in the world and they don't like that. Believe me, they do not like that."

Michael Jackson's brother, Jermaine, says he thinks Michael has been getting a raw deal from the beginning. On the day that Michael was arrested and booked Jermaine Jackson had this to say by phone to CNN.

JERMAINE JACKSON, BROTHER OF MICHAEL JACKSON (via telephone): I am sick and (expletive) tired of everybody saying these things about my family. We will fight and we will stand up and everybody that knows this family around the world will support us because at the end of the day this is nothing but a modern day lynching. This is what they want to see, him in handcuffs. You got it.

(END VIDEOTAPE)

BROOKS: In a recent television interview, Jermaine Jackson complained about the treatment his brother received during the arrest and booking process at the Santa Barbara County Jail. The sheriff's office on a statement on their Web site said Michael Jackson was "treated with courtesy and professionalism throughout the process."

At a news conference after the entertainer was released on bail, Mark Geragos, Jackson's attorney, did publicly thank members of the sheriff's department for the way they handled the whole process.

And I spoke a short time ago with Chris Pappas, the spokesperson for the sheriff's office and he said no complaints have been received by his office by either Michael Jackson or his attorney Mark Geragos -- Wolf. BLITZER: All right, very interesting, Mike Brooks reporting from the CNN Center. Thank you very much.

A back and forth day in court in the Scott Peterson case over a truck, Rusty Dornin she'll join us live. We'll also speak with our legal analyst Christopher Darden.

And is Al Sharpton ready to be president of the United States? Is the country ready for Al Sharpton? I'll talk to him live.

And what exactly is this man doing to the new prime minister of Canada? Stay with us.

(COMMERCIAL BREAK)

BLITZER: Scott Peterson's truck was at the center of a hearing today in the closely-watched case. Prosecutors who had the vehicle for almost a year now want to buy it.

CNN's Rusty Dornin is outside the courthouse in Modesto. She's joining us now live with these strange developments. What's going on Rusty?

RUSTY DORNIN, CNN CORRESPONDENT: Well, Wolf, if you remember Scott Peterson's truck was seized about two days after Laci Peterson disappeared and prosecutors were arguing they wanted to hang onto it because they said it would be a more direct impact on jurors if they could show it to them firsthand.

They're planning to argue that the truck was used to ferry Laci Peterson's body from the home to the warehouse and possibly to San Francisco Bay but the defense wanted it back.

They said look it's been a financial burden on this family. They've been making the payments on it. They want to get it back and be able to sell it. Well then prosecutors offered a proposition that the defense was very amused by.

(BEGIN VIDEO CLIP)

VOICE OF RICK DISTASSO, DEPUTY DISTRICT ATTORNEY: But the People are willing to actually just pay the fair market value for the truck. You know we'd ask the court to keep that, I mean to allow us to keep that and that seems to be the, you know, money seems to be the issue with the defense. Mr. Geragos said that he wanted to, you know, think about that and talk to the parties about that. What I'm asking though is...

MARK GERAGOS, DEFENSE ATTORNEY: Mr. Distasso wants to turn into a used truck salesman at this point.

DISTASSO: Yes, I'm trying to avoid that actually.

(END VIDEO CLIP)

DORNIN: Prosecutors are also trying to avoid taking this trial somewhere else so they are busy making up surveys in case of the change of venue but they're surveying people here in Stanislaus County and Los Angeles and Sacramento asking people how much they know about this case, what do they think? Do they think Scott Peterson is guilty, that sort of thing?

They want to prove that the exposure is uniform over all of those areas. The defense, of course, is claiming it's just been too intense for local residents and the trial must be moved elsewhere.

They'll file a motion on that on Monday and then there will be a hearing on the change of venue issue on January 8. Now also the defense motion -- the hearing on the 8.

And there's also right outside the courthouse there was a press conference about a blood donation that's going to be going on right before the anniversary of Laci Peterson's disappearance. It's going to be in her memory, a blood drive from December 21 through the 23rd. Sharon Rocha, her mother, was supposed to announce that but apparently she was too ill to attend.

The trial is scheduled, of course, for January 26 but that's a date that is likely to be delayed for perhaps months -- Wolf.

BLITZER: All right, Rusty Dornin thanks very much.

Let's get some expert analysis now of today's developments. Chris Darden is a former prosecutor, best known for his role in the O.J. Simpson murder case. He's now a legal analyst for us here at CNN. Chris is joining us live.

First of all, Chris, on the truck, have you ever seen a situation where the prosecution is ready to buy a truck like this?

CHRIS DARDEN, CNN LEGAL ANALYST: No, I've never seen a situation like that and I got to say this. Even though the prosecution is offering to pay the fair market value of that truck, you know, it may not be the Kelly Blue Book price. This is a very high profile case and that truck may be worth far more than any other similar truck because it's involved in the Peterson case.

BLITZER: Why is that truck so important to the prosecution?

DARDEN: You know I don't know and I don't think it ought to be all that important to the prosecution. I'm sure that they've taken several photos of the truck, the interior. They diagrammed it. They've probably videotaped and filmed the truck.

And in this day of digital photography you can still make a very, very effective presentation via slides and the like in a courtroom and in front of a jury. So, I can't imagine why they think having that truck is so important.

BLITZER: What about the change of venue. You know California law, precedent. How likely is that going to happen?

DARDEN: Well, we're going to have to wait and see what the surveys indicate. You know Geragos will file a motion with the court stating his belief that there is no reasonable probability that Scott Peterson can receive a fair trial in Stanislaus County.

At that point, the court will conduct a hearing. They'll look at some of these surveys. They'll examine the pretrial publicity and look to see whether or not potential jurors have developed or come to a certain belief as to Scott Peterson's guilt.

And I got to tell you I can recall hearing of and reading surveys months ago wherein the local population in that county was something like 80 to 20 percent in favor of Scott Peterson's guilt in this case.

And so I would think that it might be likely that the case might be moved but we're going to have to see. We've had a lot of publicity here in Los Angeles on the case.

BLITZER: Because this case has gotten a lot of publicity all over the United States.

DARDEN: That's true.

BLITZER: Who's to think it would be any different if it were moved to L.A. as opposed to Modesto is that the argument the prosecution would make?

DARDEN: Well, yes, that is the argument that the prosecution would make. You know statutorily jurisdiction in this case is proper not only in Stanislaus County but it's also proper in Contra Costa County, my old hometown of Richmond, California where the bodies were actually found. So, you know, there are some possibilities here and some room for the judge to wiggle in terms of moving this case out of Stanislaus County.

BLITZER: You hard Rusty say January 26. That's never going to happen that date. This trial is going to be pushed perhaps months and months down the road. Is she right?

DARDEN: I think so. You know, I'd probably calendar this for August 26 if I were the judge.

BLITZER: Just tell us briefly why will it take so long to come to trial?

DARDEN: Well, there's a lot of work that has to be done, a lot of pretrial preparation. Experts have to be hired. Transcripts have to be summarized. I'm sure there's more investigation that will have to be done and then, too, you never know, you never know whether or not more evidence might surface between now and the trial date.

BLITZER: All right. Chris Darden thanks very much and welcome to CNN by the way.

DARDEN: Thank you.

BLITZER: Here's your turn to weigh in on this story. Our web question of the day is this. "Should there be a change of venue in the Scott Peterson trial"? You can vote right now, cnn.com/wolf. We'll have the results later this hour.

While you're there, though, I'd love to hear directly from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's where you can read my daily online column as well, cnn.com/wolf.

Does Howard Dean have what it takes to win the Democratic nomination for president?

(BEGIN VIDEO CLIP)

JIMMY CARTER, FORMER PRESIDENT OF THE UNITED STATES: I think at least at the present time his chances in Iowa and New Hampshire look quite good.

(END VIDEO CLIP)

BLITZER: Former President Jimmy Carter speaking candidly about Dean's chances.

Plus, he got the laughs on "Saturday Night Live" but can Al Sharpton get the votes? I'll speak with him live, and this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hamas uses the charitable acts that it does not only to do some good but also to recruit, also to infiltrate and also to promote its agenda.

(END VIDEO CLIP)

BLITZER: Funding Hamas, a CNN exclusive investigation where the group is getting its money.

(COMMERCIAL BREAK)

BLITZER: We're following several developments along the 2004 campaign trail. One candidate goes on a date while others compete for key endorsements. Still to come a presidential candidate in our hot seat. I'll talk live with the Reverend Al Sharpton.

Also, royal news on a Rolling Stone, all of that coming up.

First though the answer to today's News Quiz.

(BEGIN VIDEO CLIP)

BLITZER (voice-over): Earlier we asked: "With which song did the Rolling Stones first top the American charts"? The answer, "Satisfaction." The year was 1965 and "Satisfaction" topped the charts becoming the Rolling Stones' first one single in America. It knocked Sonny and Cher's "I Got You Babe" from the top spot.

(END VIDEO CLIP)

(COMMERCIAL BREAK) BLITZER: Welcome back to CNN. Coming up, a CNN exclusive investigation. Who's funding Hamas? The surprising answer. First, though, a quick check of the latest headlines.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): A man who was questioned in connection with last summer's sniper attacks in West Virginia has been arrested in connection with an earlier shooting. 46-year-old Brian Caldwell (ph) is charged with attempted murder for allegedly shooting at a utility worker in February. Authorities say Caldwell was questioned last August about the deadly sniper attacks that month but police found no evidence linking him to those crimes.

A murder suspect in Hammond, Indiana has entered a not guilty plea. 49-year-old David Maust was arrested after authorities found the remains of three teenagers buried in the basement of his apartment house. Maust has a criminal record that includes a conviction for the murder of a teenage boy in Illinois. At his arraignment today, he told the judge he wants to serve as his own attorney.

A prominent health expert says the U.S. flu outbreak is well on its way to becoming an epidemic, even though it is not an epidemic yet. The outbreak has people lining up for vaccinations even in states like Florida where the flu is not yet wide spread. Dr. Bill Schaffner of Vanderbilt University predicts that as more cases occur, the outbreak is going to become a noteworthy epidemic.

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BLITZER: Now a CNN exclusive investigation. The United States continuing its efforts to stop the flow of money to Hamas. Officials say even though some of the money is used for Palestinian relief projects, it also promotes terrorism. CNN senior international correspondent Sheila MacVicar has details.

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN SR. INTERNATIONAL CORRESPONDENT (voice- over): The mortars, the gunmen, the suicide bombers, the chanting crowd of supporters bearing the body of another slain militant to his burial ground. This is another face of Hamas. Its hearts and minds campaign among desperately poor people. Food for people who have few resources to buy their own.

Kindergartens and schools that Israel charges build support for Hamas and its tactics, part of a social welfare system far better than anything else offered in the Palestinian territory. "We get nothing from the authorities," says this woman. "We're lucky to have this." But not for much longer. Juan Zahate is the U.S. treasury official charged with combating terrorist funding.

JUAN ZAHATE, DEPUTY TREASURY SECRETARY: Hamas uses the charitable acts that it does not only to do some good but also to recruit, also to infiltrate and also to promote its agenda. MACVICAR: The entire structure, military, political, charitable with a budget estimated by Israeli military intelligence of millions of dollars now labeled by the U.S. and European governments as a terror organization.

ZAHATE: Hamas uses the infrastructure, the buildings, the organizations, its drivers, its cars, to facilitate Hamas terrorist activities. Israelis, for example, have uncovered caches of weapons under Hamas-run preschool playgrounds.

MACVICAR: When Israeli forces killed a Hamas activist. In his car, they found a trove of documents. Senior Israeli military intelligence sources tells CNN these documents and others, still classified information, show a link between the funding of Hamas charities and Hamas military activities.

The Al Noor (ph) charity, they say, was a front headed by the chief of Hamas' military wing. He was killed this summer in an Israeli bombing. The charity, the Israelis say, was used to launder money to carry out terror attacks. The Al Noor charity declined any comment.

ZAHATE: A dollar in one pocket is the same as the dollar in another pocket in terms of the organization and we've tried to stem the flow of funds in that regard.

MACVICAR: Where does the money come from? The U.S. says an official Palestinian document captured in Israeli military raids seemed to confirm that the major source of Hamas funding remains Saudi Arabia. That, in spite of the Saudis own war against terrorists.

MACVICAR: The Saudis do not see what's happening to them as the same thing as what Hamas (unintelligible) do.

MACVICAR: Under pressure from the U.S., the Palestinian authority has moved to close Hamas charities and freeze dozens of Hamas-associated bank accounts. There is little to replace them and so the Palestinian authority is now supporting more needy families but not all.

ZAHATE: The international donor community needs to step in and fill that gap.

MACVICAR: In Gaza, after Israel demolished houses in October, thousands were made homeless. The U.N. has only half the money it says it needs to rebuild here. Hamas-associated charities handed out checks, but with Hamas bank accounts frozen, when people like Ahmed Radwan (ph) went to cash the checks, they came away empty handed and humiliated.

UNIDENTIFIED MALE (through translator): These people are laughing at us. Look at this check. It's for $200. They promised us more but I can't even cash this.

MACVICAR: Within weeks families were desperate. There were demonstrations. Palestinians threw stones at the buildings of the Palestinian authority. Counterterrorism experts and senior Israeli military sources say the impact of the freezing of the bank accounts on Hamas activities has been, quote, "devastating." But they also say that Hamas has begun to move money in other, more difficult to trace ways.

Money, the Israelis say, is being channeled through new bank accounts and wired from one place to another. And there is cash. Months after the bank accounts were frozen, this Hamas charity was handing out American dollars. Charity officials say they distributed $30,000 in one evening. Money, we are told, that was raised in Gaza from charitable donations, money that did not need to pass through a bank or across the border, the demonstration that there is still more than enough money to continue to pay for terror attacks and to continue to buy support. Sheila MacVicar, CNN, Gaza.

(END VIDEOTAPE)

BLITZER: Hamas and the Palestinian authority recently had discussions about a cease fire with the Israelis, but the talks ended inconclusively. Sources tell Sheila MacVicar, the authorities' financial pressure on Hamas was the major stumbling block.

Is he the reverend with the right stuff? Up next, I'll speak live with presidential candidate, the Reverend Al Sharpton.

Regaining life after losing limbs. From the front lines in Iraq to the slopes of Colorado. Meet soldiers taking life back one step at a time.

Dog eye view. The power pooch gets up close and low down. We'll tag along and tell you why.

First, a quick look at some other news making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Canada has a new prime minister, Paul Martin. He's a former finance minister and a long-time leader in the Liberal Party. Martin replaces Jean Chretien, who is retiring after 10 years.

Jury deliberations have begun in the closely-watched trial in Britain. A former school caretaker, Ian Huntley, is charged with the murder of two 10-year-old girls last summer whose disappearance sparked a nationwide search. Huntley's girlfriend, a teacher's assistant who taught both girls, is also on trial, accused of covering up the alleged crime.

Leaders of European Union nations are in Brussels trying to hammer out a constitution. They're hoping the new charter will strengthen ties within the union and increase its political clout. Negotiators have agreed to scale back plans for an EU military command which raised U.S. concerns about NATO unity.

Venice's historic opera house called "The Phoenix" is poised to rise from its ashes. It is scheduled to reopen this weekend after a seven-year $90 million restoration. The building, which dates from 1792, was badly damaged in a 1996 fire.

And call him Sir Mick. 60-year-old Mick Jagger was knighted today by Prince Charles at Buckingham Palace. The Rolling Stones front man said it's all very nice as long as you don't take it too seriously. And that's our look around the world.

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(COMMERCIAL BREAK)

BLITZER: President's weighing in, a candidate on a date, and the endorsement wars. I can only be talking about what's happening "On the Trail."

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Endorsement fever. Catch it. The Democrats certainly have. Some on the hunt for new backers. Others still sorting through the Gore fallout.

Joe Lieberman's campaign, seemingly energized by losing Al Gore's endorsement to Howard Dean. Lieberman's camp reports an infusion of new money and shouts of "give'em hell Joe" at events.

Meanwhile, Gore's eldest daughter coming to dad's defense. Karenna Gore Schiff tells "The New York Daily News" her father did not blindside Lieberman. Quote -- "I was with him that night as he was trying to get Lieberman on the phone, the whole night. He was calling literally every few minutes." She says Al Gore couldn't get Lieberman on the phone.

The story leaked out to the news media. Problem is, it leaked at 4:45 in the afternoon.

The Democratic frontrunner himself, running hard through Iowa today, a town hall meeting on special interests. CNN's John Mercurio reports the influential liberal senator, Tom Harkin of Iowa, now leaning toward endorsing Howard Dean, a move Dick Gephardt and his labor friends are trying to head off.

But the Dean steamroller keeps building momentum. He may not have an endorsement from former President Jimmy Carter yet, but check out Carter's comments to Larry King, on Dean's rep as an ultra- liberal.

JIMMY CARTER, FORMER PRESIDENT OF THE UNITED STATES: I think Howard Dean is inherently a very conservative political person.

BLITZER: Another former president being courted. Bill Clinton gets a call from his former general, Wesley Clark, who tells "New York Times" editors he just buzzed Mr. Clinton to say hello.

Presidents don't need endorsements, but cash always welcome. Dick Cheney fund-raising in Kansas City and Jackson, Mississippi today.

Dennis Kucinich doesn't get an endorsement but does get a date. The only bachelor in the presidential race dines with Gina Marie Santore. She beats dozens of other women out in an Internet contest for a date with Kucinich. But AP reports she still lives with her boyfriend.

As the world turns for the 2004 candidates on the trail.

(END VIDEOTAPE)

BLITZER: A CNN-"USA Today" Gallup poll last weekend showed the Reverend Al Sharpton trailing all but one of the other Democratic presidential candidates, but that doesn't mean he's easy to overlook. Sharpton's zingers in the debates and his recent appearance on NBC's "Saturday Night Live" have kept him very much in the public eye. We'll be checking in with all the candidates from time to time as this campaign continues. Al Sharpton is joining us today from Cincinnati. Reverend Sharpton, thanks very much for joining us.

What do you make of the decision for Howard Dean and Al Gore to get together in Harlem, your neck of the woods, for this highly publicized endorsement?

REV. AL SHARPTON (D), PRESIDENTIAL CANDIDATE: I think what was interesting is they had more reporters than people. I think that if one is going to influence an election, he ought to involve the people that you are trying to influence.

I think endorsements are fine. What I took exception to, which I raised in the New Hampshire debate, is people saying that because of the endorsements that others should then pull out and rally around who they endorse. That's bossism. People ought to endorse and work for who they want, but they ought not tell other people that they ought to submit to their particular point of view. I don't think that that is a democratic process that this party can afford.

BLITZER: Is Howard Dean making any in roads in the African- American community?

SHARPTON: Well, I mean, I don't see any inroads. But again, I'm not trying to run Mr. Dean's campaign, or anyone else's campaign. I'm running my own.

And I think that clearly we have been able to set up an infrastructure nationally. We just made the ballot today in Virginia. The Quinnepiac (ph) poll yesterday has me tied with John Kerry. I'm number two in some polls in South Carolina.

I'm more focused on the Sharpton for president campaign and the issues of importance to us. I'm the only major candidate that's talking about a withdrawal in Iraq. I was surprised the other night that even Mr. Dean said that we must continue occupation for years. I think that's a fundamental wrong position.

I'm concentrating on domestic issues. I'm in Cincinnati, where we recently had another police killing. So I'm more focused on what I'm doing than trying to manage someone else's campaign.

BLITZER: Dennis Kucinich says the U.S. should withdraw immediately as well. Is he not a major candidate?

SHARPTON: Absolutely. And I think that he and I agree. But what I have not seen is some of the candidates that have said they are against the war, but yet they say we must maintain occupation. I don't see how you can be against going in but then say we must stay in when we had no basis and no real authority, moral authority, to be there in the first place. And I think that the war continues as long as there is occupation. There must be responsible withdrawal. But there must be immediate withdrawal.

BLITZER: You are doing very well in South Carolina, as you point out. The polls show you doing very well. There is expected to be a large African-American turnout in South Carolina. Are you making any inroads at all with white voters?

SHARPTON: Absolutely. You know, one of the things, Wolf, that has always been underestimated is our support in the white community. When I ran for mayor of New York, I got one out of every three Democratic votes. I got 33 percent of the vote. Blacks as a whole only make up 26 percent of the population. So to get that, that would mean I have had to get every black vote, and then some white votes. And clearly I got a lot more than just some white votes, and some blacks didn't vote for me.

We will surprise a lot of people with the cross-section of people that will vote for us based on the issues and based on the will of many people to pull this party back to the basic rules of defending working people, neighbor, and people of color, and gays and lesbians. I've run a campaign that has been unequivocal in saying that the parties run to the right has been a ruination of the party. And it has resonated in many communities. And I am seeing that.

I was last night -- spoke at a rally in Oakland, California. Many whites came to the rally. Today I did a book signing in Cincinnati on my way to a rally now. And many whites are responding. So those that tried to -- first they said I couldn't get blacks nationally. Now when polls indicate I'm leading among African- American voters, they are saying I can only get African-American voters. They keep limiting us. We will not live by those limitations.

BLITZER: Reverend Sharpton, you were great on "Saturday Night Live" the other night. A lot of viewers loved you. They were surprised by how talented you are. We'll show our viewers a little bit of your impersonation of James Brown, a man you know quite well. What does that performance, that appearance on "Saturday Night Live" do for you and your campaign?

SHARPTON: I think that my judgment was if Bill Clinton can go on "Arsenio Hall" and don dark shades and blow a sax in '92 to show himself more human and reaching out, then Al Sharpton can do "Saturday Night Live" and do the same thing. And I might add, every candidate just about in this race wanted to do it. Some called and tried to do a cameo on my night, because it just makes sense to show America that you can laugh at yourself, even though you may be firm and passionate about your views.

BLITZER: All right. Reverend Sharpton, let me just say one thing. If the political thing doesn't work out, you always got the show business you can fall back on.

SHARPTON: Well, I left show business to do politics. And you know, sometimes I find people more honest in show business. At least they know when the show is over. We can't convince President Bush when it's curtains.

BLITZER: All right, the Reverend Al Sharpton, we loved you on "Saturday Night Live." You were great.

SHARPTON: Thank you.

BLITZER: Just back from Iraq. U.S. servicemen struggle -- struggling to restart their lives.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I was leading my convoy that day, and -- like I usually do -- and found the first land mine.

(END VIDEO CLIP)

BLITZER: And they hit the slopes with a new attitude.

Plus, who let the dog out? The nation's first pet plays holiday host over at the White House.

(COMMERCIAL BREAK)

BLITZER: Ski season is here, and for one group of skiers and snowboarders it is a season unlike any other. They're U.S. servicemen back from Iraq where their lives changed forever in just an instant. CNN's Elaine Quijano explains.

(BEGIN VIDEOTAPE)

ELAINE QUIJANO, CNN CORRESPONDENT (voice-over): Far away from the battlefields of Iraq, on the idyllic slopes of Breckenridge, Colorado...

UNIDENTIFIED MALE: When I'm coming down the hill I don't feel like I'm an amputee. I feel like I'm like all the rest of the snowboarders out there.

QUIJANO: Nine wounded American servicemen are learning to cope with a new set of circumstances.

UNIDENTIFIED MALE: I was a Calvary troop commander in Iraq, in the war and that's where I received my injury.

QUIJANO: About six months ago, Army Captain David Rozelle lost his right foot.

CAPT. DAVID ROZELLE, U.S. ARMY: I was leading my convoy that day, like I usually do, and found the first land mine.

QUIJANO: But like the other disabled participants at the Hartford Ski Spectacular, he's learning to adjust one movement at a time.

Along with the exhilaration comes inspiration. After a land mine in Iraq blew up his humvee, Iowa National Guardsman B.J. Jackson lost both his lower legs. But in Colorado Jackson has found a reason to inspire and be inspired, a 6-year-old named Jonah.

SPC. ROBERT "B.J." JACKSON, IOWA NATIONAL GUARD: He's not the only one missing his leg.

QUIJANO: Those moments mirror the experiences of men like Kirk Bauer. He's one of the disabled Vietnam veterans behind Disabled Sports USA which organized this ski event.

KIRK BAUER, DISABLED SPORTS USA: For me, it was skiing that got me back and turned my head around, started showing me all the possibilities that there were still in life.

QUIJANO: Possibilities that Navy Corpsman Brian Alaniz wants to see. A land mine shattered the bones in Alaniz's leg beyond repair as he knelt down to help an injured marine in Iraq. We spoke with him at Bethesda Naval Medical Center shortly before he left for Colorado.

BRIAN ALANIZ, U.S. NAVY: Just being around more amputees is helpful. To be able to talk with them, around here. I'll go out in shorts and people look at you different. Over there you're more accepted.

QUIJANO: Accepted, understood, encouraged.

UNIDENTIFIED MALE: You can be active again. You can be all that you want to be with that disability.

QUIJANO: And empowered to reclaim their lives. Elaine Quijano, CNN, Washington.

(END VIDEOTAPE)

BLITZER: Thank you for a good story like that.

Barney on the prowl. The hound is on the run bringing us a rare view of the White House holiday.

That and the result of our web question of the day, all that, is coming up next.

(COMMERCIAL BREAK)

BLITZER: Those are the results of our web question of the day. Remember, this is not a scientific poll. The presidential pooch provides our first picture of the day. The first dog is out with his latest video, a tour of the White House and its Christmas decorations. It's called Barneycam 2: Barney Reloaded. As the Spanish terrier makes the rounds of the mansion, other residents make guest appearances. Barney showed his video to kids in the local hospital today accompanied by the first lady. You can see it at www.White House.gov.

Let's get to some of our e-mail. Robert writes this, "The U.S. should be trying to get more participation in Iraq rather than punishing its former allies. Follow the money, who profits from Bush's policies? Halliburton and Bush's supporters. Who foots the bill? The American Taxpayers.

RLM disagrees, "France, Germany and Russia, no way should they share in any contracts. The old policy of no play, no pay is right. Maybe the next time, they will be more willing to help out."

A reminder, we're here weekdays 5:00 pm as well as noon Eastern. I'll see you Sunday on "LATE EDITION." Among my guests, the Health and Human Services secretary, Tommy Thompson, Sunday noon Easter. "LOU DOBBS TONIGHT" starts right now.

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





Iraq; Michael Jackson's Family Speaks Out; Interview With Al Sharpton>