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CNN Wolf Blitzer Reports
Britain at Odds With Bush Administration;
Aired July 30, 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.
WOLF BLITZER, HOST: Happening now: cracks in the alliance? Why is America's closest ally at odds with the Bush administration right now?
Also happening now, your money, your jobs: new information released today, the economy may not be recovering as robustly as the White House would like.
Stand by for hard news on WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)
BLITZER (voice-over): After the balloons the Democratic duo on a coast to coast campaign swing.
SEN. JOHN KERRY, (D-MA) PRESIDENTIAL CANDIDATE: Help is on the way for the average person in this country.
BLITZER: In the heartland, the president plugs his agenda and takes a few pokes.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: My opponent has good intentions, but intentions do not always translate to results.
BLITZER: Summer session: Leaders of the 9/11 commission call on Congress and call for action.
UNIDENTIFIED MALE: The intelligence community is not going to get its job done unless somebody is really in charge.
BLITZER: Saddam behind bars.
UNIDENTIFIED MALE: So he gets good food and he likes American snacks, muffins, cookies. He gets them regularly. He has an air conditioned room.
BLITZER: A CNN exclusive.
ANNOUNCER: This is WOLF BLITZER REPORTS for Friday, July 30, 2004.
(END VIDEOTAPE)
BLITZER: The show is over, the nomination official, and now, John Kerry and John Edwards are back on the road on an ambitious campaign tour. And not to be outdone, President Bush is stumping again as well, after laying low during the Democratic convention.
We're live with both campaigns. CNN's Kathleen Koch is in Grand Rapids, Michigan. But we begin with CNN's Elaine Quijano in Harrisburg, Pennsylvania where John Kerry will speak in just a few hours -- Elaine.
ELAINE QUIJANO, CNN CORRESPONDENT: Good afternoon to you, Wolf. Senators John Kerry and John Edwards are taking their message on the road over the next two weeks wasting no time after the Democratic National Convention. It is a coast to coast trip that the campaign is calling the "Believe in America Tour."
The now official ticket set out from Boston early this morning just hours after Senator Kerry delivered his address at the Democratic National Convention. Senators heading straight for the key battleground state of Pennsylvania. Their first stop was Scranton just a short time ago.
There they attended a rally and shook some hands. They were accompanied on that trip by actor Ben Affleck as well as Pennsylvania's Governor Ed Rendell.
Now, the Senators are hoping to connect with enough voters in this is state to give them the edge. This is the state that Al Gore won in 2000 by just four percentage points. Now 21 electoral votes up for grabs this year.
Now John Kerry is hoping to reach voters who are still on the fence, in part, by talking about the idea of values and trying to continue its effort to convince the American people that the Kerry/Edwards ticket is in line with American values and will act on those values.
(BEGIN VIDEO CLIP)
KERRY: And values, values are not words, values are what you live by. Values are the choices that you make every day that honor your sense of direction, that honor your moral compass, that honor where we go as a country. That's how we got to be where we are today.
(END VIDEO CLIP)
QUIJANO: Now, the two Senators will be logging some 3,500 miles over the next two weeks. They will be visiting 21 different states and they'll be traveling not only by bus, but also by train and boat as well.
Recent polls showing, of course, things very tight. The Kerry/Edwards ticket reaching out and hoping they will receive votes in November -- Wolf.
BLITZER: Elaine Quijano, in Pennsylvania. Thanks very much.
The battleground states Missouri, Michigan and Ohio are on the Bush I itinerary today. CNN's Kathleen Koch is in Grand Rapids, where the president just spoke just a short time ago -- Kathleen. KATHLEEN KOCH, CNN CORRESPONDENT: Wolf, the president is trying very hard to reclaim the national spotlight, really reinvigorate his campaign after taking nearly a week off in Crawford. He had a very receptive audience here in Grand Rapids, also earlier today in Missouri.
Part of the strategy his strategy is not only new campaign ads, but a new, retooled stump speech. In both states, President Bush to his audience detailed his administration's accomplishments, laid out his vision for the future. He said that he was a leader you can count on in a time of change.
When President Bush talked about the strides his administration had made in education and healthcare, in the economy, and in the war on terror. But he said that there was still more to do, that the world was safer, but still not safe.
(BEGIN VIDEO CLIP)
BUSH: We have more to do to wage and to win the war against terror. America's future depends on our willingness to lead in the world. If America shows uncertainty and weakness in this decade, the world will drift toward tragedy. This will not happen on my watch.
(END VIDEO CLIP)
KOCH: President Bush also took quite a few jabs at his opponent, Senator John Kerry. He criticized him for a variety of things, for lacking national security credentials and for proposing trillions of dollars in new government spending and paying for them, the president insists, with no new taxes. Back to you, Wolf.
BLITZER: All right. Kathleen Koch in Michigan. Thanks, Kathleen, very much.
Here in Washington, the leaders of the 9/11 commission were at a rare summer session on Capitol Hill today calling for a complete transformation of America's intelligence community. But they warned even that's not enough.
Let's go live to our congressional correspondent, Ed Henry -- Ed.
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: That's right, Wolf. In fact, Senators were cutting short their vacation. Democrats are racing from Boston right back to Washington to get to work. That's because of the urgency attached to the recommendations of the 9/11 commission.
As you mentioned, the chairs of that commission, Tom Kean, Lee Hamilton were here testifying. They were classifying this as an emergency situation. That even though it is almost three years after 9/11, the government is not doing enough. That's why there is pressure on Congress to do something, to enact at least some of these recommendations.
And in fact, Lee Hamilton said he recognizes there are no easy choices for Congress.
(BEGIN VIDEO CLIP)
LEE HAMILTON, VICE CHAIRMAN 9/11 COMMISSION: There's no magic solution here, and every move you make has some advantages and has some disadvantages.
(END VIDEO CLIP)
HENRY: Now, Wolf, the focus today was whether or not to create a national intelligence director as well as a national counterterrorism center. Originally, congressional leaders, some congressional leaders had been hoping to put this off until next year. But there's been heavy pressure from the commission itself.
Also, obviously as you know, a lot of election year pressures to deal with the security issue. That's why they had this session and now House leaders have scheduled some 15 hearings over the month of August to deal with this.
There is a flurry of activity now in Congress. And some critics are saying maybe Congress is moving too fast. They're going with the political wins. Senator Susan Collins, today, the chairwoman of this Senate panel said she is not going to act in haste.
But, in fact, Democratic Senator Tom Carper said he believes the moment might be now to act. And he had an interesting exchange with Tom Kean.
(BEGIN VIDEO CLIP)
SEN. TOM CARPER, (D) DELAWARE: Carpe diem, it's the only Latin I know, seize the day. And there's something to be said for seizing the day, particularly when it's so hard to get anything done around here.
TOM KEAN, CHAIRMAN 9/11 COMMISSION: And yet, it is an emergency. There's an enemy out there who is planning as we meet here to attack us. And so I hope carpe diem is the right way to go: seize the day.
(END VIDEO CLIP)
HENRY: And Wolf, the bottom line is that the commissioners are not going to rest easy. They're not going to be testifying on the Hill for the next three weeks. Bipartisan members of this commission are going to start hitting the road, going coast to coast to try to pressure Congress from the outside as well by whipping up support across the country for the recommendations, Wolf.
BLITZER: Ed Henry on Capitol Hill. Thanks, Ed, very much.
Later this hour, I'll speak with two Senators on that committee. Republican Senator Norm Coleman, Democratic Senator Joe Lieberman.
New numbers out for the Bush administration projecting a record high budget deficit this year. The White House now forecasts a $445 billion gap, up significantly from last year's $375 billion deficit, although, that's less than projected by the White House earlier this year.
Josh Bolten is here to talk about it. He's the director of the Office of Management and Budget, the budget director. Thanks very much Mr. Bolten, for joining us.
What's the problem here? Because during the last four years of the Clinton administration, there were surpluses every year and projected surpluses, as they used to say, for as long as the eye could see. The Bush administration takes office and now there are these record surpluses -- deficits every year.
JOSH BOLTEN, WHITE HOUSE BUDGET DIRECTOR: Sure. And those deficits were baked in at the time the president came into office. The president entered office, inheriting a recession. Eight months after entering office we had the attacks of 9/11, we had the subsequent war on terror, and we had the scandals with all the corporations which undermined confidence. All of those things came together to create a very challenging economic situation.
So, basically, the deficits we've been facing over the last few years were baked in at the time the president came into office. He has taken exactly the right steps to bring us out of it. And that's what the numbers I introduced today are demonstrating.
BLITZER: But you heard John Kerry last night say that if the president wouldn't have given the tax cut to the wealthiest Americans, the top 2 percent making $200,000 a year, millionaires, billionaires, as the Democrats like to say, that deficit would not be as high.
BOLTEN: Oh, that's the kind of thing you say in a campaign season and you're interested in class warfare. The reality is that the tax cuts were spread all the way across the economy. I mean, an average family of four making $40,000 a year, they got a tax cut of $2,000. The result of the Bush tax cuts, in fact, was to make the tax code more rather than less progressive.
You can't balance this budget by raising taxes on those making more than $200,000. The numbers just don't add up. And it's dumb economic policy on top of it.
BLITZER: Well, listen to what John Kerry said last night. We have a little clip. Listen to this.
(BEGIN VIDEO CLIP)
KERRY: Let me tell you what we won't do. We won't raise taxes on the middle class. You've heard -- you've heard a lot of false charges about this in recent months. So let me stay straight out what I will do as president.
I will cut middle class taxes. I will reduce the tax burden on small business, and I will roll back the tax cuts for the wealthiest individuals who make over $200,000 a year, so we can invest in health care, education and job creation.
(END VIDEO CLIP) BLITZER: Now, that's going to resonate with a lot of middle class families out there. They think people who make $200,000 a year plus are very rich.
BOLTEN: Sure. And they're paying a lot of the taxes. Right now, people in the top 5 percent of the income taxpayers pay about 50 percent of the taxes. In fact, as a result of the Bush tax cuts, those in the top 5 percent pay 53 percent of the taxes. So it's a misconception about the Bush tax cuts that they somehow made the tax code less progressive. But let me address some of the things Senator Kerry said there. He said he's going to roll back taxes on small business. Well, if you tax those making more than $200,000, what you're taxing is small businesses, because a lot of small businesses, hundreds of thousands of small businesses in this country pay tax through the upper income brackets. The dumbest thing you can do at this point is raise taxes on those people, because they are the engine of growth in this economy.
BLITZER: He also said that he wants to stop giving tax breaks to American companies that export jobs, outsource, if you will, go to India, or China, or Mexico to look for cheaper labor. And he is accusing your administration of doing precisely that, continuing to give tax breaks to those companies who in effect promote hiring overseas.
BOLTEN: No, it is a ridiculous charge, and they haven't detailed exactly what they would do. And they have claimed all sorts of tax savings from closing loopholes and so on. It is the kinds of things politicians say.
Let's see him put out a budget. Let's put the plans on the table. The president has a budget. He put out hundreds of pages worth of budget. It shows what we're going to spend, how we're going to spend it, and it gives a full detailing and shows we are on a very good path to cut the budget deficit in half.
Senator Kerry on the other hand, hasn't put out a budget. He's made a lot of promises that by the most reliable estimates I've seen total over $2 trillion. And yet he is planning to fill that gap with what maybe a third of it could be covered with the kinds of taxes he's talking about, which, as I said, are dumb taxes (UNINTELLIGIBLE).
BLITZER: But should these companies get tax breaks right now that go ahead and export jobs, if you will?
BOLTEN: Well, I don't know what tax breaks they're talking about. They are taxed like other American companies. And I don't think we ought to be in the business of putting special taxes on companies that are involved in international business. So let's see the proposal. Right now it sounds just like hot air to me.
BLITZER: One brief question. We are out of time. Jobs, when they come out, the jobs creation number next week. What do you anticipate?
BOLTEN: I'm not in the business of forecasting that. What I do know is that we've created over a million jobs just in the last few months. All of the economic projections look very good. The first half of this year, the economy grew by almost 4 percent. We and private sector economists are looking for growth even above that for the second half. That should mean jobs. It does mean the president's policies are working.
BLITZER: We'll look forward to those numbers next week. Josh Bolten, thanks very much for joining us.
BOLTEN: Thanks for having me.
BLITZER: Surprise visit to Baghdad. A top U.S. official, a very high U.S. official, in fact, arrives amid deadly fighting.
More than a dozen people killed. We'll get the latest from Baghdad.
Also...
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: He eats well. He gets the good food, an excellent food.
(END VIDEO CLIP)
BLITZER: Saddam Hussein's life in prison, from cookies to showers. We have exclusive details of the former dictator's new lifestyle.
Apologies and intimate revelations. There are also new developments in the Kobe Bryant case. We're live at the courthouse in Colorado.
(COMMERCIAL BREAK)
BLITZER: Secretary of State Colin Powell made an unannounced visit to Baghdad today even as violence rages on in Iraq. U.S. Marines fought a pitch battle with insurgents overnight in the city of Fallujah. The clash left 13 Iraqis dead. CNN's Matthew Chance reports from the Iraqi capital.
(BEGIN VIDEOTAPE)
MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): Captured from a passing vehicle, an insurgent mortar attack on U.S. Marines near Fallujah. This is only the latest assault on coalition forces in this flashpoint. In response, artillery, tank and air power was unleashed.
Into Iraq's mayhem enter the U.S. secretary of state, wearing a bulletproof vest. In Baghdad, Colin Powell had a message of commitment. Washington will be steadfast, he said, on Iraqi security.
COLIN POWELL, SECRETARY OF STATE: The leaders of Iraq are very courageous. They put themselves at risk every day. We have to make sure that these insurgents understand that we will not be deterred. They will not be deterred. The insurgents, the terrorists will be defeated. There can be no other option. The Iraqi people deserve freedom. They deserve democracy.
CHANCE: But in the face of mounting violence, like this bomb attack in Baqubah that killed 70, it is achieving those ideals that's proving difficult.
In meetings with U.S. and Iraqi officials, the delay of a key democracy conference was discussed and the need for more and quicker spending on reconstruction to improve life for ordinary Iraqis.
POWELL: We want to speed up the flow of funds into the reconstruction effort. We want to rebuild the infrastructure, we want to create jobs, we want to show the Iraqi people that this money is being used for their benefit and to do it as quickly as we can.
CHANCE: And kidnapping in Iraq has become a major concern as well. Secretary of State Powell said he had no intelligence on the whereabouts of the foreign contractors being held, but he said hostage taking and insecurity was deterring many companies and countries alike from operating in Iraq.
POWELL: As tragic as these incidents are when they come along, kidnappings and then the murder of those who have been kidnapped, we must continue to persevere. But obviously, it does have a deterring effect.
CHANCE (on camera): This is the highest level visit by a U.S. official to Iraq since the transfer of sovereignty a month ago. The details of the visit were kept secret right up until the last minute. But the fact that the U.S. secretary of state has now come is being seen as a powerful gesture of support from Washington to an Iraqi interim government increasingly faced with insecurity and unrest.
Matthew Chance, CNN, Baghdad.
(END VIDEOTAPE)
BLITZER: Pakistan's prime minister-designate today narrowly escaped a suicide bombing. The attack on his car killed his driver and at least five other people. Two dozen more were wounded. A former Citibank executive, Shaukat Aziz, is currently the finance minister and a favorite of President Pervez Musharraf. The attack followed a rally in Punjab province.
Americans were among the targets of coordinated bombings today in Uzbekistan's capital of Tashkent. The apparent suicide attacks occurred outside the United States and Israeli embassies and at the office of the state prosecutor. Two Uzbek guards were killed at the Israeli embassy. No Americans or Israelis were hurt.
An Islamic group claimed responsibility in a statement posted to a Web site linked to al Qaeda.
How to stop terrorists from striking again.
(BEGIN VIDEO CLIP)
SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: We cannot let another attack succeed because of our own inaction.
(END VIDEO CLIP)
BLITZER: Senators consider major changes in the wake of the 9/11 report. Two lawmakers talk to us about the daunting task.
Also.
(BEGIN VIDEO CLIP)
KERRY: This is the most important election of our lifetime, and the results are going to be more in your hands than in ours.
(END VIDEO CLIP)
BLITZER: The race officially on now. Did John Kerry's speech sway the voters? Our Carlos Watson has the inside edge.
Plus -- a rift over weapons. Is it a crack in the alliance between the United States and Britain?
(COMMERCIAL BREAK)
BLITZER: As we told you at the top of this program, a Senate panel today held its first hearing on the 9/11 Commission recommendations. Just a short while ago, I spoke with two members of that committee, Republican Senator Norm Coleman of Minnesota and Democratic Senator Joe Lieberman of Connecticut.
(BEGIN VIDEOTAPE)
BLITZER: Senator Lieberman, Senator Coleman, thanks very much for joining us. Senator Lieberman, you're the ranking Democrat on this committee. The critics are already suggesting this was just for show under enormous political pressure. You had this hearing. Nothing really is going to come of it. What do you say to those critics?
LIEBERMAN: They're wrong. This was not for show. Last Thursday night, the same night of the day that the September 11th Commission reported, Senate leadership, Senators Frist and Daschle authorized the Government Affairs Committee, Senator Collins chair, I'm ranking Democrat, Norm is the leading member, to assume responsibility for reviewing the recommendations of the commission about executive branch changes and reporting to the Senate by the end of September. And this hearing called urgently at the end of the week in which the Democratic Convention occurred, is our way of saying we take that responsibility seriously, and we are going to report out legislation in September. You can't wait. This is a national crisis.
BLITZER: Do you agree, Senator Coleman, that there is going to be this legislation and that things are really going to change? SEN. NORM COLEMAN (R), MINNESOTA: Well, first, I agree that we're moving forward. This is not about politics. This is probably the most bipartisan committee in the United States Senate. I am thrilled to be here with Senator Lieberman. He and Senator Collins really have a vision of responding to the report.
Again, I think you have got to -- you've to measure twice, you got to cut once. We're not going to be, you know, passing legislation by the end of this August. I anticipate we'll have a hearing next week, a hearing the week after that. I anticipate some further hearings in September, then at the end of September putting something on the table.
But these are important issues, and it can take some time, some reflection, but I have no doubt that we'll get something done.
BLITZER: Senator Coleman, the Democratic nominee said he's ready to accept all the recommendations of the 9/11 Commission. I still haven't heard that from President Bush.
COLEMAN: Well, I think the prudent thing to do is to sit back, do what this committee is doing. Take a look, take a listen. I'm personally -- I am open to some of the suggestions with the committee chair -- commission chairs talked very strongly about today, of setting up a centralized kind of director of intelligence, and then a -- putting all the agencies kind of together under that director.
So that's -- it is an idea that's out there. But you really got to reflect on this, you've got to ask the good questions. Some good questions were asked today. If it's all still within the office of the president, is that going to provide for a more openness or less openness? There are questions out there. Let's listen to the testimony and then we'll get something done.
BLITZER: Senator Lieberman, as much as the reform of the intelligence community is on your agenda, what the 9/11 Commission also recommended is you change the way oversight, congressional oversight works, that they say you really haven't been doing the job you were supposed to be doing all these years. Given the turf, given the passions involved in restructuring the congressional committee situation, is that doable?
LIEBERMAN: Well, I hope it is. I believe that the 9/11 Commission made a very strong recommendation there, that we've got to have better congressional oversight of intelligence. In fact, Tom Kean and Lee Hamilton a few times today, when members of the committee asked, are you concentrating too much power in the new national intelligence director, should it be in the White House, would it be objective? The answer was, we're doing this to get over the problem that helped to cause the 9/11 attacks, which is that intelligence agencies weren't cooperating. There was no quarterback of the whole team. And if you are worried about the problems that come with centralizing authority, then there's got to be better congressional oversight.
That's not the responsibility of our committee. But I'm going to support the kinds of bold changes that the 9/11 Commission recommended.
BLITZER: I just want to be precise. That -- it didn't cause the 9/11 attack. The 9/11 attack was caused by al Qaeda. The failure to prevent it may have been caused by the left hand of the U.S. government not being able to talk to the right hand of the U.S. government.
LIEBERMAN: You are absolutely right. And again, they documented it today. I thought one of the shocking things that Tom Kean and Lee Hamilton said is that effectively there is still no one in charge of our intelligence in the way that they think there has to be. At a time when we're under a threat that al Qaeda is going to attack again. In fact, they told us just a month ago they heard another story of one of the intelligence agencies being unwilling to share information with one of the other intelligence agencies. That is no longer acceptable.
COLEMAN: But they do have a very clear vision of having a single, strong voice. They also made it clear, and I asked the question, are folks out there doing what they need to do? Do they have that sense of urgency? Does Tom Ridge have that sense of urgency? Does the CIA have that sense of urgency? Does Mueller and the FBI have it? And they said yes, they do, there is no question about that. But their vision, it's one that we need to consider, and I'm certainly open to it, says that we can do a better job of this, a single person other than the president.
Right now the president is in charge. So I think they laid something out there. We're going to give it full consideration. But again, I think you got to measure twice and cut once in this business.
BLITZER: So in this political season, and it is a very political season, as both of you know, is it realistic to assume something can be done, legislation can be passed by the end of this year? Senator Lieberman?
LIEBERMAN: Yeah, I think it is. And Wolf, this is one of those cases where politics may actually create a good result, because both parties, both presidential candidates will be under pressure from the public and the media to respond to the 9/11 Commission report. Here, you got them telling us that we're vulnerable. We've got a threat of an attack. And what are we going to do, not do anything just because the campaign is going on?
I think the opposite is going to happen. I believe we're going to get it done by the end of the year.
COLEMAN: And, Wolf, let me just jump in, because it is a good thing, I'll say this, that Senator Lieberman is part of this process.
He early on has understood the danger of al Qaeda, the danger of terrorism and has been one of those folks who have been very bold about saying, hey, we have to get the enemy. This commission report says that. We're not going to sit back. We have to take it to them and then do other things.
But I think you have the right people who are willing to work in a bipartisan way. And if we get anything done in this Congress this year, this may be one of those things.
BLITZER: All right. Senator Lieberman, Senator Coleman, thanks very much for joining us.
COLEMAN: Thank you.
LIEBERMAN: Thank you.
(END VIDEOTAPE)
BLITZER: Familiar phrases on the campaign trail.
(BEGIN VIDEO CLIP)
KERRY: To all who serve in our armed forces today, I say help is on the way.
(END VIDEO CLIP)
BLITZER: How some parts of John Kerry's acceptance speech sounded a lot like his competition. We'll compare them.
Is Saddam Hussein a model prisoner? An exclusive interview with the Iraqi official who got a firsthand look at the former dictator.
And new developments in the Kobe Bryant case, including a rare apology. We'll go live to the courthouse.
(COMMERCIAL BREAK)
BLITZER: Welcome back.
On the campaign trail officially now, what can President Bush do to counteract the Democrats' momentum? Carlos Watson has "The Inside Edge." We'll get to him.
First, though, a quick check of stories now in the news.
The United Nations Security Council has adopted a resolution threatening diplomatic and economic steps against Sudan if it does not stop deadly violence in the Darfur region. Arabs militants are blamed for killing thousands of black African farmers in Darfur.
After taking yesterday off, Vice President Dick Cheney is back on the campaign trail. He's speaking right now at a GOP event in Yakima, Washington state. He then travels to Central Point, Oregon, for a rally.
If political speeches ever leave you feeling like you've heard it all before, that's because in some cases you have. Take John Kerry's acceptance speech last night.
(BEGIN VIDEOTAPE)
KERRY: I'm John Kerry and I'm reporting for duty. BLITZER (voice-over): The newly minted Democratic nominee is getting generally high marks for what was billed as the most important speech of his political career. But parts of it sounded vaguely familiar.
KERRY: We need to lead a global effort against nuclear proliferation, to keep the most dangerous weapons in the world out of the most dangerous hands in the world.
BLITZER: Most people would agree, including President Bush, who said almost the same thing in his last State of the Union speech.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: America is committed to keeping the world's most dangerous weapons out of the hands of the most dangerous regimes.
BLITZER: Nominee Kerry feels something is missing in the Oval Office and says he'll bring it back.
KERRY: That is my first pledge to you tonight. As president, I will restore trust and credibility to the White House.
BLITZER: Then-nominee Bush also felt there was a void in the wake of the Clinton-Lewinsky scandal and promised to fill it in his acceptance speech.
BUSH: So when I put my hand on the Bible, I will swear to not only uphold the laws of our land. I will swear to uphold the honor and dignity of the office to which I have been elected, so help me God.
BLITZER: The night before, at his acceptance speech, running mate Dick Cheney accused the Clinton administration of depleting U.S. military power and vowed to do better.
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: I am proud of them. I have had the responsibility for their well-being. And I can promise them now, help is on the way.
BLITZER: Four years and a war in Iraq later, John Kerry says his opponents have mishandled the military. Guess what his promise is?
KERRY: To all who serve in our armed forces today, I say, help is on the way.
(END VIDEOTAPE)
BLITZER: We contacted the Kerry campaign and asked about these similarities between the excerpts of these speeches. A Kerry campaign spokesman acknowledged that while President Bush may have made some similar remarks in the past, he stressed John Kerry's ability to act on the issues facing the nation.
On the matter of dangerous weapons, a campaign spokesman said nonproliferation is clearly a national security priority for the United States and only one candidate actually has a plan to do something about it.
And on the matter of the armed forces, the Kerry campaign spokesman said, under the -- the Kerry campaign spokesman said it is an example of the president of the United States showing that the armed forces are stretched thin.
We also contacted, by the way, the Bush-Cheney campaign. And a spokesman told us, it is an example of John Kerry's willingness to say anything to anyone at any time -- we're quoting now -- "if he believes there is a political benefit."
The 2004 Democratic National Convention is now history. How did the Democrats do? What happens next?
CNN political analyst Carlos Watson, as always, has "The Inside Edge." He joins us today from New York.
Carlos, first of all, on the similarities in these speeches, some people think it was John Kerry's way of tweaking, if you will, the Bush people. What do you make...
CARLOS WATSON, CNN POLITICAL ANALYST: I think it is more than that. It is a continuation of the Reagan legacy.
Ronald Reagan fundamentally shifted the debate, shifted the agenda in this country. And Democrats beginning with Bill Clinton in 1992 and Republicans beginning with George W. Bush in 2000 have continued to co-opt the other's issues. So you heard George W. Bush on issues of education and health care in 2000. You heard Bill Clinton talk about welfare reform and balanced budget in 1992.
And here in 2004, you hear John Kerry not only stealing in many ways the language, but also trying to co-opt some of the themes and some of the issues. In fact, Wolf, I thought one of the most interesting things to come out of the speech was that for the first time maybe in a couple of decades, Democrats may put forth some wedge issues of their own.
You usually see those coming from Republicans. But you heard John Kerry talk about Saudi Arabia. You heard him talk about outsourcing. You heard him bring up Social Security. And, last but not least, you heard him talk about Enron taxes or Enron tax breaks. All four of those could become hot wedge issues that allow Democrats to reach into independents and maybe, maybe even Republicans for a few extra votes.
BLITZER: Yesterday, Carlos, we asked our viewers to go to our Web site and answer this question, let us know how they feel. We asked this question: What does Senator Kerry have to do on the issue of values to win the presidential election?
Martha, by the way, wrote this: "I think Senator Kerry needs to explain that values are defined by how well we educate our nation's children, how much access we provide to health care and how we protect our workers' jobs, how we maintain our position of strength and credibility in the world." You alluded to this, this whole issue of social values. Is this going to resonate with voters?
WATSON: It's unclear, Wolf. If it does, I will tell you what. This will be one of the most fundamental changes in American politics to come out of 2004, meaning if Democrats for the first time in 40 years can actually go on the offensive on values issues and, indeed, redefine what is commonly thought of when you say values in a political context, that will be a major accomplishment.
Even Bill Clinton at his best could only try and neutralize the values issue, whether it was on welfare or guns or other issues. This would be a major accomplishment. But President Bush I think will push back and push back very hard and say, don't misunderstand what values means and, again, as we have talked about not only as it relates to a constitutional amendment on gay marriage, but also as it relates to the issue of abortion, the death penalty and significantly in some of the border and Southern states, gun rights and gun ownership.
BLITZER: So, the bottom line, as you look at the polls -- we don't have polls yet. We won't have any real polls at least until Monday. Do you suspect this Democratic Convention is going to give them the bounce, the so-called bounce, that they want?
WATSON: Three quick things on that. Yes, I think it will be a mid to high single-digit bounce. No. 2, I think this bounce, believe it not, Wolf, will disappear even before the Republican Convention starts in five weeks. And, No. 3, I think the statewide bounces are more interesting in key battleground states.
BLITZER: CNN's Carlos Watson, thanks very much for joining us.
And if viewers want more information from Carlos, they can go to his Web site, CNN.com/Carlos, get "The Inside Edge' with Carlos.
Details of Saddam Hussein's life behind bars.
(BEGIN VIDEO CLIP)
BAKHTIYAR AMIN, IRAQI HUMAN RIGHTS MINISTER: He was in a good shape when I saw him.
(END VIDEO CLIP)
BLITZER: An exclusive interview with a man who got a firsthand look at the former dictator, that's coming up.
Cracks in the alliance? Find out what's causing a potentially serious blow to relations between the United States and Britain.
And lifting spirits, the sport that's bringing a ray of hope to Iraq.
(COMMERCIAL BREAK)
BLITZER: Disposed Iraqi President Saddam Hussein is awaiting trial. We've only seen him briefly, except for that appearance at that hearing before the court. But details of his captivity in general have been extremely limited. Today, there's brand new information.
Let's go to CNN's Zain Verjee. She's at the CNN Center in Atlanta. She has an exclusive report -- Zain.
ZAIN VERJEE, CNN CORRESPONDENT: Wolf, hi.
For the first time, we're getting details of Saddam Hussein's lifestyle as a prisoner. Now, they come from Iraq's human rights minister, who met him last week. And he revealed some colorful details. Saddam gets two showers a week and he has a softness for American cookies.
(BEGIN VIDEOTAPE)
VERJEE (voice-over): The last time we saw Saddam Hussein, he looked like this, in the dock, not quite presidential anymore, but apparently adapting to his new lifestyle. Saddam is being held at Baghdad's Camp Cropper awaiting for trial for crimes against humanity. Iraqi Human Rights Minister Bakhtiyar Amin has been telling CNN of the former dictator's modest surroundings.
AMIN: There are 96 prisoners there. Saddam is one of them. And he is isolated from the others. He is not mingling with the others. And he's in a three-by-four-meters room. It's white tiled floor with a 100-volt bulb lamp.
VERJEE: There's a yard next to Saddam's room, and the man once called the butcher of Baghdad is said to have taken up gardening.
AMIN: He has become a gardener these days. I don't know. Maybe he has a bad conscience for having decapitated hundreds of thousands of palm trees and committed the world's biggest ecocide of the 20th century.
VERJEE: There have been rumors Saddam is seriously ill, but Amin says those rumors are unfounded.
AMIN: He has certain health problems. But, generally, his health condition is good. He has suffered from chronic prostate infection. He got antibiotics for that and he seemed to be OK. And they did a chest CAT scan for him and back MRI and some blood tests, and it didn't show any cancer.
VERJEE: Amin says doctors have offered to follow up the blood tests with a biopsy, but Saddam has turned them down. Amin says he doesn't know why. According to Amin, Saddam gets two hot meal as day and likes American snacks. And he says if Saddam feels remorse or fears punishment for his reign of terror as president of Iraq, it doesn't show.
AMIN: Out of the 12 criminals who knows their charge, they appeared before the Iraqi special tribunal, six of them sought consultation for depression, anxiety, sleeping disorder. Saddam hadn't requested that.
(END VIDEOTAPE)
VERJEE: And just a few more details, Wolf. Saddam doesn't mingle with any of the other prisoners. He eats well and he drinks only tea now, no cappuccino -- Wolf.
BLITZER: No cappuccino, indeed.
Zain, what kind of contact does he have with the outside world, if any?
VERJEE: Well, according to Bakhtiyar Amin, the human rights minister, Saddam sends letters to close family members. That's once a week. And he receives letters apparently quite often. The Red Cross also visits him, as well as the other prisoners about every six weeks -- Wolf.
BLITZER: CNN's Zain Verjee reporting for us -- thanks, Zain, very much.
Ever since President Bush ordered the invasion of Iraq, his strongest ally in the world has been the British Prime Minister Tony Blair. But now the two governments are embroiled in a serious dispute over the very lucrative weapons trade issue.
CNN's Jim Boulden is in London with the story.
(BEGIN VIDEOTAPE)
JIM BOULDEN, CNN CORRESPONDENT (voice-over): It's being seen as retaliation, the announcement last week's by Britain's defense secretary, Geoff Hoon, that a European company won a $1 billion contract to supply unmanned surveillance drones. The loser was U.S. manufacturer Northrop Grumman. Why? Because London is accusing Washington of unfair trade practices when it comes to defense contracts.
DAVID MULHOLLAND, "JANE'S DEFENCE WEEKLY": The U.K. government thought when they joined the U.S. IN Iraq that they would be viewed more favorably. But ,in fact, no. The U.S. is still saying, oh, but we can't trust our good allies the Brits.
BOULDEN: That anger boiled over in a letter dated June 16 from Hoon to U.S. Defense Secretary Donald Rumsfeld. Hoon complained that legislation now working its way through Congress will make it even harder for non-U.S. firms to compete for American defense contracts. If it passes, Hoon warned Britain would have to have an exemption or consider whether to continue buying from U.S. defense firms.
Last year, the White House sided with Britain when some in Congress tried to tighten the rules to make it harder for non-American companies to compete for arms contracts. American defense companies are siding with Britain this time, worried about retaliation and loss of U.K. market share. UNIDENTIFIED MALE: If you talk to any of the major companies, the big four, the big five, they are all very concerned about this, because they really do worry that this market will be closed to them. And it is a big percentage of their business, a lot of them. Raytheon does about 20 percent of its business internationally and a lot of that comes from the U.K.
BOULDEN: As a staunch ally, Britain also wants a waiver to arms traffic regulations, which would allow it to easily obtain certain U.S. defense technologies. Right now, only Canada has such a waiver. But some in Congress worry Britain's export regulations are too loose and might allow sensitive U.S. technology to third countries.
That waiver has been promised to Britain by the past two White House administrations. But it has been stalled for years by some in Congress, citing national security worries, one more reason Britain is threatening a trade war over the weapons of war.
Jim Boulden, CNN, London.
(END VIDEOTAPE)
BLITZER: The case against Kobe Bryant. Find out why the judge is now apologizing.
First, though, some other headlines making news around the world.
(BEGIN VIDEOTAPE)
BLITZER (voice-over): A natural gas pipeline exploded in Belgium while firefighters were investigating a report of a gas leak. Officials say about a dozen people were killed and scores more were hurt.
Japan blast. An explosion at a museum dedicated to the sardine industry killed a museum employee. The blast occurred just before the museum was set to open. The cause is under investigation.
Fires continue. Wildfires are ravaging Spain and Portugal, but firefighters say they have one of the larger blazes under control in southern Spain.
Coming close. Iraq's national soccer team lost its bid to compete in the Asian Cup semifinals with a defeat by China in Beijing. Team members took pride in making it as far as the quarterfinals, saying they hoped it would boost the spirits of their fellow Iraqis.
And that's our look around the world.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
BLITZER: There are new developments happening right now in the Kobe Bryant rape case.
Our national correspondent Gary Tuchman is standing by in Eagle, Colorado -- Gary.
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Hello, Wolf.
Court is over for the day, Kobe Bryant on his way back to California. One more hearing before the trial is scheduled to start on August 27. The L.A. Lakers star arrived at 8:15 this morning, was gone by 12:30, mostly administrative items in court, but some unusual action, the judge apologizing for three mistake that have been made on court Web sites and on e-mail to reporters listing the accuser's name and sealed testimony.
Judge Terry Ruckriegle saying -- quote -- "I want to express my sincere apology to the people of Eagle County, the people of Colorado, and the people who have come here from far away for the mistake made by the courts this week."
Now, the accuser's attorney demanded an apology to his client. But the judge did not make the personal apology. It was very general. But John Clune, that attorney, very angry, talking to me, despite a gag order in this case, in which lawyers are not allowed to talk to journalists.
But he said this -- quote -- "In the wake of the judge's repeated mistakes harmful to only one person, today's self-serving remarks designed to improve his own image are insulting. The judge's refusal to apologize to the victim and her family is very telling."
Very risky for the attorney to say that. He is obviously very angry. Once again, the trial starts begins August 27, four weeks from today -- Wolf.
BLITZER: Gary Tuchman in Eagle, Colorado -- thanks, Gary, very much.
Paying tribute to the Terminator. Austrians find a new way to honor their native hero.
We'll be right back.
(COMMERCIAL BREAK)
BLITZER: It's Arnold Schwarzenegger's birthday. And Austria is honoring its native son with a postage stamp. That's our picture of the day. It's part of a collector's series called "Austrians Living Abroad" -- Austrians snapping up the stamps.
We're on weekdays 5:00 p.m. Eastern. I'll see you Sunday on "LATE EDITION," the last word in Sunday talk. Among my guests, Howard Dean, Sunday, noon Eastern.
"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 July 30, 2004 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST: Happening now: cracks in the alliance? Why is America's closest ally at odds with the Bush administration right now?
Also happening now, your money, your jobs: new information released today, the economy may not be recovering as robustly as the White House would like.
Stand by for hard news on WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)
BLITZER (voice-over): After the balloons the Democratic duo on a coast to coast campaign swing.
SEN. JOHN KERRY, (D-MA) PRESIDENTIAL CANDIDATE: Help is on the way for the average person in this country.
BLITZER: In the heartland, the president plugs his agenda and takes a few pokes.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: My opponent has good intentions, but intentions do not always translate to results.
BLITZER: Summer session: Leaders of the 9/11 commission call on Congress and call for action.
UNIDENTIFIED MALE: The intelligence community is not going to get its job done unless somebody is really in charge.
BLITZER: Saddam behind bars.
UNIDENTIFIED MALE: So he gets good food and he likes American snacks, muffins, cookies. He gets them regularly. He has an air conditioned room.
BLITZER: A CNN exclusive.
ANNOUNCER: This is WOLF BLITZER REPORTS for Friday, July 30, 2004.
(END VIDEOTAPE)
BLITZER: The show is over, the nomination official, and now, John Kerry and John Edwards are back on the road on an ambitious campaign tour. And not to be outdone, President Bush is stumping again as well, after laying low during the Democratic convention.
We're live with both campaigns. CNN's Kathleen Koch is in Grand Rapids, Michigan. But we begin with CNN's Elaine Quijano in Harrisburg, Pennsylvania where John Kerry will speak in just a few hours -- Elaine.
ELAINE QUIJANO, CNN CORRESPONDENT: Good afternoon to you, Wolf. Senators John Kerry and John Edwards are taking their message on the road over the next two weeks wasting no time after the Democratic National Convention. It is a coast to coast trip that the campaign is calling the "Believe in America Tour."
The now official ticket set out from Boston early this morning just hours after Senator Kerry delivered his address at the Democratic National Convention. Senators heading straight for the key battleground state of Pennsylvania. Their first stop was Scranton just a short time ago.
There they attended a rally and shook some hands. They were accompanied on that trip by actor Ben Affleck as well as Pennsylvania's Governor Ed Rendell.
Now, the Senators are hoping to connect with enough voters in this is state to give them the edge. This is the state that Al Gore won in 2000 by just four percentage points. Now 21 electoral votes up for grabs this year.
Now John Kerry is hoping to reach voters who are still on the fence, in part, by talking about the idea of values and trying to continue its effort to convince the American people that the Kerry/Edwards ticket is in line with American values and will act on those values.
(BEGIN VIDEO CLIP)
KERRY: And values, values are not words, values are what you live by. Values are the choices that you make every day that honor your sense of direction, that honor your moral compass, that honor where we go as a country. That's how we got to be where we are today.
(END VIDEO CLIP)
QUIJANO: Now, the two Senators will be logging some 3,500 miles over the next two weeks. They will be visiting 21 different states and they'll be traveling not only by bus, but also by train and boat as well.
Recent polls showing, of course, things very tight. The Kerry/Edwards ticket reaching out and hoping they will receive votes in November -- Wolf.
BLITZER: Elaine Quijano, in Pennsylvania. Thanks very much.
The battleground states Missouri, Michigan and Ohio are on the Bush I itinerary today. CNN's Kathleen Koch is in Grand Rapids, where the president just spoke just a short time ago -- Kathleen. KATHLEEN KOCH, CNN CORRESPONDENT: Wolf, the president is trying very hard to reclaim the national spotlight, really reinvigorate his campaign after taking nearly a week off in Crawford. He had a very receptive audience here in Grand Rapids, also earlier today in Missouri.
Part of the strategy his strategy is not only new campaign ads, but a new, retooled stump speech. In both states, President Bush to his audience detailed his administration's accomplishments, laid out his vision for the future. He said that he was a leader you can count on in a time of change.
When President Bush talked about the strides his administration had made in education and healthcare, in the economy, and in the war on terror. But he said that there was still more to do, that the world was safer, but still not safe.
(BEGIN VIDEO CLIP)
BUSH: We have more to do to wage and to win the war against terror. America's future depends on our willingness to lead in the world. If America shows uncertainty and weakness in this decade, the world will drift toward tragedy. This will not happen on my watch.
(END VIDEO CLIP)
KOCH: President Bush also took quite a few jabs at his opponent, Senator John Kerry. He criticized him for a variety of things, for lacking national security credentials and for proposing trillions of dollars in new government spending and paying for them, the president insists, with no new taxes. Back to you, Wolf.
BLITZER: All right. Kathleen Koch in Michigan. Thanks, Kathleen, very much.
Here in Washington, the leaders of the 9/11 commission were at a rare summer session on Capitol Hill today calling for a complete transformation of America's intelligence community. But they warned even that's not enough.
Let's go live to our congressional correspondent, Ed Henry -- Ed.
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: That's right, Wolf. In fact, Senators were cutting short their vacation. Democrats are racing from Boston right back to Washington to get to work. That's because of the urgency attached to the recommendations of the 9/11 commission.
As you mentioned, the chairs of that commission, Tom Kean, Lee Hamilton were here testifying. They were classifying this as an emergency situation. That even though it is almost three years after 9/11, the government is not doing enough. That's why there is pressure on Congress to do something, to enact at least some of these recommendations.
And in fact, Lee Hamilton said he recognizes there are no easy choices for Congress.
(BEGIN VIDEO CLIP)
LEE HAMILTON, VICE CHAIRMAN 9/11 COMMISSION: There's no magic solution here, and every move you make has some advantages and has some disadvantages.
(END VIDEO CLIP)
HENRY: Now, Wolf, the focus today was whether or not to create a national intelligence director as well as a national counterterrorism center. Originally, congressional leaders, some congressional leaders had been hoping to put this off until next year. But there's been heavy pressure from the commission itself.
Also, obviously as you know, a lot of election year pressures to deal with the security issue. That's why they had this session and now House leaders have scheduled some 15 hearings over the month of August to deal with this.
There is a flurry of activity now in Congress. And some critics are saying maybe Congress is moving too fast. They're going with the political wins. Senator Susan Collins, today, the chairwoman of this Senate panel said she is not going to act in haste.
But, in fact, Democratic Senator Tom Carper said he believes the moment might be now to act. And he had an interesting exchange with Tom Kean.
(BEGIN VIDEO CLIP)
SEN. TOM CARPER, (D) DELAWARE: Carpe diem, it's the only Latin I know, seize the day. And there's something to be said for seizing the day, particularly when it's so hard to get anything done around here.
TOM KEAN, CHAIRMAN 9/11 COMMISSION: And yet, it is an emergency. There's an enemy out there who is planning as we meet here to attack us. And so I hope carpe diem is the right way to go: seize the day.
(END VIDEO CLIP)
HENRY: And Wolf, the bottom line is that the commissioners are not going to rest easy. They're not going to be testifying on the Hill for the next three weeks. Bipartisan members of this commission are going to start hitting the road, going coast to coast to try to pressure Congress from the outside as well by whipping up support across the country for the recommendations, Wolf.
BLITZER: Ed Henry on Capitol Hill. Thanks, Ed, very much.
Later this hour, I'll speak with two Senators on that committee. Republican Senator Norm Coleman, Democratic Senator Joe Lieberman.
New numbers out for the Bush administration projecting a record high budget deficit this year. The White House now forecasts a $445 billion gap, up significantly from last year's $375 billion deficit, although, that's less than projected by the White House earlier this year.
Josh Bolten is here to talk about it. He's the director of the Office of Management and Budget, the budget director. Thanks very much Mr. Bolten, for joining us.
What's the problem here? Because during the last four years of the Clinton administration, there were surpluses every year and projected surpluses, as they used to say, for as long as the eye could see. The Bush administration takes office and now there are these record surpluses -- deficits every year.
JOSH BOLTEN, WHITE HOUSE BUDGET DIRECTOR: Sure. And those deficits were baked in at the time the president came into office. The president entered office, inheriting a recession. Eight months after entering office we had the attacks of 9/11, we had the subsequent war on terror, and we had the scandals with all the corporations which undermined confidence. All of those things came together to create a very challenging economic situation.
So, basically, the deficits we've been facing over the last few years were baked in at the time the president came into office. He has taken exactly the right steps to bring us out of it. And that's what the numbers I introduced today are demonstrating.
BLITZER: But you heard John Kerry last night say that if the president wouldn't have given the tax cut to the wealthiest Americans, the top 2 percent making $200,000 a year, millionaires, billionaires, as the Democrats like to say, that deficit would not be as high.
BOLTEN: Oh, that's the kind of thing you say in a campaign season and you're interested in class warfare. The reality is that the tax cuts were spread all the way across the economy. I mean, an average family of four making $40,000 a year, they got a tax cut of $2,000. The result of the Bush tax cuts, in fact, was to make the tax code more rather than less progressive.
You can't balance this budget by raising taxes on those making more than $200,000. The numbers just don't add up. And it's dumb economic policy on top of it.
BLITZER: Well, listen to what John Kerry said last night. We have a little clip. Listen to this.
(BEGIN VIDEO CLIP)
KERRY: Let me tell you what we won't do. We won't raise taxes on the middle class. You've heard -- you've heard a lot of false charges about this in recent months. So let me stay straight out what I will do as president.
I will cut middle class taxes. I will reduce the tax burden on small business, and I will roll back the tax cuts for the wealthiest individuals who make over $200,000 a year, so we can invest in health care, education and job creation.
(END VIDEO CLIP) BLITZER: Now, that's going to resonate with a lot of middle class families out there. They think people who make $200,000 a year plus are very rich.
BOLTEN: Sure. And they're paying a lot of the taxes. Right now, people in the top 5 percent of the income taxpayers pay about 50 percent of the taxes. In fact, as a result of the Bush tax cuts, those in the top 5 percent pay 53 percent of the taxes. So it's a misconception about the Bush tax cuts that they somehow made the tax code less progressive. But let me address some of the things Senator Kerry said there. He said he's going to roll back taxes on small business. Well, if you tax those making more than $200,000, what you're taxing is small businesses, because a lot of small businesses, hundreds of thousands of small businesses in this country pay tax through the upper income brackets. The dumbest thing you can do at this point is raise taxes on those people, because they are the engine of growth in this economy.
BLITZER: He also said that he wants to stop giving tax breaks to American companies that export jobs, outsource, if you will, go to India, or China, or Mexico to look for cheaper labor. And he is accusing your administration of doing precisely that, continuing to give tax breaks to those companies who in effect promote hiring overseas.
BOLTEN: No, it is a ridiculous charge, and they haven't detailed exactly what they would do. And they have claimed all sorts of tax savings from closing loopholes and so on. It is the kinds of things politicians say.
Let's see him put out a budget. Let's put the plans on the table. The president has a budget. He put out hundreds of pages worth of budget. It shows what we're going to spend, how we're going to spend it, and it gives a full detailing and shows we are on a very good path to cut the budget deficit in half.
Senator Kerry on the other hand, hasn't put out a budget. He's made a lot of promises that by the most reliable estimates I've seen total over $2 trillion. And yet he is planning to fill that gap with what maybe a third of it could be covered with the kinds of taxes he's talking about, which, as I said, are dumb taxes (UNINTELLIGIBLE).
BLITZER: But should these companies get tax breaks right now that go ahead and export jobs, if you will?
BOLTEN: Well, I don't know what tax breaks they're talking about. They are taxed like other American companies. And I don't think we ought to be in the business of putting special taxes on companies that are involved in international business. So let's see the proposal. Right now it sounds just like hot air to me.
BLITZER: One brief question. We are out of time. Jobs, when they come out, the jobs creation number next week. What do you anticipate?
BOLTEN: I'm not in the business of forecasting that. What I do know is that we've created over a million jobs just in the last few months. All of the economic projections look very good. The first half of this year, the economy grew by almost 4 percent. We and private sector economists are looking for growth even above that for the second half. That should mean jobs. It does mean the president's policies are working.
BLITZER: We'll look forward to those numbers next week. Josh Bolten, thanks very much for joining us.
BOLTEN: Thanks for having me.
BLITZER: Surprise visit to Baghdad. A top U.S. official, a very high U.S. official, in fact, arrives amid deadly fighting.
More than a dozen people killed. We'll get the latest from Baghdad.
Also...
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: He eats well. He gets the good food, an excellent food.
(END VIDEO CLIP)
BLITZER: Saddam Hussein's life in prison, from cookies to showers. We have exclusive details of the former dictator's new lifestyle.
Apologies and intimate revelations. There are also new developments in the Kobe Bryant case. We're live at the courthouse in Colorado.
(COMMERCIAL BREAK)
BLITZER: Secretary of State Colin Powell made an unannounced visit to Baghdad today even as violence rages on in Iraq. U.S. Marines fought a pitch battle with insurgents overnight in the city of Fallujah. The clash left 13 Iraqis dead. CNN's Matthew Chance reports from the Iraqi capital.
(BEGIN VIDEOTAPE)
MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): Captured from a passing vehicle, an insurgent mortar attack on U.S. Marines near Fallujah. This is only the latest assault on coalition forces in this flashpoint. In response, artillery, tank and air power was unleashed.
Into Iraq's mayhem enter the U.S. secretary of state, wearing a bulletproof vest. In Baghdad, Colin Powell had a message of commitment. Washington will be steadfast, he said, on Iraqi security.
COLIN POWELL, SECRETARY OF STATE: The leaders of Iraq are very courageous. They put themselves at risk every day. We have to make sure that these insurgents understand that we will not be deterred. They will not be deterred. The insurgents, the terrorists will be defeated. There can be no other option. The Iraqi people deserve freedom. They deserve democracy.
CHANCE: But in the face of mounting violence, like this bomb attack in Baqubah that killed 70, it is achieving those ideals that's proving difficult.
In meetings with U.S. and Iraqi officials, the delay of a key democracy conference was discussed and the need for more and quicker spending on reconstruction to improve life for ordinary Iraqis.
POWELL: We want to speed up the flow of funds into the reconstruction effort. We want to rebuild the infrastructure, we want to create jobs, we want to show the Iraqi people that this money is being used for their benefit and to do it as quickly as we can.
CHANCE: And kidnapping in Iraq has become a major concern as well. Secretary of State Powell said he had no intelligence on the whereabouts of the foreign contractors being held, but he said hostage taking and insecurity was deterring many companies and countries alike from operating in Iraq.
POWELL: As tragic as these incidents are when they come along, kidnappings and then the murder of those who have been kidnapped, we must continue to persevere. But obviously, it does have a deterring effect.
CHANCE (on camera): This is the highest level visit by a U.S. official to Iraq since the transfer of sovereignty a month ago. The details of the visit were kept secret right up until the last minute. But the fact that the U.S. secretary of state has now come is being seen as a powerful gesture of support from Washington to an Iraqi interim government increasingly faced with insecurity and unrest.
Matthew Chance, CNN, Baghdad.
(END VIDEOTAPE)
BLITZER: Pakistan's prime minister-designate today narrowly escaped a suicide bombing. The attack on his car killed his driver and at least five other people. Two dozen more were wounded. A former Citibank executive, Shaukat Aziz, is currently the finance minister and a favorite of President Pervez Musharraf. The attack followed a rally in Punjab province.
Americans were among the targets of coordinated bombings today in Uzbekistan's capital of Tashkent. The apparent suicide attacks occurred outside the United States and Israeli embassies and at the office of the state prosecutor. Two Uzbek guards were killed at the Israeli embassy. No Americans or Israelis were hurt.
An Islamic group claimed responsibility in a statement posted to a Web site linked to al Qaeda.
How to stop terrorists from striking again.
(BEGIN VIDEO CLIP)
SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: We cannot let another attack succeed because of our own inaction.
(END VIDEO CLIP)
BLITZER: Senators consider major changes in the wake of the 9/11 report. Two lawmakers talk to us about the daunting task.
Also.
(BEGIN VIDEO CLIP)
KERRY: This is the most important election of our lifetime, and the results are going to be more in your hands than in ours.
(END VIDEO CLIP)
BLITZER: The race officially on now. Did John Kerry's speech sway the voters? Our Carlos Watson has the inside edge.
Plus -- a rift over weapons. Is it a crack in the alliance between the United States and Britain?
(COMMERCIAL BREAK)
BLITZER: As we told you at the top of this program, a Senate panel today held its first hearing on the 9/11 Commission recommendations. Just a short while ago, I spoke with two members of that committee, Republican Senator Norm Coleman of Minnesota and Democratic Senator Joe Lieberman of Connecticut.
(BEGIN VIDEOTAPE)
BLITZER: Senator Lieberman, Senator Coleman, thanks very much for joining us. Senator Lieberman, you're the ranking Democrat on this committee. The critics are already suggesting this was just for show under enormous political pressure. You had this hearing. Nothing really is going to come of it. What do you say to those critics?
LIEBERMAN: They're wrong. This was not for show. Last Thursday night, the same night of the day that the September 11th Commission reported, Senate leadership, Senators Frist and Daschle authorized the Government Affairs Committee, Senator Collins chair, I'm ranking Democrat, Norm is the leading member, to assume responsibility for reviewing the recommendations of the commission about executive branch changes and reporting to the Senate by the end of September. And this hearing called urgently at the end of the week in which the Democratic Convention occurred, is our way of saying we take that responsibility seriously, and we are going to report out legislation in September. You can't wait. This is a national crisis.
BLITZER: Do you agree, Senator Coleman, that there is going to be this legislation and that things are really going to change? SEN. NORM COLEMAN (R), MINNESOTA: Well, first, I agree that we're moving forward. This is not about politics. This is probably the most bipartisan committee in the United States Senate. I am thrilled to be here with Senator Lieberman. He and Senator Collins really have a vision of responding to the report.
Again, I think you have got to -- you've to measure twice, you got to cut once. We're not going to be, you know, passing legislation by the end of this August. I anticipate we'll have a hearing next week, a hearing the week after that. I anticipate some further hearings in September, then at the end of September putting something on the table.
But these are important issues, and it can take some time, some reflection, but I have no doubt that we'll get something done.
BLITZER: Senator Coleman, the Democratic nominee said he's ready to accept all the recommendations of the 9/11 Commission. I still haven't heard that from President Bush.
COLEMAN: Well, I think the prudent thing to do is to sit back, do what this committee is doing. Take a look, take a listen. I'm personally -- I am open to some of the suggestions with the committee chair -- commission chairs talked very strongly about today, of setting up a centralized kind of director of intelligence, and then a -- putting all the agencies kind of together under that director.
So that's -- it is an idea that's out there. But you really got to reflect on this, you've got to ask the good questions. Some good questions were asked today. If it's all still within the office of the president, is that going to provide for a more openness or less openness? There are questions out there. Let's listen to the testimony and then we'll get something done.
BLITZER: Senator Lieberman, as much as the reform of the intelligence community is on your agenda, what the 9/11 Commission also recommended is you change the way oversight, congressional oversight works, that they say you really haven't been doing the job you were supposed to be doing all these years. Given the turf, given the passions involved in restructuring the congressional committee situation, is that doable?
LIEBERMAN: Well, I hope it is. I believe that the 9/11 Commission made a very strong recommendation there, that we've got to have better congressional oversight of intelligence. In fact, Tom Kean and Lee Hamilton a few times today, when members of the committee asked, are you concentrating too much power in the new national intelligence director, should it be in the White House, would it be objective? The answer was, we're doing this to get over the problem that helped to cause the 9/11 attacks, which is that intelligence agencies weren't cooperating. There was no quarterback of the whole team. And if you are worried about the problems that come with centralizing authority, then there's got to be better congressional oversight.
That's not the responsibility of our committee. But I'm going to support the kinds of bold changes that the 9/11 Commission recommended.
BLITZER: I just want to be precise. That -- it didn't cause the 9/11 attack. The 9/11 attack was caused by al Qaeda. The failure to prevent it may have been caused by the left hand of the U.S. government not being able to talk to the right hand of the U.S. government.
LIEBERMAN: You are absolutely right. And again, they documented it today. I thought one of the shocking things that Tom Kean and Lee Hamilton said is that effectively there is still no one in charge of our intelligence in the way that they think there has to be. At a time when we're under a threat that al Qaeda is going to attack again. In fact, they told us just a month ago they heard another story of one of the intelligence agencies being unwilling to share information with one of the other intelligence agencies. That is no longer acceptable.
COLEMAN: But they do have a very clear vision of having a single, strong voice. They also made it clear, and I asked the question, are folks out there doing what they need to do? Do they have that sense of urgency? Does Tom Ridge have that sense of urgency? Does the CIA have that sense of urgency? Does Mueller and the FBI have it? And they said yes, they do, there is no question about that. But their vision, it's one that we need to consider, and I'm certainly open to it, says that we can do a better job of this, a single person other than the president.
Right now the president is in charge. So I think they laid something out there. We're going to give it full consideration. But again, I think you got to measure twice and cut once in this business.
BLITZER: So in this political season, and it is a very political season, as both of you know, is it realistic to assume something can be done, legislation can be passed by the end of this year? Senator Lieberman?
LIEBERMAN: Yeah, I think it is. And Wolf, this is one of those cases where politics may actually create a good result, because both parties, both presidential candidates will be under pressure from the public and the media to respond to the 9/11 Commission report. Here, you got them telling us that we're vulnerable. We've got a threat of an attack. And what are we going to do, not do anything just because the campaign is going on?
I think the opposite is going to happen. I believe we're going to get it done by the end of the year.
COLEMAN: And, Wolf, let me just jump in, because it is a good thing, I'll say this, that Senator Lieberman is part of this process.
He early on has understood the danger of al Qaeda, the danger of terrorism and has been one of those folks who have been very bold about saying, hey, we have to get the enemy. This commission report says that. We're not going to sit back. We have to take it to them and then do other things.
But I think you have the right people who are willing to work in a bipartisan way. And if we get anything done in this Congress this year, this may be one of those things.
BLITZER: All right. Senator Lieberman, Senator Coleman, thanks very much for joining us.
COLEMAN: Thank you.
LIEBERMAN: Thank you.
(END VIDEOTAPE)
BLITZER: Familiar phrases on the campaign trail.
(BEGIN VIDEO CLIP)
KERRY: To all who serve in our armed forces today, I say help is on the way.
(END VIDEO CLIP)
BLITZER: How some parts of John Kerry's acceptance speech sounded a lot like his competition. We'll compare them.
Is Saddam Hussein a model prisoner? An exclusive interview with the Iraqi official who got a firsthand look at the former dictator.
And new developments in the Kobe Bryant case, including a rare apology. We'll go live to the courthouse.
(COMMERCIAL BREAK)
BLITZER: Welcome back.
On the campaign trail officially now, what can President Bush do to counteract the Democrats' momentum? Carlos Watson has "The Inside Edge." We'll get to him.
First, though, a quick check of stories now in the news.
The United Nations Security Council has adopted a resolution threatening diplomatic and economic steps against Sudan if it does not stop deadly violence in the Darfur region. Arabs militants are blamed for killing thousands of black African farmers in Darfur.
After taking yesterday off, Vice President Dick Cheney is back on the campaign trail. He's speaking right now at a GOP event in Yakima, Washington state. He then travels to Central Point, Oregon, for a rally.
If political speeches ever leave you feeling like you've heard it all before, that's because in some cases you have. Take John Kerry's acceptance speech last night.
(BEGIN VIDEOTAPE)
KERRY: I'm John Kerry and I'm reporting for duty. BLITZER (voice-over): The newly minted Democratic nominee is getting generally high marks for what was billed as the most important speech of his political career. But parts of it sounded vaguely familiar.
KERRY: We need to lead a global effort against nuclear proliferation, to keep the most dangerous weapons in the world out of the most dangerous hands in the world.
BLITZER: Most people would agree, including President Bush, who said almost the same thing in his last State of the Union speech.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: America is committed to keeping the world's most dangerous weapons out of the hands of the most dangerous regimes.
BLITZER: Nominee Kerry feels something is missing in the Oval Office and says he'll bring it back.
KERRY: That is my first pledge to you tonight. As president, I will restore trust and credibility to the White House.
BLITZER: Then-nominee Bush also felt there was a void in the wake of the Clinton-Lewinsky scandal and promised to fill it in his acceptance speech.
BUSH: So when I put my hand on the Bible, I will swear to not only uphold the laws of our land. I will swear to uphold the honor and dignity of the office to which I have been elected, so help me God.
BLITZER: The night before, at his acceptance speech, running mate Dick Cheney accused the Clinton administration of depleting U.S. military power and vowed to do better.
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: I am proud of them. I have had the responsibility for their well-being. And I can promise them now, help is on the way.
BLITZER: Four years and a war in Iraq later, John Kerry says his opponents have mishandled the military. Guess what his promise is?
KERRY: To all who serve in our armed forces today, I say, help is on the way.
(END VIDEOTAPE)
BLITZER: We contacted the Kerry campaign and asked about these similarities between the excerpts of these speeches. A Kerry campaign spokesman acknowledged that while President Bush may have made some similar remarks in the past, he stressed John Kerry's ability to act on the issues facing the nation.
On the matter of dangerous weapons, a campaign spokesman said nonproliferation is clearly a national security priority for the United States and only one candidate actually has a plan to do something about it.
And on the matter of the armed forces, the Kerry campaign spokesman said, under the -- the Kerry campaign spokesman said it is an example of the president of the United States showing that the armed forces are stretched thin.
We also contacted, by the way, the Bush-Cheney campaign. And a spokesman told us, it is an example of John Kerry's willingness to say anything to anyone at any time -- we're quoting now -- "if he believes there is a political benefit."
The 2004 Democratic National Convention is now history. How did the Democrats do? What happens next?
CNN political analyst Carlos Watson, as always, has "The Inside Edge." He joins us today from New York.
Carlos, first of all, on the similarities in these speeches, some people think it was John Kerry's way of tweaking, if you will, the Bush people. What do you make...
CARLOS WATSON, CNN POLITICAL ANALYST: I think it is more than that. It is a continuation of the Reagan legacy.
Ronald Reagan fundamentally shifted the debate, shifted the agenda in this country. And Democrats beginning with Bill Clinton in 1992 and Republicans beginning with George W. Bush in 2000 have continued to co-opt the other's issues. So you heard George W. Bush on issues of education and health care in 2000. You heard Bill Clinton talk about welfare reform and balanced budget in 1992.
And here in 2004, you hear John Kerry not only stealing in many ways the language, but also trying to co-opt some of the themes and some of the issues. In fact, Wolf, I thought one of the most interesting things to come out of the speech was that for the first time maybe in a couple of decades, Democrats may put forth some wedge issues of their own.
You usually see those coming from Republicans. But you heard John Kerry talk about Saudi Arabia. You heard him talk about outsourcing. You heard him bring up Social Security. And, last but not least, you heard him talk about Enron taxes or Enron tax breaks. All four of those could become hot wedge issues that allow Democrats to reach into independents and maybe, maybe even Republicans for a few extra votes.
BLITZER: Yesterday, Carlos, we asked our viewers to go to our Web site and answer this question, let us know how they feel. We asked this question: What does Senator Kerry have to do on the issue of values to win the presidential election?
Martha, by the way, wrote this: "I think Senator Kerry needs to explain that values are defined by how well we educate our nation's children, how much access we provide to health care and how we protect our workers' jobs, how we maintain our position of strength and credibility in the world." You alluded to this, this whole issue of social values. Is this going to resonate with voters?
WATSON: It's unclear, Wolf. If it does, I will tell you what. This will be one of the most fundamental changes in American politics to come out of 2004, meaning if Democrats for the first time in 40 years can actually go on the offensive on values issues and, indeed, redefine what is commonly thought of when you say values in a political context, that will be a major accomplishment.
Even Bill Clinton at his best could only try and neutralize the values issue, whether it was on welfare or guns or other issues. This would be a major accomplishment. But President Bush I think will push back and push back very hard and say, don't misunderstand what values means and, again, as we have talked about not only as it relates to a constitutional amendment on gay marriage, but also as it relates to the issue of abortion, the death penalty and significantly in some of the border and Southern states, gun rights and gun ownership.
BLITZER: So, the bottom line, as you look at the polls -- we don't have polls yet. We won't have any real polls at least until Monday. Do you suspect this Democratic Convention is going to give them the bounce, the so-called bounce, that they want?
WATSON: Three quick things on that. Yes, I think it will be a mid to high single-digit bounce. No. 2, I think this bounce, believe it not, Wolf, will disappear even before the Republican Convention starts in five weeks. And, No. 3, I think the statewide bounces are more interesting in key battleground states.
BLITZER: CNN's Carlos Watson, thanks very much for joining us.
And if viewers want more information from Carlos, they can go to his Web site, CNN.com/Carlos, get "The Inside Edge' with Carlos.
Details of Saddam Hussein's life behind bars.
(BEGIN VIDEO CLIP)
BAKHTIYAR AMIN, IRAQI HUMAN RIGHTS MINISTER: He was in a good shape when I saw him.
(END VIDEO CLIP)
BLITZER: An exclusive interview with a man who got a firsthand look at the former dictator, that's coming up.
Cracks in the alliance? Find out what's causing a potentially serious blow to relations between the United States and Britain.
And lifting spirits, the sport that's bringing a ray of hope to Iraq.
(COMMERCIAL BREAK)
BLITZER: Disposed Iraqi President Saddam Hussein is awaiting trial. We've only seen him briefly, except for that appearance at that hearing before the court. But details of his captivity in general have been extremely limited. Today, there's brand new information.
Let's go to CNN's Zain Verjee. She's at the CNN Center in Atlanta. She has an exclusive report -- Zain.
ZAIN VERJEE, CNN CORRESPONDENT: Wolf, hi.
For the first time, we're getting details of Saddam Hussein's lifestyle as a prisoner. Now, they come from Iraq's human rights minister, who met him last week. And he revealed some colorful details. Saddam gets two showers a week and he has a softness for American cookies.
(BEGIN VIDEOTAPE)
VERJEE (voice-over): The last time we saw Saddam Hussein, he looked like this, in the dock, not quite presidential anymore, but apparently adapting to his new lifestyle. Saddam is being held at Baghdad's Camp Cropper awaiting for trial for crimes against humanity. Iraqi Human Rights Minister Bakhtiyar Amin has been telling CNN of the former dictator's modest surroundings.
AMIN: There are 96 prisoners there. Saddam is one of them. And he is isolated from the others. He is not mingling with the others. And he's in a three-by-four-meters room. It's white tiled floor with a 100-volt bulb lamp.
VERJEE: There's a yard next to Saddam's room, and the man once called the butcher of Baghdad is said to have taken up gardening.
AMIN: He has become a gardener these days. I don't know. Maybe he has a bad conscience for having decapitated hundreds of thousands of palm trees and committed the world's biggest ecocide of the 20th century.
VERJEE: There have been rumors Saddam is seriously ill, but Amin says those rumors are unfounded.
AMIN: He has certain health problems. But, generally, his health condition is good. He has suffered from chronic prostate infection. He got antibiotics for that and he seemed to be OK. And they did a chest CAT scan for him and back MRI and some blood tests, and it didn't show any cancer.
VERJEE: Amin says doctors have offered to follow up the blood tests with a biopsy, but Saddam has turned them down. Amin says he doesn't know why. According to Amin, Saddam gets two hot meal as day and likes American snacks. And he says if Saddam feels remorse or fears punishment for his reign of terror as president of Iraq, it doesn't show.
AMIN: Out of the 12 criminals who knows their charge, they appeared before the Iraqi special tribunal, six of them sought consultation for depression, anxiety, sleeping disorder. Saddam hadn't requested that.
(END VIDEOTAPE)
VERJEE: And just a few more details, Wolf. Saddam doesn't mingle with any of the other prisoners. He eats well and he drinks only tea now, no cappuccino -- Wolf.
BLITZER: No cappuccino, indeed.
Zain, what kind of contact does he have with the outside world, if any?
VERJEE: Well, according to Bakhtiyar Amin, the human rights minister, Saddam sends letters to close family members. That's once a week. And he receives letters apparently quite often. The Red Cross also visits him, as well as the other prisoners about every six weeks -- Wolf.
BLITZER: CNN's Zain Verjee reporting for us -- thanks, Zain, very much.
Ever since President Bush ordered the invasion of Iraq, his strongest ally in the world has been the British Prime Minister Tony Blair. But now the two governments are embroiled in a serious dispute over the very lucrative weapons trade issue.
CNN's Jim Boulden is in London with the story.
(BEGIN VIDEOTAPE)
JIM BOULDEN, CNN CORRESPONDENT (voice-over): It's being seen as retaliation, the announcement last week's by Britain's defense secretary, Geoff Hoon, that a European company won a $1 billion contract to supply unmanned surveillance drones. The loser was U.S. manufacturer Northrop Grumman. Why? Because London is accusing Washington of unfair trade practices when it comes to defense contracts.
DAVID MULHOLLAND, "JANE'S DEFENCE WEEKLY": The U.K. government thought when they joined the U.S. IN Iraq that they would be viewed more favorably. But ,in fact, no. The U.S. is still saying, oh, but we can't trust our good allies the Brits.
BOULDEN: That anger boiled over in a letter dated June 16 from Hoon to U.S. Defense Secretary Donald Rumsfeld. Hoon complained that legislation now working its way through Congress will make it even harder for non-U.S. firms to compete for American defense contracts. If it passes, Hoon warned Britain would have to have an exemption or consider whether to continue buying from U.S. defense firms.
Last year, the White House sided with Britain when some in Congress tried to tighten the rules to make it harder for non-American companies to compete for arms contracts. American defense companies are siding with Britain this time, worried about retaliation and loss of U.K. market share. UNIDENTIFIED MALE: If you talk to any of the major companies, the big four, the big five, they are all very concerned about this, because they really do worry that this market will be closed to them. And it is a big percentage of their business, a lot of them. Raytheon does about 20 percent of its business internationally and a lot of that comes from the U.K.
BOULDEN: As a staunch ally, Britain also wants a waiver to arms traffic regulations, which would allow it to easily obtain certain U.S. defense technologies. Right now, only Canada has such a waiver. But some in Congress worry Britain's export regulations are too loose and might allow sensitive U.S. technology to third countries.
That waiver has been promised to Britain by the past two White House administrations. But it has been stalled for years by some in Congress, citing national security worries, one more reason Britain is threatening a trade war over the weapons of war.
Jim Boulden, CNN, London.
(END VIDEOTAPE)
BLITZER: The case against Kobe Bryant. Find out why the judge is now apologizing.
First, though, some other headlines making news around the world.
(BEGIN VIDEOTAPE)
BLITZER (voice-over): A natural gas pipeline exploded in Belgium while firefighters were investigating a report of a gas leak. Officials say about a dozen people were killed and scores more were hurt.
Japan blast. An explosion at a museum dedicated to the sardine industry killed a museum employee. The blast occurred just before the museum was set to open. The cause is under investigation.
Fires continue. Wildfires are ravaging Spain and Portugal, but firefighters say they have one of the larger blazes under control in southern Spain.
Coming close. Iraq's national soccer team lost its bid to compete in the Asian Cup semifinals with a defeat by China in Beijing. Team members took pride in making it as far as the quarterfinals, saying they hoped it would boost the spirits of their fellow Iraqis.
And that's our look around the world.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
BLITZER: There are new developments happening right now in the Kobe Bryant rape case.
Our national correspondent Gary Tuchman is standing by in Eagle, Colorado -- Gary.
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Hello, Wolf.
Court is over for the day, Kobe Bryant on his way back to California. One more hearing before the trial is scheduled to start on August 27. The L.A. Lakers star arrived at 8:15 this morning, was gone by 12:30, mostly administrative items in court, but some unusual action, the judge apologizing for three mistake that have been made on court Web sites and on e-mail to reporters listing the accuser's name and sealed testimony.
Judge Terry Ruckriegle saying -- quote -- "I want to express my sincere apology to the people of Eagle County, the people of Colorado, and the people who have come here from far away for the mistake made by the courts this week."
Now, the accuser's attorney demanded an apology to his client. But the judge did not make the personal apology. It was very general. But John Clune, that attorney, very angry, talking to me, despite a gag order in this case, in which lawyers are not allowed to talk to journalists.
But he said this -- quote -- "In the wake of the judge's repeated mistakes harmful to only one person, today's self-serving remarks designed to improve his own image are insulting. The judge's refusal to apologize to the victim and her family is very telling."
Very risky for the attorney to say that. He is obviously very angry. Once again, the trial starts begins August 27, four weeks from today -- Wolf.
BLITZER: Gary Tuchman in Eagle, Colorado -- thanks, Gary, very much.
Paying tribute to the Terminator. Austrians find a new way to honor their native hero.
We'll be right back.
(COMMERCIAL BREAK)
BLITZER: It's Arnold Schwarzenegger's birthday. And Austria is honoring its native son with a postage stamp. That's our picture of the day. It's part of a collector's series called "Austrians Living Abroad" -- Austrians snapping up the stamps.
We're on weekdays 5:00 p.m. Eastern. I'll see you Sunday on "LATE EDITION," the last word in Sunday talk. Among my guests, Howard Dean, Sunday, noon Eastern.
"LOU DOBBS TONIGHT" starts right now.
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