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Lou Dobbs Tonight

Baghdad Bombing Kills Dozens; Calls For Pentagon to Buy American

Aired March 17, 2004 - 18:00   ET

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


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


ANNOUNCER: This is LOU DOBBS TONIGHT for March . Here now for an hour of news, debate and opinion, Lou Dobbs.
(BEGIN VIDEOTAPE)

JOHN KING, CNN ANCHOR (voice-over): Tonight, a massive car bomb destroys a hotel and blasts open a 20-foot crater in Baghdad. More than two dozen are dead.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Thugs and assassins in Iraq are desperately trying to shake our will.

KING: We'll have live reports from Baghdad, the Pentagon and the White House.

New controversy tonight over a military contract that has reignited calls for the Pentagon to buy American. Air Force Secretary James Roche says he would welcome a bid for new tanker planes from a European company. We'll have a special report.

In tonight's "Face-Off," the government's new multimillion-dollar plan to boast border security in Arizona. Congressmen J.D. Hayworth and Jeff Flake will face off on whether it will stop the flow of millions of illegal aliens into this country.

And "Exporting America." The United States threatens to cancel a high-level trade meeting with China. The Commerce Department says China isn't doing enough to promote fair trade. We'll talk with AFL- CIO secretary treasurer Richard Trumka.

(END VIDEOTAPE)

ANNOUNCER: This is LOU DOBBS TONIGHT for Wednesday, March 17. Sitting in for the vacationing Lou Dobbs for an hour of news, debate and opinion, John King.

KING: Good evening.

At least 28 people are dead and more than 50 wounded after a huge car bomb exploded in Baghdad. U.S. officials say the car was packed with artillery shell and more than 1,000 pounds of explosives. The U.S. Army has now secured the area and rescue crews are digging for any possible survivors.

CNN's Baghdad bureau chief, Jane Arraf, is live at the scene of today's bombing and has for us the latest -- Jane. JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: John, unfortunately, they are not talking about survivors at this point. They are talking about a recovery effort, though.

And you can see this frantic effort behind us for the last of what they believe are the people who were in this house. They are essentially standing on what was the living room imploded in on itself. You can see that the entire side of the house was sheered away and the people inside it covered with tons of brick, metal girders and rubble.

John, they have brought out two bodies so far from this house. They are looking for a third. The U.S. military is bringing in heavy earth moving equipment, which will be used after they find the last of the bodies. And across from here, just on the other side of the street, past this huge crater, eight by 10 feet, is the hotel near where the car bomb exploded. Now, according to the managing director of the hotel, there were two British employees of a local telephone company staying there at the time, as well as other Arab guests.

More than 20 Iraqi employees, all of them believed dead in this huge car bomb in this central Baghdad neighborhood -- John.

KING: Jane, the focus, obviously, on the recovery efforts, but any information from the U.S. military or from the Iraqi police as to who was responsible for this today?

ARRAF: John, they really can't tell. It's much too early. And, in many cases, they can't tell even after time has passed. The problem with these suicide bombs is, it essentially destroys all of the evidence.

As we walked here early on, the street was essentially in flames. There was shattered glass and damaged buildings blocks away from here. That was the extent of this explosion, extent of an explosion that has virtually obliterated all of the evidence.

Military officials, though, are saying that it does have the hallmarks of a foreign group, a group like Ansar al-Islam, which has operated in northern Iraq and has been affiliated, perhaps, with al Qaeda. They say that because of the size of the bomb, the suicide bombers -- Iraqis have not done suicide bombings -- and because of the relative sophistication of an attack like this. It is clear that this was timed for maximum impact, just days away from the anniversary and in a street that was crowded in the evening mostly with Iraqis -- John.

KING: Jane Arraf, live for us at the scene of that devastating strike in Baghdad -- Jane, thank you very much.

Now, the White House vowed not to be intimidated by the attack, saying the United States will -- quote -- "meet this test with strength and resolve."

Vice President Cheney also addressed the bombing in a campaign speech at the Ronald Reagan Presidential Library. He said U.S. resolve in Iraq is unshakable.

(BEGIN VIDEO CLIP)

CHENEY: Thugs and assassins in Iraq are desperately trying to shake our will. Just this morning, they conducted a murderous attack on a hotel in Baghdad. Their goal is to prevent the rise of the democracy. But they will fail.

(END VIDEO CLIP)

KING: Late today, democratic challenger Senator Kerry released a statement calling the attack cowardly. Kerry said -- quote -- "Today, I reiterate my call for America to convene an international summit to coordinate our efforts against terror and to strengthen and grow our coalition in Iraq" -- end quote.

The car bomb exploded just hours after U.S. and Iraqi forces launched a new offensive against insurgents in and around Baghdad. Operation Iron Promise was designed to prevent an expected rise in violence leading up to the Iraqi handover on of sovereignty on June 30.

Senior Pentagon correspondent Jamie McIntyre is live now at the Pentagon.

Jamie, just a few days ago, the Central Command commanding general, John Abizaid, said he was worried about just this kind of violence. Any talk of a shift in tactics tonight?

JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: No, really, just a rededication to the current tactics, continuing to put the pressure on insurgents and possibly al Qaeda elements in Iraq, while trying to protect U.S. forces as much as possible, lower their profile and put more emphasis, again, on Iraqi forces providing their own security and in the case of this bombing, also providing the initial rescue capability.

The idea, the U.S. is convinced that the best strategy is to continue on this move toward the Iraqization of the country, to get the United States out of the crossfire, to put Iraq in charge of its own security, and continue the move toward that turnover to sovereignty. And they are convinced that this bombing today is just a sign of the increasing desperation of the anti-U.S. forces and that any capitulation to that would simply encourage them.

So the U.S. is remaining steadfast, but they warn, U.S. commanders warn there could be another deadly attack just like this one in the weeks or months ahead -- John.

KING: Jamie, certainly, they are worried about attacks in the period leading up to the handover of sovereignty, about four months away. What about the context of the next 48 hours, when here in the United States, of course, there is a great deal of focus on the one- year mark, Friday of course being one year since the president ordered the first bombing in Baghdad. MCINTYRE: Well, they are generally concerned about that, but they didn't, for instance, have any intelligence warning of this particular attack in Baghdad. And they say it's virtually impossible given the size of the country and all the things that are in the city of Baghdad to provide protection for everything.

So they are resigned to the fact that there could be another deadly attack which they simply can't prevent.

KING: And, Jamie, what is the status? You say the Iraqization of the security. Is this a sign that perhaps that security is not good enough yet, not well trained enough yet?

MCINTYRE: Well, probably no level of security could prevent an attack like this. But it is true that the Iraqi forces are not well trained enough. They are not equipped well enough yet. And U.S. commanders admit that. That's something they are trying to overcome. That's something they are trying to accelerate, but it simply takes time.

They don't have enough body armor. They don't have enough radios. They don't have enough cars to equip the Iraqi police and security forces the way they should be. And, of course, training just takes time. So they admit there are shortfalls in that area.

KING: Jamie McIntyre tonight at the Pentagon -- thank you, Jamie.

A new CNN/"USA Today"/Gallup poll taken before today's bombing shows public support for the war in Iraq has fallen. It finds 55 percent of Americans now say it was worth going to war in Iraq. That's down from a year ago when 68 percent said the war was worth it; 43 percent now say the war was not worth it. That's up from 29 percent a year ago.

The latest violence in Iraq came on a day both campaigns in the race for president had set aside to deliver major foreign policy addresses. It should come at no surprise that Iraq was a central element for those speeches and no surprise that the Bush and Kerry camps profoundly disagree.

(BEGIN VIDEOTAPE)

KING (voice-over): Senator Kerry began with his assessment of Iraq one year later.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We're still bogged down in Iraq. And the administration stubbornly holds to failed unilateral policies that drive potential significant, important long-standing allies away from us.

KING: The Democratic challenger said Mr. Bush had broken promises to the troops deployed overseas and to veterans here at home.

KERRY: This president has had his chance and this president has not delivered. KING: Senator Kerry called for adding 40,000 troops to an Army he says is stretched too thin. And he took issue with the president's critique that the Massachusetts senator would give the United Nations too much sway over whether to go to war.

KERRY: While we should seek allies, we must and we will never give anyone else a veto over the national security of our nation.

KING: At the Reagan Library, a far different view from the vice president, who likened the war on terrorism to president's Reagan's hard line against Soviet communism.

CHENEY: Americans friends know they can trust and America's enemies know they can fear the decisive leadership of President George W. Bush.

(APPLAUSE)

KING: The vice president suggested Senator Kerry is anything but decisive.

CHENEY: In January, he was asked on TV if he was -- quote -- "one of the anti-war candidates." He replied, "I am." He now says he was voting only to -- quote -- "threaten the use of force," not actually use force.

KING: And Mr. Cheney said the Democratic challenger had voted against major weapon systems critical to the war on terrorism and had insulted U.S. allies shedding blood in Iraq.

CHENEY: It is not an impressive record for someone who aspires to become commander and chief in this time of testing for our country.

(END VIDEOTAPE)

KING: Joining me now for more on the foreign policy debate are White House correspondent Suzanne Malveaux and national correspondent Bob Franken, who is following the Kerry campaign.

Suzanne, let's begin with you.

The administration's message today is, stay the course. But a dramatic event like this must complicate the White House push just this week to cast the situation in Iraq in a very positive light.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, John, the thinking here at the White House is that it certainly does complicate matters, but that is only if they reach a certain threshold, these killings, where either American voters or foreign allies believe that it is no longer worth it.

White House officials are not seeing that. With the exception of Spain, they have been able to keep the 30-plus members of the coalition together. But they make the argument, they make the case that this is an that's attack against the Iraqi people, against the process of democracy. They also make the argument that this is further evidence that shows that anybody can be a target. Therefore, you have to stay the course. You have to stay aggressive against the terrorists -- John.

KING: And, Bob Franken, Senator Kerry condemning this bombing tonight, calling it cowardly and horrific. In an odd, sad way, even behind the scenes, though, do they believe an episode like this reinforces Senator Kerry's view that the U.S. military may have won the war, but the president is not managing the peace?

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: It's a very delicate dance.

The party out of power -- and, of course, Senator Kerry is in the party out of power -- there's a tradition in the United States of the loyal opposition. And Senator Kerry has to worry about being perceived as the disloyal opposition, hence, his statement which emphasized these cowardly acts will only strengthen our resolve.

He did go on, however, to call once again for an international summit, which is a push. If there is some sort of international get- together at some point to discuss all of this, Kerry would possibly want to take some of the credit. And, of course, he makes the point that the United States has acted without a lot of international support. So there is some nuanced criticism of the administration, but again the great bulk of the statement is to express support for U.S. foreign policy.

KING: And, Suzanne, the president himself hits the road tomorrow to surround himself with the troops, more of the P.R. push, right?

MALVEAUX: Absolutely.

And what you are going to hear is a similar message we heard throughout the week, that it is worth it in the war on terror. But what is also equally important is the audience that he delivers it to. He'll be at Fort Campbell, Kentucky, before the troops who have been participating in the war on terror, and then, of course, on Friday back at the White House, where he makes that major speech on the update on the war in Afghanistan and Iraq.

KING: And, Bob, you mentioned this delicate dance for the challenger. You don't want to criticize the troops, obviously. How do they manage that dance?

FRANKEN: Well, Kerry has managed to do it by emphasizing his military credentials. He has attacked, as a matter of fact, this administration for shortchanging both the troops in Iraq and veterans. So that's how he's trying to do it, by making sure that the message gets out if at all possible that he has strong military credentials.

KING: Bob Franken, Suzanne Malveaux, both in Washington tonight, thank you very much.

Secretary of State Colin Powell, meanwhile, is in another key battleground in the war on terror. Today, he met with Afghan leaders about the intensified hunt for Osama bin Laden. We'll have a report from Kabul next.

Plus, the Pentagon might reopen the bidding for a new fleet of airplane tankers. The reason, to allow a European company to bid for that contract. We'll have a special report.

And then "Exporting America." The nation's largest labor organization has filed a complaint accusing China of unfair trade practices. AFL-CIO secretary treasurer Richard Trumka will be our guest. That and much more ahead.

Stay with us.

(COMMERCIAL BREAK)

KING: Senator John Kerry today distanced himself from a controversial comment from former Democratic presidential candidate Howard Dean.

In a conference call arranged by the Kerry campaign, Dean said President Bush -- quote -- "dragged our troops to Iraq, which apparently has been the factor in the death of 200 Spaniards over the weekend" -- end quote.

That prompted a harsh response from the Bush-Cheney campaign chairman, Marc Racicot. He called on Senator Kerry to -- quote -- "immediately repudiate these troubling comments and stop all efforts on behalf of his surrogates to blame America for these attacks" -- end quote. Senator Kerry today said Governor Dean's position is not his position.

Spain's newly elected prime minister is stepping up his criticism of U.S. policy. Jose Luis Rodriguez Zapatero today called the U.S. occupation of Iraq a fiasco. He also said the United States combats terrorism using -- quote -- "shock and awe," which Zapatero says only inspires more violence. Zapatero reiterated his pledge to pull Spain's 1,300 troops out of Iraq.

Secretary of State Colin Powell today said the United States is committed to hunting al Qaeda remnants hiding out along the border between Pakistan and Afghanistan. Powell met with Afghanistan President Hamid Karzai to discuss the intensified hunt for Osama bin Laden and Islamic rebels, ahead of the upcoming democratic elections in Afghanistan.

Ryan Chilcote reports now from Kabul.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice-over): Pakistani forces and tribal volunteers have moved into the border region with Afghanistan and begun to push back on suspected al Qaeda fighters.

COLIN POWELL, SECRETARY OF STATE: If Taliban elements are forced from Pakistan back into Afghanistan as a result of actions on the Pakistan side of the border, I'm sure that our military forces here working with Afghan forces will deal with those elements. CHILCOTE: For the more than 13,000 coalition troops, the Arab fighters have so far been hands off over the border. Now they may even get a crack at Osama bin Laden himself, who many believe is still in that region.

Privately, U.S. and Afghan officials worry that outside the hunt for bin Laden, Afghan has already lost the U.S.' attention and that the U.S. is about to reduce the military presence here. U.S. Senator James Inhofe, who sits on the Armed Services Committee, was in Afghanistan last week.

SEN. JAMES INHOFE (R), OKLAHOMA: I would like to see that changed, be cut in half the next year.

CHILCOTE: Many here say the U.S. needs to keep its attention on Afghanistan for at least two more years.

POWELL: The question that has been raised in the course of my visit this morning is, will the United States be here for the long term? The answer is yes.

CHILCOTE: As Afghanistan approaches its first democratic presidential election, the U.S. secretary of state toured a voter registration center for women, who make up a quarter of those registered to vote, unthinkable under Taliban rule. Only a million and a half of the country's more than 25 million people are registered to vote. And with U.S. and Afghanistan troops still fighting with the Taliban and al Qaeda, much of the country may still be too unstable to hold elections.

(on camera): U.S. officials say those problems can be addressed quickly, but that reconstruction of this country after two decades of war will take much longer. Secretary Powell meets with Pakistani President Musharraf on Thursday in Islamabad.

Ryan Chilcote, CNN, Kabul, Afghanistan.

(END VIDEOTAPE)

KING: Still ahead, we'll return to the scene of today's tragic bombing in Baghdad and I'll talk with Lieutenant Colonel Peter Jones of the 1st Armored Division. He was among the first military personnel on the scene.

And the U.S. Air Force needs a new fleet of tanker planes. Could that lucrative contract go to Europe's Airbus? We'll have the surprising story.

And later, patrolling Arizona's border with Mexico. Will a new $10 million plan help stem the tide of illegal aliens? "Face-Off" is just ahead.

(COMMERCIAL BREAK)

KING: Boeing's archrival, Airbus, could be in the running if the Air Force has to come up with a new plan to update its aging fleet of tankers. The Pentagon had reached an agreement with Boeing, but may have to reopen the bidding process.

But, as Lisa Sylvester reports, just the thought of a European company making the Air Force's planes have someone crying foul.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Air Force Secretary James Roche said, if the Pentagon has to go back to square one, it would welcome the competition to develop its new line of tanker planes. "It would be an alternative because we're talking about a brand new plane."

Asked about pressuring Boeing to compete, Roche said, "I would be delighted to do it." But losing the lucrative deal would not be good news for Boeing's workers.

TOM BUFFENBARGER, INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS: Probably a minimum of 1,000 good-paying U.S. jobs here in this country. And to have the secretary of the Air Force saying, nah, let's give the French and the Germans and the Brits a chance to take it away from us is further insult to the American workers.

SYLVESTER: Boeing's problem, a controversial plan that originally called for the Pentagon leasing 100 planes at a cost of $23 billion. But it costs more to lease the planes than to buy them outright. Congress agreed that wasn't a very good bargain for the taxpayers and changed the deal to buy 80 planes and lease the remaining 20.

But now Boeing can't shake the nagging questions into how it got the deal in the first place. Four investigations are looking into whether the contract was awarded improperly. The U.S. aerospace industry says Boeing won the deal because its planes are tailored to meet the Air Force's need.

JOHN DOUGLASS, AEROSPACE INDUSTRIES ASSOCIATION OF AMERICA: Airbus has never built a single airplane to Air Force specifications, ever. So if I were the assistant secretary of the Air Force, I would have to take that into consideration.

SYLVESTER: Including Airbus in a new bidding process is certain to draw criticism from Congress, especially in an election year and especially as the country continues to lose manufacturing jobs.

LOREN THOMPSON, LEXINGTON INSTITUTE: The existing fleet is getting so old that we're going to have to buy new ones, but we've only got two choices. We can buy them from an American company or we can buy them from a French company called Airbus. What do you think Congress will want?

(END VIDEOTAPE)

SYLVESTER: Here's another thing to consider. Because of the dollar's decline against the euro, Airbus will be at a price disadvantage and their planes could cost about 25 percent more than when the contract was originally awarded to Boeing -- John.

KING: Lisa, you mentioned the election-year pressures. Any chance at all that, if the Air Force decided to do it, that Congress would let it?

SYLVESTER: Actually, at this point, it doesn't look like Congress -- there's much appetite at least in Congress to give this deal to a European company. And one of the interesting things is -- we'll have to see how this all plays out -- but some believe that it a subtle way or not-so-subtle way of putting pressure on Boeing to reach better terms with the Pentagon when it is time to negotiate the price on these planes -- John.

KING: Certainly worth watching in the weeks and months ahead. Lisa Sylvester, thank you very much.

And that brings us to the topic of tonight's poll question. What do you believe should be the most important factor for awarding U.S. government contracts, price, quality, or buying American? Cast your vote at CNN.com/Lou. We'll bring you the results later in the show.

And coming up, chaos erupts in Baghdad as a car bomb kills dozens of people. We'll hear from Lieutenant Colonel Peter Jones in Baghdad. He was among the first military personnel to arrive at the scene of today's attack.

And in tonight's "Face-Off," stemming the tide of illegal aliens. The United States unveils a new plan. But our guests are divided over whether it will do any good.

And in "Exporting America," his organization is taking on China and its trade practices. Richard Trumka of the AFL-CIO will be our guest.

(COMMERCIAL BREAK)

KING: Returning now to our top story tonight, 29 people were killed when a car bomb destroyed a hotel in central Baghdad.

We are joined live now by the 1st Armored Division's Lieutenant Colonel Peter Jones in Baghdad.

Sir, thank you for joining us tonight on this tragic day.

I want to ask you, first, you are standing right at the scene. What is the latest behind you? Any chance of survivors or is this simply now an effort to recover the dead?

LT. COL. PETER JONES, 1ST ARMORED DIVISION: Unfortunately, I have to report that this is now simply an effort to recover the dead.

What you see behind me was a private residence, a family of seven. We were able to account for four of the individuals after the attack. Since then, we have been able to recover two remains and we're still looking to find one more remains. And, at this point in time, the Iraqi civil defense corps that's been actually out here doing the excavation has asked for some assistance.

So we brought in a heavy mover to move some of the larger materials, so that they can go and continue to work with pick and shovels to try to find the last individual remaining.

KING: Colonel Jones, you're talking about the assistance you are providing now. Reports from the scenes initially were that when the U.S. military arrived on the scene, there was some tension -- the Iraqis were upset at the bombing -- some tension with the U.S. military personnel. Can you describe that scene for us, sir, and the source of that tension?

JONES: Well, I think there's tension at any point in time. And I don't think it was necessarily leveled between the Iraqi security forces and -- and us, because we work very closely with the Iraqi police in this neighborhood. I think the sense of tension is, of course, is that a bomb of this magnitude that caused this much devastation on what was relatively quiet night in Baghdad, of course, causes any type of tension in any type of neighborhood that's trying to move on into the future.

KING: And what can you tell us, sir? We're told a car bomb, a thousand pounds of explosives, anything else you can tell us about what was involved in the attack? And if there's any sense at all of who was responsible? Iraqi insurgents, outside forces?

JONES: At this point in time, it's hard to be able to pinpoint which group is actually responsible. We have talked to the manager of the hotel. He did not receive any previous threats to the residence. His clientele was a mix of both Middle Easterners and also some Europeans.

The issue that we're all asking ourselves, along with the Iraqis is, why this location and what is really a very crowded alley way in between two residential homes and one hotel.

KING: I assume, sir, as you ask that question, why, some new security precautions are being taken. Can you help us understand the reaction and what will be done to try to prevent it from happening again?

JONES: Well, there's two things that we're really working on to see this doesn't happen again. One is we have built up the Iraqi security forces both in terms of increased Iraqi police inside of Baghdad. The establishment of the Iraqi Civil Defense Corps, which works hand in hand with the coalition.

Additionally, just by chance the 1st Armored Division is conducting operation -- provide promise and which we're showing our commitment by going after what we believe are some residing insurgent cells throughout Baghdad. And throughout this evening we're executing those targets and capturing those individuals.

KING: Lieutenant Colonel Peter Jones live for us at the scene of this devastation in Baghdad. Sir, we know it's been a difficult day. We thank you for you time. And we wish you and your men the best, sir.

JONES: Appreciate your support, thank you.

KING: Thank you, sir.

And turning now to an issue of security here at home, broken borders. Arizona's 350 mile border with Mexico will soon be the most heavily patrolled in the nation. The $10 million Arizona Border Control Initiative will be implemented over the next six months. 260 additional border patrol agents will be added. And remote control aircraft, or drones, will be used for the first time.

The new border patrol plan in Arizona is at the center of tonight's "Face Off." Representative J.D. Hayworth from Arizona says more border guards are welcome, but not enough, in his view, to stem the tide of illegal aliens. Representative Jeff Flake, also of Arizona, says the stepped up border patrol is a good step.

Welcome to you both, gentlemen. J.D. Hayworth, let me start with you. Drones being used the first time, effective along the border or more of a photo op?

REP. J.D. HAYWORTH, (R) ARIZONA: I think it's very important. I think this is welcome. But despite the increase in manpower, and the use of drones, and the use of other devices and greater scrutiny along the Arizona border, the fact remains as long as illegals believe there is a safe haven with no repercussions, they will continue to try and pour across the border. And it is that simple truth that we must deal with that until we enforce existing laws, talk of a guest worker program and a type of economic nirvana that so many proponents will happen is way, way premature.

KING: Well, Jeff Flake, you are among those talking about a guest worker program? Nirvana?

REP. JEFF FLAKE, (R) ARIZONA: Oh, we have got to have it. Certainly, this move along the boarder is welcome, but it's not enough. As J.D. said, as long as people think they can get away with it -- right now, frankly, we have a de facto amnesty. If you get through the border you're home free. And what we have to have is worker sanctions, workplace enforcement that we don't have now.

But in order to have that, we have to have a guest worker program. Trying to enforce the current law is like trying to enforce a 20 mile an hour speed limit on a freeway. It's simply not going to work.

KING: Congressman Flake, let me interrupt, though. Many think there's an increase in illegal aliens coming across the word border they think if they get here there will be a program where they can come forwards and get, at lest, temporary status in this country. Do you disagree with those?

FLAKE: That's been the case for the past 15 years, ever since the 1986 amnesty that's been the case. What we need to do is end the current de facto amnesty that we have. That's why the president is proposing to have a temporary worker program.

His temporary worker program is not an amnesty. It says, if you are here illegally now, one, first, you pay a fine, and second, you go to the back of the line in terms of seeking permanent residence or citizenship. So it's not an amnesty the president is proposing, we desperately need a temporary worker program like that.

KING: Congressman Hayworth, you are shaking your head, jump in.

HEYWORTH: Well, with all due respect to Jeff, I think we have the policy exactly backwards. Because we have to ask this question, if we're unwilling to enforce current law, what makes us think we will enforce any new laws? And that's the fundamental problem.

You see, fortifying the border with is a welcome sign. I've called for that. But I don't believe you just dismiss the laws on the books. I believe Americans want people to play buy the rules. And when we set up a different set of rules, for a special class of people, we are sending a conflicting message that keeps us in the very problem that both Jeff and I would like to solve in some way.

KING: If two Republican Congressman from the same state and a critical border state of Arizona cannot agree on this, is there any chance in an election year that a guest worker program or any significant immigration reforms are going to pass this year? Jeff Flake, you, first?

FLAKE: I sure hope so. We can't wait much longer in Arizona. We really bear the brunt of it, because we pay the cost in healthcare and education and criminal justice. So we desperately need something.

I would simply argue that in order to enforce the law you have to have a law that's reasonable to enforce. And currently, I don't think anybody is seriously talking about deporting the eight to 12 million illegals who are currently here. We have to have a process where they gain temporary worker status in order to continue. If we don't do that, we're simply not going to enforce the law and we need to enforce the law.

KING: Congressman Hayworth?

HAYWORTH: Well, I agree we need to enforce existing law, that's the crux of the dispute that Jeff and I have. But I will say this about the current situation, again, you have to ask yourself, if you are not willing to enforce current law, what makes you think you would enforce any new laws and that is why for my perspective we will not see this. We will not see new legislation passed or signed into law.

And it's precisely because of some of the reasons Jeff talked about. Because of the healthcare dollars, because of the tremendous strain already on law abiding citizens, there is no reason to offer any type of invitation to further illegal aliens coming across our borders.

KING: Congressman J.D. Hayworth, Congressman Jeff Flake, both Republicans of Arizona. We thank you for your time tonight. And coming up, "Exporting America," new tensions threaten trade talks between the United States and China. Rich Trumka of the AFL-CIO is my guest.

And over a century of sport and still beating the competition, "The Sporting News" celebrates a birthday. Editorial director John Rawlings will join us.

(COMMERCIAL BREAK)

KING: U.S. lawmakers and a group of senior business executives today urged President Bush to stand firm against critics of outsourcing, what we like to call in this broadcast "Exporting America." The president's export council warned the president that attempts to stop outsourcing threatened the U.S. economy.

The advisory group drafted a letter to President Bush saying, quote, "it is especially important that the administration now also take a leadership role in resisting federal, state, and local legislative initiatives that would impose new restrictions on how employers and workers can maintain and increase their competitiveness in the global economy."

Earlier this month the president called critics of his trade policy economic isolationists.

A high-level trade meeting with China tonight appears to be in jeopardy. A senior Commerce Department official said that meeting, scheduled for late May, may not be worth having unless China addresses a variety of U.S. concerns such as the counterfeiting of copyrighted products. Our next guest is also concerned about the current trade situation with China. In fact, his organization has filed a complaint with the U.S. trade office. AFL-CIO secretary general Richard Trumka joins me from Washington. Rich Trumka, explain this complaint, an extraordinary step for the AFL-CIO to take.

RICHARD TRUMKA, SECRETARY-TREASURER, AFL-CIO: I sure will. American workers right now are really suffering. They are losing their jobs and losing their future. They are losing their security. They are doing that in large part because there's a growing trade deficit with China. It's about $124 billion and it's growing by about 20 percent a year. That trade deficit is being aided by unfair, unreasonable trading practices by the Chinese. They refuse to give their workers any rights. They refuse to give their workers minimum wages. They refuse to enforce their maximum hours. They refuse to enforce their health and safety standards and that gives China-based producers a 44 percent advantage over every other exporter, every other producer in the world.

We filed a 301 suit because we now can document that as of 2001, over 720,000 U.S. jobs were lost because of their cheating on their own rules. And we have asked the U.S. secretary -- the trade representative to do three things. One, to impose trade remedies commensurate with the amount of cheating the Chinese are doing or 44 percent. Two, sign an agreement with the Chinese that says we'll reduce those trade remedies as you meet and verify benchmarks about workers rights. As you start enforcing your laws we'll reduce the trade remedies. The third thing we ask is for the president to instruct the U.S. trade representative, to enter into no more agreements with the WTO until the WTO insists that all of its members adhere to the U.N./ILO standards for labor rights. That will convert, John, the global economy from pushing wages down worldwide to actually raising them up and being fair everywhere worldwide.

KING: You have heard a bit of grumbling about the Chinese practices out of the Commerce Department today. Any prospects at all that the administration will take this seriously in your view?

TRUMKA: Well they have 45 days within which to accept it or not. They are going to have to say either, one, the Chinese government isn't doing those things. And say that their own documents are lying. Or they are going to have to refuse it on the other hand that these unfair trade practices of the Chinese don't affect us here at home. And every American knows that they do. We are hoping they will accept that practice, that policy and go after it with full force.

KING: Forgive me, but a cynic might say in this election year, here's the AFL-CIO a major supporter of Democrat John Kerry in this campaign looking to mobilize its voters and their families in November, trying to play a little politics if you will, not so much a policy debate but a political wedge with the Bush administration. How would you answer that?

TRUMKA: I'd answer it by saying this, in the last three years, 2.9 million manufacturing workers have lost their jobs. This president has no policies to go forward. He has not enforced the trade laws that are on the books. We want him to do that. This is an opportunity for him to stand up and prove to the American worker that he really does support them. If doesn't do it, then we'll know where he stands. He'll stand with the multinationals against American workers. We hope that he does the right thing. That he enforces our laws. That he insists the Chinese start to enforce their laws so that workers on both sides of the border in China, and the U.S. can have a better life and trade can start to work for everybody in the world and not just the privileged few.

KING: Richard Trumka, secretary-treasurer of the AFL-CIO. Thank you for your time tonight, sir. I suspect you'll be back as this campaign year plays out.

And a reminder now to vote in tonight's poll. What do you believe should be the most important factor for awarding U.S. government contracts? Price, quality, or buying American. Cast your at CNN.com/lou. We'll bring you the results a bit later in this show.

A solid rally today on Wall Street despite today's terror attack in Baghdad. The Dow gained 116 points, the Nasdaq added 34 and the S&P 500 jumped 13. Oil prices soared today. Christine Romans here with "The Market."

CHRISTINE ROMANS, CNN CORRESPONDENT: Stocks bouncing back from three month lows and today was the best couple of days for stocks since October. In fact, that was the Dow's first back-to-back gains since the correction began. Why, a low interest rate environment, also that's helping financial stocks and you have core inflation contained in February. At the same time oil prices soaring. Crude oil prices up very sharply. (UNINTELLIGIBLE). The highest price since -- since 1990. Already low gas supplies have dropped just two months before the summer driving season and average crude oil prices today well above last year. It's really amazing.

KING: Really amazing. Painful to some wallets. Thank you very much.

Just ahead, it's still in the game, after more than 100 years the "Sporting News" is going strong. Its editorial director will be my guest.

And America's bright future. We'll introduce to you Herbert Hedberg, the winner of Intel's Science Talent Search. His amazing story when we return.

(COMMERCIAL BREAK)

KING: An American sports icon is celebrating a birthday today. The "Sporting News" has covered 118 years of sports history from the first World Series to the birth of fantasy sports and against all those odds still a leader in the field. Peter Viles reports.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): For a century it was the Bible of baseball but then came ESPN, the Internet and the end of the "Sporting News," right? Wrong. Here's why. By covering NASCAR and football and basketball, "Sporting News" is on a roll.

JON FINE, ADVERTISING AGE: Going after NASCAR, which is a spectator sport that's way more enormous than people on the coasts can begin to conceive. That's really the opening for the "Sporting News."

VILES: "Ad Week" even puts "Sporting News" on its hot list of magazines.

RUSSELL ADAMS, "SPORTSBUSINESS JOURNAL": They added more than 70 new advertisers in the last 12 months. And increased ad revenue by more than 30 percent. You can't argue with those kind of numbers.

VILES: Circulation is up to 711,000 last year, but still a distant third behind "ESPN: The Magazine" and industry giant "Sports Illustrated." Owned by sports fanatic Paul Allen, "Sporting News" caters to the passionate fan.

RICK ALLEN, "SPORTING NEWS" CEO: We take a look at the major sports and we take a look at the insider view to try to tell you more about what is happening on the field or on the racetrack. And why it's happening.

VILES: That means no swimsuit edition, just sports journalism that is 118 years old. And still hot. Peter Viles, CNN, New York.

(END VIDEOTAPE)

KING: And joining me now the editorial director of the "Sporting News", John Rawlings. John, help us through the evolution. How do you survive and change that first edition 118 years ago, just eight pages?

JOHN RAWLINGS, "THE SPORTING NEWS": You are right, John. It's a constant evolution. Just as the Spink brothers (ph) were looking for their audience 118 years ago, you have got to be very focused. We know exactly the kind of readers we're going after, the kind of sports fans we are going after. And we think we understand what they want and provide that in a way that nobody else does.

KING: A few very provocative issues in the sports community right now. One of them, the whole debate in baseball whether there should be tougher testing for steroids. How do you deal with that issue and where do you see it going, sir?

RAWLINGS: Well, we try to analyze it, try to explain to our readers what the pros and cons are and engender a discussion. And inevitably you come down, easily, on the side of more testing and making sure that, as much as possible, all the players are on a level playing field.

KING: Have you a very informed readership, obviously. And how does that raise the bar, if you will, for the journalism. And as I do so, take the case of hockey and the recent violence in hockey, the suspension of Todd Bertuzzi. How do you deal with an issue like that in depth well beyond what somebody would pick up on a daily newspaper sports page?

RAWLINGS: Well, one of the great advantages that we have is that we know our readers come to us with a great understanding. And, as your piece said, a great passion for sports. So we don't have to explain the basics. We know that if we mention what happened to Marty McSorley, our readers will know that was the incident before Todd Bertuzzi that created the greatest consternation because of on ice violence.

So, we play to the strength and we play to that knowledge and try to increase what people know.

KING: John Rawlings, editorial director of "The Sporting News." Happy birthday to your publication and thank you for your time tonight.

RAWLINGS: Thank you, John.

KING: And still ahead, we'll introduce you to two teenagers who are evidence of "America's Bright Future." One has advanced cancer research and one has made a unique contribution to cancer patient care. That's up next, stay with us.

(COMMERCIAL BREAK)

KING: Tonight, two remarkable young people with distinctly different talents and unlimited potential. We begin with Anthony Leanna. He started a program called Heavenly Hats. It has already brought joy to thousands of people who might not otherwise have reason to smile.

(BEGIN VIDEOTAPE)

KING (voice-over): Anthony Leanna looks and sounds like any other 13-year-old, paying attention to language arts at Bayview Middle School in Suamico, Wisconsin outside Green Bay. But Anthony is hardly typical.

After school, Anthony spends his time opening up boxes filled with hats he has received from companies and individuals just to repackage them to send to cancer patients who have lost their hair.

ANTHONY LEANNA, HEAVENLY HATS: Because I know I'm putting smiles on people faces. And the only way to achieve your goal is put effort into it. Without effort, you can't achieve anything.

KING: Anthony came up with the idea called Heavenly Hats four years ago at the age of nine. His grandmother was diagnosed with breast cancer.

LEANNA: She had not lost her hair during chemo anything, but my mom showed me around the hospital and showed me all the people that lost their hair due to cancer treatments such as chemotherapy. And I decided to put a smile on their face by giving them a hat to cover up what they had lost.

KING: And smiles are what he got from this cancer survivor.

KATHY EISENSCHINK, HEAVENLY HATS RECIPIENT: When you are going through the chemo and radiation you are not feeling well and you really -- you just don't feel like dressing up and putting on the heavier wig or whatever and those hats were a godsend.

KING: Anthony started by collecting a few hundred hats from local stores to give to some nearby hospitals, but within a year and a half the donations exploded. He has received more than 25,000 hats and sends each one out individually to more than 100 hospitals nationwide plus two overseas.

GLEN LEANNA, ANTHONY'S FATHER: I would never imagine from what he started to begin with to where we are at today that he could ever start a program that anyone could start a program to get this big.

KING: Now Heavenly Hats has taken over the Leanna's laundry room and a lot of their weekends. Anthony shrugged off the numerous rewards for the goodwill. His family says, care and discipline are just in his nature.

UNIDENTIFIED FEMALE: Anthony always tells me, grandma your my inspiration for this, but he's my inspiration.

(END VIDEOTAPE) KING: If you would like to contribute to Heavenly Hats, you can log on to the Web site, heavenlyhats.com or call 920-434-2107. You can also find this information on our Web site cnn.com/lou.

From a young man helping ease the stress of cancer, to a young man who actually develop add new more effective way to diagnosis cancer. Mason Hedberg, 17 years old was just awarded a $100,000 scholarship and top honors at the Intel Science Talent research. Mason joins me now here on the set. Cancer research, 17 years old, can't even fathom it, but explain your research.

MASON HEDBERG, WON SCHOLARSHIP AT INTEL FAIR: Sure. I was working with an enzyme called telomerase, which is found only in cancer cells. And it basically makes cancer cells immortal, let's them divide forever which is the big problem with cancer. And I developed a method that will look for talomerase, or screens a library of natural compounds for their ability to inhibit talomerase.

And it's been shown that telomerase inhibitors can be very powerful tumor suppressors. It actually causes the cancer cells to commit suicide. So it's very important to find a small molecule telomerase inhibitor that can be administered orally as a cancer therapy.

KING: Why did you get interested in cancer?

HEDBERG: My grandmother had a very rare form of cancer in the base of her spine and she needed two 12-hour operations to remove the tumor. So I started reading about alternative and experimental cancer therapies. And telomerase is one of the things I read about.

KING: You just won a competition, a nice scholarship as well, congratulations. 1,600 other competitors, I believe? Why do you think you were distinguished? Why are you No. 1?

HEDBERG: Well, what I've heard judges in the past really liked about my project was that the ideas I came up with to solve the problems are very new. And people haven't thought of them before, and they do work. So, I don't know, I just think the problem solving I am able to apply to my project.

KING: Research already, cancer at 17 years-old. The $100,000 scholarship. What's next?

HEDBERG: I'm going to Brown University in the fall in an 8 year medical program. So it gives me some flexibility to design my own curriculum and hopefully I'll be able to do a lot more research in college.

And this summer I'm at -- I have an internship at Dana-Farber doing telomerase research. So, I'm going to try to stay in this area.

KING: What's the next step at Dana-Farber? Where would you like to take your research next?

HEDBERG: Dana-Farber, they're doing very interesting studies. They're -- I'm actually going to be involved in the role in telomerase in the transition of a normal cell into becoming a cancerous cell. And this isn't well understood.

And if we can figure this out, it will probably be easier to stop cancer from ever occurring.

KING: Well, we wish you the best of luck. Mason Hedberg, thank you very much. And enjoy Brown. I spent many years in Providence. It's a great city.

That's our show for tonight. Thanks for being with us. Tomorrow, National Security Adviser Dr. Condoleezza Rice and Republican National Committee Chairman Ed Gillespie join me. For all of us here, good night from New York. "ANDERSON COOPER" is next.

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





American>


Aired March 17, 2004 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is LOU DOBBS TONIGHT for March . Here now for an hour of news, debate and opinion, Lou Dobbs.
(BEGIN VIDEOTAPE)

JOHN KING, CNN ANCHOR (voice-over): Tonight, a massive car bomb destroys a hotel and blasts open a 20-foot crater in Baghdad. More than two dozen are dead.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Thugs and assassins in Iraq are desperately trying to shake our will.

KING: We'll have live reports from Baghdad, the Pentagon and the White House.

New controversy tonight over a military contract that has reignited calls for the Pentagon to buy American. Air Force Secretary James Roche says he would welcome a bid for new tanker planes from a European company. We'll have a special report.

In tonight's "Face-Off," the government's new multimillion-dollar plan to boast border security in Arizona. Congressmen J.D. Hayworth and Jeff Flake will face off on whether it will stop the flow of millions of illegal aliens into this country.

And "Exporting America." The United States threatens to cancel a high-level trade meeting with China. The Commerce Department says China isn't doing enough to promote fair trade. We'll talk with AFL- CIO secretary treasurer Richard Trumka.

(END VIDEOTAPE)

ANNOUNCER: This is LOU DOBBS TONIGHT for Wednesday, March 17. Sitting in for the vacationing Lou Dobbs for an hour of news, debate and opinion, John King.

KING: Good evening.

At least 28 people are dead and more than 50 wounded after a huge car bomb exploded in Baghdad. U.S. officials say the car was packed with artillery shell and more than 1,000 pounds of explosives. The U.S. Army has now secured the area and rescue crews are digging for any possible survivors.

CNN's Baghdad bureau chief, Jane Arraf, is live at the scene of today's bombing and has for us the latest -- Jane. JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: John, unfortunately, they are not talking about survivors at this point. They are talking about a recovery effort, though.

And you can see this frantic effort behind us for the last of what they believe are the people who were in this house. They are essentially standing on what was the living room imploded in on itself. You can see that the entire side of the house was sheered away and the people inside it covered with tons of brick, metal girders and rubble.

John, they have brought out two bodies so far from this house. They are looking for a third. The U.S. military is bringing in heavy earth moving equipment, which will be used after they find the last of the bodies. And across from here, just on the other side of the street, past this huge crater, eight by 10 feet, is the hotel near where the car bomb exploded. Now, according to the managing director of the hotel, there were two British employees of a local telephone company staying there at the time, as well as other Arab guests.

More than 20 Iraqi employees, all of them believed dead in this huge car bomb in this central Baghdad neighborhood -- John.

KING: Jane, the focus, obviously, on the recovery efforts, but any information from the U.S. military or from the Iraqi police as to who was responsible for this today?

ARRAF: John, they really can't tell. It's much too early. And, in many cases, they can't tell even after time has passed. The problem with these suicide bombs is, it essentially destroys all of the evidence.

As we walked here early on, the street was essentially in flames. There was shattered glass and damaged buildings blocks away from here. That was the extent of this explosion, extent of an explosion that has virtually obliterated all of the evidence.

Military officials, though, are saying that it does have the hallmarks of a foreign group, a group like Ansar al-Islam, which has operated in northern Iraq and has been affiliated, perhaps, with al Qaeda. They say that because of the size of the bomb, the suicide bombers -- Iraqis have not done suicide bombings -- and because of the relative sophistication of an attack like this. It is clear that this was timed for maximum impact, just days away from the anniversary and in a street that was crowded in the evening mostly with Iraqis -- John.

KING: Jane Arraf, live for us at the scene of that devastating strike in Baghdad -- Jane, thank you very much.

Now, the White House vowed not to be intimidated by the attack, saying the United States will -- quote -- "meet this test with strength and resolve."

Vice President Cheney also addressed the bombing in a campaign speech at the Ronald Reagan Presidential Library. He said U.S. resolve in Iraq is unshakable.

(BEGIN VIDEO CLIP)

CHENEY: Thugs and assassins in Iraq are desperately trying to shake our will. Just this morning, they conducted a murderous attack on a hotel in Baghdad. Their goal is to prevent the rise of the democracy. But they will fail.

(END VIDEO CLIP)

KING: Late today, democratic challenger Senator Kerry released a statement calling the attack cowardly. Kerry said -- quote -- "Today, I reiterate my call for America to convene an international summit to coordinate our efforts against terror and to strengthen and grow our coalition in Iraq" -- end quote.

The car bomb exploded just hours after U.S. and Iraqi forces launched a new offensive against insurgents in and around Baghdad. Operation Iron Promise was designed to prevent an expected rise in violence leading up to the Iraqi handover on of sovereignty on June 30.

Senior Pentagon correspondent Jamie McIntyre is live now at the Pentagon.

Jamie, just a few days ago, the Central Command commanding general, John Abizaid, said he was worried about just this kind of violence. Any talk of a shift in tactics tonight?

JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: No, really, just a rededication to the current tactics, continuing to put the pressure on insurgents and possibly al Qaeda elements in Iraq, while trying to protect U.S. forces as much as possible, lower their profile and put more emphasis, again, on Iraqi forces providing their own security and in the case of this bombing, also providing the initial rescue capability.

The idea, the U.S. is convinced that the best strategy is to continue on this move toward the Iraqization of the country, to get the United States out of the crossfire, to put Iraq in charge of its own security, and continue the move toward that turnover to sovereignty. And they are convinced that this bombing today is just a sign of the increasing desperation of the anti-U.S. forces and that any capitulation to that would simply encourage them.

So the U.S. is remaining steadfast, but they warn, U.S. commanders warn there could be another deadly attack just like this one in the weeks or months ahead -- John.

KING: Jamie, certainly, they are worried about attacks in the period leading up to the handover of sovereignty, about four months away. What about the context of the next 48 hours, when here in the United States, of course, there is a great deal of focus on the one- year mark, Friday of course being one year since the president ordered the first bombing in Baghdad. MCINTYRE: Well, they are generally concerned about that, but they didn't, for instance, have any intelligence warning of this particular attack in Baghdad. And they say it's virtually impossible given the size of the country and all the things that are in the city of Baghdad to provide protection for everything.

So they are resigned to the fact that there could be another deadly attack which they simply can't prevent.

KING: And, Jamie, what is the status? You say the Iraqization of the security. Is this a sign that perhaps that security is not good enough yet, not well trained enough yet?

MCINTYRE: Well, probably no level of security could prevent an attack like this. But it is true that the Iraqi forces are not well trained enough. They are not equipped well enough yet. And U.S. commanders admit that. That's something they are trying to overcome. That's something they are trying to accelerate, but it simply takes time.

They don't have enough body armor. They don't have enough radios. They don't have enough cars to equip the Iraqi police and security forces the way they should be. And, of course, training just takes time. So they admit there are shortfalls in that area.

KING: Jamie McIntyre tonight at the Pentagon -- thank you, Jamie.

A new CNN/"USA Today"/Gallup poll taken before today's bombing shows public support for the war in Iraq has fallen. It finds 55 percent of Americans now say it was worth going to war in Iraq. That's down from a year ago when 68 percent said the war was worth it; 43 percent now say the war was not worth it. That's up from 29 percent a year ago.

The latest violence in Iraq came on a day both campaigns in the race for president had set aside to deliver major foreign policy addresses. It should come at no surprise that Iraq was a central element for those speeches and no surprise that the Bush and Kerry camps profoundly disagree.

(BEGIN VIDEOTAPE)

KING (voice-over): Senator Kerry began with his assessment of Iraq one year later.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We're still bogged down in Iraq. And the administration stubbornly holds to failed unilateral policies that drive potential significant, important long-standing allies away from us.

KING: The Democratic challenger said Mr. Bush had broken promises to the troops deployed overseas and to veterans here at home.

KERRY: This president has had his chance and this president has not delivered. KING: Senator Kerry called for adding 40,000 troops to an Army he says is stretched too thin. And he took issue with the president's critique that the Massachusetts senator would give the United Nations too much sway over whether to go to war.

KERRY: While we should seek allies, we must and we will never give anyone else a veto over the national security of our nation.

KING: At the Reagan Library, a far different view from the vice president, who likened the war on terrorism to president's Reagan's hard line against Soviet communism.

CHENEY: Americans friends know they can trust and America's enemies know they can fear the decisive leadership of President George W. Bush.

(APPLAUSE)

KING: The vice president suggested Senator Kerry is anything but decisive.

CHENEY: In January, he was asked on TV if he was -- quote -- "one of the anti-war candidates." He replied, "I am." He now says he was voting only to -- quote -- "threaten the use of force," not actually use force.

KING: And Mr. Cheney said the Democratic challenger had voted against major weapon systems critical to the war on terrorism and had insulted U.S. allies shedding blood in Iraq.

CHENEY: It is not an impressive record for someone who aspires to become commander and chief in this time of testing for our country.

(END VIDEOTAPE)

KING: Joining me now for more on the foreign policy debate are White House correspondent Suzanne Malveaux and national correspondent Bob Franken, who is following the Kerry campaign.

Suzanne, let's begin with you.

The administration's message today is, stay the course. But a dramatic event like this must complicate the White House push just this week to cast the situation in Iraq in a very positive light.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, John, the thinking here at the White House is that it certainly does complicate matters, but that is only if they reach a certain threshold, these killings, where either American voters or foreign allies believe that it is no longer worth it.

White House officials are not seeing that. With the exception of Spain, they have been able to keep the 30-plus members of the coalition together. But they make the argument, they make the case that this is an that's attack against the Iraqi people, against the process of democracy. They also make the argument that this is further evidence that shows that anybody can be a target. Therefore, you have to stay the course. You have to stay aggressive against the terrorists -- John.

KING: And, Bob Franken, Senator Kerry condemning this bombing tonight, calling it cowardly and horrific. In an odd, sad way, even behind the scenes, though, do they believe an episode like this reinforces Senator Kerry's view that the U.S. military may have won the war, but the president is not managing the peace?

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: It's a very delicate dance.

The party out of power -- and, of course, Senator Kerry is in the party out of power -- there's a tradition in the United States of the loyal opposition. And Senator Kerry has to worry about being perceived as the disloyal opposition, hence, his statement which emphasized these cowardly acts will only strengthen our resolve.

He did go on, however, to call once again for an international summit, which is a push. If there is some sort of international get- together at some point to discuss all of this, Kerry would possibly want to take some of the credit. And, of course, he makes the point that the United States has acted without a lot of international support. So there is some nuanced criticism of the administration, but again the great bulk of the statement is to express support for U.S. foreign policy.

KING: And, Suzanne, the president himself hits the road tomorrow to surround himself with the troops, more of the P.R. push, right?

MALVEAUX: Absolutely.

And what you are going to hear is a similar message we heard throughout the week, that it is worth it in the war on terror. But what is also equally important is the audience that he delivers it to. He'll be at Fort Campbell, Kentucky, before the troops who have been participating in the war on terror, and then, of course, on Friday back at the White House, where he makes that major speech on the update on the war in Afghanistan and Iraq.

KING: And, Bob, you mentioned this delicate dance for the challenger. You don't want to criticize the troops, obviously. How do they manage that dance?

FRANKEN: Well, Kerry has managed to do it by emphasizing his military credentials. He has attacked, as a matter of fact, this administration for shortchanging both the troops in Iraq and veterans. So that's how he's trying to do it, by making sure that the message gets out if at all possible that he has strong military credentials.

KING: Bob Franken, Suzanne Malveaux, both in Washington tonight, thank you very much.

Secretary of State Colin Powell, meanwhile, is in another key battleground in the war on terror. Today, he met with Afghan leaders about the intensified hunt for Osama bin Laden. We'll have a report from Kabul next.

Plus, the Pentagon might reopen the bidding for a new fleet of airplane tankers. The reason, to allow a European company to bid for that contract. We'll have a special report.

And then "Exporting America." The nation's largest labor organization has filed a complaint accusing China of unfair trade practices. AFL-CIO secretary treasurer Richard Trumka will be our guest. That and much more ahead.

Stay with us.

(COMMERCIAL BREAK)

KING: Senator John Kerry today distanced himself from a controversial comment from former Democratic presidential candidate Howard Dean.

In a conference call arranged by the Kerry campaign, Dean said President Bush -- quote -- "dragged our troops to Iraq, which apparently has been the factor in the death of 200 Spaniards over the weekend" -- end quote.

That prompted a harsh response from the Bush-Cheney campaign chairman, Marc Racicot. He called on Senator Kerry to -- quote -- "immediately repudiate these troubling comments and stop all efforts on behalf of his surrogates to blame America for these attacks" -- end quote. Senator Kerry today said Governor Dean's position is not his position.

Spain's newly elected prime minister is stepping up his criticism of U.S. policy. Jose Luis Rodriguez Zapatero today called the U.S. occupation of Iraq a fiasco. He also said the United States combats terrorism using -- quote -- "shock and awe," which Zapatero says only inspires more violence. Zapatero reiterated his pledge to pull Spain's 1,300 troops out of Iraq.

Secretary of State Colin Powell today said the United States is committed to hunting al Qaeda remnants hiding out along the border between Pakistan and Afghanistan. Powell met with Afghanistan President Hamid Karzai to discuss the intensified hunt for Osama bin Laden and Islamic rebels, ahead of the upcoming democratic elections in Afghanistan.

Ryan Chilcote reports now from Kabul.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice-over): Pakistani forces and tribal volunteers have moved into the border region with Afghanistan and begun to push back on suspected al Qaeda fighters.

COLIN POWELL, SECRETARY OF STATE: If Taliban elements are forced from Pakistan back into Afghanistan as a result of actions on the Pakistan side of the border, I'm sure that our military forces here working with Afghan forces will deal with those elements. CHILCOTE: For the more than 13,000 coalition troops, the Arab fighters have so far been hands off over the border. Now they may even get a crack at Osama bin Laden himself, who many believe is still in that region.

Privately, U.S. and Afghan officials worry that outside the hunt for bin Laden, Afghan has already lost the U.S.' attention and that the U.S. is about to reduce the military presence here. U.S. Senator James Inhofe, who sits on the Armed Services Committee, was in Afghanistan last week.

SEN. JAMES INHOFE (R), OKLAHOMA: I would like to see that changed, be cut in half the next year.

CHILCOTE: Many here say the U.S. needs to keep its attention on Afghanistan for at least two more years.

POWELL: The question that has been raised in the course of my visit this morning is, will the United States be here for the long term? The answer is yes.

CHILCOTE: As Afghanistan approaches its first democratic presidential election, the U.S. secretary of state toured a voter registration center for women, who make up a quarter of those registered to vote, unthinkable under Taliban rule. Only a million and a half of the country's more than 25 million people are registered to vote. And with U.S. and Afghanistan troops still fighting with the Taliban and al Qaeda, much of the country may still be too unstable to hold elections.

(on camera): U.S. officials say those problems can be addressed quickly, but that reconstruction of this country after two decades of war will take much longer. Secretary Powell meets with Pakistani President Musharraf on Thursday in Islamabad.

Ryan Chilcote, CNN, Kabul, Afghanistan.

(END VIDEOTAPE)

KING: Still ahead, we'll return to the scene of today's tragic bombing in Baghdad and I'll talk with Lieutenant Colonel Peter Jones of the 1st Armored Division. He was among the first military personnel on the scene.

And the U.S. Air Force needs a new fleet of tanker planes. Could that lucrative contract go to Europe's Airbus? We'll have the surprising story.

And later, patrolling Arizona's border with Mexico. Will a new $10 million plan help stem the tide of illegal aliens? "Face-Off" is just ahead.

(COMMERCIAL BREAK)

KING: Boeing's archrival, Airbus, could be in the running if the Air Force has to come up with a new plan to update its aging fleet of tankers. The Pentagon had reached an agreement with Boeing, but may have to reopen the bidding process.

But, as Lisa Sylvester reports, just the thought of a European company making the Air Force's planes have someone crying foul.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Air Force Secretary James Roche said, if the Pentagon has to go back to square one, it would welcome the competition to develop its new line of tanker planes. "It would be an alternative because we're talking about a brand new plane."

Asked about pressuring Boeing to compete, Roche said, "I would be delighted to do it." But losing the lucrative deal would not be good news for Boeing's workers.

TOM BUFFENBARGER, INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS: Probably a minimum of 1,000 good-paying U.S. jobs here in this country. And to have the secretary of the Air Force saying, nah, let's give the French and the Germans and the Brits a chance to take it away from us is further insult to the American workers.

SYLVESTER: Boeing's problem, a controversial plan that originally called for the Pentagon leasing 100 planes at a cost of $23 billion. But it costs more to lease the planes than to buy them outright. Congress agreed that wasn't a very good bargain for the taxpayers and changed the deal to buy 80 planes and lease the remaining 20.

But now Boeing can't shake the nagging questions into how it got the deal in the first place. Four investigations are looking into whether the contract was awarded improperly. The U.S. aerospace industry says Boeing won the deal because its planes are tailored to meet the Air Force's need.

JOHN DOUGLASS, AEROSPACE INDUSTRIES ASSOCIATION OF AMERICA: Airbus has never built a single airplane to Air Force specifications, ever. So if I were the assistant secretary of the Air Force, I would have to take that into consideration.

SYLVESTER: Including Airbus in a new bidding process is certain to draw criticism from Congress, especially in an election year and especially as the country continues to lose manufacturing jobs.

LOREN THOMPSON, LEXINGTON INSTITUTE: The existing fleet is getting so old that we're going to have to buy new ones, but we've only got two choices. We can buy them from an American company or we can buy them from a French company called Airbus. What do you think Congress will want?

(END VIDEOTAPE)

SYLVESTER: Here's another thing to consider. Because of the dollar's decline against the euro, Airbus will be at a price disadvantage and their planes could cost about 25 percent more than when the contract was originally awarded to Boeing -- John.

KING: Lisa, you mentioned the election-year pressures. Any chance at all that, if the Air Force decided to do it, that Congress would let it?

SYLVESTER: Actually, at this point, it doesn't look like Congress -- there's much appetite at least in Congress to give this deal to a European company. And one of the interesting things is -- we'll have to see how this all plays out -- but some believe that it a subtle way or not-so-subtle way of putting pressure on Boeing to reach better terms with the Pentagon when it is time to negotiate the price on these planes -- John.

KING: Certainly worth watching in the weeks and months ahead. Lisa Sylvester, thank you very much.

And that brings us to the topic of tonight's poll question. What do you believe should be the most important factor for awarding U.S. government contracts, price, quality, or buying American? Cast your vote at CNN.com/Lou. We'll bring you the results later in the show.

And coming up, chaos erupts in Baghdad as a car bomb kills dozens of people. We'll hear from Lieutenant Colonel Peter Jones in Baghdad. He was among the first military personnel to arrive at the scene of today's attack.

And in tonight's "Face-Off," stemming the tide of illegal aliens. The United States unveils a new plan. But our guests are divided over whether it will do any good.

And in "Exporting America," his organization is taking on China and its trade practices. Richard Trumka of the AFL-CIO will be our guest.

(COMMERCIAL BREAK)

KING: Returning now to our top story tonight, 29 people were killed when a car bomb destroyed a hotel in central Baghdad.

We are joined live now by the 1st Armored Division's Lieutenant Colonel Peter Jones in Baghdad.

Sir, thank you for joining us tonight on this tragic day.

I want to ask you, first, you are standing right at the scene. What is the latest behind you? Any chance of survivors or is this simply now an effort to recover the dead?

LT. COL. PETER JONES, 1ST ARMORED DIVISION: Unfortunately, I have to report that this is now simply an effort to recover the dead.

What you see behind me was a private residence, a family of seven. We were able to account for four of the individuals after the attack. Since then, we have been able to recover two remains and we're still looking to find one more remains. And, at this point in time, the Iraqi civil defense corps that's been actually out here doing the excavation has asked for some assistance.

So we brought in a heavy mover to move some of the larger materials, so that they can go and continue to work with pick and shovels to try to find the last individual remaining.

KING: Colonel Jones, you're talking about the assistance you are providing now. Reports from the scenes initially were that when the U.S. military arrived on the scene, there was some tension -- the Iraqis were upset at the bombing -- some tension with the U.S. military personnel. Can you describe that scene for us, sir, and the source of that tension?

JONES: Well, I think there's tension at any point in time. And I don't think it was necessarily leveled between the Iraqi security forces and -- and us, because we work very closely with the Iraqi police in this neighborhood. I think the sense of tension is, of course, is that a bomb of this magnitude that caused this much devastation on what was relatively quiet night in Baghdad, of course, causes any type of tension in any type of neighborhood that's trying to move on into the future.

KING: And what can you tell us, sir? We're told a car bomb, a thousand pounds of explosives, anything else you can tell us about what was involved in the attack? And if there's any sense at all of who was responsible? Iraqi insurgents, outside forces?

JONES: At this point in time, it's hard to be able to pinpoint which group is actually responsible. We have talked to the manager of the hotel. He did not receive any previous threats to the residence. His clientele was a mix of both Middle Easterners and also some Europeans.

The issue that we're all asking ourselves, along with the Iraqis is, why this location and what is really a very crowded alley way in between two residential homes and one hotel.

KING: I assume, sir, as you ask that question, why, some new security precautions are being taken. Can you help us understand the reaction and what will be done to try to prevent it from happening again?

JONES: Well, there's two things that we're really working on to see this doesn't happen again. One is we have built up the Iraqi security forces both in terms of increased Iraqi police inside of Baghdad. The establishment of the Iraqi Civil Defense Corps, which works hand in hand with the coalition.

Additionally, just by chance the 1st Armored Division is conducting operation -- provide promise and which we're showing our commitment by going after what we believe are some residing insurgent cells throughout Baghdad. And throughout this evening we're executing those targets and capturing those individuals.

KING: Lieutenant Colonel Peter Jones live for us at the scene of this devastation in Baghdad. Sir, we know it's been a difficult day. We thank you for you time. And we wish you and your men the best, sir.

JONES: Appreciate your support, thank you.

KING: Thank you, sir.

And turning now to an issue of security here at home, broken borders. Arizona's 350 mile border with Mexico will soon be the most heavily patrolled in the nation. The $10 million Arizona Border Control Initiative will be implemented over the next six months. 260 additional border patrol agents will be added. And remote control aircraft, or drones, will be used for the first time.

The new border patrol plan in Arizona is at the center of tonight's "Face Off." Representative J.D. Hayworth from Arizona says more border guards are welcome, but not enough, in his view, to stem the tide of illegal aliens. Representative Jeff Flake, also of Arizona, says the stepped up border patrol is a good step.

Welcome to you both, gentlemen. J.D. Hayworth, let me start with you. Drones being used the first time, effective along the border or more of a photo op?

REP. J.D. HAYWORTH, (R) ARIZONA: I think it's very important. I think this is welcome. But despite the increase in manpower, and the use of drones, and the use of other devices and greater scrutiny along the Arizona border, the fact remains as long as illegals believe there is a safe haven with no repercussions, they will continue to try and pour across the border. And it is that simple truth that we must deal with that until we enforce existing laws, talk of a guest worker program and a type of economic nirvana that so many proponents will happen is way, way premature.

KING: Well, Jeff Flake, you are among those talking about a guest worker program? Nirvana?

REP. JEFF FLAKE, (R) ARIZONA: Oh, we have got to have it. Certainly, this move along the boarder is welcome, but it's not enough. As J.D. said, as long as people think they can get away with it -- right now, frankly, we have a de facto amnesty. If you get through the border you're home free. And what we have to have is worker sanctions, workplace enforcement that we don't have now.

But in order to have that, we have to have a guest worker program. Trying to enforce the current law is like trying to enforce a 20 mile an hour speed limit on a freeway. It's simply not going to work.

KING: Congressman Flake, let me interrupt, though. Many think there's an increase in illegal aliens coming across the word border they think if they get here there will be a program where they can come forwards and get, at lest, temporary status in this country. Do you disagree with those?

FLAKE: That's been the case for the past 15 years, ever since the 1986 amnesty that's been the case. What we need to do is end the current de facto amnesty that we have. That's why the president is proposing to have a temporary worker program.

His temporary worker program is not an amnesty. It says, if you are here illegally now, one, first, you pay a fine, and second, you go to the back of the line in terms of seeking permanent residence or citizenship. So it's not an amnesty the president is proposing, we desperately need a temporary worker program like that.

KING: Congressman Hayworth, you are shaking your head, jump in.

HEYWORTH: Well, with all due respect to Jeff, I think we have the policy exactly backwards. Because we have to ask this question, if we're unwilling to enforce current law, what makes us think we will enforce any new laws? And that's the fundamental problem.

You see, fortifying the border with is a welcome sign. I've called for that. But I don't believe you just dismiss the laws on the books. I believe Americans want people to play buy the rules. And when we set up a different set of rules, for a special class of people, we are sending a conflicting message that keeps us in the very problem that both Jeff and I would like to solve in some way.

KING: If two Republican Congressman from the same state and a critical border state of Arizona cannot agree on this, is there any chance in an election year that a guest worker program or any significant immigration reforms are going to pass this year? Jeff Flake, you, first?

FLAKE: I sure hope so. We can't wait much longer in Arizona. We really bear the brunt of it, because we pay the cost in healthcare and education and criminal justice. So we desperately need something.

I would simply argue that in order to enforce the law you have to have a law that's reasonable to enforce. And currently, I don't think anybody is seriously talking about deporting the eight to 12 million illegals who are currently here. We have to have a process where they gain temporary worker status in order to continue. If we don't do that, we're simply not going to enforce the law and we need to enforce the law.

KING: Congressman Hayworth?

HAYWORTH: Well, I agree we need to enforce existing law, that's the crux of the dispute that Jeff and I have. But I will say this about the current situation, again, you have to ask yourself, if you are not willing to enforce current law, what makes you think you would enforce any new laws and that is why for my perspective we will not see this. We will not see new legislation passed or signed into law.

And it's precisely because of some of the reasons Jeff talked about. Because of the healthcare dollars, because of the tremendous strain already on law abiding citizens, there is no reason to offer any type of invitation to further illegal aliens coming across our borders.

KING: Congressman J.D. Hayworth, Congressman Jeff Flake, both Republicans of Arizona. We thank you for your time tonight. And coming up, "Exporting America," new tensions threaten trade talks between the United States and China. Rich Trumka of the AFL-CIO is my guest.

And over a century of sport and still beating the competition, "The Sporting News" celebrates a birthday. Editorial director John Rawlings will join us.

(COMMERCIAL BREAK)

KING: U.S. lawmakers and a group of senior business executives today urged President Bush to stand firm against critics of outsourcing, what we like to call in this broadcast "Exporting America." The president's export council warned the president that attempts to stop outsourcing threatened the U.S. economy.

The advisory group drafted a letter to President Bush saying, quote, "it is especially important that the administration now also take a leadership role in resisting federal, state, and local legislative initiatives that would impose new restrictions on how employers and workers can maintain and increase their competitiveness in the global economy."

Earlier this month the president called critics of his trade policy economic isolationists.

A high-level trade meeting with China tonight appears to be in jeopardy. A senior Commerce Department official said that meeting, scheduled for late May, may not be worth having unless China addresses a variety of U.S. concerns such as the counterfeiting of copyrighted products. Our next guest is also concerned about the current trade situation with China. In fact, his organization has filed a complaint with the U.S. trade office. AFL-CIO secretary general Richard Trumka joins me from Washington. Rich Trumka, explain this complaint, an extraordinary step for the AFL-CIO to take.

RICHARD TRUMKA, SECRETARY-TREASURER, AFL-CIO: I sure will. American workers right now are really suffering. They are losing their jobs and losing their future. They are losing their security. They are doing that in large part because there's a growing trade deficit with China. It's about $124 billion and it's growing by about 20 percent a year. That trade deficit is being aided by unfair, unreasonable trading practices by the Chinese. They refuse to give their workers any rights. They refuse to give their workers minimum wages. They refuse to enforce their maximum hours. They refuse to enforce their health and safety standards and that gives China-based producers a 44 percent advantage over every other exporter, every other producer in the world.

We filed a 301 suit because we now can document that as of 2001, over 720,000 U.S. jobs were lost because of their cheating on their own rules. And we have asked the U.S. secretary -- the trade representative to do three things. One, to impose trade remedies commensurate with the amount of cheating the Chinese are doing or 44 percent. Two, sign an agreement with the Chinese that says we'll reduce those trade remedies as you meet and verify benchmarks about workers rights. As you start enforcing your laws we'll reduce the trade remedies. The third thing we ask is for the president to instruct the U.S. trade representative, to enter into no more agreements with the WTO until the WTO insists that all of its members adhere to the U.N./ILO standards for labor rights. That will convert, John, the global economy from pushing wages down worldwide to actually raising them up and being fair everywhere worldwide.

KING: You have heard a bit of grumbling about the Chinese practices out of the Commerce Department today. Any prospects at all that the administration will take this seriously in your view?

TRUMKA: Well they have 45 days within which to accept it or not. They are going to have to say either, one, the Chinese government isn't doing those things. And say that their own documents are lying. Or they are going to have to refuse it on the other hand that these unfair trade practices of the Chinese don't affect us here at home. And every American knows that they do. We are hoping they will accept that practice, that policy and go after it with full force.

KING: Forgive me, but a cynic might say in this election year, here's the AFL-CIO a major supporter of Democrat John Kerry in this campaign looking to mobilize its voters and their families in November, trying to play a little politics if you will, not so much a policy debate but a political wedge with the Bush administration. How would you answer that?

TRUMKA: I'd answer it by saying this, in the last three years, 2.9 million manufacturing workers have lost their jobs. This president has no policies to go forward. He has not enforced the trade laws that are on the books. We want him to do that. This is an opportunity for him to stand up and prove to the American worker that he really does support them. If doesn't do it, then we'll know where he stands. He'll stand with the multinationals against American workers. We hope that he does the right thing. That he enforces our laws. That he insists the Chinese start to enforce their laws so that workers on both sides of the border in China, and the U.S. can have a better life and trade can start to work for everybody in the world and not just the privileged few.

KING: Richard Trumka, secretary-treasurer of the AFL-CIO. Thank you for your time tonight, sir. I suspect you'll be back as this campaign year plays out.

And a reminder now to vote in tonight's poll. What do you believe should be the most important factor for awarding U.S. government contracts? Price, quality, or buying American. Cast your at CNN.com/lou. We'll bring you the results a bit later in this show.

A solid rally today on Wall Street despite today's terror attack in Baghdad. The Dow gained 116 points, the Nasdaq added 34 and the S&P 500 jumped 13. Oil prices soared today. Christine Romans here with "The Market."

CHRISTINE ROMANS, CNN CORRESPONDENT: Stocks bouncing back from three month lows and today was the best couple of days for stocks since October. In fact, that was the Dow's first back-to-back gains since the correction began. Why, a low interest rate environment, also that's helping financial stocks and you have core inflation contained in February. At the same time oil prices soaring. Crude oil prices up very sharply. (UNINTELLIGIBLE). The highest price since -- since 1990. Already low gas supplies have dropped just two months before the summer driving season and average crude oil prices today well above last year. It's really amazing.

KING: Really amazing. Painful to some wallets. Thank you very much.

Just ahead, it's still in the game, after more than 100 years the "Sporting News" is going strong. Its editorial director will be my guest.

And America's bright future. We'll introduce to you Herbert Hedberg, the winner of Intel's Science Talent Search. His amazing story when we return.

(COMMERCIAL BREAK)

KING: An American sports icon is celebrating a birthday today. The "Sporting News" has covered 118 years of sports history from the first World Series to the birth of fantasy sports and against all those odds still a leader in the field. Peter Viles reports.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): For a century it was the Bible of baseball but then came ESPN, the Internet and the end of the "Sporting News," right? Wrong. Here's why. By covering NASCAR and football and basketball, "Sporting News" is on a roll.

JON FINE, ADVERTISING AGE: Going after NASCAR, which is a spectator sport that's way more enormous than people on the coasts can begin to conceive. That's really the opening for the "Sporting News."

VILES: "Ad Week" even puts "Sporting News" on its hot list of magazines.

RUSSELL ADAMS, "SPORTSBUSINESS JOURNAL": They added more than 70 new advertisers in the last 12 months. And increased ad revenue by more than 30 percent. You can't argue with those kind of numbers.

VILES: Circulation is up to 711,000 last year, but still a distant third behind "ESPN: The Magazine" and industry giant "Sports Illustrated." Owned by sports fanatic Paul Allen, "Sporting News" caters to the passionate fan.

RICK ALLEN, "SPORTING NEWS" CEO: We take a look at the major sports and we take a look at the insider view to try to tell you more about what is happening on the field or on the racetrack. And why it's happening.

VILES: That means no swimsuit edition, just sports journalism that is 118 years old. And still hot. Peter Viles, CNN, New York.

(END VIDEOTAPE)

KING: And joining me now the editorial director of the "Sporting News", John Rawlings. John, help us through the evolution. How do you survive and change that first edition 118 years ago, just eight pages?

JOHN RAWLINGS, "THE SPORTING NEWS": You are right, John. It's a constant evolution. Just as the Spink brothers (ph) were looking for their audience 118 years ago, you have got to be very focused. We know exactly the kind of readers we're going after, the kind of sports fans we are going after. And we think we understand what they want and provide that in a way that nobody else does.

KING: A few very provocative issues in the sports community right now. One of them, the whole debate in baseball whether there should be tougher testing for steroids. How do you deal with that issue and where do you see it going, sir?

RAWLINGS: Well, we try to analyze it, try to explain to our readers what the pros and cons are and engender a discussion. And inevitably you come down, easily, on the side of more testing and making sure that, as much as possible, all the players are on a level playing field.

KING: Have you a very informed readership, obviously. And how does that raise the bar, if you will, for the journalism. And as I do so, take the case of hockey and the recent violence in hockey, the suspension of Todd Bertuzzi. How do you deal with an issue like that in depth well beyond what somebody would pick up on a daily newspaper sports page?

RAWLINGS: Well, one of the great advantages that we have is that we know our readers come to us with a great understanding. And, as your piece said, a great passion for sports. So we don't have to explain the basics. We know that if we mention what happened to Marty McSorley, our readers will know that was the incident before Todd Bertuzzi that created the greatest consternation because of on ice violence.

So, we play to the strength and we play to that knowledge and try to increase what people know.

KING: John Rawlings, editorial director of "The Sporting News." Happy birthday to your publication and thank you for your time tonight.

RAWLINGS: Thank you, John.

KING: And still ahead, we'll introduce you to two teenagers who are evidence of "America's Bright Future." One has advanced cancer research and one has made a unique contribution to cancer patient care. That's up next, stay with us.

(COMMERCIAL BREAK)

KING: Tonight, two remarkable young people with distinctly different talents and unlimited potential. We begin with Anthony Leanna. He started a program called Heavenly Hats. It has already brought joy to thousands of people who might not otherwise have reason to smile.

(BEGIN VIDEOTAPE)

KING (voice-over): Anthony Leanna looks and sounds like any other 13-year-old, paying attention to language arts at Bayview Middle School in Suamico, Wisconsin outside Green Bay. But Anthony is hardly typical.

After school, Anthony spends his time opening up boxes filled with hats he has received from companies and individuals just to repackage them to send to cancer patients who have lost their hair.

ANTHONY LEANNA, HEAVENLY HATS: Because I know I'm putting smiles on people faces. And the only way to achieve your goal is put effort into it. Without effort, you can't achieve anything.

KING: Anthony came up with the idea called Heavenly Hats four years ago at the age of nine. His grandmother was diagnosed with breast cancer.

LEANNA: She had not lost her hair during chemo anything, but my mom showed me around the hospital and showed me all the people that lost their hair due to cancer treatments such as chemotherapy. And I decided to put a smile on their face by giving them a hat to cover up what they had lost.

KING: And smiles are what he got from this cancer survivor.

KATHY EISENSCHINK, HEAVENLY HATS RECIPIENT: When you are going through the chemo and radiation you are not feeling well and you really -- you just don't feel like dressing up and putting on the heavier wig or whatever and those hats were a godsend.

KING: Anthony started by collecting a few hundred hats from local stores to give to some nearby hospitals, but within a year and a half the donations exploded. He has received more than 25,000 hats and sends each one out individually to more than 100 hospitals nationwide plus two overseas.

GLEN LEANNA, ANTHONY'S FATHER: I would never imagine from what he started to begin with to where we are at today that he could ever start a program that anyone could start a program to get this big.

KING: Now Heavenly Hats has taken over the Leanna's laundry room and a lot of their weekends. Anthony shrugged off the numerous rewards for the goodwill. His family says, care and discipline are just in his nature.

UNIDENTIFIED FEMALE: Anthony always tells me, grandma your my inspiration for this, but he's my inspiration.

(END VIDEOTAPE) KING: If you would like to contribute to Heavenly Hats, you can log on to the Web site, heavenlyhats.com or call 920-434-2107. You can also find this information on our Web site cnn.com/lou.

From a young man helping ease the stress of cancer, to a young man who actually develop add new more effective way to diagnosis cancer. Mason Hedberg, 17 years old was just awarded a $100,000 scholarship and top honors at the Intel Science Talent research. Mason joins me now here on the set. Cancer research, 17 years old, can't even fathom it, but explain your research.

MASON HEDBERG, WON SCHOLARSHIP AT INTEL FAIR: Sure. I was working with an enzyme called telomerase, which is found only in cancer cells. And it basically makes cancer cells immortal, let's them divide forever which is the big problem with cancer. And I developed a method that will look for talomerase, or screens a library of natural compounds for their ability to inhibit talomerase.

And it's been shown that telomerase inhibitors can be very powerful tumor suppressors. It actually causes the cancer cells to commit suicide. So it's very important to find a small molecule telomerase inhibitor that can be administered orally as a cancer therapy.

KING: Why did you get interested in cancer?

HEDBERG: My grandmother had a very rare form of cancer in the base of her spine and she needed two 12-hour operations to remove the tumor. So I started reading about alternative and experimental cancer therapies. And telomerase is one of the things I read about.

KING: You just won a competition, a nice scholarship as well, congratulations. 1,600 other competitors, I believe? Why do you think you were distinguished? Why are you No. 1?

HEDBERG: Well, what I've heard judges in the past really liked about my project was that the ideas I came up with to solve the problems are very new. And people haven't thought of them before, and they do work. So, I don't know, I just think the problem solving I am able to apply to my project.

KING: Research already, cancer at 17 years-old. The $100,000 scholarship. What's next?

HEDBERG: I'm going to Brown University in the fall in an 8 year medical program. So it gives me some flexibility to design my own curriculum and hopefully I'll be able to do a lot more research in college.

And this summer I'm at -- I have an internship at Dana-Farber doing telomerase research. So, I'm going to try to stay in this area.

KING: What's the next step at Dana-Farber? Where would you like to take your research next?

HEDBERG: Dana-Farber, they're doing very interesting studies. They're -- I'm actually going to be involved in the role in telomerase in the transition of a normal cell into becoming a cancerous cell. And this isn't well understood.

And if we can figure this out, it will probably be easier to stop cancer from ever occurring.

KING: Well, we wish you the best of luck. Mason Hedberg, thank you very much. And enjoy Brown. I spent many years in Providence. It's a great city.

That's our show for tonight. Thanks for being with us. Tomorrow, National Security Adviser Dr. Condoleezza Rice and Republican National Committee Chairman Ed Gillespie join me. For all of us here, good night from New York. "ANDERSON COOPER" is next.

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