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CNN Wolf Blitzer Reports

Terror in America; American Civilians Kidnapped in Saudi Arabia; Flag Day Ruling by Supreme Court

Aired June 14, 2004 - 17:00   ET

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

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


(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR (voice-over): Terror in America.

JOHN ASHCROFT, ATTORNEY GENERAL: Current, credible intelligence indicates that al Qaeda wants to hit the United States, to hit the United States hard.

BLITZER: The alleged target, a shopping mall in the heartland.

Civilians targeted, kidnapped in Saudi Arabia.

PAUL JOHNSON III, SON OF HOSTAGE: And I plead with y'all to please let my father go.

BLITZER: Ambushed in Iraq.

DAN SENOR, COALITION SPOKESMAN: The important point is to provide as much security as we can and continue to move forward with transition.

BLITZER: Are the risks too great for some Americans abroad?

"Under God." A Flag Day ruling by the Supreme Court.

Unveiled.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: President Clinton and Senator Clinton, welcome home.

BLITZER: They're back in the White House forever.

ANNOUNCER: This is WOLF BLITZER REPORTS for Monday, June 14, 2004.

(END VIDEOTAPE)

BLITZER: Targeted for terror. Americans are in the crosshairs. There are new allegations about al Qaeda's aims in this country as a Somali man is indicted for plotting to bomb an Ohio shopping center.

A family pleads for the safe return of an American kidnaped in Saudi Arabia. But there are ominous warnings on a Web site linked to al Qaeda.

As Iraq counts down the days until a handover of power, a bloody bombing targets Westerners working to try to rebuild the country.

We'll get reports on the growing danger to Americans working abroad. But we begin with the new concerns right here at home. For that let's turn to our justice correspondent Kelli Arena -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, the government today unsealed charges against a Somali man, Nuradin Abdi. He's been in immigration custody since November but is now charged with providing material support to al Qaeda.

Abdi allegedly planned to blow up a shopping mall, although the FBI says it has no definite information regarding which one. And Abdi was allegedly working with convicted al Qaeda member Iyman Ferris. Ferris, you may recall, was serving a 20-year sentence for scouting targets such as the Brooklyn Bridge for al Qaeda.

(BEGIN VIDEO CLIP)

ASHCROFT: Upon returning to the Columbus, Ohio area, it is alleged Abdi, along with admitted al Qaeda operative Ferris and other co-conspirators, initiated a plot to blow up a Columbus area shopping mall.

It is also alleged that in pursuit of this plot, Abdi received bomb making instructions from one of these -- or those coconspirators.

(END VIDEO CLIP)

ARENA: Abdi is also charged with obtaining and using fraudulent travel documents. He allegedly lied about travel to Ethiopia where the government says he received military training for violent jihad.

And, Wolf, he made an initial appearance in court today. The charges were read. He did not respond. And his brothers, who were outside the courtroom, said that their brother is innocent, that he had nothing to do with any terrorist plot. We have yet to hear from Abdi himself.

BLITZER: All right, CNN's Kelli Arena with that report, disturbing as it is. Thanks very much.

Paul Johnson is an American civilian working for a defense contractor in Saudi Arabia. He's been missing since Saturday. That's the same day that another American was shot dead in the capital of Saudi Arabia, Riyadh. A group claiming ties to al Qaeda says they kidnapped Johnson. His family is mounting a vigil near Tuckerton, New Jersey. CNN's Deborah Feyerick is there. She's joining us live -- Deborah.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Wolf, Paul Johnson's mother and sister left their home here in New Jersey around lunchtime to pick up Johnson's son at the Atlantic City Airport. He flew in from Florida earlier today. Before leaving he spoke to the media, pleading for his father's safe return.

(BEGIN VIDEO CLIP) JOHNSON: As I say, I mean, whoever's responsible for this, you know, I would trade, in a heartbeat, what my father -- he doesn't deserve this. And I plead with y'all to please let my father go.

(END VIDEO CLIP)

FEYERICK: There are a dozen cameras outside of the home. A state trooper and neighbor both tell CNN that the family is not planning on returning to the home for several days.

Johnson is an engineer with Lockheed Martin. His specialty, Apache helicopters and night vision systems. He was abducted Saturday. A group calling itself the Arabian Peninsula Mujahideen. On their Web site, the kidnappers promise that a videotaped confession from Johnson will be forthcoming.

(BEGIN VIDEO CLIP)

ASHCROFT: I don't think I'm prepared to make an announcement other than to say these are matters of great concern to us and that we would work together with Saudi authorities to bring to justice those who commit acts of atrocities against American citizens.

(END VIDEO CLIP)

FEYERICK: In April the U.S. State Department pulled out all non- essential workers, urging all civilians to leave Saudi Arabia. A terrorist group issued a warning last week. Two Americans in Riyadh have been gunned down in their garages since that warning -- Wolf.

BLITZER: CNN's Deborah Feyerick reporting from New Jersey. Deborah, thanks very much.

To our viewers, here's your chance to weigh in on this important story. Our "Web Question of the Day" is this: should Americans leave Saudi Arabia? You can vote right now, go to cnn.com/wolf. We'll have results for you later in the broadcast.

With Iraqi sovereignty scheduled to take effect at the end of the month, violence is continuing to escalate. A series of bomb attacks in Baghdad today killed at least 16 people. At least 13 of the victims died in a suicide car bombing just off Baghdad's Liberation Square. CNN's Baghdad bureau chief Jane Arraf is joining us live with the story -- Jane.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Wolf, for months, officials have been warning that as the country heads closer to the handover to sovereignty, these attacks will continue. But that didn't lessen the shock on Monday when the warnings turned to reality.

(BEGIN VIDEOTAPE)

ARRAF (voice-over): Morning rush hour turned into a desperate rush to rescue survivors. Most of the victims of this latest car bomb were working class Iraqis. But the target appeared to be the coalition. As a convoy of Western contractors drove through this densely- packed street, a suspected suicide car bomb packed with more than half a ton of explosion is detonated. Three General Electric employees and two of their security personnel were killed. The dead included two Britons, an American and a French national. Some of the dozens of wounded were carried into nearby hospitals.

Iraq's new political leaders warned that Iraqis could see the worst violence in the coming weeks since the end of major combat.

IYAD ALLAWI, IRAQI INTERIM PRIME MINISTER (through translator): I would like to say that the situation will be escalating in the coming days, and we know the objectives behind these attacks.

But I would like to say that we will achieve victory and we will protect our people from all of these criminal and vicious crimes against the Iraqi people.

ARRAF: In the meantime, the car bombs, almost one a day this month, and political assassinations continue. On the weekend, Deputy Foreign Minister Bassam Salih Kubba was shot dead. A senior education ministry official gunned down a day later.

In the streets near the blast Monday, some Iraqis took out their anger on reporters, on American soldiers and on what was left of the vehicles, blaming the U.S. for not preventing attacks like this.

(END VIDEOTAPE)

ARRAF: Attacks that won't stop until Iraqis can prevent them themselves, officials say. And that won't happen until the Iraqi police and security forces are strong enough to secure the country themselves -- Wolf.

BLITZER: CNN's Jane Arraf in Baghdad. Jane, thanks very much.

The attack today that killed five Western civilians in Baghdad underscores the dangers faced by reconstruction workers in Iraq. The assaults are jeopardizing efforts to repair Iraq's critical infrastructure. CNN's Zain Verjee is joining us now live from the CNN Center in Atlanta with more -- Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Wolf, Iraqis have viewed the occupation with growing resentment and disillusionment, as you well know. The U.S. and the interim Iraqi government really scrambling to show Iraqis that the occupation can improve their lives. But it appears that the reconstruction effort is competing with the chaos.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): How do you rebuild a shattered country in the midst of suicide bombings, assassinations, abductions and a guerrilla war? Push on with reconstruction efforts in spite of the violence, say some. Give Iraqis a stake in their future, build roads, restore electricity, the flow of water, win hearts and minds, and the violence will inevitably ebb away. But senior World Bank officials say any development will be limited and slow if the security situation isn't stabilized first.

Foreign civilian workers are marked men, targeted for kidnapping or murdered by insurgents. Iraqis involved in reconstruction efforts themselves are fearful they, too, are targets.

American administration officials concede security will get worse before it gets better.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: The real goal, the real focus should be on training Iraqis to take care of their own security needs. And what we're going to be doing is urging our international partners to participate in both efforts to help the Iraqis become more capable.

VERJEE: Some contractors and aid agencies pulled out their workers from Iraq. Those still operating spend much money on staff protection and security, money that could have been spent on projects themselves. The hope was for Iraqi oil to pay for the cost of reconstruction, but militants continue to sabotage crucial oil pipelines, delaying the flow of oil from Iraq.

An interim government's preparing to assume all but military power in two weeks from U.S.-led occupation forces. But it inherits an insurgency committed to creating chaos by sabotaging reconstruction plans and one that is increasingly determined to kill the very men that would play a crucial role in rebuilding Iraq.

(END VIDEOTAPE)

VERJEE: Experts say, Wolf, that you can deal with security in reconstruction, only in narrow military terms. You're really got to establish a mechanism for being as inclusive as possible when you share political power and that, they say, is the only way to build trust and national reconciliation -- Wolf.

BLITZER: Zain, what are you suggesting? I know you've been speaking to a lot of these people. Are you suggesting there is a way to try to bring these insurgents into the fold, if you will?

VERJEE: There are a couple of views on that, Wolf. The first is that you can't so forget it. Don't even bother. The Abu Musab al- Zarqawis of Iraq are going to try and subvert the Iraqi democratic experiment. They don't want Iraqis to have freedom so they're going to continue bombing police stations in Basra. They're going to continue suicide bombings. What these people are suggesting is this, that you really need to focus on separating the terrorists from the Iraqis who have goodwill toward reconstruction.

They say, focus on the Kurdish areas, focus on some of the more moderate Shia areas, build schools there, deal with the health infrastructure, organize the sewer systems, get the electricity going, get water flowing and that way you're going to show, look, there can be progress in parts of Iraq and maybe people in the Sunni Triangle will say, you know, maybe that's something that we want to start looking at. The other view is that people say, look, it's not all about Abu Musab al-Zarqawi which is who we care about all the time. They say there are tens of thousand of Shias, tens of thousands of Sunnis that don't like the occupation. They don't want the reconstruction effort to succeed so you need to bring them into the political fold -- Wolf.

BLITZER: CNN's Zain Verjee reporting for us. Thanks, Zain, very much.

We have more to come on the volatile situation in Iraq including my interview with the coalition spokesman, Dan Senor. I'll ask him about U.S. plans for security after the June 30 handover.

The star-spangled sidestep. The Supreme Court makes a ruling on the Pledge of Allegiance. Is "under God" still legal under the law?

Later, new terror tactics. How recent attacks on westerners could be a sign of yet more to come.

(COMMERCIAL BREAK)

BLITZER: Securing Iraq until the handover. Major security concerns are still haunting the process. I'll discuss this and other issues with the coalition's spokesman, Dan Senor. He's in Baghdad. That's coming up.

(COMMERCIAL BREAK)

BLITZER: With just over two weeks left until Iraq regains its own sovereignty, violence is on the increase. Many of the attacks appear to target civilian workers trying to rebuild Iraq's infrastructure. Just a short time ago, I discussed security and other related issues with coalition spokesman Dan Senor, who is in Baghdad.

(BEGIN VIDEOTAPE)

BLITZER: Dan Senor, thanks very much for joining us. We just saw these awful pictures of this latest car bombing in Baghdad where Iraqis are chanting, "Death to the U.S.A." They are throwing, it seems like, gasoline on top of the cars to keep the fuel going. And there are Iraqi police standing by basically doing nothing. What's going on?

DAN SENOR, COALITION SPOKESMAN: Well, Iraqi police aren't doing nothing, Wolf. Iraqi police were the first on the scene. Iraqi police are leading the investigation. Iraq's Prime Minister Iyad Allawi held a press conference today condemning this, speaking out against it, saying that Iraqis are going to take these matters into their own hands working with U.S.-led forces. I think the fact that you have a couple of people cheering it on represents a tiny, tiny minority of Iraqis. And Prime Minister Allawi made that clear. The overwhelming majority of Iraqis abhor this kind of behavior and they view it as a real threat to their country. They view it as a real threat to the handover of sovereignty on June 30 and they are as committed as we are to defeating this kind of evil.

BLITZER: Two assassinations of two high-ranking Iraqi officials over the weekend coming in advance of this latest car bombing. It looks like it's awful right now. Is it going to get worse before it gets better?

SENOR: Unfortunately, we have been saying for some time that as we get closer and closer to June 30, we're going to see more violence. Why? Because Zarqawi and his al Qaeda network and their affiliates are doing everything they can. We know -- this is clear by every measure they're doing everything they can to throw this process on track. The last thing they want is a self-governing Iraqi democracy. Zarqawi has said that explicitly.

We have a blueprint of a document that was headed for Afghanistan to senior al Qaeda leadership that outlined his plan. He said this. So they're going to do everything they can in advance of June 30 to prevent the success of this interim government. With that, as I said, we're going to see more violence. We have to be prepared for it. Two ways to defeat it, Wolf. One is with our military might and we'll focus on that working side by side with the Iraqis. But it's also through a political strategy and it's moving forward with empowering this interim government and letting them take control on schedule.

BLITZER: Is it your sense that there can be reconstruction, serious reconstruction, with the security situation as unpredictable, as seemingly awful as it is right now?

SENOR: Absolutely. We have already deployed, committed billions of dollars from the supplemental on reconstruction projects. Close to 20,000 reconstruction projects have been completed. Small projects, putting generators in schools, getting hospitals reopened, it averages out to about 100 day a day. These contractors have security. They bracket in security when they're coming up with their proposals. So it's not unexpected that they will have to have security constraints and security infrastructure and resources going on the ground here.

They do it, don't get me wrong, the security situation does make things more challenging for the reconstruction. But when we arrived here unemployment was something between 60 percent and 70 percent. Today it's between 25 percent and 30 percent. And that has as much to do with deploying the reconstruction dollars and the various projects we're doing as anything. And therefore that's indicative to us of the fact that things are moving forward on the reconstruction. I don't want to sound Pollyannish, it does make things difficult, but yet we are still making progress on that front and it's moving forward.

BLITZER: Saddam Hussein -- the new interim president of Iraq told me in the past few days, Ghazi al-Yawar -- he wants him handed over to the Iraqi government shortly after June 30. What do you say?

SENOR: Well, under the Geneva Convention we can't hand Saddam Hussein over beforehand because we can only hand him over to a sovereign government. The Iraqi government will be sovereign on June 30. And what we've said is after that point, we will be prepared to hand him over to the Iraqi special tribunal so long as the Iraqi special tribunal is prepared to receive him. So we are waiting for briefings and reports from the director of the Iraqi special tribunal who has been having meetings with the prime minister, I think they are meeting sometime this week, in fact, to sort of lay out where they are in building up the whole case against Saddam and building out the infrastructure of the special tribunal, hiring prosecutors, investigative judges and judges and consultants to work on this court so they can actually receive Saddam.

BLITZER: Dan Senor will be flying home with Ambassador Bremer on June 30. You signed up, what, for 90 days. It's been 14 1/2 months. You're anxious to get back home, Dan?

SENOR: Let's just say I've got 16 days left until I get my own sovereignty back.

BLITZER: All right, Dan Senor. Good luck to you. Thanks very much for joining us.

SENOR: Good to be with you, Wolf.

(END VIDEOTAPE)

BLITZER: It's Flag Day here in the United States and over at the United States Supreme Court, a key ruling on the Pledge of Allegiance. Is "under God" still legal? We'll tell you their decision.

Plus. Targets for terror. Westerners in the Arab world facing increased threats and violence. Is it a tactic that's here to stay?

Plus this...

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: President Clinton and Senator Clinton, welcome home.

(END VIDEO CLIP)

BLITZER: Unveiling history. A picture-perfect occasion over at the White House. That's coming up later.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Supporters of the Pledge of Allegiance are hailing a U.S. Supreme Court decision to throw out a challenge to the patriotic oath. Today's decision, ironically delivered on Flag Day, will allow the pledge to still be recited in classrooms around the United States, at least for now. Our national correspondent Bob Franken is over at the Supreme Court. He has details -- Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Wolf, it was 50 years ago today that the words "under God" were inserted into the Pledge of Allegiance (UNINTELLIGIBLE) of the Supreme Court ruling, nothing has changed.

(BEGIN VIDEOTAPE)

FRANKEN (voice-over): The decision's release on Flag Day in the United States is perhaps coincidental, but the practical effect is the phrase "under God" stays in the Pledge of Allegiance to the flag that so many school children recite every morning. UNIDENTIFIED CHILDREN: One nation under God...

FRANKEN: A majority of five justices chose to bypass the First Amendment questions and rule instead that atheist Michael Newdow had no standing to bring the case to challenge the phrase on behalf of his daughter. "As noncustodial parent," wrote Justice John Paul Stevens, "Newdow did not have the right to reach outside the private parent- child sphere to dictate to others what they may and may not say to his child respecting religion." Not sweeping, but it still means Newdow lost.

MICHAEL NEWDOW, PLAINTIFF: The Pledge is still unconstitutional. It's still unconstitutional to put in the middle of your Pledge of Allegiance purely sectarian religious dogma.

FRANKEN: Three other justices agreed with the outcome but went further. Rehnquist, O'Connor, and Thomas argued "under God" is constitutional, impervious to the heckler's veto of Newdow that the phrase is public recognition of our nation's religious history and character. As for the custody issue, it was not a trivial issue to the school district.

DAVID GORDON, ELK GROVE, CALIFORNIA SCHOOL SUPERINTENDENT: The family law statutes are what protects a district from being caught in the middle of the many custody disputes you find in a large school system.

(END VIDEOTAPE)

FRANKEN: Many are surprised it even got this far, but others are surprised a majority of the justices decided that they wouldn't even deal with the constitutional questions -- Wolf.

BLITZER: Bob Franken reporting from the Supreme Court. Thanks, Bob, very much.

Who's to blame for the faulty intelligence lead up to the war with Iraq? The Bush administration or the CIA? Up next, I'll speak to an author of a new book who says it's both.

Also ahead, the former Defense Secretary William Cohen joins me live. We'll talk about what appears to be the shifting tactic being employed by terrorists in Saudi Arabia and Iraq.

Plus this...

(BEGIN VIDEO CLIP)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Hello, I'm Nic Robertson. Coming up, I'll have the latest details on the terror attacks in Saudi Arabia. That's when WOLF BLITZER continues.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Is the kidnapping of the American worker Paul Johnson in Saudi Arabia a sign of a new tactic being used by terrorists? We'll find out.

First, though, this headline: One of the major hot spots in the Middle East today is the West Bank. Two Palestinian militants were killed in an Israeli missile strike in Nablus. Palestinian authorities say one of the victims was the local leader of the Al Aqsa Martyrs Brigade. They say the second victim was a member of the group. Israel confirms the strike, saying the leader was targeted because of his attacks on Israelis.

Saudi authorities are on the hunt right now for the kidnappers of an American contractor and the killers of other Westerners. The recent wave of attacks has rocked the kingdom and the expatriate community which helps keep it running.

Let's go to live to our senior international correspondent Nic Robertson in London -- Nic.

ROBERTSON: Well, Wolf, people we have talked to in that expatriate community in Saudi Arabia say that it is not yet at a state of complete fear.

They do say that if -- perhaps if there's one or two more bloody attacks, certainly, a lot more people could be thinking much more seriously, perhaps even begin to start leaving in numbers. Certainly, the hostage taking over the weekend has heightened people's fears, those pictures on the Internet perhaps the best clues for Paul Johnson's family that there is some hope that he may yet be found.

(BEGIN VIDEOTAPE)

ROBERTSON (voice-over): These pictures may be U.S. contractor Paul Johnson's best hope of release right now, but it's not much. His driver's license and passport posted on an Islamic extremist, or jihadi, Web site -- slender clues for the Saudi authorities hunting his kidnappers.

PAUL JOHNSON III, SON OF KIDNAP VICTIM: He's worked for the Saudi government, really, for the last 10 years of his life. And I think that's -- ought to be worth something to them. And I hope -- I hope and I pray to God that they are trying to do something.

ROBERTSON: In Saudi Arabia, the killings of three Westerners in the last week has prompted some companies employing Westerners to use telephone text messages about news events to calm employees' families. And although there is no panic yet, one large expatriate employer who prefers anonymity talked of rapidly rising concern.

UNIDENTIFIED MALE: The main concern is, the tactics have been changing. Before, it was really putting car bombs full of explosive, and now with something in individual targets. And that is of concern, because you don't know what's going to happen next. ROBERTSON: Sources close to Saudi intelligence suspect this man, Abdulaziz al Muqrin, is behind the recent spate of attacks and say his capture could significantly unravel what Saudi officials have described as the country's last significant al Qaeda cell. His speedy capture, though, according to one Saudi security consultant, is by no means guaranteed, and nor is the safety of the Western workers.

NAWAF OBEID, SAUDI SECURITY CONSULTANT: You cannot protect every single expatriate that lives in Saudi Arabia when he's in his car going to his office and so forth. There's over 80,000 expatriates today in Saudi Arabia. So it comes back to the question, how can they be protected? And the question is, they cannot.

ROBERTSON: Should these attacks continue, analysts suspect, Saudi Arabia's massive oil industry would likely bear the brunt of the departure of the Western workers. Few, though, think it would have an immediate effect on oil output.

UNIDENTIFIED MALE: Some Saudis are saying that maybe it's no bad -- it would be no bad thing if it happened, because there are a lot of young Saudis coming on to the market who need employment and training.

(END VIDEOTAPE)

ROBERTSON: Well, from Saudis we've talked to today, many seem already to believe that many of the Western workers will in fact end up leaving Saudi Arabia.

And one security source close to Saudi intelligence said that al Muqrin's modus operandi when he was operating in Algeria before is to capture people and execute them on videotape. So, certainly, those with some knowledge of what's going on in the Saudi security world are expecting perhaps some worse images to come yet -- Wolf.

BLITZER: All right, Nic Robertson, that does not sound very encouraging. Thanks very much, though, for that report from London.

Terrorists in Saudi Arabia and Iraq seem to be shifting their tactics and going after individuals. By hitting civilian contractors, have they found a crucial weak spot?

Joining us now, our world affairs analyst, the former Defense Secretary William Cohen.

What do you make of the targeting of these individuals in Saudi Arabia, because the stakes for oil exports, for example, are enormous?

WILLIAM COHEN, CNN WORLD AFFAIRS ANALYST: I think it's very clear that this is going to be the tactic of the future.

They look for so-called soft targets -- nothing softer than individual workers in the kingdom, because they have no protection as such. And there's so many, there's no way that the Saudi government can -- quote -- "protect" them. What the Saudi government has to do is really go after those who are targeting them. And until they do so and do so successfully, this anxiety level is going to continue to be rising, if not high right now.

BLITZER: From the U.S. government's perspective, it's potentially -- there's an -- there's an awful challenge there, the State Department says, issues these warnings to American citizens, leave; this is not a good time to be in Saudi Arabia. At the same time, these 80,000 workers are needed by the Saudis to keep their country going.

COHEN: And that's being reflected in the marketplace as well. The price of oil is now fluctuating anywhere from $36 to $38, a premium now being put on the -- quote -- "instability" and the threat to that flow of energy. So there's a lot at stake for Saudi Arabia, a lot at stake for the industrialized world. Unless the Saudis are able to successfully come to grips with the terror threat in their own country, that price of oil is going to fluctuate very high on the scale, however.

BLITZER: Well, are the Saudis doing everything right now that they should be doing?

COHEN: I think that they recognize that their future existence is at stake, not only the economic existence, but the royal family.

I think it's clear that al Qaeda and those who support al Qaeda are targeting them for removal. And, therefore, that again throws this whole issue of stability of the fuel and oil coming out of the Middle East very much into question.

BLITZER: What about the U.S., from the U.S. perspective? What else should the U.S. be telling the Saudis, in effect, to do long term?

COHEN: Well, obviously, what the United States is trying to do is to introduce more reforms, so you give a voice to those who are either unemployed, who have no voice in their government to see these kind of reforms unfold over a period of time.

One thing we have to take care is that we not try to -- quote -- "impose" democracy in a region that has not known it, but see it evolve from within by way of example, and gradually. That's happening in countries like Bahrain and Qatar. It can happen ultimately in Saudi Arabia as well. But that needs to be the goal, long-term reform, rather than this being seen as an imposition of the United States trying to implant democracy by fiat. And that's the danger.

BLITZER: I was in Riyadh. I was in Saudi Arabia about a year and a half ago. And when I was in Riyadh, it was very quiet. This was before, just before the war in Iraq. In effect, has the war in Iraq made it more dangerous, not only in Iraq, potentially, but in the region as well, in Saudi Arabia and Kuwait, the UAE and other countries in the region?

COHEN: I think, to the extent that other countries in the region see al Qaeda, the remnants of the Baathists, et cetera, as being successful and that the United States and the coalition forces are not succeeding in their objective, then it certainly stirs those discontents in other countries and could in fact destabilize the region.

That's one reason why it's so important that we have international support, because the international community has very much at stake if the United States and coalition forces are not successful in Iraq.

BLITZER: William Cohen, our analyst, the former defense secretary, thanks very much.

Another day, another bombing in Iraq, no signs at all of any letup, and still no signs of weapons of mass destruction either. Up next, I'll speak to the author of a new book critical of the administration's lead-up to the war.

A presidential portrait today, and a blockbuster book could be next, no doubt will be. Will Bill Clinton overshadow the other Democratic big name?

And later, tornado touchdown. A twister rips through the heartland. The amazing pictures, that's coming up.

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

(BEGIN VIDEOTAPE)

BLITZER (voice-over): The nephew of the suspected mastermind of the 9/11 terror attacks is under arrest in Pakistan. Masrab Arochi, was arrested in Karachi, along with eight other militants linked to al Qaeda. His uncle, Khalid Shaikh Mohammed, was captured in Pakistan last year.

The International Atomic Energy Agency says Iran's cooperation with U.N. inspectors is less than satisfactory. IAEA chief Mohamed ElBaradei is again calling on Iran to clarify whether it has declared all of its uranium-enrichment activities.

In Europe, opposition parties won numerous victories in elections for the European Parliament. Voters in many of the 25 European countries punished their governments for everything from high unemployment to supporting the war in Iraq.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: One of the most vocal critics of the U.S.-led invasion of Iraq is James Bamford. In his new book, "Pretext For War," Bamford has assailed the Bush administration for trying to sell the war based in part on misleading intelligence from the CIA. Now Bamford is criticizing what he describes as a potentially dangerous move within the CIA to hire what are called more private spies. He discussed that in an op-ed piece he wrote yesterday in the "New York Times."

James Bamford is joining us now live here in our studios.

James, thanks very much for joining us.

JAMES BAMFORD, AUTHOR, "PRETEXT FOR WAR": My pleasure, Wolf.

BLITZER: When you criticize the intelligence leading up to the war, based on what you write in your book, there was no intelligence leading up to the war.

BAMFORD: Absolutely. There were no spies. There was no intelligence.

I interviewed a lot of people before the war at the CIA and other places. And a lot of them were saying that they thought it was all a bluff, that the Bush administration was just trying to bluff the Iraqi government into letting a lot of inspectors in there. And they never thought that we were actually going to go to war, because we didn't have any intelligence saying that there were a lot of weapons of mass destruction or connections to al Qaeda.

BLITZER: Well, how do you explain that the secretary of state, Colin Powell, would go before the U.N. Security Council before the war and make this case with video and pictures and all sorts of detailed arguments that there were WMD there?

BAMFORD: I interviewed the people very, very close to Colin Powell and the people that there were there preparing him as he was ready to go before the Security Council.

And they said that the White House -- basically, it was Vice President Cheney's office -- gave him a script that he was supposed to read, a 50-page script. And he thought it was full of nonsense and he basically just slammed it down on the table and said, I'm not going to read this.

BLITZER: But he went to the CIA for a few days...

BAMFORD: That's right.

BLITZER: ... and supposedly studied the intelligence.

BAMFORD: And this is one of the things they gave him.

He didn't use that. But he did use a lot of the other things, such as the connections with the mobile weapons labs. And when I interviewed the senior officials near him on background basis without revealing their names, they said that he -- he was just very shocked, because they had four sources for the mobile weapons labs. And, one by one, each one began falling apart. And first, there was the first one, the second, the third, and the fourth. They all...

BLITZER: And now he says it was just flat wrong. The sources of the information were flat wrong and he should have never used that.

BAMFORD: That's right.

BLITZER: But the other shocking -- or not -- there's a lot of shocking allegations you make in the book.

One disclosure, that, as far as al Qaeda was concerned, before 9/11, the U.S. had basically no spy, no human intelligence within or any place close to al Qaeda?

BAMFORD: Well, the only people they had -- or the only people that were close to al Qaeda at that point were American citizens who managed to penetrate the al Qaeda network and end up in bin Laden's training camp. There were eight American citizens there.

BLITZER: But were any of them on the payroll of the U.S. government?

BAMFORD: That was the irony. None of them worked for the CIA.

They were all independent people that happened to join al Qaeda. And the CIA at the same time was saying, al Qaeda is too difficult to penetrate. So you have this irony, where you have American citizens who managed to do what the CIA said was impossible to do.

BLITZER: So, in other words, they didn't even try, you're suggesting, to penetrate al Qaeda?

BAMFORD: That was their philosophy.

They thought it was too hard and that was not the way they wanted to go about it. They had all these other ways of trying to get the Pakistanis to infiltrate or hiring a group of mujahedeen to follow bin Laden. But none of that succeeded. And so, the only thing that succeeded was by penetrating. And the CIA never even tried to penetrate.

BLITZER: Based on what you know right now, has it gotten any better?

BAMFORD: Well, actually, I interviewed a very senior CIA official in December, last December, just last December. And, again, they had the position that they don't use their own employees to penetrate these groups.

They try to get liaison services, like the Pakistanis, to do it. And I think that's a very big mistake.

BLITZER: The book is entitled "Pretext For War." It's got a lot of shocking information in there.

Thanks for joining us.

BAMFORD: Thanks, Wolf. I really appreciate it.

BLITZER: It's a struggle for the spotlight. Will a former president help or hurt the man who wants to be the next president? Up next, a closer look at Kerry vs. Clinton.

Plus, a stunt worthy of James Bond. See why this mega-mogul is making a splash across the English Channel. All that coming up. First, though, a look at some of the stories you may have missed this past weekend.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): This was one of the half-of-dozen tornadoes that hit southern Kansas, destroying one home and damaging another. There were no reports of injuries.

Mountain flames. A wildfire in western New Mexico burned 2,500 acres of rugged terrain in the Cibola National Forest. About 300 firefighters battled the blaze.

Gotham gallop. New York's Puerto Rican community celebrated its heritage with a huge parade. Tens of thousands lined 5th Avenue for this year's celebration.

Bush birthday bailout. Speaking of celebrations, former President George Bush marked his 80th birthday with a parachute jump over College Station, Texas. Because of high winds, an Army parachuting expert jumped with him. The former president's advice to other seniors, "Get out and do something."

And that's our weekend snapshot.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Remember Bill Clinton? Who could ever forget? We're going to be seeing a lot more of him over the next few weeks. The former president will be promoting a new book, but that's not all he will be doing.

Our Brian Todd has been looking into that -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Indeed, Wolf.

Bill Clinton's support for John Kerry will intensify next week when Clinton's book comes out. One likely target of the partisan blitz, the man who honored Clinton today at his former home.

(BEGIN VIDEOTAPE)

TODD (voice-over): In the East Room of the White House, the unveiling of Bill and Hillary Clinton's official portraits gives President Bush a chance to issue some lighthearted praise for his predecessor's optimism.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I mean, after all, you've got to be optimistic to give six months of your life running the McGovern campaign in Texas.

(LAUGHTER)

(APPLAUSE) TODD: The honoree is humbled by his first visit back to the White House since leaving office.

WILLIAM J. CLINTON, FORMER PRESIDENT OF THE UNITED STATES: The president, by his generous words to Hillary and me today, has proved once again that, in the end, we are held together by this grand system of ours that permits us to debate and struggle and fight for what we believe is right.

TODD: But now that the platitudes have passed, get ready for another partisan skirmish.

As his memoirs go on sale next week, Bill Clinton will be all over the airwaves. During that blitz, Mr. Clinton is expected to plug John Kerry's campaign and attack the Republicans. Kerry's aides tell CNN, the candidate will embrace Bill Clinton and capitalize on his support.

STUART ROTHENBERG, CNN POLITICAL ANALYST: I think it's less risky for the Kerry campaign to embrace former President Clinton than it is to reject him.

TODD: A stark contrast to those contentious days in 2000 and the sometimes painful distance between Al Gore and his boss. Observers say Clinton could help the Kerry campaign among undecided voters as a reminder of more prosperous economic times. But, as always, Bill Clinton is a double-edged sword.

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Clinton brings out the Democratic base. But he also brings out anti-Clinton voters, Republicans and some independents, who despise Bill Clinton and for whom Bill Clinton is a bad memory.

TODD: Kerry's aides tell CNN they're working with Mr. Clinton to utilize the former president's appeal in places where he's most popular. But analysts say that could be overdone and off point.

ROTHENBERG: I think the Kerry people have to keep their focus on George W. Bush and attacking the president's policies, particularly on Iraq. To the extent that Bill Clinton suddenly becomes a campaign issue, I don't think that's an asset for the challenger.

(END VIDEOTAPE)

TODD: Now, we know that Clinton has long been known as a great fund raiser. But even there, he'd be teaming up with a man in John Kerry who has broken Clinton's own records on that front long ago -- Wolf.

BLITZER: Bill Clinton will be appearing quite often in the coming weeks.

Thanks very much.

TODD: Sure. BLITZER: When we come back, our picture of today, driving -- yes, driving -- across the English Channel. You'll catch our drift up next.

(COMMERCIAL BREAK)

BLITZER: Here's how you're weighing in on our Web question of the day. Remember, we've been asking you this question: Should Americans leave Saudi Arabia? Look at this: 76 percent of you say yes; 24 percent of you say no. As always, we remind you, this is not a scientific poll. You can continue voting, by the way, on our Web site, CNN.com/Wolf.

Our picture of the day may look like the result of taking a very wrong turn. Not true. The British tycoon Richard Branson, who always knows how to make a splash, has broken the world record for crossing the English Channel in an amphibious car. He covered the 22 miles in one hour and 40 minutes, several hours faster than the previous record set in the 1960s. James Bond, eat your heart out.

A reminder, you can always catch WOLF BLITZER REPORTS weekdays at this time, 5:00 p.m. Eastern. I'll see you again tomorrow, of course, at noon as well.

Until then, thanks very much for joining us. "LOU DOBBS TONIGHT" starts right now.

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


Aired June 14, 2004 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR (voice-over): Terror in America.

JOHN ASHCROFT, ATTORNEY GENERAL: Current, credible intelligence indicates that al Qaeda wants to hit the United States, to hit the United States hard.

BLITZER: The alleged target, a shopping mall in the heartland.

Civilians targeted, kidnapped in Saudi Arabia.

PAUL JOHNSON III, SON OF HOSTAGE: And I plead with y'all to please let my father go.

BLITZER: Ambushed in Iraq.

DAN SENOR, COALITION SPOKESMAN: The important point is to provide as much security as we can and continue to move forward with transition.

BLITZER: Are the risks too great for some Americans abroad?

"Under God." A Flag Day ruling by the Supreme Court.

Unveiled.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: President Clinton and Senator Clinton, welcome home.

BLITZER: They're back in the White House forever.

ANNOUNCER: This is WOLF BLITZER REPORTS for Monday, June 14, 2004.

(END VIDEOTAPE)

BLITZER: Targeted for terror. Americans are in the crosshairs. There are new allegations about al Qaeda's aims in this country as a Somali man is indicted for plotting to bomb an Ohio shopping center.

A family pleads for the safe return of an American kidnaped in Saudi Arabia. But there are ominous warnings on a Web site linked to al Qaeda.

As Iraq counts down the days until a handover of power, a bloody bombing targets Westerners working to try to rebuild the country.

We'll get reports on the growing danger to Americans working abroad. But we begin with the new concerns right here at home. For that let's turn to our justice correspondent Kelli Arena -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, the government today unsealed charges against a Somali man, Nuradin Abdi. He's been in immigration custody since November but is now charged with providing material support to al Qaeda.

Abdi allegedly planned to blow up a shopping mall, although the FBI says it has no definite information regarding which one. And Abdi was allegedly working with convicted al Qaeda member Iyman Ferris. Ferris, you may recall, was serving a 20-year sentence for scouting targets such as the Brooklyn Bridge for al Qaeda.

(BEGIN VIDEO CLIP)

ASHCROFT: Upon returning to the Columbus, Ohio area, it is alleged Abdi, along with admitted al Qaeda operative Ferris and other co-conspirators, initiated a plot to blow up a Columbus area shopping mall.

It is also alleged that in pursuit of this plot, Abdi received bomb making instructions from one of these -- or those coconspirators.

(END VIDEO CLIP)

ARENA: Abdi is also charged with obtaining and using fraudulent travel documents. He allegedly lied about travel to Ethiopia where the government says he received military training for violent jihad.

And, Wolf, he made an initial appearance in court today. The charges were read. He did not respond. And his brothers, who were outside the courtroom, said that their brother is innocent, that he had nothing to do with any terrorist plot. We have yet to hear from Abdi himself.

BLITZER: All right, CNN's Kelli Arena with that report, disturbing as it is. Thanks very much.

Paul Johnson is an American civilian working for a defense contractor in Saudi Arabia. He's been missing since Saturday. That's the same day that another American was shot dead in the capital of Saudi Arabia, Riyadh. A group claiming ties to al Qaeda says they kidnapped Johnson. His family is mounting a vigil near Tuckerton, New Jersey. CNN's Deborah Feyerick is there. She's joining us live -- Deborah.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Wolf, Paul Johnson's mother and sister left their home here in New Jersey around lunchtime to pick up Johnson's son at the Atlantic City Airport. He flew in from Florida earlier today. Before leaving he spoke to the media, pleading for his father's safe return.

(BEGIN VIDEO CLIP) JOHNSON: As I say, I mean, whoever's responsible for this, you know, I would trade, in a heartbeat, what my father -- he doesn't deserve this. And I plead with y'all to please let my father go.

(END VIDEO CLIP)

FEYERICK: There are a dozen cameras outside of the home. A state trooper and neighbor both tell CNN that the family is not planning on returning to the home for several days.

Johnson is an engineer with Lockheed Martin. His specialty, Apache helicopters and night vision systems. He was abducted Saturday. A group calling itself the Arabian Peninsula Mujahideen. On their Web site, the kidnappers promise that a videotaped confession from Johnson will be forthcoming.

(BEGIN VIDEO CLIP)

ASHCROFT: I don't think I'm prepared to make an announcement other than to say these are matters of great concern to us and that we would work together with Saudi authorities to bring to justice those who commit acts of atrocities against American citizens.

(END VIDEO CLIP)

FEYERICK: In April the U.S. State Department pulled out all non- essential workers, urging all civilians to leave Saudi Arabia. A terrorist group issued a warning last week. Two Americans in Riyadh have been gunned down in their garages since that warning -- Wolf.

BLITZER: CNN's Deborah Feyerick reporting from New Jersey. Deborah, thanks very much.

To our viewers, here's your chance to weigh in on this important story. Our "Web Question of the Day" is this: should Americans leave Saudi Arabia? You can vote right now, go to cnn.com/wolf. We'll have results for you later in the broadcast.

With Iraqi sovereignty scheduled to take effect at the end of the month, violence is continuing to escalate. A series of bomb attacks in Baghdad today killed at least 16 people. At least 13 of the victims died in a suicide car bombing just off Baghdad's Liberation Square. CNN's Baghdad bureau chief Jane Arraf is joining us live with the story -- Jane.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Wolf, for months, officials have been warning that as the country heads closer to the handover to sovereignty, these attacks will continue. But that didn't lessen the shock on Monday when the warnings turned to reality.

(BEGIN VIDEOTAPE)

ARRAF (voice-over): Morning rush hour turned into a desperate rush to rescue survivors. Most of the victims of this latest car bomb were working class Iraqis. But the target appeared to be the coalition. As a convoy of Western contractors drove through this densely- packed street, a suspected suicide car bomb packed with more than half a ton of explosion is detonated. Three General Electric employees and two of their security personnel were killed. The dead included two Britons, an American and a French national. Some of the dozens of wounded were carried into nearby hospitals.

Iraq's new political leaders warned that Iraqis could see the worst violence in the coming weeks since the end of major combat.

IYAD ALLAWI, IRAQI INTERIM PRIME MINISTER (through translator): I would like to say that the situation will be escalating in the coming days, and we know the objectives behind these attacks.

But I would like to say that we will achieve victory and we will protect our people from all of these criminal and vicious crimes against the Iraqi people.

ARRAF: In the meantime, the car bombs, almost one a day this month, and political assassinations continue. On the weekend, Deputy Foreign Minister Bassam Salih Kubba was shot dead. A senior education ministry official gunned down a day later.

In the streets near the blast Monday, some Iraqis took out their anger on reporters, on American soldiers and on what was left of the vehicles, blaming the U.S. for not preventing attacks like this.

(END VIDEOTAPE)

ARRAF: Attacks that won't stop until Iraqis can prevent them themselves, officials say. And that won't happen until the Iraqi police and security forces are strong enough to secure the country themselves -- Wolf.

BLITZER: CNN's Jane Arraf in Baghdad. Jane, thanks very much.

The attack today that killed five Western civilians in Baghdad underscores the dangers faced by reconstruction workers in Iraq. The assaults are jeopardizing efforts to repair Iraq's critical infrastructure. CNN's Zain Verjee is joining us now live from the CNN Center in Atlanta with more -- Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Wolf, Iraqis have viewed the occupation with growing resentment and disillusionment, as you well know. The U.S. and the interim Iraqi government really scrambling to show Iraqis that the occupation can improve their lives. But it appears that the reconstruction effort is competing with the chaos.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): How do you rebuild a shattered country in the midst of suicide bombings, assassinations, abductions and a guerrilla war? Push on with reconstruction efforts in spite of the violence, say some. Give Iraqis a stake in their future, build roads, restore electricity, the flow of water, win hearts and minds, and the violence will inevitably ebb away. But senior World Bank officials say any development will be limited and slow if the security situation isn't stabilized first.

Foreign civilian workers are marked men, targeted for kidnapping or murdered by insurgents. Iraqis involved in reconstruction efforts themselves are fearful they, too, are targets.

American administration officials concede security will get worse before it gets better.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: The real goal, the real focus should be on training Iraqis to take care of their own security needs. And what we're going to be doing is urging our international partners to participate in both efforts to help the Iraqis become more capable.

VERJEE: Some contractors and aid agencies pulled out their workers from Iraq. Those still operating spend much money on staff protection and security, money that could have been spent on projects themselves. The hope was for Iraqi oil to pay for the cost of reconstruction, but militants continue to sabotage crucial oil pipelines, delaying the flow of oil from Iraq.

An interim government's preparing to assume all but military power in two weeks from U.S.-led occupation forces. But it inherits an insurgency committed to creating chaos by sabotaging reconstruction plans and one that is increasingly determined to kill the very men that would play a crucial role in rebuilding Iraq.

(END VIDEOTAPE)

VERJEE: Experts say, Wolf, that you can deal with security in reconstruction, only in narrow military terms. You're really got to establish a mechanism for being as inclusive as possible when you share political power and that, they say, is the only way to build trust and national reconciliation -- Wolf.

BLITZER: Zain, what are you suggesting? I know you've been speaking to a lot of these people. Are you suggesting there is a way to try to bring these insurgents into the fold, if you will?

VERJEE: There are a couple of views on that, Wolf. The first is that you can't so forget it. Don't even bother. The Abu Musab al- Zarqawis of Iraq are going to try and subvert the Iraqi democratic experiment. They don't want Iraqis to have freedom so they're going to continue bombing police stations in Basra. They're going to continue suicide bombings. What these people are suggesting is this, that you really need to focus on separating the terrorists from the Iraqis who have goodwill toward reconstruction.

They say, focus on the Kurdish areas, focus on some of the more moderate Shia areas, build schools there, deal with the health infrastructure, organize the sewer systems, get the electricity going, get water flowing and that way you're going to show, look, there can be progress in parts of Iraq and maybe people in the Sunni Triangle will say, you know, maybe that's something that we want to start looking at. The other view is that people say, look, it's not all about Abu Musab al-Zarqawi which is who we care about all the time. They say there are tens of thousand of Shias, tens of thousands of Sunnis that don't like the occupation. They don't want the reconstruction effort to succeed so you need to bring them into the political fold -- Wolf.

BLITZER: CNN's Zain Verjee reporting for us. Thanks, Zain, very much.

We have more to come on the volatile situation in Iraq including my interview with the coalition spokesman, Dan Senor. I'll ask him about U.S. plans for security after the June 30 handover.

The star-spangled sidestep. The Supreme Court makes a ruling on the Pledge of Allegiance. Is "under God" still legal under the law?

Later, new terror tactics. How recent attacks on westerners could be a sign of yet more to come.

(COMMERCIAL BREAK)

BLITZER: Securing Iraq until the handover. Major security concerns are still haunting the process. I'll discuss this and other issues with the coalition's spokesman, Dan Senor. He's in Baghdad. That's coming up.

(COMMERCIAL BREAK)

BLITZER: With just over two weeks left until Iraq regains its own sovereignty, violence is on the increase. Many of the attacks appear to target civilian workers trying to rebuild Iraq's infrastructure. Just a short time ago, I discussed security and other related issues with coalition spokesman Dan Senor, who is in Baghdad.

(BEGIN VIDEOTAPE)

BLITZER: Dan Senor, thanks very much for joining us. We just saw these awful pictures of this latest car bombing in Baghdad where Iraqis are chanting, "Death to the U.S.A." They are throwing, it seems like, gasoline on top of the cars to keep the fuel going. And there are Iraqi police standing by basically doing nothing. What's going on?

DAN SENOR, COALITION SPOKESMAN: Well, Iraqi police aren't doing nothing, Wolf. Iraqi police were the first on the scene. Iraqi police are leading the investigation. Iraq's Prime Minister Iyad Allawi held a press conference today condemning this, speaking out against it, saying that Iraqis are going to take these matters into their own hands working with U.S.-led forces. I think the fact that you have a couple of people cheering it on represents a tiny, tiny minority of Iraqis. And Prime Minister Allawi made that clear. The overwhelming majority of Iraqis abhor this kind of behavior and they view it as a real threat to their country. They view it as a real threat to the handover of sovereignty on June 30 and they are as committed as we are to defeating this kind of evil.

BLITZER: Two assassinations of two high-ranking Iraqi officials over the weekend coming in advance of this latest car bombing. It looks like it's awful right now. Is it going to get worse before it gets better?

SENOR: Unfortunately, we have been saying for some time that as we get closer and closer to June 30, we're going to see more violence. Why? Because Zarqawi and his al Qaeda network and their affiliates are doing everything they can. We know -- this is clear by every measure they're doing everything they can to throw this process on track. The last thing they want is a self-governing Iraqi democracy. Zarqawi has said that explicitly.

We have a blueprint of a document that was headed for Afghanistan to senior al Qaeda leadership that outlined his plan. He said this. So they're going to do everything they can in advance of June 30 to prevent the success of this interim government. With that, as I said, we're going to see more violence. We have to be prepared for it. Two ways to defeat it, Wolf. One is with our military might and we'll focus on that working side by side with the Iraqis. But it's also through a political strategy and it's moving forward with empowering this interim government and letting them take control on schedule.

BLITZER: Is it your sense that there can be reconstruction, serious reconstruction, with the security situation as unpredictable, as seemingly awful as it is right now?

SENOR: Absolutely. We have already deployed, committed billions of dollars from the supplemental on reconstruction projects. Close to 20,000 reconstruction projects have been completed. Small projects, putting generators in schools, getting hospitals reopened, it averages out to about 100 day a day. These contractors have security. They bracket in security when they're coming up with their proposals. So it's not unexpected that they will have to have security constraints and security infrastructure and resources going on the ground here.

They do it, don't get me wrong, the security situation does make things more challenging for the reconstruction. But when we arrived here unemployment was something between 60 percent and 70 percent. Today it's between 25 percent and 30 percent. And that has as much to do with deploying the reconstruction dollars and the various projects we're doing as anything. And therefore that's indicative to us of the fact that things are moving forward on the reconstruction. I don't want to sound Pollyannish, it does make things difficult, but yet we are still making progress on that front and it's moving forward.

BLITZER: Saddam Hussein -- the new interim president of Iraq told me in the past few days, Ghazi al-Yawar -- he wants him handed over to the Iraqi government shortly after June 30. What do you say?

SENOR: Well, under the Geneva Convention we can't hand Saddam Hussein over beforehand because we can only hand him over to a sovereign government. The Iraqi government will be sovereign on June 30. And what we've said is after that point, we will be prepared to hand him over to the Iraqi special tribunal so long as the Iraqi special tribunal is prepared to receive him. So we are waiting for briefings and reports from the director of the Iraqi special tribunal who has been having meetings with the prime minister, I think they are meeting sometime this week, in fact, to sort of lay out where they are in building up the whole case against Saddam and building out the infrastructure of the special tribunal, hiring prosecutors, investigative judges and judges and consultants to work on this court so they can actually receive Saddam.

BLITZER: Dan Senor will be flying home with Ambassador Bremer on June 30. You signed up, what, for 90 days. It's been 14 1/2 months. You're anxious to get back home, Dan?

SENOR: Let's just say I've got 16 days left until I get my own sovereignty back.

BLITZER: All right, Dan Senor. Good luck to you. Thanks very much for joining us.

SENOR: Good to be with you, Wolf.

(END VIDEOTAPE)

BLITZER: It's Flag Day here in the United States and over at the United States Supreme Court, a key ruling on the Pledge of Allegiance. Is "under God" still legal? We'll tell you their decision.

Plus. Targets for terror. Westerners in the Arab world facing increased threats and violence. Is it a tactic that's here to stay?

Plus this...

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: President Clinton and Senator Clinton, welcome home.

(END VIDEO CLIP)

BLITZER: Unveiling history. A picture-perfect occasion over at the White House. That's coming up later.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Supporters of the Pledge of Allegiance are hailing a U.S. Supreme Court decision to throw out a challenge to the patriotic oath. Today's decision, ironically delivered on Flag Day, will allow the pledge to still be recited in classrooms around the United States, at least for now. Our national correspondent Bob Franken is over at the Supreme Court. He has details -- Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Wolf, it was 50 years ago today that the words "under God" were inserted into the Pledge of Allegiance (UNINTELLIGIBLE) of the Supreme Court ruling, nothing has changed.

(BEGIN VIDEOTAPE)

FRANKEN (voice-over): The decision's release on Flag Day in the United States is perhaps coincidental, but the practical effect is the phrase "under God" stays in the Pledge of Allegiance to the flag that so many school children recite every morning. UNIDENTIFIED CHILDREN: One nation under God...

FRANKEN: A majority of five justices chose to bypass the First Amendment questions and rule instead that atheist Michael Newdow had no standing to bring the case to challenge the phrase on behalf of his daughter. "As noncustodial parent," wrote Justice John Paul Stevens, "Newdow did not have the right to reach outside the private parent- child sphere to dictate to others what they may and may not say to his child respecting religion." Not sweeping, but it still means Newdow lost.

MICHAEL NEWDOW, PLAINTIFF: The Pledge is still unconstitutional. It's still unconstitutional to put in the middle of your Pledge of Allegiance purely sectarian religious dogma.

FRANKEN: Three other justices agreed with the outcome but went further. Rehnquist, O'Connor, and Thomas argued "under God" is constitutional, impervious to the heckler's veto of Newdow that the phrase is public recognition of our nation's religious history and character. As for the custody issue, it was not a trivial issue to the school district.

DAVID GORDON, ELK GROVE, CALIFORNIA SCHOOL SUPERINTENDENT: The family law statutes are what protects a district from being caught in the middle of the many custody disputes you find in a large school system.

(END VIDEOTAPE)

FRANKEN: Many are surprised it even got this far, but others are surprised a majority of the justices decided that they wouldn't even deal with the constitutional questions -- Wolf.

BLITZER: Bob Franken reporting from the Supreme Court. Thanks, Bob, very much.

Who's to blame for the faulty intelligence lead up to the war with Iraq? The Bush administration or the CIA? Up next, I'll speak to an author of a new book who says it's both.

Also ahead, the former Defense Secretary William Cohen joins me live. We'll talk about what appears to be the shifting tactic being employed by terrorists in Saudi Arabia and Iraq.

Plus this...

(BEGIN VIDEO CLIP)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Hello, I'm Nic Robertson. Coming up, I'll have the latest details on the terror attacks in Saudi Arabia. That's when WOLF BLITZER continues.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Is the kidnapping of the American worker Paul Johnson in Saudi Arabia a sign of a new tactic being used by terrorists? We'll find out.

First, though, this headline: One of the major hot spots in the Middle East today is the West Bank. Two Palestinian militants were killed in an Israeli missile strike in Nablus. Palestinian authorities say one of the victims was the local leader of the Al Aqsa Martyrs Brigade. They say the second victim was a member of the group. Israel confirms the strike, saying the leader was targeted because of his attacks on Israelis.

Saudi authorities are on the hunt right now for the kidnappers of an American contractor and the killers of other Westerners. The recent wave of attacks has rocked the kingdom and the expatriate community which helps keep it running.

Let's go to live to our senior international correspondent Nic Robertson in London -- Nic.

ROBERTSON: Well, Wolf, people we have talked to in that expatriate community in Saudi Arabia say that it is not yet at a state of complete fear.

They do say that if -- perhaps if there's one or two more bloody attacks, certainly, a lot more people could be thinking much more seriously, perhaps even begin to start leaving in numbers. Certainly, the hostage taking over the weekend has heightened people's fears, those pictures on the Internet perhaps the best clues for Paul Johnson's family that there is some hope that he may yet be found.

(BEGIN VIDEOTAPE)

ROBERTSON (voice-over): These pictures may be U.S. contractor Paul Johnson's best hope of release right now, but it's not much. His driver's license and passport posted on an Islamic extremist, or jihadi, Web site -- slender clues for the Saudi authorities hunting his kidnappers.

PAUL JOHNSON III, SON OF KIDNAP VICTIM: He's worked for the Saudi government, really, for the last 10 years of his life. And I think that's -- ought to be worth something to them. And I hope -- I hope and I pray to God that they are trying to do something.

ROBERTSON: In Saudi Arabia, the killings of three Westerners in the last week has prompted some companies employing Westerners to use telephone text messages about news events to calm employees' families. And although there is no panic yet, one large expatriate employer who prefers anonymity talked of rapidly rising concern.

UNIDENTIFIED MALE: The main concern is, the tactics have been changing. Before, it was really putting car bombs full of explosive, and now with something in individual targets. And that is of concern, because you don't know what's going to happen next. ROBERTSON: Sources close to Saudi intelligence suspect this man, Abdulaziz al Muqrin, is behind the recent spate of attacks and say his capture could significantly unravel what Saudi officials have described as the country's last significant al Qaeda cell. His speedy capture, though, according to one Saudi security consultant, is by no means guaranteed, and nor is the safety of the Western workers.

NAWAF OBEID, SAUDI SECURITY CONSULTANT: You cannot protect every single expatriate that lives in Saudi Arabia when he's in his car going to his office and so forth. There's over 80,000 expatriates today in Saudi Arabia. So it comes back to the question, how can they be protected? And the question is, they cannot.

ROBERTSON: Should these attacks continue, analysts suspect, Saudi Arabia's massive oil industry would likely bear the brunt of the departure of the Western workers. Few, though, think it would have an immediate effect on oil output.

UNIDENTIFIED MALE: Some Saudis are saying that maybe it's no bad -- it would be no bad thing if it happened, because there are a lot of young Saudis coming on to the market who need employment and training.

(END VIDEOTAPE)

ROBERTSON: Well, from Saudis we've talked to today, many seem already to believe that many of the Western workers will in fact end up leaving Saudi Arabia.

And one security source close to Saudi intelligence said that al Muqrin's modus operandi when he was operating in Algeria before is to capture people and execute them on videotape. So, certainly, those with some knowledge of what's going on in the Saudi security world are expecting perhaps some worse images to come yet -- Wolf.

BLITZER: All right, Nic Robertson, that does not sound very encouraging. Thanks very much, though, for that report from London.

Terrorists in Saudi Arabia and Iraq seem to be shifting their tactics and going after individuals. By hitting civilian contractors, have they found a crucial weak spot?

Joining us now, our world affairs analyst, the former Defense Secretary William Cohen.

What do you make of the targeting of these individuals in Saudi Arabia, because the stakes for oil exports, for example, are enormous?

WILLIAM COHEN, CNN WORLD AFFAIRS ANALYST: I think it's very clear that this is going to be the tactic of the future.

They look for so-called soft targets -- nothing softer than individual workers in the kingdom, because they have no protection as such. And there's so many, there's no way that the Saudi government can -- quote -- "protect" them. What the Saudi government has to do is really go after those who are targeting them. And until they do so and do so successfully, this anxiety level is going to continue to be rising, if not high right now.

BLITZER: From the U.S. government's perspective, it's potentially -- there's an -- there's an awful challenge there, the State Department says, issues these warnings to American citizens, leave; this is not a good time to be in Saudi Arabia. At the same time, these 80,000 workers are needed by the Saudis to keep their country going.

COHEN: And that's being reflected in the marketplace as well. The price of oil is now fluctuating anywhere from $36 to $38, a premium now being put on the -- quote -- "instability" and the threat to that flow of energy. So there's a lot at stake for Saudi Arabia, a lot at stake for the industrialized world. Unless the Saudis are able to successfully come to grips with the terror threat in their own country, that price of oil is going to fluctuate very high on the scale, however.

BLITZER: Well, are the Saudis doing everything right now that they should be doing?

COHEN: I think that they recognize that their future existence is at stake, not only the economic existence, but the royal family.

I think it's clear that al Qaeda and those who support al Qaeda are targeting them for removal. And, therefore, that again throws this whole issue of stability of the fuel and oil coming out of the Middle East very much into question.

BLITZER: What about the U.S., from the U.S. perspective? What else should the U.S. be telling the Saudis, in effect, to do long term?

COHEN: Well, obviously, what the United States is trying to do is to introduce more reforms, so you give a voice to those who are either unemployed, who have no voice in their government to see these kind of reforms unfold over a period of time.

One thing we have to take care is that we not try to -- quote -- "impose" democracy in a region that has not known it, but see it evolve from within by way of example, and gradually. That's happening in countries like Bahrain and Qatar. It can happen ultimately in Saudi Arabia as well. But that needs to be the goal, long-term reform, rather than this being seen as an imposition of the United States trying to implant democracy by fiat. And that's the danger.

BLITZER: I was in Riyadh. I was in Saudi Arabia about a year and a half ago. And when I was in Riyadh, it was very quiet. This was before, just before the war in Iraq. In effect, has the war in Iraq made it more dangerous, not only in Iraq, potentially, but in the region as well, in Saudi Arabia and Kuwait, the UAE and other countries in the region?

COHEN: I think, to the extent that other countries in the region see al Qaeda, the remnants of the Baathists, et cetera, as being successful and that the United States and the coalition forces are not succeeding in their objective, then it certainly stirs those discontents in other countries and could in fact destabilize the region.

That's one reason why it's so important that we have international support, because the international community has very much at stake if the United States and coalition forces are not successful in Iraq.

BLITZER: William Cohen, our analyst, the former defense secretary, thanks very much.

Another day, another bombing in Iraq, no signs at all of any letup, and still no signs of weapons of mass destruction either. Up next, I'll speak to the author of a new book critical of the administration's lead-up to the war.

A presidential portrait today, and a blockbuster book could be next, no doubt will be. Will Bill Clinton overshadow the other Democratic big name?

And later, tornado touchdown. A twister rips through the heartland. The amazing pictures, that's coming up.

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

(BEGIN VIDEOTAPE)

BLITZER (voice-over): The nephew of the suspected mastermind of the 9/11 terror attacks is under arrest in Pakistan. Masrab Arochi, was arrested in Karachi, along with eight other militants linked to al Qaeda. His uncle, Khalid Shaikh Mohammed, was captured in Pakistan last year.

The International Atomic Energy Agency says Iran's cooperation with U.N. inspectors is less than satisfactory. IAEA chief Mohamed ElBaradei is again calling on Iran to clarify whether it has declared all of its uranium-enrichment activities.

In Europe, opposition parties won numerous victories in elections for the European Parliament. Voters in many of the 25 European countries punished their governments for everything from high unemployment to supporting the war in Iraq.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: One of the most vocal critics of the U.S.-led invasion of Iraq is James Bamford. In his new book, "Pretext For War," Bamford has assailed the Bush administration for trying to sell the war based in part on misleading intelligence from the CIA. Now Bamford is criticizing what he describes as a potentially dangerous move within the CIA to hire what are called more private spies. He discussed that in an op-ed piece he wrote yesterday in the "New York Times."

James Bamford is joining us now live here in our studios.

James, thanks very much for joining us.

JAMES BAMFORD, AUTHOR, "PRETEXT FOR WAR": My pleasure, Wolf.

BLITZER: When you criticize the intelligence leading up to the war, based on what you write in your book, there was no intelligence leading up to the war.

BAMFORD: Absolutely. There were no spies. There was no intelligence.

I interviewed a lot of people before the war at the CIA and other places. And a lot of them were saying that they thought it was all a bluff, that the Bush administration was just trying to bluff the Iraqi government into letting a lot of inspectors in there. And they never thought that we were actually going to go to war, because we didn't have any intelligence saying that there were a lot of weapons of mass destruction or connections to al Qaeda.

BLITZER: Well, how do you explain that the secretary of state, Colin Powell, would go before the U.N. Security Council before the war and make this case with video and pictures and all sorts of detailed arguments that there were WMD there?

BAMFORD: I interviewed the people very, very close to Colin Powell and the people that there were there preparing him as he was ready to go before the Security Council.

And they said that the White House -- basically, it was Vice President Cheney's office -- gave him a script that he was supposed to read, a 50-page script. And he thought it was full of nonsense and he basically just slammed it down on the table and said, I'm not going to read this.

BLITZER: But he went to the CIA for a few days...

BAMFORD: That's right.

BLITZER: ... and supposedly studied the intelligence.

BAMFORD: And this is one of the things they gave him.

He didn't use that. But he did use a lot of the other things, such as the connections with the mobile weapons labs. And when I interviewed the senior officials near him on background basis without revealing their names, they said that he -- he was just very shocked, because they had four sources for the mobile weapons labs. And, one by one, each one began falling apart. And first, there was the first one, the second, the third, and the fourth. They all...

BLITZER: And now he says it was just flat wrong. The sources of the information were flat wrong and he should have never used that.

BAMFORD: That's right.

BLITZER: But the other shocking -- or not -- there's a lot of shocking allegations you make in the book.

One disclosure, that, as far as al Qaeda was concerned, before 9/11, the U.S. had basically no spy, no human intelligence within or any place close to al Qaeda?

BAMFORD: Well, the only people they had -- or the only people that were close to al Qaeda at that point were American citizens who managed to penetrate the al Qaeda network and end up in bin Laden's training camp. There were eight American citizens there.

BLITZER: But were any of them on the payroll of the U.S. government?

BAMFORD: That was the irony. None of them worked for the CIA.

They were all independent people that happened to join al Qaeda. And the CIA at the same time was saying, al Qaeda is too difficult to penetrate. So you have this irony, where you have American citizens who managed to do what the CIA said was impossible to do.

BLITZER: So, in other words, they didn't even try, you're suggesting, to penetrate al Qaeda?

BAMFORD: That was their philosophy.

They thought it was too hard and that was not the way they wanted to go about it. They had all these other ways of trying to get the Pakistanis to infiltrate or hiring a group of mujahedeen to follow bin Laden. But none of that succeeded. And so, the only thing that succeeded was by penetrating. And the CIA never even tried to penetrate.

BLITZER: Based on what you know right now, has it gotten any better?

BAMFORD: Well, actually, I interviewed a very senior CIA official in December, last December, just last December. And, again, they had the position that they don't use their own employees to penetrate these groups.

They try to get liaison services, like the Pakistanis, to do it. And I think that's a very big mistake.

BLITZER: The book is entitled "Pretext For War." It's got a lot of shocking information in there.

Thanks for joining us.

BAMFORD: Thanks, Wolf. I really appreciate it.

BLITZER: It's a struggle for the spotlight. Will a former president help or hurt the man who wants to be the next president? Up next, a closer look at Kerry vs. Clinton.

Plus, a stunt worthy of James Bond. See why this mega-mogul is making a splash across the English Channel. All that coming up. First, though, a look at some of the stories you may have missed this past weekend.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): This was one of the half-of-dozen tornadoes that hit southern Kansas, destroying one home and damaging another. There were no reports of injuries.

Mountain flames. A wildfire in western New Mexico burned 2,500 acres of rugged terrain in the Cibola National Forest. About 300 firefighters battled the blaze.

Gotham gallop. New York's Puerto Rican community celebrated its heritage with a huge parade. Tens of thousands lined 5th Avenue for this year's celebration.

Bush birthday bailout. Speaking of celebrations, former President George Bush marked his 80th birthday with a parachute jump over College Station, Texas. Because of high winds, an Army parachuting expert jumped with him. The former president's advice to other seniors, "Get out and do something."

And that's our weekend snapshot.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Remember Bill Clinton? Who could ever forget? We're going to be seeing a lot more of him over the next few weeks. The former president will be promoting a new book, but that's not all he will be doing.

Our Brian Todd has been looking into that -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Indeed, Wolf.

Bill Clinton's support for John Kerry will intensify next week when Clinton's book comes out. One likely target of the partisan blitz, the man who honored Clinton today at his former home.

(BEGIN VIDEOTAPE)

TODD (voice-over): In the East Room of the White House, the unveiling of Bill and Hillary Clinton's official portraits gives President Bush a chance to issue some lighthearted praise for his predecessor's optimism.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I mean, after all, you've got to be optimistic to give six months of your life running the McGovern campaign in Texas.

(LAUGHTER)

(APPLAUSE) TODD: The honoree is humbled by his first visit back to the White House since leaving office.

WILLIAM J. CLINTON, FORMER PRESIDENT OF THE UNITED STATES: The president, by his generous words to Hillary and me today, has proved once again that, in the end, we are held together by this grand system of ours that permits us to debate and struggle and fight for what we believe is right.

TODD: But now that the platitudes have passed, get ready for another partisan skirmish.

As his memoirs go on sale next week, Bill Clinton will be all over the airwaves. During that blitz, Mr. Clinton is expected to plug John Kerry's campaign and attack the Republicans. Kerry's aides tell CNN, the candidate will embrace Bill Clinton and capitalize on his support.

STUART ROTHENBERG, CNN POLITICAL ANALYST: I think it's less risky for the Kerry campaign to embrace former President Clinton than it is to reject him.

TODD: A stark contrast to those contentious days in 2000 and the sometimes painful distance between Al Gore and his boss. Observers say Clinton could help the Kerry campaign among undecided voters as a reminder of more prosperous economic times. But, as always, Bill Clinton is a double-edged sword.

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Clinton brings out the Democratic base. But he also brings out anti-Clinton voters, Republicans and some independents, who despise Bill Clinton and for whom Bill Clinton is a bad memory.

TODD: Kerry's aides tell CNN they're working with Mr. Clinton to utilize the former president's appeal in places where he's most popular. But analysts say that could be overdone and off point.

ROTHENBERG: I think the Kerry people have to keep their focus on George W. Bush and attacking the president's policies, particularly on Iraq. To the extent that Bill Clinton suddenly becomes a campaign issue, I don't think that's an asset for the challenger.

(END VIDEOTAPE)

TODD: Now, we know that Clinton has long been known as a great fund raiser. But even there, he'd be teaming up with a man in John Kerry who has broken Clinton's own records on that front long ago -- Wolf.

BLITZER: Bill Clinton will be appearing quite often in the coming weeks.

Thanks very much.

TODD: Sure. BLITZER: When we come back, our picture of today, driving -- yes, driving -- across the English Channel. You'll catch our drift up next.

(COMMERCIAL BREAK)

BLITZER: Here's how you're weighing in on our Web question of the day. Remember, we've been asking you this question: Should Americans leave Saudi Arabia? Look at this: 76 percent of you say yes; 24 percent of you say no. As always, we remind you, this is not a scientific poll. You can continue voting, by the way, on our Web site, CNN.com/Wolf.

Our picture of the day may look like the result of taking a very wrong turn. Not true. The British tycoon Richard Branson, who always knows how to make a splash, has broken the world record for crossing the English Channel in an amphibious car. He covered the 22 miles in one hour and 40 minutes, several hours faster than the previous record set in the 1960s. James Bond, eat your heart out.

A reminder, you can always catch WOLF BLITZER REPORTS weekdays at this time, 5:00 p.m. Eastern. I'll see you again tomorrow, of course, at noon as well.

Until then, thanks very much for joining us. "LOU DOBBS TONIGHT" starts right now.

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