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CNN Live Event/Special

America Votes

Aired January 27, 2004 - 22:00   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: Now, from CNN Election Headquarters in Manchester, here's Wolf Blitzer.
WOLF BLITZER, CNN ANCHOR: Good evening.

John Kerry's camp is calling it one of the biggest comebacks in New Hampshire history. CNN's live coverage of the lead-off presidential primary continues with a victory that seals Kerry's status as the Democratic frontrunner.

CNN projects Kerry the winner of today's contest here in New Hampshire, a bookend to his upset first place finish in Iowa. Take a look at this.

With 77 percent of the vote now in, John Kerry the winner has 38 percent, about 12 points, 12 percentage points over Howard Dean with 26 percent, a fierce battle underway for third place, Wesley Clark at 13 percent, John Edwards at 12 percent, Joe Lieberman not all that far behind at nine percent, Dennis Kucinich way behind at only two percent.

We are learning that this will be a record turnout for Democrats at a primary, about 200,000 people expected to vote by the -- when all the vote is tabulated. That beats the 1992 record of 168,000.

We can also estimate that when all the votes are counted John Kerry will win by about 12 percent. It looks like a dead heat though right now for third place as you can see on the screen.

Kelly Wallace is over at John Kerry headquarters right now where they are very, very excited. They heard from John Kerry only minutes ago -- Kelly.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Wolf, tremendous enthusiasm in this room, the music blaring, lots of smiles, and aides using words like historic to describe what happened here.

They say John Kerry was more than 30 points back in December, 17 points back just ten days ago and he came out and was able to turn this around, one of the biggest comebacks they say in New Hampshire history, the candidate himself saying that he has just begun to fight and is already looking ahead to February 3rd states. He will be traveling tomorrow to Missouri hitting all the states between now and February 3rd.

And, Wolf, let me toss it back to you because I see Howard Dean is coming out right now.

BLITZER: All right, Kelly. Stand by.

Howard Dean getting ready to address his supporters, this will be one of the most widely watched, closely watched speeches, especially in the aftermath of what happened eight nights ago in Des Moines, Iowa when he gave that very, very famous speech.

Judy Woodruff is joining us, of course, as we watch Howard Dean prepare to speak to this crowd. I can assume it's going to be a lot different than the speech he gave in Des Moines.

JUDY WOODRUFF, CNN ANCHOR: Wolf, I'm not a betting woman but I'm ready to bet some money that he's not going to take off his jacket and he's not going to roll up his sleeves tonight, among other things. I think we're going to hear a more sober serious set of remarks from him.

(INTERRUPTED FOR LIVE EVENT)

BLITZER: We're breaking away so we can speak with the winner of the primary here tonight in New Hampshire, John Kerry. The 60-year- old junior Senator from Massachusetts is joining us live. Senator Kerry, first of all congratulations on your second win in as many weeks. How does it feel to win New Hampshire?

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: Well, this feels really wonderful because it's been an uphill battle, as you know. We came from way behind and turned it around and I'm extraordinarily grateful to the citizens of New Hampshire for listening and for keeping their hearts and their minds open.

Tonight I think was a victory for people who want to stand up to powerful interests in our country that are really walking away with the store at the expense of the average person.

There's an unfairness and I think most people in America see it. There is a favoritism to the cronies and special interests. That has to stop. We have to do a better job of reaching out to the world and I think New Hampshire spoke tonight with this victory and I'm very grateful for it.

BLITZER: As you already know, Senator Kerry, the Republicans, many Republicans are trying to brand you as nothing more than a Massachusetts liberal, a Democrat, a tax and spend liberal Democrat.

How do you expect to project your message now outside of New Hampshire, outside of New England, outside of Iowa into the other states next week, South Carolina, Missouri, Arizona, these other contests that are coming up?

KERRY: Well, we're doing very well in those places because Americans are tired of the labeling and the slogans. What they really want is leadership, real leadership, and as they say in the south well that dog won't hunt. There's no way to (unintelligible). I've been part of the deficit reduction effort since 1985. There's a reason Fritz Hollings came up from South Carolina to be supportive of me.

I led the fight to put 100,000 police officers in our streets to make our communities safer. I helped lead the fight to overhaul our education system. I voted for welfare reform. It just, it doesn't fit, and what they're trying to do is cloud up the issue because they're afraid to talk about why they don't provide healthcare to all Americans.

They're afraid that we're going to hold them accountable for leaving millions of children behind and making a mockery of the words. They're afraid that their favoritism in the Medicare bill is, in fact, cheating seniors out of a real Medicare benefit and all of these issues.

They're backwards on the environment. They've broken our relationships around the world. They don't want to talk about the real issues so they throw the labels around. I look forward to talking to real Americans about the real issues and I'll tell you we're ready. Bring it on. Let's go do it.

WOODRUFF: Senator Kerry, it's Judy Woodruff. I want to join Wolf congratulating you on your fine showing tonight in New Hampshire.

KERRY: Thank you, Judy.

WOODRUF: But I want to follow up what Wolf said. It's not just the label of Massachusetts liberal Senator Kerry. It's a 20-year voting record in the Senate. We already hear Republicans pointing to...

KERRY: Right.

WOODRUFF: ...votes on taxes, on same sex marriage, defense spending and guns and on and on that Republicans are going to try to use to keep those so-called red states red.

KERRY: Well, those are the things we need to fight about in our country and I look forward to that debate. You know I've been a hunter all my life and I'm a gun owner and I've never thought of going hunting with an AK-47. I believe in the Second Amendment.

We can have a reasonable debate about safety and about the responsibilities that come with rights. I voted for tax cuts. I have voted for a fairness in the tax system but I'm not going to take a defensive position when George Bush wants to make tax cuts for millionaires permanent while we have a $500 billion deficit.

We're going to have a heck of a good debate in this country and, look, if balancing the budget is called liberal in America let's go. You can go ahead and call me that. If taking care of our schools and kids and really keeping your promise to fund reform in education is considered liberal go ahead and call me that. You know, I don't think it's very conservative to run up deficits. I don't think it's very conservative to trample on civil rights and disrespect the Constitution and I don't think it's very conservative to cross that line of division between church and state in America. We're going to have one of the best debates long overdue in this nation and people are fed up with the labels. They want real leadership and real programs.

JEFF GREENFIELD, CNN SR. ANALYST: Senator Kerry, it's Jeff Greenfield. Bill Clinton became a two-term president and challenged Democrats on a lot of orthodoxies. What are you prepared to challenge the Democratic Party on?

KERRY: Oh, there's a lot that as we go down the road, Jeff, if you look at some of the efforts I've made with respect to education reform. I've already done that.

If you look at where I stepped out on the budget, I mean it was heresy back in 1985 for a Democrat to stand up and say we ought to be serious about the deficit. I had cartoons in the "Boston Globe" of me as this baby elephant latched on to a large elephant hooked up by our trunks. That was a tough choice back then.

I've made plenty of tough choices and I will in the future and I think people who know me know I've never hesitated to take on powerful interests and take risks on behalf of our democracy and on behalf of our promises in this country.

BLITZER: Senator John Kerry wins impressively here in New Hampshire, as he did a week ago in Iowa. Senator Kerry, thanks so much for joining us.

KERRY: (Unintelligible.)

BLITZER: We know you have a busy schedule ahead. You're getting ready to go on the road right away. We'll be speaking to you many times in the days and weeks to come.

KERRY: Thank you.

BLITZER: Senator John Kerry, the winner here in New Hampshire.

Let's go now to Senator Joe Lieberman of Connecticut. He's coming in fifth, not all that far behind the third place winner, a very closely fought battle. Senator Lieberman thanks very much for joining us. Let's get right to the issue at hand. You're not dropping out of this race are you?

SEN. JOSEPH LIEBERMAN (D), PRESIDENTIAL CANDIDATE: No, I'm not, Wolf. I'm not dropping out because there's a virtual split decision for third place and no one thought that I would have ended up this close to Wes Clark and John Edwards.

A week ago the polls had me at about a third of what I came in with so we closed strong and we're going to carry on the fight and we're carrying on the fight because I have a cause here. It's more than a campaign.

I am the one mainstream Democrat in this race who can provide party leadership and national leadership that is as strong in defense of our national security as it is in fighting for social justice and equal rights and I think that's the balance that the American people need and our party needs to have a chance to defeat George W. Bush.

BLITZER: The whole issue of coming in fifth out of New Hampshire and moving on pretty close, as we point out. But the other two -- the other two Wesley Clark, the general, and Senator Edwards, they're both southerners. You're from this part of the country in New England. Don't you think you should have done better than them?

LIEBERMAN: Well, no. I was dealing here with two candidates from next door, that is Howard Dean and John Kerry and they got most of the vote here. The rest of us split it and the other two candidates didn't go very far who were tied with me for third.

You know the south and the west, all sections of the country are worried about the same things and I carry a message that works in all sections of the country. I don't think this is a question of regionalism as we go south and west. I think it's a question of who is the mainstream alternative who can really defeat George Bush.

Who's been tough on security, a lifetime fighter for civil rights, and has really good ideas about cutting middle class taxes and reforming our health insurance system so average Americans can afford it again. So to me this is about ideas an a vision for a united America and that's why I fight on.

WOODRUFF: Senator Lieberman, it's Judy Woodruff picking up on that point.

LIEBERMAN: Hi, Judy.

WOODRUFF: And you're -- hello, and we heard you just say this is not just a campaign. It's about a cause which makes us wonder are you really going for the nomination. If you don't win one of those primaries or caucuses next Tuesday are you going to stay in this race?

LIEBERMAN: Well, I expect to do better and better as I did here in the last week in New Hampshire and this is really all about the heart and soul of the Democratic party and whether we can present a candidate who can gain the confidence of the American people.

You know George Bush said he was a centrist and he's governed from the extremes. The mainstream is open in American politics but it's only going to be filled successfully by a mainstream Democrat. That's what Bill Clinton did in '92. I'm clearly the closest to him in the policies I'm advocating.

I have -- I heard Jeff Greenfield ask John Kerry. I have challenged the orthodoxies of the Democratic Party. I've been unwavering in my support of the goal of removing Saddam Hussein and I know we're safer with him in prison than in power. I've been for trade, as Bill Clinton was, because trade creates jobs here and I've taken on the entertainment industry because I believe that they too often peddle stuff to our kids that makes it harder for us to give them the values they want.

So, I'm an independent minded Democrat and that's the only kind that has the real chance to defeat George W. Bush.

GREENFIELD: Senator, this is Jeff Greenfield.

LIEBERMAN: Yes, Jeff.

GREENFIELD: Hi.

Why isn't John Kerry a mainstream Democrat?

LIEBERMAN: Well, I mean, just look at his record and look at what the Republicans are already saying about him.

The president apparently said to somebody that he thought I was the toughest opponent that the Democrats could nominate against him. And I think I know why. The Republican playbook doesn't work on me. They can't call me weak on defense, because you know I supported the Gulf War and the war against Saddam. I continue to support our troops. I wrote the Homeland Security Bill. I supported the war in the Balkans to stop aggression and genocide.

They can't say I'm a big taxer and spender, because I'm out with the biggest middle-class tax cut of any of the candidates. I'm going to pay for it. They can't say I'm weak on values, because that's been the defining motivation of my public career. And they can't say I'm a flip-flopper, which they love to say about Democrats, because I'm not. I take one position before every crowd.

It got me some heckles and boos at times in this campaign, but, you know, you have got to do what you think is right for the country. And, ultimately, that's the kind of person America needs as president.

BLITZER: Senator Joe Lieberman getting ready for one week for today, February 3, seven contests. He'll be participating, moving on from New Hampshire right away.

Where's the first stop, Senator?

LIEBERMAN: Well, Wolf, the plane is waiting at the Manchester Airport, where we're going to go to Wilmington, Delaware. But the airport is snowed in.

So, to show our determination, we're taking that plane to Oklahoma, where the wind and fortunately not the snow tonight comes sweeping down the plain.

(LAUGHTER)

BLITZER: Senator Joe Lieberman, thanks very much, as usual, for joining us.

LIEBERMAN: Take care.

BLITZER: We'll be following your campaign in the coming week as well, Senator Joe Lieberman.

We have a lot more news to report. We are still waiting to hear from some of the candidates. We'll be speaking to them. We'll be getting all of our correspondents from around the various campaign headquarters. Bill Schneider is looking at exit poll numbers, looking behind the numbers to see who really voted and why, and why John Kerry came out on top.

We are going to take a quick break. Our special coverage from New Hampshire will be right back.

(BEGIN VIDEOTAPE)

ANNOUNCER: In 1952, New Hampshire Governor Sherman Adams helped recruit a reluctant Dwight Eisenhower as a Republican presidential candidate for the state's first major primary. Eisenhower's name was put on the ballot while he was in Paris running NATO. Ike defeated Senate GOP Leader Robert Taft without ever stepping foot in New Hampshire. Eisenhower went on to win the nomination and the presidency.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Welcome back to our special coverage of the New Hampshire primary.

Let's take a look at the votes, the actual votes that already have been counted so far, since all the polls closed throughout New Hampshire. Take a look this. With 88 percent of the vote now in, John Kerry, the winner, has 39 percent. He's 13 percent ahead of the No. 2, Howard Dean, with 26 percent. A real battle for No. 3 going on between Wesley Clark, with 13 percent, less than 1,000 votes or so behind -- over John Edwards, with 12 percent, Joe Lieberman running in fifth place with 9 percent, Dennis Kucinich with only 1 percent of the vote.

Let's go to our senior political analyst, Bill Schneider. He's taking a look at the numbers behind these numbers, how John Kerry did it.

What's the story, Bill?

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, Wolf, was there an angry vote in this campaign? You bet there was, buddy.

Liberals feel bullied by the White House and by the conservatives in Congress. And look at the votes among those who said they were angry at the Bush administration. Not Dean, but Kerry barely outpolled Dean among those angry voters. They were looking to Kerry perhaps to outclass the bullies, rather than Dean to punch them in the nose.

Well, it was the anti-war issue that ignited the Dean campaign. And let's take a look at those who said they were against the war in Iraq, Kerry, 41, Dean, 30. Kerry took Dean's signature issue away from him. How do you like them apples, buddy? I mean, Wolf.

(LAUGHTER)

BLITZER: All right, Bill Schneider looking at the numbers behind the numbers from our exit polls.

Jeff Greenfield has new some high-tech technology, I think we can call it.

You've been looking at the voter trends out there. What do you see?

GREENFIELD: We have decided to try to do what people used to do before we got into demographics and tell people where the votes are coming from, because, in New Hampshire, there are working-class areas and then there are more gentrified areas. And they generally tend to split.

So we have got this device that is called the SpatiaLogic vote track. And I'm either of going to show you exactly how it works or create an entire regional blackout in New Hampshire. But let's give this a try.

(LAUGHTER)

GREENFIELD: If we want to understand how John Kerry pulled off this victory, here's what you need to know.

Howard Dean won, for instance, in Hanover, the site of Dartmouth University, which you would expect. It's a place that gives its votes to reformers, to insurgents. He also won the relatively unpopulated towns along the Vermont border, where he was governor for 10 years, 11 years.

But John Kerry overwhelmingly won in this area, which comprises 65 percent of the population of New Hampshire. John Kerry won where he was expected to win, in Manchester, the largest city in New Hampshire, and its working-class neighborhoods. But John Kerry also won in the capital, Concord. That's a surprise. That's the home of a lot of public employees. The Public Employees Union endorsed Howard Dean.

John Kerry carried it, in addition to which, in what we were calling the wine track area, the relatively upscale, highly educated bedroom communities of Boston and the so-called collar towns around Manchester, Bedford and other areas, where Bill Bradley, for instance, beat Al Gore on a reform message, John Kerry carried virtually all of those areas. And what this means, Wolf, is that John Kerry won where he had to.

He also won where Howard Dean had to win. And that really accounts for the march into victory, I think, geographically.

BLITZER: Very impressive, that geographic distribution. We learn a lot about the geography, the people of the Granite State.

GREENFIELD: And the lights are still on.

BLITZER: All right, Jeff Greenfield.

Almost 90 percent of the vote now in. Our viewers can see it at the bottom of the screen.

Let's go to the CNN election room war room. James Carville, Paul Begala, they're digesting what has happened here in New Hampshire tonight.

James, first of all, your assessment. What happened?

JAMES CARVILLE, CO-HOST, "CROSSFIRE": Well, we love to make fun of the pollsters when their polls are wrong. And we take great glee in that.

Actually, Gallup/CNN was about dead on. Our last poll had it at 38/25. If you're looking at the screen now, you see it at 39/26. You can't get any more accurate than that, once you break out the undecideds. So I think that this is one time when the pundits and the pollsters and the commentators and the echo chamber and the hot air boys actually got it right on the number this time.

(LAUGHTER)

CARVILLE: So it kind of feels good out there, America, to be right once in a while.

PAUL BEGALA, CO-HOST, "CROSSFIRE": The courage to speak up for the pontificating class, Wolf, that's us.

(LAUGHTER)

BLITZER: Paul, go ahead and tell us your read on how John Kerry did it.

(CROSSTALK)

BEGALA: Well, I think how he did it was by still being the grownup alternative to Dean.

People want -- in my party -- want to beat President Bush. He took that momentum out of Iowa, came back here, where he had been desperately behind, and showed them that he could win. And I'm very interested in how the two main candidates did in their speeches tonight. Senator Kerry tried to -- and I think pulled it off -- seeming more presidential. And he had one of the great lines of the night, when he said, we want to raise millions out of poverty, not cut taxes for millionaires.

Governor Dean, more subdued, as you pointed out, than he was last week in Iowa. It was kind of a low bar. But one thing that struck me is, he acknowledged everybody in the room, people from Alaska and San Francisco and my mama and Gladys (ph) the volunteer coordinator. He never acknowledged John Kerry, the man who beat him. And I know he called Senator Kerry about 9:15 and congratulated him in private, which is quite noble and honorable.

But I think, when you get beat by 12, 13 points in your home region, after leading by 32 points, you owe the guy a public acknowledgement of his victory.

WOODRUFF: James, what about this comment that we heard from Howard Dean tonight that we not only -- in a way, we've heard him say it before, but it struck me tonight when he said, we not only want to change the president, we want to change the country, and then, last week in Iowa, when he said, this is a cause and it's going to go on and on and on. Is he preparing his minions, all of his supporters, for the fact that he may not win this nomination?

CARVILLE: Well, people run for president for different things.

Some actually run to get the nomination of his party. I think that Howard Dean certainly started out to run to be the Democratic nominee. I think what he has right now is a great fear that it is going to dawn on him that he's not going to be the Democratic nominee, but he doesn't want to quit. He believes in what he's saying. He's enjoying himself out there on the campaign trail. He doesn't want to let his supporters down.

He may shift -- he may -- I'm not saying that he will -- he may to a candidate that's running not so much to get the nomination of his party, which is becoming increasingly unlikely, and one who wants to keep the cause and the cause shall endure or go on and on. We've seen prior examples of this in American politics.

It's not unusual to have someone run for president that's running for a reason other than to be president. So, it is a possible thing. And one thing -- and I've been very up front about this -- he deserves enormous credit for bringing new people into the process, for exciting new people. And how these people are going to be integrated into the general election process is going to be a real test of whoever the nominee is.

And the candidate is probably going to be John Kerry. His ability to do that and also what kind of Democrat that Governor Dean is going to be, because he does have enormous respect among these people and he has accomplished something, and his accomplishments should be acknowledged.

BLITZER: James Carville, who got all dressed up to help us understand what's going on here in New Hampshire tonight.

(LAUGHTER)

BLITZER: James Carville in the CNN election war room, with Paul Begala, we'll be getting back to you throughout the night, as our coverage continues. We are going to take another quick break, much more coverage coming up. We are going to go live to John Kerry's campaign headquarters. We are going to take a look at what's next in this process, the election, the primaries, one week from today, a lot more activity.

Stay with us.

(BEGIN VIDEOTAPE)

ANNOUNCER: In 1992, Bill Clinton placed second in the New Hampshire primary and used his strong finish to gain new momentum.

WILLIAM J. CLINTON (D), PRESIDENTIAL CANDIDATE: New Hampshire tonight has made Bill Clinton the comeback kid.

(CHEERING AND APPLAUSE)

ANNOUNCER: He was the first candidate to win the White House without winning New Hampshire since 1952, the year the primary began listing candidates on the ballot.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: An impressive win for John Kerry tonight here in New Hampshire, the New Hampshire primary.

Let's take a look at the actual numbers that have now been counted by the authorities here in New Hampshire. Take a look at this. With almost 90 percent of the vote now in -- 89 percent, to be precise -- John Kerry remains atop at 39 percent. He's the winner. Howard Dean at 26 percent, a 13-point spread, with 90 percent -- almost 90 percent of the vote in. A real battle under way for third place, General Clark with 13 percent, Senator Edwards at 12 percent, not much of a difference right there, less 1,000 votes, 9 percent for Joe Lieberman, Dennis Kucinich, the congressman from Ohio, with 1 percent of the vote.

We have reporters standing by at all the campaign headquarters. Candy Crowley is over at Howard Dean's campaign headquarters. Kelly Wallace is over at John Kerry's campaign headquarters.

Let's begin with you, Kelly.

Give us the latest. What are you hearing? What's next, the strategy for John Kerry, the winner, tonight?

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, first, a little interesting note about what was going on behind the scenes.

We know that John Kerry was stumping for votes until the final hour. He did local interviews. He was at a polling place. And we are told, he was on the phone even as the polls were closing. And an aide telling us that it was his wife, Teresa, who came in, saw it on television, and said the race has been called, you have won, and this adviser saying that Senator Kerry said: Really? Are you sure?

So, obviously, this senator working until the final hour. As we've been reporting all night, aides using the word historic to describe what happened here, how this candidate was more than 30 points behind in December, 17 points behind 10 days ago, how he threw all his resources into Iowa, won there, and, in the words of one aide, came roaring back here in New Hampshire.

But they are already looking ahead. The senator himself in the midst of doing television interviews with stations in some of the seven states holding contests one week from today, and then the senator getting on a plane tomorrow, Wolf, heading to Missouri and South Carolina. He will travel to the five other states as well. He will start running ads in all seven states beginning tomorrow.

And one top adviser saying, one week from today, a large number of delegates at stake, this campaign believing that will be a decisive day when it comes to the road to the Democratic nomination -- Wolf.

BLITZER: Kelly Wallace at John Kerry's headquarters.

Candy Crowley is over at Howard Dean's campaign headquarters.

We heard Howard Dean, Candy, say just a little while ago that, the people of New Hampshire have allowed us to regain our momentum. He's moving on from here. What's the next step for him?

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Well, the next step for him is to find some place he can win.

Going from a third to a second, after a very bad week, they're going to take his momentum, putting the best face on it. But now you've got to look ahead to those seven states -- and this is what they're going to do tomorrow in Burlington, when they meet -- and say to themselves, where is our best chance of winning? Where can we best spend the candidate's time and the candidate's money?

So far, we're seeing that he is going to a number of these states, including Michigan, which is not one of the seven states, but comes shortly thereafter. So they obviously believe they're strong in Michigan. They've always felt that they had a strong organization there. But it must be said that they also thought they had a strong organization in Iowa and in New Hampshire, where they spent two years.

So this is not a campaign structure that so far has been able to deliver for Dean, regardless of the passion of his supporters. So what they have to do in Burlington, Dean is going to take the day, mostly down. He will be doing interviews, radio and television interviews, into those seven states, seven primary states, next Tuesday, while they try and figure out, how do we spend this time and how do we spend this money?

It becomes very important now. It is very hard to sell a third and a second as someone who can move into the lead. He's got to win something and win it pretty quickly and pretty impressively -- Wolf.

BLITZER: And money in those states clearly very, very significant.

Candy Crowley, thanks very much.

Our senior political analyst, Bill Schneider, taking a closer look at some of the exit poll numbers, learning more about how this developed tonight.

What are you learning, Bill?

SCHNEIDER: We're learning that, when people were asked, what were you looking for in a candidate, they said two very different things. A lot of them said they were looking for someone who stands up for what he believes in.

Well, those people, that was 29 percent of the voters. They voted overwhelmingly for Howard Dean. But look at this. There were two other categories that were high. Those said they were looking for someone who can beat Bush, they voted overwhelmingly, 4-1, for John Kerry. Experience, they voted also 4-1 for John Kerry. Add those two categories together, you get actually more people than said they wanted someone who would stand up for his beliefs.

So it looks like they were facing a really tough choice. Do they want someone who will stand up for his beliefs or someone who can win and who has the right experience? Kerry fit the bill on those latter categories. Interestingly, Clark, Wesley Clark came in second. He was the second choice on experience and on someone who can beat Bush.

But those -- Kerry got there first and pulled that issue right away from Wesley Clark.

BLITZER: All right, Bill Schneider, don't go anywhere. We have a lot more to talk about throughout this long night. Thanks very much, Bill Schneider, for that.

Our political analyst Carlos Watson, is here with us as well.

You're trying to assess what's going on. This fierce battle for third place is very significant, in that I guess for bragging rights at a minimum.

CARLOS WATSON, CNN POLITICAL ANALYST: For bragging rights, perhaps, but there is a real role, as we've all said here, in which these are two very convincing wins, both by double digits.

To put it in a little bit of historical perspective, if you look over the last 30 years where there have been three or more serious candidates in a New Hampshire primary, this is the highest vote total we've ever seen; 39 percent, if that holds up, beats Gary Hart's 37 percent. It doesn't set the record for the margin of victory. Dukakis has that with 16 percent in 1988. But it's significant.

And what does Kerry get out of this as he goes on February 3? He raised a million and a half dollars over the last week, after the Iowa win. I expect he may raise three times that much, as lots of people not only write small checks, but write the $2,000 maximum checks, even people who have written checks for other candidates who are still in the race.

He'll also get a lot of media exposure. And don't forget momentum. Tomorrow, in Missouri, we expect him to announce a significant endorsement. We don't know who it is going to be, but I think you'll see more of this along the way, the three M's, money, media and momentum.

BLITZER: And I suspect that "Newsweek" poll that came out last weekend which showed in this hypothetical contest Kerry could beat George Bush, 49 to 46 percent, even though within the margin of error.

The other hypothetical contests with the other Democrats, Bush was winning, even though that is not necessarily all that significant, psychologically, it has an impact on these Democrats, who are so hungry to win.

WATSON: Well, not only that. It's got an impact on the White House.

Extraordinarily smart, political people in the White House. Most people forget that President Bush himself has been involved as an operative in four separate presidential campaigns before he ran himself, two when his father ran as vice president and two when he ran as president.

What I think you're going to see is negative campaigning not only from other Democrats in the race, who are desperate to stave off domination by John Kerry, but, again, we saw Republicans here. We saw John McCain campaigning up here. We saw George Pataki. We saw Rudy Giuliani. I think you'll see a lot more than that.

And don't forget. You also saw the Club For Growth, which was a right-leaning group, run an ad in Iowa which was absolutely critical, in that -- in Howard Dean losing support there.

BLITZER: All right, Carlos, thanks very much for that.

And to our viewers, I want to alert our viewers, we're expecting momentarily to speak to the wife of Senator Kerry, Teresa Heinz Kerry. She's standing by.

In fact, she's ready to speak with us right now.

Teresa Heinz Kerry, thanks very much for joining us. Congratulations to you, two big wins, in Iowa, now New Hampshire. It feels pretty good, I assume.

TERESA HEINZ KERRY, WIFE OF SENATOR JOHN KERRY: It feels good. And I'm gratified. And it's humbling. It's obviously very enjoyable.

And it's -- on the other hand, it's a marathon. And so you just have to look at it one step at a time. And I look now to the next seven. And I will be leaving. John leaves tomorrow and I leave after him and so on. And so it's the next marathon. So, I think you have to think of it one at a time. It's not like a Senate election or a House election, where, you win, you win. But it is gratifying and it's hard work. It's gratifying work. And I'm very, very, very fortunate that Iowa and New Hampshire both were an intimate and forgiving and gratifying kind of campaigning, where conversation really is the way you do it. And I like that. I don't know what it's going to be like next. I haven't done that next retail type of politics. It's a very -- and this best kind of politics, I don't know, but I'll learn. I'll learn.

BLITZER: We all will learn.

Take us behind the scenes a little bit. What was it like tonight when word came that your husband, the senator from Massachusetts, has won? What was his reaction?

HEINZ KERRY: Well, he knew what the polls were saying during the day, but you never know until the last vote is counted, of course. You don't take anything for granted.

But he was in the shower when finally, you know, it came along. So we nearly had a wet guy running around.

(LAUGHTER)

HEINZ KERRY: But he was very happy. It took a couple of seconds for it to dawn with him that it was done, done. But I was, of course, dressed, couldn't go in and get too close him. But last time in Iowa, he was shaving when I told him. So it seems to be a bathroom event.

(LAUGHTER)

BLITZER: Teresa Heinz Kerry, congratulations, once again. Please congratulate your husband.

HEINZ KERRY: I will. I will.

BLITZER: Actually, we congratulated him earlier here on CNN. Thanks very much for joining us.

HEINZ KERRY: Thank you.

BLITZER: We'll be speaking to you down the road, as this campaign continues, the wife of Senator Kerry joining us now.

Much more coverage coming up. We have another hour to go, a lot more to review. Our special coverage from the New Hampshire primary will continue right after this short break.

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







Aired January 27, 2004 - 22:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: Now, from CNN Election Headquarters in Manchester, here's Wolf Blitzer.
WOLF BLITZER, CNN ANCHOR: Good evening.

John Kerry's camp is calling it one of the biggest comebacks in New Hampshire history. CNN's live coverage of the lead-off presidential primary continues with a victory that seals Kerry's status as the Democratic frontrunner.

CNN projects Kerry the winner of today's contest here in New Hampshire, a bookend to his upset first place finish in Iowa. Take a look at this.

With 77 percent of the vote now in, John Kerry the winner has 38 percent, about 12 points, 12 percentage points over Howard Dean with 26 percent, a fierce battle underway for third place, Wesley Clark at 13 percent, John Edwards at 12 percent, Joe Lieberman not all that far behind at nine percent, Dennis Kucinich way behind at only two percent.

We are learning that this will be a record turnout for Democrats at a primary, about 200,000 people expected to vote by the -- when all the vote is tabulated. That beats the 1992 record of 168,000.

We can also estimate that when all the votes are counted John Kerry will win by about 12 percent. It looks like a dead heat though right now for third place as you can see on the screen.

Kelly Wallace is over at John Kerry headquarters right now where they are very, very excited. They heard from John Kerry only minutes ago -- Kelly.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Wolf, tremendous enthusiasm in this room, the music blaring, lots of smiles, and aides using words like historic to describe what happened here.

They say John Kerry was more than 30 points back in December, 17 points back just ten days ago and he came out and was able to turn this around, one of the biggest comebacks they say in New Hampshire history, the candidate himself saying that he has just begun to fight and is already looking ahead to February 3rd states. He will be traveling tomorrow to Missouri hitting all the states between now and February 3rd.

And, Wolf, let me toss it back to you because I see Howard Dean is coming out right now.

BLITZER: All right, Kelly. Stand by.

Howard Dean getting ready to address his supporters, this will be one of the most widely watched, closely watched speeches, especially in the aftermath of what happened eight nights ago in Des Moines, Iowa when he gave that very, very famous speech.

Judy Woodruff is joining us, of course, as we watch Howard Dean prepare to speak to this crowd. I can assume it's going to be a lot different than the speech he gave in Des Moines.

JUDY WOODRUFF, CNN ANCHOR: Wolf, I'm not a betting woman but I'm ready to bet some money that he's not going to take off his jacket and he's not going to roll up his sleeves tonight, among other things. I think we're going to hear a more sober serious set of remarks from him.

(INTERRUPTED FOR LIVE EVENT)

BLITZER: We're breaking away so we can speak with the winner of the primary here tonight in New Hampshire, John Kerry. The 60-year- old junior Senator from Massachusetts is joining us live. Senator Kerry, first of all congratulations on your second win in as many weeks. How does it feel to win New Hampshire?

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: Well, this feels really wonderful because it's been an uphill battle, as you know. We came from way behind and turned it around and I'm extraordinarily grateful to the citizens of New Hampshire for listening and for keeping their hearts and their minds open.

Tonight I think was a victory for people who want to stand up to powerful interests in our country that are really walking away with the store at the expense of the average person.

There's an unfairness and I think most people in America see it. There is a favoritism to the cronies and special interests. That has to stop. We have to do a better job of reaching out to the world and I think New Hampshire spoke tonight with this victory and I'm very grateful for it.

BLITZER: As you already know, Senator Kerry, the Republicans, many Republicans are trying to brand you as nothing more than a Massachusetts liberal, a Democrat, a tax and spend liberal Democrat.

How do you expect to project your message now outside of New Hampshire, outside of New England, outside of Iowa into the other states next week, South Carolina, Missouri, Arizona, these other contests that are coming up?

KERRY: Well, we're doing very well in those places because Americans are tired of the labeling and the slogans. What they really want is leadership, real leadership, and as they say in the south well that dog won't hunt. There's no way to (unintelligible). I've been part of the deficit reduction effort since 1985. There's a reason Fritz Hollings came up from South Carolina to be supportive of me.

I led the fight to put 100,000 police officers in our streets to make our communities safer. I helped lead the fight to overhaul our education system. I voted for welfare reform. It just, it doesn't fit, and what they're trying to do is cloud up the issue because they're afraid to talk about why they don't provide healthcare to all Americans.

They're afraid that we're going to hold them accountable for leaving millions of children behind and making a mockery of the words. They're afraid that their favoritism in the Medicare bill is, in fact, cheating seniors out of a real Medicare benefit and all of these issues.

They're backwards on the environment. They've broken our relationships around the world. They don't want to talk about the real issues so they throw the labels around. I look forward to talking to real Americans about the real issues and I'll tell you we're ready. Bring it on. Let's go do it.

WOODRUFF: Senator Kerry, it's Judy Woodruff. I want to join Wolf congratulating you on your fine showing tonight in New Hampshire.

KERRY: Thank you, Judy.

WOODRUF: But I want to follow up what Wolf said. It's not just the label of Massachusetts liberal Senator Kerry. It's a 20-year voting record in the Senate. We already hear Republicans pointing to...

KERRY: Right.

WOODRUFF: ...votes on taxes, on same sex marriage, defense spending and guns and on and on that Republicans are going to try to use to keep those so-called red states red.

KERRY: Well, those are the things we need to fight about in our country and I look forward to that debate. You know I've been a hunter all my life and I'm a gun owner and I've never thought of going hunting with an AK-47. I believe in the Second Amendment.

We can have a reasonable debate about safety and about the responsibilities that come with rights. I voted for tax cuts. I have voted for a fairness in the tax system but I'm not going to take a defensive position when George Bush wants to make tax cuts for millionaires permanent while we have a $500 billion deficit.

We're going to have a heck of a good debate in this country and, look, if balancing the budget is called liberal in America let's go. You can go ahead and call me that. If taking care of our schools and kids and really keeping your promise to fund reform in education is considered liberal go ahead and call me that. You know, I don't think it's very conservative to run up deficits. I don't think it's very conservative to trample on civil rights and disrespect the Constitution and I don't think it's very conservative to cross that line of division between church and state in America. We're going to have one of the best debates long overdue in this nation and people are fed up with the labels. They want real leadership and real programs.

JEFF GREENFIELD, CNN SR. ANALYST: Senator Kerry, it's Jeff Greenfield. Bill Clinton became a two-term president and challenged Democrats on a lot of orthodoxies. What are you prepared to challenge the Democratic Party on?

KERRY: Oh, there's a lot that as we go down the road, Jeff, if you look at some of the efforts I've made with respect to education reform. I've already done that.

If you look at where I stepped out on the budget, I mean it was heresy back in 1985 for a Democrat to stand up and say we ought to be serious about the deficit. I had cartoons in the "Boston Globe" of me as this baby elephant latched on to a large elephant hooked up by our trunks. That was a tough choice back then.

I've made plenty of tough choices and I will in the future and I think people who know me know I've never hesitated to take on powerful interests and take risks on behalf of our democracy and on behalf of our promises in this country.

BLITZER: Senator John Kerry wins impressively here in New Hampshire, as he did a week ago in Iowa. Senator Kerry, thanks so much for joining us.

KERRY: (Unintelligible.)

BLITZER: We know you have a busy schedule ahead. You're getting ready to go on the road right away. We'll be speaking to you many times in the days and weeks to come.

KERRY: Thank you.

BLITZER: Senator John Kerry, the winner here in New Hampshire.

Let's go now to Senator Joe Lieberman of Connecticut. He's coming in fifth, not all that far behind the third place winner, a very closely fought battle. Senator Lieberman thanks very much for joining us. Let's get right to the issue at hand. You're not dropping out of this race are you?

SEN. JOSEPH LIEBERMAN (D), PRESIDENTIAL CANDIDATE: No, I'm not, Wolf. I'm not dropping out because there's a virtual split decision for third place and no one thought that I would have ended up this close to Wes Clark and John Edwards.

A week ago the polls had me at about a third of what I came in with so we closed strong and we're going to carry on the fight and we're carrying on the fight because I have a cause here. It's more than a campaign.

I am the one mainstream Democrat in this race who can provide party leadership and national leadership that is as strong in defense of our national security as it is in fighting for social justice and equal rights and I think that's the balance that the American people need and our party needs to have a chance to defeat George W. Bush.

BLITZER: The whole issue of coming in fifth out of New Hampshire and moving on pretty close, as we point out. But the other two -- the other two Wesley Clark, the general, and Senator Edwards, they're both southerners. You're from this part of the country in New England. Don't you think you should have done better than them?

LIEBERMAN: Well, no. I was dealing here with two candidates from next door, that is Howard Dean and John Kerry and they got most of the vote here. The rest of us split it and the other two candidates didn't go very far who were tied with me for third.

You know the south and the west, all sections of the country are worried about the same things and I carry a message that works in all sections of the country. I don't think this is a question of regionalism as we go south and west. I think it's a question of who is the mainstream alternative who can really defeat George Bush.

Who's been tough on security, a lifetime fighter for civil rights, and has really good ideas about cutting middle class taxes and reforming our health insurance system so average Americans can afford it again. So to me this is about ideas an a vision for a united America and that's why I fight on.

WOODRUFF: Senator Lieberman, it's Judy Woodruff picking up on that point.

LIEBERMAN: Hi, Judy.

WOODRUFF: And you're -- hello, and we heard you just say this is not just a campaign. It's about a cause which makes us wonder are you really going for the nomination. If you don't win one of those primaries or caucuses next Tuesday are you going to stay in this race?

LIEBERMAN: Well, I expect to do better and better as I did here in the last week in New Hampshire and this is really all about the heart and soul of the Democratic party and whether we can present a candidate who can gain the confidence of the American people.

You know George Bush said he was a centrist and he's governed from the extremes. The mainstream is open in American politics but it's only going to be filled successfully by a mainstream Democrat. That's what Bill Clinton did in '92. I'm clearly the closest to him in the policies I'm advocating.

I have -- I heard Jeff Greenfield ask John Kerry. I have challenged the orthodoxies of the Democratic Party. I've been unwavering in my support of the goal of removing Saddam Hussein and I know we're safer with him in prison than in power. I've been for trade, as Bill Clinton was, because trade creates jobs here and I've taken on the entertainment industry because I believe that they too often peddle stuff to our kids that makes it harder for us to give them the values they want.

So, I'm an independent minded Democrat and that's the only kind that has the real chance to defeat George W. Bush.

GREENFIELD: Senator, this is Jeff Greenfield.

LIEBERMAN: Yes, Jeff.

GREENFIELD: Hi.

Why isn't John Kerry a mainstream Democrat?

LIEBERMAN: Well, I mean, just look at his record and look at what the Republicans are already saying about him.

The president apparently said to somebody that he thought I was the toughest opponent that the Democrats could nominate against him. And I think I know why. The Republican playbook doesn't work on me. They can't call me weak on defense, because you know I supported the Gulf War and the war against Saddam. I continue to support our troops. I wrote the Homeland Security Bill. I supported the war in the Balkans to stop aggression and genocide.

They can't say I'm a big taxer and spender, because I'm out with the biggest middle-class tax cut of any of the candidates. I'm going to pay for it. They can't say I'm weak on values, because that's been the defining motivation of my public career. And they can't say I'm a flip-flopper, which they love to say about Democrats, because I'm not. I take one position before every crowd.

It got me some heckles and boos at times in this campaign, but, you know, you have got to do what you think is right for the country. And, ultimately, that's the kind of person America needs as president.

BLITZER: Senator Joe Lieberman getting ready for one week for today, February 3, seven contests. He'll be participating, moving on from New Hampshire right away.

Where's the first stop, Senator?

LIEBERMAN: Well, Wolf, the plane is waiting at the Manchester Airport, where we're going to go to Wilmington, Delaware. But the airport is snowed in.

So, to show our determination, we're taking that plane to Oklahoma, where the wind and fortunately not the snow tonight comes sweeping down the plain.

(LAUGHTER)

BLITZER: Senator Joe Lieberman, thanks very much, as usual, for joining us.

LIEBERMAN: Take care.

BLITZER: We'll be following your campaign in the coming week as well, Senator Joe Lieberman.

We have a lot more news to report. We are still waiting to hear from some of the candidates. We'll be speaking to them. We'll be getting all of our correspondents from around the various campaign headquarters. Bill Schneider is looking at exit poll numbers, looking behind the numbers to see who really voted and why, and why John Kerry came out on top.

We are going to take a quick break. Our special coverage from New Hampshire will be right back.

(BEGIN VIDEOTAPE)

ANNOUNCER: In 1952, New Hampshire Governor Sherman Adams helped recruit a reluctant Dwight Eisenhower as a Republican presidential candidate for the state's first major primary. Eisenhower's name was put on the ballot while he was in Paris running NATO. Ike defeated Senate GOP Leader Robert Taft without ever stepping foot in New Hampshire. Eisenhower went on to win the nomination and the presidency.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Welcome back to our special coverage of the New Hampshire primary.

Let's take a look at the votes, the actual votes that already have been counted so far, since all the polls closed throughout New Hampshire. Take a look this. With 88 percent of the vote now in, John Kerry, the winner, has 39 percent. He's 13 percent ahead of the No. 2, Howard Dean, with 26 percent. A real battle for No. 3 going on between Wesley Clark, with 13 percent, less than 1,000 votes or so behind -- over John Edwards, with 12 percent, Joe Lieberman running in fifth place with 9 percent, Dennis Kucinich with only 1 percent of the vote.

Let's go to our senior political analyst, Bill Schneider. He's taking a look at the numbers behind these numbers, how John Kerry did it.

What's the story, Bill?

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, Wolf, was there an angry vote in this campaign? You bet there was, buddy.

Liberals feel bullied by the White House and by the conservatives in Congress. And look at the votes among those who said they were angry at the Bush administration. Not Dean, but Kerry barely outpolled Dean among those angry voters. They were looking to Kerry perhaps to outclass the bullies, rather than Dean to punch them in the nose.

Well, it was the anti-war issue that ignited the Dean campaign. And let's take a look at those who said they were against the war in Iraq, Kerry, 41, Dean, 30. Kerry took Dean's signature issue away from him. How do you like them apples, buddy? I mean, Wolf.

(LAUGHTER)

BLITZER: All right, Bill Schneider looking at the numbers behind the numbers from our exit polls.

Jeff Greenfield has new some high-tech technology, I think we can call it.

You've been looking at the voter trends out there. What do you see?

GREENFIELD: We have decided to try to do what people used to do before we got into demographics and tell people where the votes are coming from, because, in New Hampshire, there are working-class areas and then there are more gentrified areas. And they generally tend to split.

So we have got this device that is called the SpatiaLogic vote track. And I'm either of going to show you exactly how it works or create an entire regional blackout in New Hampshire. But let's give this a try.

(LAUGHTER)

GREENFIELD: If we want to understand how John Kerry pulled off this victory, here's what you need to know.

Howard Dean won, for instance, in Hanover, the site of Dartmouth University, which you would expect. It's a place that gives its votes to reformers, to insurgents. He also won the relatively unpopulated towns along the Vermont border, where he was governor for 10 years, 11 years.

But John Kerry overwhelmingly won in this area, which comprises 65 percent of the population of New Hampshire. John Kerry won where he was expected to win, in Manchester, the largest city in New Hampshire, and its working-class neighborhoods. But John Kerry also won in the capital, Concord. That's a surprise. That's the home of a lot of public employees. The Public Employees Union endorsed Howard Dean.

John Kerry carried it, in addition to which, in what we were calling the wine track area, the relatively upscale, highly educated bedroom communities of Boston and the so-called collar towns around Manchester, Bedford and other areas, where Bill Bradley, for instance, beat Al Gore on a reform message, John Kerry carried virtually all of those areas. And what this means, Wolf, is that John Kerry won where he had to.

He also won where Howard Dean had to win. And that really accounts for the march into victory, I think, geographically.

BLITZER: Very impressive, that geographic distribution. We learn a lot about the geography, the people of the Granite State.

GREENFIELD: And the lights are still on.

BLITZER: All right, Jeff Greenfield.

Almost 90 percent of the vote now in. Our viewers can see it at the bottom of the screen.

Let's go to the CNN election room war room. James Carville, Paul Begala, they're digesting what has happened here in New Hampshire tonight.

James, first of all, your assessment. What happened?

JAMES CARVILLE, CO-HOST, "CROSSFIRE": Well, we love to make fun of the pollsters when their polls are wrong. And we take great glee in that.

Actually, Gallup/CNN was about dead on. Our last poll had it at 38/25. If you're looking at the screen now, you see it at 39/26. You can't get any more accurate than that, once you break out the undecideds. So I think that this is one time when the pundits and the pollsters and the commentators and the echo chamber and the hot air boys actually got it right on the number this time.

(LAUGHTER)

CARVILLE: So it kind of feels good out there, America, to be right once in a while.

PAUL BEGALA, CO-HOST, "CROSSFIRE": The courage to speak up for the pontificating class, Wolf, that's us.

(LAUGHTER)

BLITZER: Paul, go ahead and tell us your read on how John Kerry did it.

(CROSSTALK)

BEGALA: Well, I think how he did it was by still being the grownup alternative to Dean.

People want -- in my party -- want to beat President Bush. He took that momentum out of Iowa, came back here, where he had been desperately behind, and showed them that he could win. And I'm very interested in how the two main candidates did in their speeches tonight. Senator Kerry tried to -- and I think pulled it off -- seeming more presidential. And he had one of the great lines of the night, when he said, we want to raise millions out of poverty, not cut taxes for millionaires.

Governor Dean, more subdued, as you pointed out, than he was last week in Iowa. It was kind of a low bar. But one thing that struck me is, he acknowledged everybody in the room, people from Alaska and San Francisco and my mama and Gladys (ph) the volunteer coordinator. He never acknowledged John Kerry, the man who beat him. And I know he called Senator Kerry about 9:15 and congratulated him in private, which is quite noble and honorable.

But I think, when you get beat by 12, 13 points in your home region, after leading by 32 points, you owe the guy a public acknowledgement of his victory.

WOODRUFF: James, what about this comment that we heard from Howard Dean tonight that we not only -- in a way, we've heard him say it before, but it struck me tonight when he said, we not only want to change the president, we want to change the country, and then, last week in Iowa, when he said, this is a cause and it's going to go on and on and on. Is he preparing his minions, all of his supporters, for the fact that he may not win this nomination?

CARVILLE: Well, people run for president for different things.

Some actually run to get the nomination of his party. I think that Howard Dean certainly started out to run to be the Democratic nominee. I think what he has right now is a great fear that it is going to dawn on him that he's not going to be the Democratic nominee, but he doesn't want to quit. He believes in what he's saying. He's enjoying himself out there on the campaign trail. He doesn't want to let his supporters down.

He may shift -- he may -- I'm not saying that he will -- he may to a candidate that's running not so much to get the nomination of his party, which is becoming increasingly unlikely, and one who wants to keep the cause and the cause shall endure or go on and on. We've seen prior examples of this in American politics.

It's not unusual to have someone run for president that's running for a reason other than to be president. So, it is a possible thing. And one thing -- and I've been very up front about this -- he deserves enormous credit for bringing new people into the process, for exciting new people. And how these people are going to be integrated into the general election process is going to be a real test of whoever the nominee is.

And the candidate is probably going to be John Kerry. His ability to do that and also what kind of Democrat that Governor Dean is going to be, because he does have enormous respect among these people and he has accomplished something, and his accomplishments should be acknowledged.

BLITZER: James Carville, who got all dressed up to help us understand what's going on here in New Hampshire tonight.

(LAUGHTER)

BLITZER: James Carville in the CNN election war room, with Paul Begala, we'll be getting back to you throughout the night, as our coverage continues. We are going to take another quick break, much more coverage coming up. We are going to go live to John Kerry's campaign headquarters. We are going to take a look at what's next in this process, the election, the primaries, one week from today, a lot more activity.

Stay with us.

(BEGIN VIDEOTAPE)

ANNOUNCER: In 1992, Bill Clinton placed second in the New Hampshire primary and used his strong finish to gain new momentum.

WILLIAM J. CLINTON (D), PRESIDENTIAL CANDIDATE: New Hampshire tonight has made Bill Clinton the comeback kid.

(CHEERING AND APPLAUSE)

ANNOUNCER: He was the first candidate to win the White House without winning New Hampshire since 1952, the year the primary began listing candidates on the ballot.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: An impressive win for John Kerry tonight here in New Hampshire, the New Hampshire primary.

Let's take a look at the actual numbers that have now been counted by the authorities here in New Hampshire. Take a look at this. With almost 90 percent of the vote now in -- 89 percent, to be precise -- John Kerry remains atop at 39 percent. He's the winner. Howard Dean at 26 percent, a 13-point spread, with 90 percent -- almost 90 percent of the vote in. A real battle under way for third place, General Clark with 13 percent, Senator Edwards at 12 percent, not much of a difference right there, less 1,000 votes, 9 percent for Joe Lieberman, Dennis Kucinich, the congressman from Ohio, with 1 percent of the vote.

We have reporters standing by at all the campaign headquarters. Candy Crowley is over at Howard Dean's campaign headquarters. Kelly Wallace is over at John Kerry's campaign headquarters.

Let's begin with you, Kelly.

Give us the latest. What are you hearing? What's next, the strategy for John Kerry, the winner, tonight?

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, first, a little interesting note about what was going on behind the scenes.

We know that John Kerry was stumping for votes until the final hour. He did local interviews. He was at a polling place. And we are told, he was on the phone even as the polls were closing. And an aide telling us that it was his wife, Teresa, who came in, saw it on television, and said the race has been called, you have won, and this adviser saying that Senator Kerry said: Really? Are you sure?

So, obviously, this senator working until the final hour. As we've been reporting all night, aides using the word historic to describe what happened here, how this candidate was more than 30 points behind in December, 17 points behind 10 days ago, how he threw all his resources into Iowa, won there, and, in the words of one aide, came roaring back here in New Hampshire.

But they are already looking ahead. The senator himself in the midst of doing television interviews with stations in some of the seven states holding contests one week from today, and then the senator getting on a plane tomorrow, Wolf, heading to Missouri and South Carolina. He will travel to the five other states as well. He will start running ads in all seven states beginning tomorrow.

And one top adviser saying, one week from today, a large number of delegates at stake, this campaign believing that will be a decisive day when it comes to the road to the Democratic nomination -- Wolf.

BLITZER: Kelly Wallace at John Kerry's headquarters.

Candy Crowley is over at Howard Dean's campaign headquarters.

We heard Howard Dean, Candy, say just a little while ago that, the people of New Hampshire have allowed us to regain our momentum. He's moving on from here. What's the next step for him?

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Well, the next step for him is to find some place he can win.

Going from a third to a second, after a very bad week, they're going to take his momentum, putting the best face on it. But now you've got to look ahead to those seven states -- and this is what they're going to do tomorrow in Burlington, when they meet -- and say to themselves, where is our best chance of winning? Where can we best spend the candidate's time and the candidate's money?

So far, we're seeing that he is going to a number of these states, including Michigan, which is not one of the seven states, but comes shortly thereafter. So they obviously believe they're strong in Michigan. They've always felt that they had a strong organization there. But it must be said that they also thought they had a strong organization in Iowa and in New Hampshire, where they spent two years.

So this is not a campaign structure that so far has been able to deliver for Dean, regardless of the passion of his supporters. So what they have to do in Burlington, Dean is going to take the day, mostly down. He will be doing interviews, radio and television interviews, into those seven states, seven primary states, next Tuesday, while they try and figure out, how do we spend this time and how do we spend this money?

It becomes very important now. It is very hard to sell a third and a second as someone who can move into the lead. He's got to win something and win it pretty quickly and pretty impressively -- Wolf.

BLITZER: And money in those states clearly very, very significant.

Candy Crowley, thanks very much.

Our senior political analyst, Bill Schneider, taking a closer look at some of the exit poll numbers, learning more about how this developed tonight.

What are you learning, Bill?

SCHNEIDER: We're learning that, when people were asked, what were you looking for in a candidate, they said two very different things. A lot of them said they were looking for someone who stands up for what he believes in.

Well, those people, that was 29 percent of the voters. They voted overwhelmingly for Howard Dean. But look at this. There were two other categories that were high. Those said they were looking for someone who can beat Bush, they voted overwhelmingly, 4-1, for John Kerry. Experience, they voted also 4-1 for John Kerry. Add those two categories together, you get actually more people than said they wanted someone who would stand up for his beliefs.

So it looks like they were facing a really tough choice. Do they want someone who will stand up for his beliefs or someone who can win and who has the right experience? Kerry fit the bill on those latter categories. Interestingly, Clark, Wesley Clark came in second. He was the second choice on experience and on someone who can beat Bush.

But those -- Kerry got there first and pulled that issue right away from Wesley Clark.

BLITZER: All right, Bill Schneider, don't go anywhere. We have a lot more to talk about throughout this long night. Thanks very much, Bill Schneider, for that.

Our political analyst Carlos Watson, is here with us as well.

You're trying to assess what's going on. This fierce battle for third place is very significant, in that I guess for bragging rights at a minimum.

CARLOS WATSON, CNN POLITICAL ANALYST: For bragging rights, perhaps, but there is a real role, as we've all said here, in which these are two very convincing wins, both by double digits.

To put it in a little bit of historical perspective, if you look over the last 30 years where there have been three or more serious candidates in a New Hampshire primary, this is the highest vote total we've ever seen; 39 percent, if that holds up, beats Gary Hart's 37 percent. It doesn't set the record for the margin of victory. Dukakis has that with 16 percent in 1988. But it's significant.

And what does Kerry get out of this as he goes on February 3? He raised a million and a half dollars over the last week, after the Iowa win. I expect he may raise three times that much, as lots of people not only write small checks, but write the $2,000 maximum checks, even people who have written checks for other candidates who are still in the race.

He'll also get a lot of media exposure. And don't forget momentum. Tomorrow, in Missouri, we expect him to announce a significant endorsement. We don't know who it is going to be, but I think you'll see more of this along the way, the three M's, money, media and momentum.

BLITZER: And I suspect that "Newsweek" poll that came out last weekend which showed in this hypothetical contest Kerry could beat George Bush, 49 to 46 percent, even though within the margin of error.

The other hypothetical contests with the other Democrats, Bush was winning, even though that is not necessarily all that significant, psychologically, it has an impact on these Democrats, who are so hungry to win.

WATSON: Well, not only that. It's got an impact on the White House.

Extraordinarily smart, political people in the White House. Most people forget that President Bush himself has been involved as an operative in four separate presidential campaigns before he ran himself, two when his father ran as vice president and two when he ran as president.

What I think you're going to see is negative campaigning not only from other Democrats in the race, who are desperate to stave off domination by John Kerry, but, again, we saw Republicans here. We saw John McCain campaigning up here. We saw George Pataki. We saw Rudy Giuliani. I think you'll see a lot more than that.

And don't forget. You also saw the Club For Growth, which was a right-leaning group, run an ad in Iowa which was absolutely critical, in that -- in Howard Dean losing support there.

BLITZER: All right, Carlos, thanks very much for that.

And to our viewers, I want to alert our viewers, we're expecting momentarily to speak to the wife of Senator Kerry, Teresa Heinz Kerry. She's standing by.

In fact, she's ready to speak with us right now.

Teresa Heinz Kerry, thanks very much for joining us. Congratulations to you, two big wins, in Iowa, now New Hampshire. It feels pretty good, I assume.

TERESA HEINZ KERRY, WIFE OF SENATOR JOHN KERRY: It feels good. And I'm gratified. And it's humbling. It's obviously very enjoyable.

And it's -- on the other hand, it's a marathon. And so you just have to look at it one step at a time. And I look now to the next seven. And I will be leaving. John leaves tomorrow and I leave after him and so on. And so it's the next marathon. So, I think you have to think of it one at a time. It's not like a Senate election or a House election, where, you win, you win. But it is gratifying and it's hard work. It's gratifying work. And I'm very, very, very fortunate that Iowa and New Hampshire both were an intimate and forgiving and gratifying kind of campaigning, where conversation really is the way you do it. And I like that. I don't know what it's going to be like next. I haven't done that next retail type of politics. It's a very -- and this best kind of politics, I don't know, but I'll learn. I'll learn.

BLITZER: We all will learn.

Take us behind the scenes a little bit. What was it like tonight when word came that your husband, the senator from Massachusetts, has won? What was his reaction?

HEINZ KERRY: Well, he knew what the polls were saying during the day, but you never know until the last vote is counted, of course. You don't take anything for granted.

But he was in the shower when finally, you know, it came along. So we nearly had a wet guy running around.

(LAUGHTER)

HEINZ KERRY: But he was very happy. It took a couple of seconds for it to dawn with him that it was done, done. But I was, of course, dressed, couldn't go in and get too close him. But last time in Iowa, he was shaving when I told him. So it seems to be a bathroom event.

(LAUGHTER)

BLITZER: Teresa Heinz Kerry, congratulations, once again. Please congratulate your husband.

HEINZ KERRY: I will. I will.

BLITZER: Actually, we congratulated him earlier here on CNN. Thanks very much for joining us.

HEINZ KERRY: Thank you.

BLITZER: We'll be speaking to you down the road, as this campaign continues, the wife of Senator Kerry joining us now.

Much more coverage coming up. We have another hour to go, a lot more to review. Our special coverage from the New Hampshire primary will continue right after this short break.

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