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Lou Dobbs Tonight

U.S. Government Indicts Suspected al Qaeda Plotter; U.S. Military Low on Bullets?

Aired May 27, 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.


(BEGIN VIDEOTAPE)
LOU DOBBS, CNN ANCHOR (voice-over): Tonight, the United States indicts a radical Islamist cleric who supports al Qaeda and who plotted to set up a terrorist training camp in Oregon.

JOHN ASHCROFT, ATTORNEY GENERAL: The Department of Justice is bringing the full weight of the criminal law against those who support the activities of terrorists.

DOBBS: The military is running out of bullets to fight the wars in Iraq and Afghanistan. Incredibly, the Pentagon may turn to foreign companies for their ammunition.

In Iraq, the coalition makes a deal to end the fighting in Najaf. Muqtada al-Sadr, however, is not disarming his militia. I'll be joined by the former director of the National Security Agency General William Odom and CNN military analyst General David Grange.

Floods and mudslides in Haiti and the Dominican Republic kill more than 2,000 people. We'll have a live report from the Dominican Republic.

And waters wars. A six-year drought in the West, Las Vegas taking drastic measures to save water.

UNIDENTIFIED FEMALE: We need to conserve water for the future of our children.

DOBBS: Tonight, we'll have a special report.

(END VIDEOTAPE)

ANNOUNCER: This is LOU DOBBS TONIGHT Thursday, for May 27. Here now for an hour of news, debate and opinion is Lou Dobbs.

DOBBS: Good evening.

The United States today indicted a radical Islamist cleric in Britain, charging him with helping the al Qaeda. The indictment also accuses the cleric of hostage taking and plotting to establish a terrorist training camp in Oregon. British police arrested the cleric in his London home. Today's arrest comes one day after U.S. officials warned about the possibility of a major terrorist attack against this country.

Deborah Feyerick is here now with the report -- Deborah.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Lou, in the past, Abu Hamza al-Masri has denied being connected to terrorism. The 11-count indictment alleges otherwise, Abu Hamza charged with hostage taking, with trying to set up a terror camp in Oregon, with helping raise money in New York to send followers to Afghanistan, and with encouraging followers to wage a holy war.

(BEGIN VIDEO CLIP)

ASHCROFT: As today's arrest makes clear, the Department of Justice is bringing the full weight of the criminal law against those who support the activities of terrorists. The United States will use every diplomatic, legal, and administrative tool to pursue and to prosecute those who facilitate terrorist activity. And we will not stop until the war on terrorism is won.

(END VIDEO CLIP)

FEYERICK: The arrest of Abu Hamza in London stems from the newly unsealed U.S. indictment. He appeared at an extradition hearing in London. He did not stand, his lawyer telling a British magistrate he would not consent to being brought to the United States.

Now, Abu Hamza preached at the Finsbury Mosque in London. Authorities say it is the same mosque attended by alleged 9/11 conspirators Zacarias Moussaoui and Richard Reid, convicted of trying to blow up a plane with a bomb in his sneakers. Abu Hamza is described by officials as the real deal and a freelance consultant to terrorists worldwide -- Lou.

DOBBS: Deborah, thank you very much.

U.S. and British authorities say Abu Hamza is a dangerous firebrand who has tried to convince young British Muslims to support his radical Islamist views. He has preached holy war against the West and expressed admiration for Osama bin Laden.

Walt Rodgers reports from London.

(BEGIN VIDEOTAPE)

WALTER RODGERS, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): No stranger to British courts, the radical Muslim cleric Abu Hamza al- Masri was back again, this time fighting an effort to extradite him for trial in the United States on terrorism charges. Abu Hamza's attorney is confident he can beat it.

MUDDASSAR ARANI, ATTORNEY FOR HAMZA: My client is fine. Thank you.

QUESTION: Has he been questioned yet?

ARANI: No.

QUESTION: And will he be fighting extradition, whatever happens? ARANI: Yes, he will be.

QUESTION: On what grounds?

(CROSSTALK)

ARANI: I've got no other comments to make. Thank you.

RODGERS: Abu Hamza, known as the Hook because he has a steel hook, having lost an arm and an eye in Afghanistan, is already fighting a British effort to deport him on a separate legal track. The home office wants to strip him of British citizenship, calls him a danger to society, alleges he has deep links to five different terror organizations, including al Qaeda.

He's openly praised the 9/11 terror attacks on the United States and preaches a holy war against the West.

UNIDENTIFIED MALE: You must come to the gun. Everybody come to the gun. Always come to the gun.

RODGERS: Across from the court, this banner, popular sentiment. "Sling ur hook" translates:

UNIDENTIFIED MALE: Get rid of him. Get rid of him. Somewhere else can take him.

RODGERS: Others prescribe more than extradition or deportation.

UNIDENTIFIED MALE: Hang him.

RODGERS (on camera): Hang him?

UNIDENTIFIED MALE: Yes, hang him.

RODGERS (voice-over): The U.S. attorney general, John Ashcroft, flirted with that sentiment.

ASHCROFT: The maximum sentence for hostage taking, the charges directed towards Hamza, is death penalty or life in prison.

RODGERS: But criminal lawyers here note Britain already refuses to extradite three other al Qaeda suspects facing the death penalty. And indications are the death penalty has already been waived in Hamza's case.

JONATHAN GOLDBERG, CRIMINAL ATTORNEY: As a condition of handing him over, the British government, which, by law, is not permitted to impose the death penalty, will demand a guarantee from the Americans is it will not be imposed in America, even though it might have been in another case in America.

RODGERS: Outside the court, Abu Hamza's followers prayed. Inside, the court said no bail, remanding him into custody for at least another week. (on camera): Privately, more than a few in Britain would like to see Abu Hamza extradited. Despite his virulent sermons castigating Western civilization, he and his eight children reportedly still live on British welfare payments. And the British taxpayer is still getting socked for Abu Hamza's legal fees.

Walter Rodgers, CNN, London.

(END VIDEOTAPE)

DOBBS: In Iraq today, a dramatic development in the battle to control Najaf. The United States suspended offensive military operations against supporters of Muqtada al-Sadr. The U.S. announcement came less than 24 hours after al-Sadr offered to withdraw his gunmen from the city.

Jane Arraf reports from Najaf.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: U.S. military officials say they're cautiously optimistic that an agreement will take hold to dissolve the Mahdi Army here in Najaf.

They say that indication they've had not an attack on this base in almost two days, an occurrence so unusual they're taking it as possible evidence that Muqtada al-Sadr, the radical Shia leader, is serious about making peace with other religious leaders and with the coalition. Under the proposed agreement, al-Sadr would allow the Iraqi police to come in maintain security in Najaf, followed by other forces, and, eventually, civil defense and Iraqi police forces.

As for the U.S.-led coalition, and specifically the U.S. military, they could eventually withdraw to bases around Najaf, withdrawing from this base in the middle of the city that they're in now. Officials say they would expect that the weapons must be turned into Iraqi police agents as a key sign that this is, indeed, a serious development in the ongoing search to end fighting in Najaf.

Jane Arraf, CNN, reporting from Najaf.

(END VIDEOTAPE)

DOBBS: In New York, diplomats at the United Nations tonight are struggling to work out a resolution to authorize the handover of sovereignty in Iraq in just five weeks. But France and the United States are already in opposition. France wants a two-week delay in the resolution, a proposal the United States is strongly resisting.

Kitty Pilgrim reports.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Who will lead Iraq? U.N. envoy Lakhdar Brahimi is scrambling to come up with a list of Iraqis who can lead the country after June 30. He needs a president, prime minister and 26 ministers.

One potential candidate, Dr. Hussain al-Shahristani, bowed out Wednesday. One big worry is, the list will not sell in Iraq. France yesterday floated the idea of a two-week delay after the list becomes known. The reason, to make sure the list has broad support among Iraqis.

JEAN-MARC DE LA SABLIERE, FRENCH AMBASSADOR TO UNITED NATIONS: To have a delay, let's say, two weeks, for example, between the constitution of the -- the identification of the member of the government and the adoption of the resolution.

PILGRIM: U.S. Ambassador John Negroponte said in effect that would be deadline pushing.

JOHN NEGROPONTE, U.S. AMBASSADOR TO UNITED NATIONS: That just gets you up much too close to the time for the actual transfer sovereignty. I assume our French colleague wants the resolution passed before the transfer actually takes pass.

PILGRIM: Negroponte has long said he want to keep to schedule. He is President Bush's nominee to head the new Iraqi Embassy after the transfer of sovereignty.

The U.N. resolution has still some details to work out. First of all, U.N. envoy Lakhdar Brahimi's list. The second issue is military command of international forces after June 30 and how will that dovetail with Iraqi forces and when will international troops leave the country and on whose authority will they leave.

(END VIDEOTAPE)

PILGRIM: Many see additional conditions and suggestions to be last-minute bargaining tactics among the nations involved, China, France, Germany, and Russia. The bargaining tactics don't help when such very big issues remaining to be resolved -- Lou.

DOBBS: Kitty, thank you very much. France is back.

More on Iraq coming up next. The coalition makes a deal to end the fighting in Najaf. I will be joined by the former director of the National Security Agency General William Odom. I'll also be joined by CNN military analyst General David Grange.

The U.S. military forces a shortage of bullets as it's fighting the global war against terrorism. The Pentagon is considering drastic measures to make up the shortfall.

And America's free trade giveaway, the United States about to sign a free trade deal with Central American. But Central American countries are so poor, they can't afford to buy American goods. We'll find out then just who benefits.

(COMMERCIAL BREAK)

DOBBS: In "Grange on Point" tonight, we're focusing on the end to fighting in the Iraqi city of Najaf and the deal required to make it so. As we reported, U.S. troops suspended offensive operations after Muqtada al-Sadr offered to withdraw his gunmen from the city. But there are no signs al-Sadr himself is planning to disband his militia or to withdraw.

Joining me now, General David Grange.

General, good to have you with us.

RETIRED BRIG. GEN. DAVID GRANGE, CNN MILITARY ANALYST: Thank you, Lou.

DOBBS: This deal, does it look like it makes a lot of sense to you?

GRANGE: I think there's a lot of pressure on al-Sadr. I think he's grasping right now. And it may be good to keep some pressure on this guy. Right now, I don't think it's a compromise because people are concerned maybe about upcoming transfer of power.

I think it's just to see if they'll go ahead and cooperate, turn in some stuff. But I wouldn't give him too much slack. I'd keep the heat on him.

DOBBS: And at some point -- well, General Kimmitt has said, kill or capture the gunmen associated with him, going after al-Sadr himself. No progress whatsoever on those two ostensible goals.

GRANGE: Lou, I would believe that -- I think it's accurate that there's a unit lurking in the background waiting for an opportunity to grab or take out al-Sadr if he does not cooperate with this current cease-fire. They're standing by.

DOBBS: And the situation in Iraq, General, with your experience, with your insight, what do you suppose the reaction of the enemy is, that is, the Sunni Baathists insurgents, the Shia insurgents? What do you suppose their reaction is to this deal?

GRANGE: Well, if you look at Fallujah, look at Najaf and some other places, I think the key thing is that they know that we're just trying to allow another course of action or possibility to take place, give it some time to work.

But if they don't through with turning over weapons, with turning themselves in, turning in those that killed the four contractors, then the coalition force still means business, and they still have that hard line drawn out there and they'll come back in fast and furious to take them down if they couldn't cooperate. I think it's important they understand that. And I think we'll see that if something doesn't come of this present cease-fire.

DOBBS: You with your background in counterinsurgency, counterterrorism, is this a classic strategy to take. Is it, in your judgment, sound?

GRANGE: Well, I think so. I think they're trying to work out some options.

They're using some Iraqi police now. They're going to move in some militia that supports the legal government and both for Iraq and the local government of the cities involved to give it a chance. But there's always again that backdrop of the U.S. or other coalition forces ready to move in with speed and violence and action if the liaison elements attached to these Iraqi forces require assistance. I think it's looming back there, standing by, as it should, if it doesn't work out.

DOBBS: General David Grange, thank you, sir.

GRANGE: My pleasure.

DOBBS: The USS Cole today returned home after a six-month deployment in the Mediterranean. It was the destroyer's first deployment since radical Islamist terrorists bombed it in a Yemeni port almost four years ago now. That attack killed 17 crew members and wounded 39 other sailors.

Today, the Cole and its 350-member crew arrived at the Norfolk Naval Station in Virginia. Also today, the USS Ronald Reagan left Norfolk for its new home at the North Island Naval Air Station in San Diego. The brand new aircraft carrier is powered by two nuclear reactors.

Remarkable pictures tonight from Los Angeles International Airport. Workers were unloading a cargo plane when it became unbalanced and actually tipped on to its tail. Loading from the front didn't work. Seven workers who were inside the MD-11 were lifted 40 feet in the air and they were actually stranded. The fire department had to come out and rescue them. No one, we're pleased to report, was injured.

Still ahead here, a high-ranking retired general says the United States should leave Iraq and now. General William Odom is our guest.

Also, the U.S. Army says it needs more ammunition. It might, just might, end up buying it from foreign suppliers. We'll have the latest on that incredible story.

And then, water wars. The severe Western drought has forced Las Vegas to make an unusual offer to homeowners. We'll have that special report coming right up.

(COMMERCIAL BREAK)

DOBBS: Reporting to you now a developing story tonight from Nashville.

An American Airlines MD-83 jetliner on a flight from Dallas-Forth worth to Boston landed in Nashville this afternoon after the pilot declared an emergency while flying over northern Alabama. A government source informing CNN that a note said there was a bomb in the cargo hold. The aircraft is still being swept at this hour. But there are no reports of any type of explosive having been found. Air Force One carrying President Bush, by the way, flew into the same Nashville airport earlier this afternoon. There was no, of course, effect on that trip. Normal flight operations have resumed.

Democratic presidential candidate John Kerry today blasted the Bush administration's policy in war. Senator Kerry said the war has made the United States less secure.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: They've gone it alone, when they should have assembled a whole team. They've made America less safe than we should be in a dangerous world.

(END VIDEO CLIP)

DOBBS: Kerry made the remarks as he kicked off what will be an 11-day tour focusing on international and domestic security. Senator Kerry said the United States should build stronger alliances and that he would work to create a coalition of the able. The senator also said he would fight to modernize the military and would demand an end to our independence on Middle East oil.

DOBBS: One of the biggest challenges facing the next president will certainly be Iraq. My guest tonight says the United States may need to stay in Iraq for as long as 50 years to fulfill all its public goals. The former director of the National Security Agency, General William Odom, joins me now.

General, good to have you with us.

RETIRED LT. GEN. WILLIAM ODOM, HUDSON INSTITUTE: Thank you.

DOBBS: You just heard Senator Kerry criticizing the president for his approach. You're talking about how long it would take to achieve goals. What do you think the best course is?

ODOM: Well, I stick with the course I announced a few weeks ago, and that's -- I think we should start a definite withdrawal. And 30 June is as good a time as any to do that.

And I would set a deadline somewhere around the end of the year. And I would invite the United Nations to authorize some leadership there and invite Europeans to come in, and other armies, if they're willing to. And if they're willing to take over, fine. If they're not, then I think we'll have to make the best deal we can and then pull out.

DOBBS: As you know, many say simply that there is no option. Senator Kerry himself says we have to stay the course. There is no real distinction in terms of the commitment to Iraq on the part of either Senator Kerry or President Bush. Given that, are you in any way disquieted by your certainty that we should withdraw? You're not concerned about the impact?

ODOM: Well, I'm concerned the impact will be a lot of chaos and disorder. There's no question about that. The option is -- the question is whether we have an option to cause it to come out a great deal differently.

By having troops there over a year now, we haven't been on an incline towards increasing order. We've been on the decline toward less order. So keeping troops in longer doesn't strike me as the solution here, certainly not in the numbers we have. I must say, I've been a little disquieted that there's not much difference between the candidates on this.

But I did hear -- Senator Kerry does make more -- put more emphasis on getting allies to participate. So who knows what will happen if he had a choice.

DOBBS: Well, General, as we're watching right now before the United Nations, as Kitty Pilgrim reported here at the outset of the broadcast, France has already requested a two-week delay. It appears it is going to be very difficult negotiations for John Negroponte, the U.N. ambassador, to achieve a resolution. What do you think could be done to expedite it?

ODOM: Well, the U.S. will have to make concession if it wants to get a resolution. As long as we're staying on this course of saying that we're going to leave a certain kind of government in place, one that I don't think we can achieve in a year or two, probably not for very much longer than that, then I don't think the allies are going to make many concessions in that regard.

So I think we're in a position now where if we want a U.N. resolution, we're going to have to let the other members, permanent members of the Security Council, write it.

DOBBS: Do you believe that given those concessions and the changed U.S. policy, that the United States should, indeed, maintain its financial commitment approaching $200 billion and retain the necessary investment in Iraq to assure some progress?

ODOM: Well, I'm not quite sure what you mean by the $200 billion. Now, it is my impression that we don't know precisely how much we've already spent, but, apparently, that approaches, if it doesn't already exceed $200 billion. Therefore, that's money down -- that's gone. We can't talk about not spending that.

If you're talking about committing a lot more money for the longer run, it depends on who's in charge and what kind of a government it is and what the prospects of them using it effectively would be.

DOBBS: General William Odom, we thank you very much. As always, good to have you with us here.

ODOM: Thank you.

DOBBS: The military needs more bullets because of the wars in Iraq and Afghanistan and the existing supplier of that ammunition simply can't keep up with demand. A major U.S. defense contractor says it can provide more ammunition, but only by importing it.

Peter Viles reports.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): Fighting two wars at once and training hundreds of thousands of soldiers to shoot, the Army now says it needs more ammunition, a lot more. The question at the Pentagon and in Congress, should those bullets be made in America or made in Canada and Israel?

The Army's main ammunition plant outside Kansas City is nearing full capacity, turning out 1.2 billion rounds a year. The Army wants to buy at least another half a billion rounds. General Dynamics proposes a global solution, ammo made by Winchester in Illinois, by Israel military industries and by SNC Technologies of Quebec Canada.

And if the thought of foreign made bullets troubles you, General Dynamics says this -- quote -- "All of our teammates are currently producing small-caliber ammunition for the U.S. armed forces."

House Armed Services Chairman Duncan Hunter is pushing for $59 million in federal spending at home to upgrade ammunition plants in the U.S.

REP. DUNCAN HUNTER (R), CALIFORNIA: I think we should make ammo in the United States. And so we're putting in the money to modernize that base and increase production here. I don't think we should rely on foreign sources.

VILES: The Army confirms it wants more ammunition, but denies there's a shortage on the battlefield, saying -- quote -- "The troops engaged in operations have the quantity that they need."

(END VIDEOTAPE)

VILES: Alliant Techsystems says that none of these bullets have to come from overseas. It says it can increase its own production in Minnesota to meet the Army's rising demand -- Lou.

DOBBS: So why, then, are we importing ammunition from Israel and Canada?

VILES: There are plenty of waivers to the buy-American premise in military contracting. Canada is part of the same -- it's part of NAFTA, it's part of the North American production region. And Israel is an ally.

DOBBS: All that is true. But, nonetheless, ammunition for our fighting men and women in which we're dependent upon trading partners seems, at best, a stretch.

VILES: Sure. And if the infrastructure isn't there, as Duncan Hunter says, we'll spend some money, fix it up, so that it is there.

DOBBS: OK, Peter Viles, thank you very much. VILES: Sure thing.

DOBBS: Tomorrow, we'll be joined by the chairman of the House Armed Services Committee, Chairman Congressman Duncan Hunter.

Taking a look now at some more of your thoughts following yesterday's new terror threat warning, Van Young wrote of Bloomington, Indiana, wrote in to say: "The U.S. government has implemented many security measures in the past two years. I know we still have a long way to go. But security costs money and it takes time. All of us have to be on the lookout for suspicious activity and report it to authorities."

William Hamilton in Holiday, Florida: "Call my cynical. I can't help noticing how this terror warning tends to take the heat off the president just at the right time."

And Greg in Redondo Beach, California: "Lou, I think we should implement a new color scheme dedicated to grade the credibility of the intelligence used for the warnings."

Send us your thoughts at LouDobbs@CNN.com. We'll share those thoughts later in the broadcast, more of those thoughts.

Still ahead now, the free trade giveaway. The United States agreed today to yet another free trade agreement with yet another country. We'll have details on the cost of free trade.

Also, best-selling writer Arianna Huffington says fanatics and fools are running this country, misleading political parties. And I can't wait to talk to her. She's our guest tonight.

And then a whole new world in outer space. Astronomers find evidence of a fascinating new planet.

We'll have that story and much more ahead right here.

(COMMERCIAL BREAK)

DOBBS: All this week we're reporting on the free trade giveaway. The United States will sign the Central America Free Trade Agreement tomorrow. Today, it agreed to yet another free trade agreement this one with Bahrain.

U.S. trade representative Robert Zoellick, said the deal would give American companies, quote, unprecedented economic opportunity in Bahrain. Congress must approve the Bahrain deal, plus CAFTA and trade pacts with Australia And Morocco. Zoellick today, said opposition in Congress, to the deals will not dissuade our White House.

(BEGIN VIDEO CLIP)

ROBERT ZOELLICK, U.S. TRADE REPRESENTATIVE: We've got people who are worried to support trade particularly in an election year. So, we would lose some on our party, although we're certainly get the majority of support there, by far. So the combination of the short window plus the opposition means that what we're going to try to do for the rest of the year is move through as many agreements as we can.

(END VIDEO CLIP)

DOBBS: CAFTA is designed to open up trade between the United States and Central America. However, robust trade already exists. Many U.S. companies have been doing business there for years without any kind of free trade agreement.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): American businesses already hard at work in Central America. A check of the membership rolls of Central American Chambers of Commerce reads like a Fortune 500 list. Microsoft, Intel, Oracle, Coke Cola, Merck, Phizer, 3M, Kimberly-Clark, Dole, and that's a partial list. Impressive, but we buy more than they buy from us. Our trade deficit with six countries covered under CAFTA is more than $2 billion. While high tech is gaining a foot hole. Intels plant in Costa Rica test and assembles computer chips for export as an example.

The bulk of our trade is apparel.

KEVIN BURKE, PRESIDENT AMERICAN APPAREL AND FOOTWEAR: They make underwear. They make socks. They make pants. They make shirts. They make T-shirts. A variety of different things.

TUCKER: Which all start with U.S. Materials. It is our textile industry's number one export market. Some in the industry argue that CAFTA is necessary.

WILBUR ROSS, W.L. ROSS & CO: The question isn't will it be made in the U.S. or made overseas. The only question is, is it going to be made in China or Latin America.

TUCKER: Those who argue for the treaty do so based on what they call the success of the North American Free Trade Agreement and what it's done for workers. Critics say everyone should take a closer look.

BRUCE RAYNOR, PRESIDENT: Since NAFTA was passed, the wages and conditions of Mexican workers, particularly in textile and apparel, but all manufacturing workers, are worse now than they were in July 1995 because of NAFTA. And the result is, Mexican workers are voting with their feet and risking their lives to cut across the border to come to work in the United States, because wages and benefits have been reduced in Mexico.

TUCKER: The average wage is roughly, $1 an hour. There aren't a lot of American product that is can be bought with those kinds of wages.

(END VIDEOTAPE)

TUCKER: Now, proponents for CAFTA argue that any job is better than no job for our neighbors to the south. Opponents aren't wondering why the United States won't simply set conditions for access to the world's largest and richest market.

DOBBS: So, it looks like an attractive proposition for what are called round trippers.

TUCKER: Yes, exactly. Meaning goods that go down, and turn around and come back.

DOBBS: Terrific. In other words, this has a lot of focus on the cost of labor?

TUCKER: A lot of it, particularly in the apparel industry. Yes, it does, Lou.

DOBBS: Terrific. Thank you very much, Bill Tucker.

That brings us to the topic of "Tonight's Poll." The question, whom do you think benefits most from CAFTA? Central America, United States, both, neither. Cast your vote at cnn.com/lou. We'll have the results for you later in the broadcast.

A battle to keep Wal-Mart out of Chicago has failed. Chicago's city council approved the plan to open its first store in the windy city. It will be a 150,000 square foot super store in a minority neighborhood on the west side. Opponents says the store will threaten small businesses and depress wages in the area. Wal-Mart said it will help it better serve its customers. The city council believed Wal- Mart. Last month they lost a similar battle to open a store in a Los Angeles suburb.

NASA scientists may have found the youngest planet ever detected. The Spitzer Space Telescope, an orbiting observatory, launched last summer surveyed a grou of young stars and found a clearing in the disc around a star CoKu Tau 4. Scientist believe this might indicate an orbiting planet swept away the disc material that surrounds infant stars as seen in this animation. This is a NASA animation. And because this star is about one million years old, the planet would be even younger. By comparison, the earth is approximately 4.5 billion years old.

And "Tonight's thought" on space and exploration. "Exploration is really the essence of the human spirit." Astronaut Frank Borman.

Still ahead, more than 2,000 people die in flooding in Haiti and the Dominican Republic. U.S. forces are helping the victims. We'll have a live report for you.

We'll be talking to Arianna Huffington about her new book, "Fanatics and Fools," a scathing portrait of the current political landscape and what an interesting indictment of both parties.

A high speed drug chase for custom officials. We'll show you how a tip led authorities to a ton of cocaine.

(COMMERCIAL BREAK) DOBBS: My next guest is a syndicated columnist, author of a new book offering a colorful view of politics and its players. In "Fanatics and Fools, the Game Plan for Winning Back America," Arianna Huffington criticizes the, quote, "fanatics who now run the Republican party and the fools guiding the Democratic party." She joins me from Los Angeles. Good to have you with us.

ARIANNA HUFFINGTON, AUTHOR: Thank you, Lou.

DOBBS: Arianna, the idea of calling the Bush administration fanatics and the Democrats fools has to endear you to both parties.

HUFFINGTON: Well, the fanatics are those who are ignoring all evidence. We see that, Lou, every day with the news from Iraq. We see how this administration made up its mind what it was going to do and ignored all evidence and is still ignoring all evidence. That's the tell-tale symptom of fanaticism. As for the fools, I'm talking about the Democratic leaders who enabled the fanatics to prevail, who went along with the invasion of Iraq, went along with the multi trillion dollar tax cuts. Fortunately, during the primary there is a spine transplant. Even though Howard Dean lost, you heard Democratic leaders, including John Kerry, speak out more forcefully and boldly against what the administration has been doing.

DOBBS: Well, you have, obviously -- while there are fanatics and fools and that's quite a pair to draw to, you, obviously, have come down in favor of the fools, as you put it. Why so?

HUFFINGTON: I've actually come in favor of John Kerry because I believe he has the opportunity to transform both the Democratic party and taking them away from foolishness and actually win back the country. It's imperative right now, I believe, for all of us to -- who want to see George Bush go back to Crawford, Texas, to rally around John Kerry. And in fact, in danger of that (UNINTELLIGIBLE) my book, I have a message for the Greens and the Ralph Nader potential supporters. What I say to them is when your house is on fire, it's not the time to talk about remodeling. First you have to put the fire out. That means sending Bush back to Crawford then let's talk about political remodeling. There is a lot of that that needs to be done.

DOBBS: What do you think are the most important issues in this campaign? obviously, Iraq will be at the top of that list. What besides Iraq?

HUFFINGTON: Well, domestically I think the sleeper issue of 2004 will be idealism. That's why in the second part of my book I offer a vision of new responsibility for America that actually addresses the central question of what kind of country do we want to be. If you really answer that question, a lot becomes clear. For example, do we really want to put hard-working Americans first or want to pretend that trickle down needs to continue to be the economic order of the day? All you've been doing on this show about outsourcing, for example, becomes particularly valuable when you recognize that jobs are not just a lagging economic indicator, but, as I say in the book, they're really the central indicator of a healthy economy. DOBBS: Arianna, as you know, the Clinton administration, the Democrats, are the authors of the World Trade organization permanent normal trade for China and for NAFTA. How do you square that up in partisan terms?

HUFFINGTON: Well, as John Kerry told Ralph Nader when they met privately but he said that publicly, do not judge me by my predecessors. There is a lot that has to be changed. I don't think a strategy of strangulation would work for John Kerry. There are 50 percent of eligible voters, 100 million Americans who did not vote in the last election. I think the most inspiring strategy for the Democrats will be to appeal to them. Even if they get 10 percent of them to believe again that we can renew the American spirit and the American dream it will transform the November election. That's why I have this contract for a better America, which includes jobs at the beginning.

DOBBS: As you point out in your book, jobs that include working on new energy sources, working for healthcare. I notice one thing, Arianna. Each of those jobs, in one way or another, are government jobs. Most of the jobs have been created here of late have been in the government sector, have they not?

HUFFINGTON: Well, I think what's happening right now is we're not giving the right incentives to businesses. As you know, Lou, the tax code can be used to create incentives or disincentives for creating jobs. Right now Kerry has made it clear that he will put an end to all incentives to export jobs and to export profits in the form of tax shelters. That would send a different signal to corporate America than the one they're getting from the Republican fanatics. Even a lot of the good guys in corporate America agree that this has to be done.

DOBBS: Arianna Huffington, as always good to talk with you.

HUFFINGTON: Thank you.

DOBBS: Outrage tonight over the Vatican's appointment of Cardinal Bernard Law to a new position in Rome. Law resigned as Boston's archbishop 17 months ago amid the priest sexual molestation scandal. Law stands accused of covering up sexual misconduct of priests and reassigning them to different parishes even as they were being charged with sexual abuse. Pope John Paul appointed Law to run St. Mary Major Basilica in Rome. That appointment comes just days after the Vatican accused the United States for moral failure for abuse of Iraqi prisoner and after the Boston arch diocese closed 65 parish churches because of budget shortfalls following the abuse scandals.

A reminder now to vote in our poll. Whom do you think benefits most from CAFTA? Central America, the United States, both or neither? Cast your vote at CNN.com/lou. We'll have the results coming right up.

Taking a look now at some of your thoughts on CAFTA. Julie Ann Weber of Westport, Connecticut. "CAFTA is just another step down the road to economic perdition. Like NAFTA it will result in increased illegal immigration and the loss of our jobs, capital equipment and resources to cheap labor markets that cannot and will not buy what Americans create and produce."

Bernita White, Sandusky, Ohio. "If NAFTA were so good for Mexico then why are the people risking their lives to cross our borders to try and make a decent living."

Arnold Scott of Winslow, Arizona. "This is great. Now I can tell my grandchildren, when they grow up, they, too, can make 29 cents an hour. That way we'll all be equal."

David Elias of Bethlehem, Pennsylvania. "Lou, your show on CAFTA helped expose another plan that only serves to export American jobs to cheap foreign labor."

Send us your thoughts. We love hearing from you. Loudobbs@CNN.com.

Still ahead, the death toll. It's rising after massive floods in Haiti and the Dominican Republic. We'll have a live report from the Dominican Republic.

Our special report. Water wars. Residents of this country's fastest growing city facing a very tough choice. In the midst of a severe drought, they're taking extreme measures to try to conserve water. We'll have a special report.

(COMMERCIAL BREAK)

DOBBS: New developments tonight in one of the worst disasters to hit the Caribbean in decades. Thousands of people are feared dead from the floods in the Dominican Republic and Haiti. Hundreds of people are still missing tonight. Susan Candiotti reports now from Santo Domingo, capital of the Dominican Republic -- Susan.

SUSAN CANDIOTTI, CNN CORRESPONDENT: Hello, Lou. Authorities here are trying to get even a clearer picture than they already have of the amount of devastation. The president of the Dominican Republic has called it a national day of mourning as he flew down to one of the hardest hit areas, a town called Jimani about 100 miles away. It is on the border with Haiti, neighboring Haiti.

Also in tow the U.S. Ambassador Hans Hertell. Both of them seeing firsthand as some of the bodies are still being recovered from a lake there that were carried down by rain from midnight storms. The storm -- homes being picked up with sleeping families inside. Power is out much of the area. Mud is everywhere. Government officials tell me they are still in dire need of drinking water, of food, of clothing and shelter. As many as 15,000 people will be homeless, they say.

International help is coming in. About a $50,000 donation from the United States and countries including Japan and Venezuela are providing help with medicine and doctors. Some of the roads remain impassable because they are covered with water. Again, there is crop and livestock damage and in neighboring Haiti we are still hearing about U.S. marines and Canadian forces going in to provide about a dozen relief flights a day there. A little town called Mapou about 30 miles out of the capital of Haiti Port-Au-Prince, I am told that the city there is still under about 10 feet of water and people are having to get about on rafts. Now unfortunately they are getting a dire prediction that is certainly an unwelcome one, up to 3 inches of rain in the next 24 hours that will make recovery efforts that much harder -- Lou.

DOBBS: Susan, thank you very much. Susan Candiotti reporting from Santo Domingo.

Obviously, mud slides in the Caribbean devastating much of Santo Domingo, the Dominican Republic and Haiti. Tornadoes and flooding in the Midwestern part of the United States is devastating. Tonight, we focus on Las Vegas, the worst affected large city in the west. Las Vegas is the city closest to the Colorado River but it's being forced to conserve water because of outdated regulations and rapidly dwindling water supplies. Casey Wian reports.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): This McGowan residence has a beautiful lawn but most of it is being ripped out.

TERRY MCGOWAN, HOMEOWNER: I just feel we need to conserve water for the future of our children and the population growth.

WIAN: Since last year, about 2 million square yards of grass has been torn out of Las Vegas yards, golf courses and resorts. An entire football field's worth of turf is being replaced daily by water-saving desert landscaping. The water company is even paying residents up to $1 a square foot to remove grass.

PAT MULROY, SOUTHERN NEVADA WATER AUTHORITY: We're spending $22 million this year removing turf, we'll spend $33 million next year removing turf. Essentially, we've said to our customers, we'll help you pay to drought proof yourself. And they've responded.

WIAN: It is boosting business for landscapers.

SCOTT TRACY, ALLIANCE LANDSCAPING: I'd say right off the bat, 25 to 30 percent. As long as we don't get more rain, I think it will go on for quite a while.

WIAN: Las Vegas has been hit hard by the drought largely because its share of the Colorado River was set decades ago when no one imagined it would become America's fastest growing city. Its water supply is tied to nearby Lake Mead which is down 75 feet since 2000. This year Las Vegas entered what it calls drought alert, meaning tight restrictions on water use for residents and businesses and heavy fines for water wasters.

When people talk about water shortages in Las Vegas, they often point to the giant fountains and lakes that decorate many of the casinos here. The truth is hotels and casinos only use about 7 percent of southern Nevada's water. Even so, some casinos are ripping out grass in favor of desert plants. The Stardust says it will save 8 million gallons of water a year.

ROB STILLWELL, BOYD GAMING: That grass there certainly looked real nice and shiny but at the end of the day it really wasn't being used. It didn't make a lot of sense.

WIAN: If Lake Mead drops another 13 feet, Las Vegas will switch to drought emergency perhaps as early as next year. Water managers are not sure how they'll respond but are considering heavier fines on water wasters and paying other areas for their excess water. Casey Wian, CNN, Las Vegas, Nevada.

(END VIDEOTAPE)

DOBBS: Tomorrow in water wars we take a look at what the federal government is doing to protect the interest of more than 25 million people affected by the drought in the west.

From the water wars to the war on drugs. A tip about a cocaine smuggling operation between the United States and Bahamas led to a high-speed chase off the coast of Hollywood, Florida. The Coast Guard was there and photographing when two boats believed to be carrying cocaine entered U.S. waters. Customs and Coast Guard boats and helicopters were waiting. As you can see, one of the boats tried to escape but Customs forced it to a halt 12 miles offshore. Federal agents seized more than 2,000 pounds of cocaine and arrested six suspected smugglers trying to get that ton of cocaine into the United States. The estimated value of the cocaine, $20 million.

Well, it was a big day on Wall Street. The Dow up more than 95 points, NASDAQ rose eight, the S&P 500 up more than six.

Still ahead here, the results of our poll tonight. First, a reminder. Check our website for the complete list of companies we've confirmed to be exporting America. CNN.com/lou. Stay with us.

(COMMERCIAL BREAK)

DOBBS: The results of tonight's poll. 53 percent of you say Central America will benefit most from CAFTA. 4 percent say the United States. 5 percent both. 39 percent neither. Another rousing endorsement for free trade agreements.

Thanks for being with us. Join us tomorrow. House armed services committee chairman, Congressman Duncan Hunter will be with us leading the fight to keep American defense contracts and jobs in this country.

For all of us here, good night from New York. "ANDERSON COOPER 360" 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


Aired May 27, 2004 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
LOU DOBBS, CNN ANCHOR (voice-over): Tonight, the United States indicts a radical Islamist cleric who supports al Qaeda and who plotted to set up a terrorist training camp in Oregon.

JOHN ASHCROFT, ATTORNEY GENERAL: The Department of Justice is bringing the full weight of the criminal law against those who support the activities of terrorists.

DOBBS: The military is running out of bullets to fight the wars in Iraq and Afghanistan. Incredibly, the Pentagon may turn to foreign companies for their ammunition.

In Iraq, the coalition makes a deal to end the fighting in Najaf. Muqtada al-Sadr, however, is not disarming his militia. I'll be joined by the former director of the National Security Agency General William Odom and CNN military analyst General David Grange.

Floods and mudslides in Haiti and the Dominican Republic kill more than 2,000 people. We'll have a live report from the Dominican Republic.

And waters wars. A six-year drought in the West, Las Vegas taking drastic measures to save water.

UNIDENTIFIED FEMALE: We need to conserve water for the future of our children.

DOBBS: Tonight, we'll have a special report.

(END VIDEOTAPE)

ANNOUNCER: This is LOU DOBBS TONIGHT Thursday, for May 27. Here now for an hour of news, debate and opinion is Lou Dobbs.

DOBBS: Good evening.

The United States today indicted a radical Islamist cleric in Britain, charging him with helping the al Qaeda. The indictment also accuses the cleric of hostage taking and plotting to establish a terrorist training camp in Oregon. British police arrested the cleric in his London home. Today's arrest comes one day after U.S. officials warned about the possibility of a major terrorist attack against this country.

Deborah Feyerick is here now with the report -- Deborah.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Lou, in the past, Abu Hamza al-Masri has denied being connected to terrorism. The 11-count indictment alleges otherwise, Abu Hamza charged with hostage taking, with trying to set up a terror camp in Oregon, with helping raise money in New York to send followers to Afghanistan, and with encouraging followers to wage a holy war.

(BEGIN VIDEO CLIP)

ASHCROFT: As today's arrest makes clear, the Department of Justice is bringing the full weight of the criminal law against those who support the activities of terrorists. The United States will use every diplomatic, legal, and administrative tool to pursue and to prosecute those who facilitate terrorist activity. And we will not stop until the war on terrorism is won.

(END VIDEO CLIP)

FEYERICK: The arrest of Abu Hamza in London stems from the newly unsealed U.S. indictment. He appeared at an extradition hearing in London. He did not stand, his lawyer telling a British magistrate he would not consent to being brought to the United States.

Now, Abu Hamza preached at the Finsbury Mosque in London. Authorities say it is the same mosque attended by alleged 9/11 conspirators Zacarias Moussaoui and Richard Reid, convicted of trying to blow up a plane with a bomb in his sneakers. Abu Hamza is described by officials as the real deal and a freelance consultant to terrorists worldwide -- Lou.

DOBBS: Deborah, thank you very much.

U.S. and British authorities say Abu Hamza is a dangerous firebrand who has tried to convince young British Muslims to support his radical Islamist views. He has preached holy war against the West and expressed admiration for Osama bin Laden.

Walt Rodgers reports from London.

(BEGIN VIDEOTAPE)

WALTER RODGERS, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): No stranger to British courts, the radical Muslim cleric Abu Hamza al- Masri was back again, this time fighting an effort to extradite him for trial in the United States on terrorism charges. Abu Hamza's attorney is confident he can beat it.

MUDDASSAR ARANI, ATTORNEY FOR HAMZA: My client is fine. Thank you.

QUESTION: Has he been questioned yet?

ARANI: No.

QUESTION: And will he be fighting extradition, whatever happens? ARANI: Yes, he will be.

QUESTION: On what grounds?

(CROSSTALK)

ARANI: I've got no other comments to make. Thank you.

RODGERS: Abu Hamza, known as the Hook because he has a steel hook, having lost an arm and an eye in Afghanistan, is already fighting a British effort to deport him on a separate legal track. The home office wants to strip him of British citizenship, calls him a danger to society, alleges he has deep links to five different terror organizations, including al Qaeda.

He's openly praised the 9/11 terror attacks on the United States and preaches a holy war against the West.

UNIDENTIFIED MALE: You must come to the gun. Everybody come to the gun. Always come to the gun.

RODGERS: Across from the court, this banner, popular sentiment. "Sling ur hook" translates:

UNIDENTIFIED MALE: Get rid of him. Get rid of him. Somewhere else can take him.

RODGERS: Others prescribe more than extradition or deportation.

UNIDENTIFIED MALE: Hang him.

RODGERS (on camera): Hang him?

UNIDENTIFIED MALE: Yes, hang him.

RODGERS (voice-over): The U.S. attorney general, John Ashcroft, flirted with that sentiment.

ASHCROFT: The maximum sentence for hostage taking, the charges directed towards Hamza, is death penalty or life in prison.

RODGERS: But criminal lawyers here note Britain already refuses to extradite three other al Qaeda suspects facing the death penalty. And indications are the death penalty has already been waived in Hamza's case.

JONATHAN GOLDBERG, CRIMINAL ATTORNEY: As a condition of handing him over, the British government, which, by law, is not permitted to impose the death penalty, will demand a guarantee from the Americans is it will not be imposed in America, even though it might have been in another case in America.

RODGERS: Outside the court, Abu Hamza's followers prayed. Inside, the court said no bail, remanding him into custody for at least another week. (on camera): Privately, more than a few in Britain would like to see Abu Hamza extradited. Despite his virulent sermons castigating Western civilization, he and his eight children reportedly still live on British welfare payments. And the British taxpayer is still getting socked for Abu Hamza's legal fees.

Walter Rodgers, CNN, London.

(END VIDEOTAPE)

DOBBS: In Iraq today, a dramatic development in the battle to control Najaf. The United States suspended offensive military operations against supporters of Muqtada al-Sadr. The U.S. announcement came less than 24 hours after al-Sadr offered to withdraw his gunmen from the city.

Jane Arraf reports from Najaf.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: U.S. military officials say they're cautiously optimistic that an agreement will take hold to dissolve the Mahdi Army here in Najaf.

They say that indication they've had not an attack on this base in almost two days, an occurrence so unusual they're taking it as possible evidence that Muqtada al-Sadr, the radical Shia leader, is serious about making peace with other religious leaders and with the coalition. Under the proposed agreement, al-Sadr would allow the Iraqi police to come in maintain security in Najaf, followed by other forces, and, eventually, civil defense and Iraqi police forces.

As for the U.S.-led coalition, and specifically the U.S. military, they could eventually withdraw to bases around Najaf, withdrawing from this base in the middle of the city that they're in now. Officials say they would expect that the weapons must be turned into Iraqi police agents as a key sign that this is, indeed, a serious development in the ongoing search to end fighting in Najaf.

Jane Arraf, CNN, reporting from Najaf.

(END VIDEOTAPE)

DOBBS: In New York, diplomats at the United Nations tonight are struggling to work out a resolution to authorize the handover of sovereignty in Iraq in just five weeks. But France and the United States are already in opposition. France wants a two-week delay in the resolution, a proposal the United States is strongly resisting.

Kitty Pilgrim reports.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Who will lead Iraq? U.N. envoy Lakhdar Brahimi is scrambling to come up with a list of Iraqis who can lead the country after June 30. He needs a president, prime minister and 26 ministers.

One potential candidate, Dr. Hussain al-Shahristani, bowed out Wednesday. One big worry is, the list will not sell in Iraq. France yesterday floated the idea of a two-week delay after the list becomes known. The reason, to make sure the list has broad support among Iraqis.

JEAN-MARC DE LA SABLIERE, FRENCH AMBASSADOR TO UNITED NATIONS: To have a delay, let's say, two weeks, for example, between the constitution of the -- the identification of the member of the government and the adoption of the resolution.

PILGRIM: U.S. Ambassador John Negroponte said in effect that would be deadline pushing.

JOHN NEGROPONTE, U.S. AMBASSADOR TO UNITED NATIONS: That just gets you up much too close to the time for the actual transfer sovereignty. I assume our French colleague wants the resolution passed before the transfer actually takes pass.

PILGRIM: Negroponte has long said he want to keep to schedule. He is President Bush's nominee to head the new Iraqi Embassy after the transfer of sovereignty.

The U.N. resolution has still some details to work out. First of all, U.N. envoy Lakhdar Brahimi's list. The second issue is military command of international forces after June 30 and how will that dovetail with Iraqi forces and when will international troops leave the country and on whose authority will they leave.

(END VIDEOTAPE)

PILGRIM: Many see additional conditions and suggestions to be last-minute bargaining tactics among the nations involved, China, France, Germany, and Russia. The bargaining tactics don't help when such very big issues remaining to be resolved -- Lou.

DOBBS: Kitty, thank you very much. France is back.

More on Iraq coming up next. The coalition makes a deal to end the fighting in Najaf. I will be joined by the former director of the National Security Agency General William Odom. I'll also be joined by CNN military analyst General David Grange.

The U.S. military forces a shortage of bullets as it's fighting the global war against terrorism. The Pentagon is considering drastic measures to make up the shortfall.

And America's free trade giveaway, the United States about to sign a free trade deal with Central American. But Central American countries are so poor, they can't afford to buy American goods. We'll find out then just who benefits.

(COMMERCIAL BREAK)

DOBBS: In "Grange on Point" tonight, we're focusing on the end to fighting in the Iraqi city of Najaf and the deal required to make it so. As we reported, U.S. troops suspended offensive operations after Muqtada al-Sadr offered to withdraw his gunmen from the city. But there are no signs al-Sadr himself is planning to disband his militia or to withdraw.

Joining me now, General David Grange.

General, good to have you with us.

RETIRED BRIG. GEN. DAVID GRANGE, CNN MILITARY ANALYST: Thank you, Lou.

DOBBS: This deal, does it look like it makes a lot of sense to you?

GRANGE: I think there's a lot of pressure on al-Sadr. I think he's grasping right now. And it may be good to keep some pressure on this guy. Right now, I don't think it's a compromise because people are concerned maybe about upcoming transfer of power.

I think it's just to see if they'll go ahead and cooperate, turn in some stuff. But I wouldn't give him too much slack. I'd keep the heat on him.

DOBBS: And at some point -- well, General Kimmitt has said, kill or capture the gunmen associated with him, going after al-Sadr himself. No progress whatsoever on those two ostensible goals.

GRANGE: Lou, I would believe that -- I think it's accurate that there's a unit lurking in the background waiting for an opportunity to grab or take out al-Sadr if he does not cooperate with this current cease-fire. They're standing by.

DOBBS: And the situation in Iraq, General, with your experience, with your insight, what do you suppose the reaction of the enemy is, that is, the Sunni Baathists insurgents, the Shia insurgents? What do you suppose their reaction is to this deal?

GRANGE: Well, if you look at Fallujah, look at Najaf and some other places, I think the key thing is that they know that we're just trying to allow another course of action or possibility to take place, give it some time to work.

But if they don't through with turning over weapons, with turning themselves in, turning in those that killed the four contractors, then the coalition force still means business, and they still have that hard line drawn out there and they'll come back in fast and furious to take them down if they couldn't cooperate. I think it's important they understand that. And I think we'll see that if something doesn't come of this present cease-fire.

DOBBS: You with your background in counterinsurgency, counterterrorism, is this a classic strategy to take. Is it, in your judgment, sound?

GRANGE: Well, I think so. I think they're trying to work out some options.

They're using some Iraqi police now. They're going to move in some militia that supports the legal government and both for Iraq and the local government of the cities involved to give it a chance. But there's always again that backdrop of the U.S. or other coalition forces ready to move in with speed and violence and action if the liaison elements attached to these Iraqi forces require assistance. I think it's looming back there, standing by, as it should, if it doesn't work out.

DOBBS: General David Grange, thank you, sir.

GRANGE: My pleasure.

DOBBS: The USS Cole today returned home after a six-month deployment in the Mediterranean. It was the destroyer's first deployment since radical Islamist terrorists bombed it in a Yemeni port almost four years ago now. That attack killed 17 crew members and wounded 39 other sailors.

Today, the Cole and its 350-member crew arrived at the Norfolk Naval Station in Virginia. Also today, the USS Ronald Reagan left Norfolk for its new home at the North Island Naval Air Station in San Diego. The brand new aircraft carrier is powered by two nuclear reactors.

Remarkable pictures tonight from Los Angeles International Airport. Workers were unloading a cargo plane when it became unbalanced and actually tipped on to its tail. Loading from the front didn't work. Seven workers who were inside the MD-11 were lifted 40 feet in the air and they were actually stranded. The fire department had to come out and rescue them. No one, we're pleased to report, was injured.

Still ahead here, a high-ranking retired general says the United States should leave Iraq and now. General William Odom is our guest.

Also, the U.S. Army says it needs more ammunition. It might, just might, end up buying it from foreign suppliers. We'll have the latest on that incredible story.

And then, water wars. The severe Western drought has forced Las Vegas to make an unusual offer to homeowners. We'll have that special report coming right up.

(COMMERCIAL BREAK)

DOBBS: Reporting to you now a developing story tonight from Nashville.

An American Airlines MD-83 jetliner on a flight from Dallas-Forth worth to Boston landed in Nashville this afternoon after the pilot declared an emergency while flying over northern Alabama. A government source informing CNN that a note said there was a bomb in the cargo hold. The aircraft is still being swept at this hour. But there are no reports of any type of explosive having been found. Air Force One carrying President Bush, by the way, flew into the same Nashville airport earlier this afternoon. There was no, of course, effect on that trip. Normal flight operations have resumed.

Democratic presidential candidate John Kerry today blasted the Bush administration's policy in war. Senator Kerry said the war has made the United States less secure.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: They've gone it alone, when they should have assembled a whole team. They've made America less safe than we should be in a dangerous world.

(END VIDEO CLIP)

DOBBS: Kerry made the remarks as he kicked off what will be an 11-day tour focusing on international and domestic security. Senator Kerry said the United States should build stronger alliances and that he would work to create a coalition of the able. The senator also said he would fight to modernize the military and would demand an end to our independence on Middle East oil.

DOBBS: One of the biggest challenges facing the next president will certainly be Iraq. My guest tonight says the United States may need to stay in Iraq for as long as 50 years to fulfill all its public goals. The former director of the National Security Agency, General William Odom, joins me now.

General, good to have you with us.

RETIRED LT. GEN. WILLIAM ODOM, HUDSON INSTITUTE: Thank you.

DOBBS: You just heard Senator Kerry criticizing the president for his approach. You're talking about how long it would take to achieve goals. What do you think the best course is?

ODOM: Well, I stick with the course I announced a few weeks ago, and that's -- I think we should start a definite withdrawal. And 30 June is as good a time as any to do that.

And I would set a deadline somewhere around the end of the year. And I would invite the United Nations to authorize some leadership there and invite Europeans to come in, and other armies, if they're willing to. And if they're willing to take over, fine. If they're not, then I think we'll have to make the best deal we can and then pull out.

DOBBS: As you know, many say simply that there is no option. Senator Kerry himself says we have to stay the course. There is no real distinction in terms of the commitment to Iraq on the part of either Senator Kerry or President Bush. Given that, are you in any way disquieted by your certainty that we should withdraw? You're not concerned about the impact?

ODOM: Well, I'm concerned the impact will be a lot of chaos and disorder. There's no question about that. The option is -- the question is whether we have an option to cause it to come out a great deal differently.

By having troops there over a year now, we haven't been on an incline towards increasing order. We've been on the decline toward less order. So keeping troops in longer doesn't strike me as the solution here, certainly not in the numbers we have. I must say, I've been a little disquieted that there's not much difference between the candidates on this.

But I did hear -- Senator Kerry does make more -- put more emphasis on getting allies to participate. So who knows what will happen if he had a choice.

DOBBS: Well, General, as we're watching right now before the United Nations, as Kitty Pilgrim reported here at the outset of the broadcast, France has already requested a two-week delay. It appears it is going to be very difficult negotiations for John Negroponte, the U.N. ambassador, to achieve a resolution. What do you think could be done to expedite it?

ODOM: Well, the U.S. will have to make concession if it wants to get a resolution. As long as we're staying on this course of saying that we're going to leave a certain kind of government in place, one that I don't think we can achieve in a year or two, probably not for very much longer than that, then I don't think the allies are going to make many concessions in that regard.

So I think we're in a position now where if we want a U.N. resolution, we're going to have to let the other members, permanent members of the Security Council, write it.

DOBBS: Do you believe that given those concessions and the changed U.S. policy, that the United States should, indeed, maintain its financial commitment approaching $200 billion and retain the necessary investment in Iraq to assure some progress?

ODOM: Well, I'm not quite sure what you mean by the $200 billion. Now, it is my impression that we don't know precisely how much we've already spent, but, apparently, that approaches, if it doesn't already exceed $200 billion. Therefore, that's money down -- that's gone. We can't talk about not spending that.

If you're talking about committing a lot more money for the longer run, it depends on who's in charge and what kind of a government it is and what the prospects of them using it effectively would be.

DOBBS: General William Odom, we thank you very much. As always, good to have you with us here.

ODOM: Thank you.

DOBBS: The military needs more bullets because of the wars in Iraq and Afghanistan and the existing supplier of that ammunition simply can't keep up with demand. A major U.S. defense contractor says it can provide more ammunition, but only by importing it.

Peter Viles reports.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): Fighting two wars at once and training hundreds of thousands of soldiers to shoot, the Army now says it needs more ammunition, a lot more. The question at the Pentagon and in Congress, should those bullets be made in America or made in Canada and Israel?

The Army's main ammunition plant outside Kansas City is nearing full capacity, turning out 1.2 billion rounds a year. The Army wants to buy at least another half a billion rounds. General Dynamics proposes a global solution, ammo made by Winchester in Illinois, by Israel military industries and by SNC Technologies of Quebec Canada.

And if the thought of foreign made bullets troubles you, General Dynamics says this -- quote -- "All of our teammates are currently producing small-caliber ammunition for the U.S. armed forces."

House Armed Services Chairman Duncan Hunter is pushing for $59 million in federal spending at home to upgrade ammunition plants in the U.S.

REP. DUNCAN HUNTER (R), CALIFORNIA: I think we should make ammo in the United States. And so we're putting in the money to modernize that base and increase production here. I don't think we should rely on foreign sources.

VILES: The Army confirms it wants more ammunition, but denies there's a shortage on the battlefield, saying -- quote -- "The troops engaged in operations have the quantity that they need."

(END VIDEOTAPE)

VILES: Alliant Techsystems says that none of these bullets have to come from overseas. It says it can increase its own production in Minnesota to meet the Army's rising demand -- Lou.

DOBBS: So why, then, are we importing ammunition from Israel and Canada?

VILES: There are plenty of waivers to the buy-American premise in military contracting. Canada is part of the same -- it's part of NAFTA, it's part of the North American production region. And Israel is an ally.

DOBBS: All that is true. But, nonetheless, ammunition for our fighting men and women in which we're dependent upon trading partners seems, at best, a stretch.

VILES: Sure. And if the infrastructure isn't there, as Duncan Hunter says, we'll spend some money, fix it up, so that it is there.

DOBBS: OK, Peter Viles, thank you very much. VILES: Sure thing.

DOBBS: Tomorrow, we'll be joined by the chairman of the House Armed Services Committee, Chairman Congressman Duncan Hunter.

Taking a look now at some more of your thoughts following yesterday's new terror threat warning, Van Young wrote of Bloomington, Indiana, wrote in to say: "The U.S. government has implemented many security measures in the past two years. I know we still have a long way to go. But security costs money and it takes time. All of us have to be on the lookout for suspicious activity and report it to authorities."

William Hamilton in Holiday, Florida: "Call my cynical. I can't help noticing how this terror warning tends to take the heat off the president just at the right time."

And Greg in Redondo Beach, California: "Lou, I think we should implement a new color scheme dedicated to grade the credibility of the intelligence used for the warnings."

Send us your thoughts at LouDobbs@CNN.com. We'll share those thoughts later in the broadcast, more of those thoughts.

Still ahead now, the free trade giveaway. The United States agreed today to yet another free trade agreement with yet another country. We'll have details on the cost of free trade.

Also, best-selling writer Arianna Huffington says fanatics and fools are running this country, misleading political parties. And I can't wait to talk to her. She's our guest tonight.

And then a whole new world in outer space. Astronomers find evidence of a fascinating new planet.

We'll have that story and much more ahead right here.

(COMMERCIAL BREAK)

DOBBS: All this week we're reporting on the free trade giveaway. The United States will sign the Central America Free Trade Agreement tomorrow. Today, it agreed to yet another free trade agreement this one with Bahrain.

U.S. trade representative Robert Zoellick, said the deal would give American companies, quote, unprecedented economic opportunity in Bahrain. Congress must approve the Bahrain deal, plus CAFTA and trade pacts with Australia And Morocco. Zoellick today, said opposition in Congress, to the deals will not dissuade our White House.

(BEGIN VIDEO CLIP)

ROBERT ZOELLICK, U.S. TRADE REPRESENTATIVE: We've got people who are worried to support trade particularly in an election year. So, we would lose some on our party, although we're certainly get the majority of support there, by far. So the combination of the short window plus the opposition means that what we're going to try to do for the rest of the year is move through as many agreements as we can.

(END VIDEO CLIP)

DOBBS: CAFTA is designed to open up trade between the United States and Central America. However, robust trade already exists. Many U.S. companies have been doing business there for years without any kind of free trade agreement.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): American businesses already hard at work in Central America. A check of the membership rolls of Central American Chambers of Commerce reads like a Fortune 500 list. Microsoft, Intel, Oracle, Coke Cola, Merck, Phizer, 3M, Kimberly-Clark, Dole, and that's a partial list. Impressive, but we buy more than they buy from us. Our trade deficit with six countries covered under CAFTA is more than $2 billion. While high tech is gaining a foot hole. Intels plant in Costa Rica test and assembles computer chips for export as an example.

The bulk of our trade is apparel.

KEVIN BURKE, PRESIDENT AMERICAN APPAREL AND FOOTWEAR: They make underwear. They make socks. They make pants. They make shirts. They make T-shirts. A variety of different things.

TUCKER: Which all start with U.S. Materials. It is our textile industry's number one export market. Some in the industry argue that CAFTA is necessary.

WILBUR ROSS, W.L. ROSS & CO: The question isn't will it be made in the U.S. or made overseas. The only question is, is it going to be made in China or Latin America.

TUCKER: Those who argue for the treaty do so based on what they call the success of the North American Free Trade Agreement and what it's done for workers. Critics say everyone should take a closer look.

BRUCE RAYNOR, PRESIDENT: Since NAFTA was passed, the wages and conditions of Mexican workers, particularly in textile and apparel, but all manufacturing workers, are worse now than they were in July 1995 because of NAFTA. And the result is, Mexican workers are voting with their feet and risking their lives to cut across the border to come to work in the United States, because wages and benefits have been reduced in Mexico.

TUCKER: The average wage is roughly, $1 an hour. There aren't a lot of American product that is can be bought with those kinds of wages.

(END VIDEOTAPE)

TUCKER: Now, proponents for CAFTA argue that any job is better than no job for our neighbors to the south. Opponents aren't wondering why the United States won't simply set conditions for access to the world's largest and richest market.

DOBBS: So, it looks like an attractive proposition for what are called round trippers.

TUCKER: Yes, exactly. Meaning goods that go down, and turn around and come back.

DOBBS: Terrific. In other words, this has a lot of focus on the cost of labor?

TUCKER: A lot of it, particularly in the apparel industry. Yes, it does, Lou.

DOBBS: Terrific. Thank you very much, Bill Tucker.

That brings us to the topic of "Tonight's Poll." The question, whom do you think benefits most from CAFTA? Central America, United States, both, neither. Cast your vote at cnn.com/lou. We'll have the results for you later in the broadcast.

A battle to keep Wal-Mart out of Chicago has failed. Chicago's city council approved the plan to open its first store in the windy city. It will be a 150,000 square foot super store in a minority neighborhood on the west side. Opponents says the store will threaten small businesses and depress wages in the area. Wal-Mart said it will help it better serve its customers. The city council believed Wal- Mart. Last month they lost a similar battle to open a store in a Los Angeles suburb.

NASA scientists may have found the youngest planet ever detected. The Spitzer Space Telescope, an orbiting observatory, launched last summer surveyed a grou of young stars and found a clearing in the disc around a star CoKu Tau 4. Scientist believe this might indicate an orbiting planet swept away the disc material that surrounds infant stars as seen in this animation. This is a NASA animation. And because this star is about one million years old, the planet would be even younger. By comparison, the earth is approximately 4.5 billion years old.

And "Tonight's thought" on space and exploration. "Exploration is really the essence of the human spirit." Astronaut Frank Borman.

Still ahead, more than 2,000 people die in flooding in Haiti and the Dominican Republic. U.S. forces are helping the victims. We'll have a live report for you.

We'll be talking to Arianna Huffington about her new book, "Fanatics and Fools," a scathing portrait of the current political landscape and what an interesting indictment of both parties.

A high speed drug chase for custom officials. We'll show you how a tip led authorities to a ton of cocaine.

(COMMERCIAL BREAK) DOBBS: My next guest is a syndicated columnist, author of a new book offering a colorful view of politics and its players. In "Fanatics and Fools, the Game Plan for Winning Back America," Arianna Huffington criticizes the, quote, "fanatics who now run the Republican party and the fools guiding the Democratic party." She joins me from Los Angeles. Good to have you with us.

ARIANNA HUFFINGTON, AUTHOR: Thank you, Lou.

DOBBS: Arianna, the idea of calling the Bush administration fanatics and the Democrats fools has to endear you to both parties.

HUFFINGTON: Well, the fanatics are those who are ignoring all evidence. We see that, Lou, every day with the news from Iraq. We see how this administration made up its mind what it was going to do and ignored all evidence and is still ignoring all evidence. That's the tell-tale symptom of fanaticism. As for the fools, I'm talking about the Democratic leaders who enabled the fanatics to prevail, who went along with the invasion of Iraq, went along with the multi trillion dollar tax cuts. Fortunately, during the primary there is a spine transplant. Even though Howard Dean lost, you heard Democratic leaders, including John Kerry, speak out more forcefully and boldly against what the administration has been doing.

DOBBS: Well, you have, obviously -- while there are fanatics and fools and that's quite a pair to draw to, you, obviously, have come down in favor of the fools, as you put it. Why so?

HUFFINGTON: I've actually come in favor of John Kerry because I believe he has the opportunity to transform both the Democratic party and taking them away from foolishness and actually win back the country. It's imperative right now, I believe, for all of us to -- who want to see George Bush go back to Crawford, Texas, to rally around John Kerry. And in fact, in danger of that (UNINTELLIGIBLE) my book, I have a message for the Greens and the Ralph Nader potential supporters. What I say to them is when your house is on fire, it's not the time to talk about remodeling. First you have to put the fire out. That means sending Bush back to Crawford then let's talk about political remodeling. There is a lot of that that needs to be done.

DOBBS: What do you think are the most important issues in this campaign? obviously, Iraq will be at the top of that list. What besides Iraq?

HUFFINGTON: Well, domestically I think the sleeper issue of 2004 will be idealism. That's why in the second part of my book I offer a vision of new responsibility for America that actually addresses the central question of what kind of country do we want to be. If you really answer that question, a lot becomes clear. For example, do we really want to put hard-working Americans first or want to pretend that trickle down needs to continue to be the economic order of the day? All you've been doing on this show about outsourcing, for example, becomes particularly valuable when you recognize that jobs are not just a lagging economic indicator, but, as I say in the book, they're really the central indicator of a healthy economy. DOBBS: Arianna, as you know, the Clinton administration, the Democrats, are the authors of the World Trade organization permanent normal trade for China and for NAFTA. How do you square that up in partisan terms?

HUFFINGTON: Well, as John Kerry told Ralph Nader when they met privately but he said that publicly, do not judge me by my predecessors. There is a lot that has to be changed. I don't think a strategy of strangulation would work for John Kerry. There are 50 percent of eligible voters, 100 million Americans who did not vote in the last election. I think the most inspiring strategy for the Democrats will be to appeal to them. Even if they get 10 percent of them to believe again that we can renew the American spirit and the American dream it will transform the November election. That's why I have this contract for a better America, which includes jobs at the beginning.

DOBBS: As you point out in your book, jobs that include working on new energy sources, working for healthcare. I notice one thing, Arianna. Each of those jobs, in one way or another, are government jobs. Most of the jobs have been created here of late have been in the government sector, have they not?

HUFFINGTON: Well, I think what's happening right now is we're not giving the right incentives to businesses. As you know, Lou, the tax code can be used to create incentives or disincentives for creating jobs. Right now Kerry has made it clear that he will put an end to all incentives to export jobs and to export profits in the form of tax shelters. That would send a different signal to corporate America than the one they're getting from the Republican fanatics. Even a lot of the good guys in corporate America agree that this has to be done.

DOBBS: Arianna Huffington, as always good to talk with you.

HUFFINGTON: Thank you.

DOBBS: Outrage tonight over the Vatican's appointment of Cardinal Bernard Law to a new position in Rome. Law resigned as Boston's archbishop 17 months ago amid the priest sexual molestation scandal. Law stands accused of covering up sexual misconduct of priests and reassigning them to different parishes even as they were being charged with sexual abuse. Pope John Paul appointed Law to run St. Mary Major Basilica in Rome. That appointment comes just days after the Vatican accused the United States for moral failure for abuse of Iraqi prisoner and after the Boston arch diocese closed 65 parish churches because of budget shortfalls following the abuse scandals.

A reminder now to vote in our poll. Whom do you think benefits most from CAFTA? Central America, the United States, both or neither? Cast your vote at CNN.com/lou. We'll have the results coming right up.

Taking a look now at some of your thoughts on CAFTA. Julie Ann Weber of Westport, Connecticut. "CAFTA is just another step down the road to economic perdition. Like NAFTA it will result in increased illegal immigration and the loss of our jobs, capital equipment and resources to cheap labor markets that cannot and will not buy what Americans create and produce."

Bernita White, Sandusky, Ohio. "If NAFTA were so good for Mexico then why are the people risking their lives to cross our borders to try and make a decent living."

Arnold Scott of Winslow, Arizona. "This is great. Now I can tell my grandchildren, when they grow up, they, too, can make 29 cents an hour. That way we'll all be equal."

David Elias of Bethlehem, Pennsylvania. "Lou, your show on CAFTA helped expose another plan that only serves to export American jobs to cheap foreign labor."

Send us your thoughts. We love hearing from you. Loudobbs@CNN.com.

Still ahead, the death toll. It's rising after massive floods in Haiti and the Dominican Republic. We'll have a live report from the Dominican Republic.

Our special report. Water wars. Residents of this country's fastest growing city facing a very tough choice. In the midst of a severe drought, they're taking extreme measures to try to conserve water. We'll have a special report.

(COMMERCIAL BREAK)

DOBBS: New developments tonight in one of the worst disasters to hit the Caribbean in decades. Thousands of people are feared dead from the floods in the Dominican Republic and Haiti. Hundreds of people are still missing tonight. Susan Candiotti reports now from Santo Domingo, capital of the Dominican Republic -- Susan.

SUSAN CANDIOTTI, CNN CORRESPONDENT: Hello, Lou. Authorities here are trying to get even a clearer picture than they already have of the amount of devastation. The president of the Dominican Republic has called it a national day of mourning as he flew down to one of the hardest hit areas, a town called Jimani about 100 miles away. It is on the border with Haiti, neighboring Haiti.

Also in tow the U.S. Ambassador Hans Hertell. Both of them seeing firsthand as some of the bodies are still being recovered from a lake there that were carried down by rain from midnight storms. The storm -- homes being picked up with sleeping families inside. Power is out much of the area. Mud is everywhere. Government officials tell me they are still in dire need of drinking water, of food, of clothing and shelter. As many as 15,000 people will be homeless, they say.

International help is coming in. About a $50,000 donation from the United States and countries including Japan and Venezuela are providing help with medicine and doctors. Some of the roads remain impassable because they are covered with water. Again, there is crop and livestock damage and in neighboring Haiti we are still hearing about U.S. marines and Canadian forces going in to provide about a dozen relief flights a day there. A little town called Mapou about 30 miles out of the capital of Haiti Port-Au-Prince, I am told that the city there is still under about 10 feet of water and people are having to get about on rafts. Now unfortunately they are getting a dire prediction that is certainly an unwelcome one, up to 3 inches of rain in the next 24 hours that will make recovery efforts that much harder -- Lou.

DOBBS: Susan, thank you very much. Susan Candiotti reporting from Santo Domingo.

Obviously, mud slides in the Caribbean devastating much of Santo Domingo, the Dominican Republic and Haiti. Tornadoes and flooding in the Midwestern part of the United States is devastating. Tonight, we focus on Las Vegas, the worst affected large city in the west. Las Vegas is the city closest to the Colorado River but it's being forced to conserve water because of outdated regulations and rapidly dwindling water supplies. Casey Wian reports.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): This McGowan residence has a beautiful lawn but most of it is being ripped out.

TERRY MCGOWAN, HOMEOWNER: I just feel we need to conserve water for the future of our children and the population growth.

WIAN: Since last year, about 2 million square yards of grass has been torn out of Las Vegas yards, golf courses and resorts. An entire football field's worth of turf is being replaced daily by water-saving desert landscaping. The water company is even paying residents up to $1 a square foot to remove grass.

PAT MULROY, SOUTHERN NEVADA WATER AUTHORITY: We're spending $22 million this year removing turf, we'll spend $33 million next year removing turf. Essentially, we've said to our customers, we'll help you pay to drought proof yourself. And they've responded.

WIAN: It is boosting business for landscapers.

SCOTT TRACY, ALLIANCE LANDSCAPING: I'd say right off the bat, 25 to 30 percent. As long as we don't get more rain, I think it will go on for quite a while.

WIAN: Las Vegas has been hit hard by the drought largely because its share of the Colorado River was set decades ago when no one imagined it would become America's fastest growing city. Its water supply is tied to nearby Lake Mead which is down 75 feet since 2000. This year Las Vegas entered what it calls drought alert, meaning tight restrictions on water use for residents and businesses and heavy fines for water wasters.

When people talk about water shortages in Las Vegas, they often point to the giant fountains and lakes that decorate many of the casinos here. The truth is hotels and casinos only use about 7 percent of southern Nevada's water. Even so, some casinos are ripping out grass in favor of desert plants. The Stardust says it will save 8 million gallons of water a year.

ROB STILLWELL, BOYD GAMING: That grass there certainly looked real nice and shiny but at the end of the day it really wasn't being used. It didn't make a lot of sense.

WIAN: If Lake Mead drops another 13 feet, Las Vegas will switch to drought emergency perhaps as early as next year. Water managers are not sure how they'll respond but are considering heavier fines on water wasters and paying other areas for their excess water. Casey Wian, CNN, Las Vegas, Nevada.

(END VIDEOTAPE)

DOBBS: Tomorrow in water wars we take a look at what the federal government is doing to protect the interest of more than 25 million people affected by the drought in the west.

From the water wars to the war on drugs. A tip about a cocaine smuggling operation between the United States and Bahamas led to a high-speed chase off the coast of Hollywood, Florida. The Coast Guard was there and photographing when two boats believed to be carrying cocaine entered U.S. waters. Customs and Coast Guard boats and helicopters were waiting. As you can see, one of the boats tried to escape but Customs forced it to a halt 12 miles offshore. Federal agents seized more than 2,000 pounds of cocaine and arrested six suspected smugglers trying to get that ton of cocaine into the United States. The estimated value of the cocaine, $20 million.

Well, it was a big day on Wall Street. The Dow up more than 95 points, NASDAQ rose eight, the S&P 500 up more than six.

Still ahead here, the results of our poll tonight. First, a reminder. Check our website for the complete list of companies we've confirmed to be exporting America. CNN.com/lou. Stay with us.

(COMMERCIAL BREAK)

DOBBS: The results of tonight's poll. 53 percent of you say Central America will benefit most from CAFTA. 4 percent say the United States. 5 percent both. 39 percent neither. Another rousing endorsement for free trade agreements.

Thanks for being with us. Join us tomorrow. House armed services committee chairman, Congressman Duncan Hunter will be with us leading the fight to keep American defense contracts and jobs in this country.

For all of us here, good night from New York. "ANDERSON COOPER 360" next.

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