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CNN Wolf Blitzer Reports

House To Vote on Intelligence Reform Bill; CIA Cable Paints Gloomy Picture in Iraq; Interview with Jordan's King Abdullah

Aired December 07, 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. Members of the House of Representatives getting ready to vote on the most sweeping changes in the U.S. intelligence network in five decades. Stand by for hard news on WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)

(voice-over): Going downhill? A secret CIA cable paints a gloomy picture about the situation in Iraq. President Bush begs to differ.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: A free Iraq will make America more secure and the world a peaceful place.

BLITZER: Exclusive. Can Iraq hold its elections? Can it hold together?

UNIDENTIFIED MALE: Well, the daily images present an impression that thing are worse, but we want to move the Iraqi society forward.

BLITZER: I'll speak with Jordan's King Abdullah.

Fighting the flu. More vaccine for this year but new fears about a pandemic in years to come.

UNIDENTIFIED FEMALE: The worst of these was in this country and around the world was in 1918 when 20 to 40 million people were killed around the world.

BLITZER: Was it ecoterrorism? Dozens of high-priced homes damaged or destroyed.

UNIDENTIFIED FEMALE: I've never seen anything like it. A whole row of flames.

BLITZER: We'll have the latest on the investigation.

ANNOUNCER: This is WOLF BLITZER REPORTS for Tuesday, December 7, 2004.

(END VIDEOTAPE)

BLITZER: We begin with the situation in Iraq. A blunt warning from Baghdad and a bleak forecast for the future. It's all in a secret report from a senior U.S. spy in Iraq. Our national security correspondent, David Ensor, has the story.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATL. SECURITY CORRESPONDENT (voice-over): The classified cable from the outgoing CIA station chief in Baghdad warns the situation is deteriorating and is likely to continue to do so. It warns of more violence and sectarian fighting among Iraq's Sunnis, Shia, and Kurds, unless there are clear improvements soon, control of the Iraqi government and in the economy. Bad news for the Bush administration.

FLYNT LEVERETT, SABAN CTR., BROOKINGS INST.: They are literally between a rock and a hard place right now. I think that's an accurate reading of the situation, and I think the CIA is doing its job to paint that picture as accurately and as vividly as it can for policymakers.

ENSOR: U.S. officials say the CIA cable's assessment is mixed in that it calls the Iraqi people resilient and says political progress towards elections is being made, but the station chief's bleak tone overall is in marked contrast with some of the administration's public statements on Iraq.

DONALD RUMSFELD, DEFENSE SECRETARY: The schools are open. The hospitals are open. The clinics are open. The stock market is open. This currency is stable. An awful lot is going well.

BUSH: The terrorists will be defeated. Iraq will be free and the world will be more secure.

ENSOR: Bush administration officials could hardly be pleased by the leak of an unvarnished CIA assessment. U.S. ambassador John Negroponte, U.S. official say, added a dissenting note saying he thinks the cable does not give enough credit to coalition efforts against Iraq insurgents. The cable was widely distributed in the government though so the leak could have come from a number of places.

LEVERETT: People leak in this town for a lot of different reasons. My experience is actually that the CIA leaks a lot less than most of the policy agencies in town do.

ENRON: Despite the uproar recently about intelligence chief's Porter Goss to staff saying they should, quote, "support the Bush administration," officials note that Goss approved distributing the CIA's station chief's warnings around the government. There was, after all, another line in that Goss memo. It said to CIA officials that their job is to tell truth to power and let the facts speak for themselves. David Ensor, CNN, Washington.

(END VIDEOTAPE)

BLITZER: As the violence rages in Iraq, some are having second thoughts about how to hold next month's scheduled elections. The interim prime minister Ayad Allawi, now visiting Russia, has suggested in newspaper interviews that the vote could be spread out over 15 or 20 days in a bid to boost security in the various provinces. Russian President Putin today was quoted as saying he can't imagine how elections can be held when Iraq is, in his words, occupied by foreign troops.

Tomorrow during this hour, a look at the future of Iraq, my special interview with the interim president of Iraq Ghazi Al-Yawar.

And on a day which saw another U.S. soldier killed in Iraq, falling to small arms fire in Baghdad, President Bush met with U.S. marines at Camp Pendleton in California. He acknowledged it's been tough going in Iraq for American forces but vowed the upcoming elections will lead to better days ahead.

(BEGIN VIDEO CLIP)

BUSH: The success of democracy in Iraq will also inspire others across the Middle East to defend their own freedom and to expose the terrorists for what they are: violent extremists on the fringe of society with no agenda for the future, except tyranny and death. So the terrorists will do all they can to disrupt and delay free elections in Iraq, and they will fail.

(END VIDEO CLIP)

BLITZER: That, in contrast to the gloomy assessment from the CIA station chief in Baghdad. And it seems much different than the drum beat of upbeat assessments. That one, at least, coming from the administration and the Pentagon in their public comments. Let's bring in our senior Pentagon correspondent, Jamie McIntyre. Jamie, it's one thing what they're saying in public, but behind the scenes over at the Pentagon, what are they saying about the situation on the ground now in Iraq?

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, you can talk to a lot of people here at the Pentagon who are very concerned about the trends in Iraq. Obviously, the United States feels it has no choice, but to persevere and to achieve the goals in Iraq, because they're already in it. There is a lot of concern about the level of violence and, particularly, the campaign of intimidation against Iraqi forces. This is a battle of wills and that intimidation campaign is having an effect. One Pentagon official remarked to me that he saw some pictures of Iraqi police with hoods on, because they didn't want to be identified as part of the Iraqi police force. That, he says, is a real problem.

BLITZER: Is there a sense among mid ranking or senior officials at the Pentagon that the defense secretary, in his public comments, which seem usually upbeat, that he is simply wrong?

MCINTYRE: No. I think it's really a matter of taking a look at what your perspective is, how you measure things. For instance, most of the people I've talked today in the Pentagon here do not think Iraq is heading for an all-out civil war which some people are saying is the case. But they're also pretty realistic. They understand that the key to this is the future of the Iraqi forces. That is not coming along as quickly as they like. They do have to put -- they did have to put an infusion of troops in there. So, it's kind of a glass half full, half empty situation, depending on what you want to emphasize. Nobody is saying Rumsfeld is wrong, but they also understand why he has to emphasize the positive. This is, after all, a psychological battle as well as a military battle on the battlefield.

One other question before I let you go, Jamie. This notion that Ayad Allawi is raising about spreading the elections out over two or three weeks, moving security forces around, that means U.S. troops, what, if anything, are you hearing about that over at the Pentagon?

MCINTYRE: I asked several officials about that today. None of them had heard the proposal. They thought it was fairly interesting. To some of them it brought up the question what would the U.S. role be during elections? Will they be providing security at polling places or will they be stepping back and allowing the Iraqi forces to go ahead? There's no clear answer to that question. It's not just that I don't know the answer to it. It's that here in the Pentagon, they haven't worked out the role of the U.S. troops. If an election were to slide over a couple of weeks, that would be an interesting question about how the U.S. would act and provide security in that situation.

BLITZER: I suspect there's a lot still sliding right now. Jamie McIntyre at the Pentagon. Thanks very much.

Better news for the Bush administration from Afghanistan, where the former interim leader Hamid Karzai was sworn in as the country's first popularly elected president. In his speech Karzai spoke of Afghanistan leaving a hard, dark past and entering what he described as a peaceful, prosperous new era. At a news conference, he thanked the United States.

(BEGIN VIDEO CLIP)

PRESIDENT HAMID KARZAI, AFGHANISTAN: The fact that Afghanistan is again a respected member of international community is for the help of the United States of America gave us. Without that help, Afghanistan would be in the hands of terrorists, destroyed, poverty stricken and without its children going to school or getting an education.

(END VIDEO CLIP)

BLITZER: Among those on hand in Kabul, the Vice President Dick Cheney and the defense secretary Donald Rumsfeld, both key architects of the overthrow of the Taliban.

On the CNN security watch, we're awaiting word from Capitol Hill on the post-9/11 intelligence plan bill. The House expected to vote on the measure very very soon. Our congressional correspondent Joe Johns joining us now live from Capitol Hill -- Joe.

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: A major moment approaching right now for the administration and the House of Representatives. If we can take a picture live of the House floor at this moment, Congressman Jim Sensenbrenner, the chairman of the House judiciary committee, he, of course, represents the opposition to this bill, one of two members of Congress who essentially held it up for weeks. His issue was immigration concerns. He wants tougher immigration provisions, including prohibition on driver's license for illegal immigrants. He is one of the members of Congress expected to vote against this bill. Perhaps 20, perhaps 40 Republicans or so expected to vote against it.

Still, that bill is expected to pass the House of Representatives fairly easily. Of course, this is a vote that would effectively conclude the business, the legislative business of the House of Representatives for this Congress. It has not been easy. It has not been pretty. Some say it's far from perfect, but the sponsors say, in their view, this is a bill that they can live with.

BLITZER: And we'll expect the Senate to take up the measure.

(BEGIN VIDEO CLIP)

REP. PETER HOEKSTRA (R), INTELLIGENCE CHAIRMAN: I feel very good about this bill as far as what is in the bill. This is a solid piece of legislation in terms of intelligence reform. We created director of national intelligence. We create a national counterterrorism center, but, most importantly, what we expect is that we are going to create a more aggressive, a more vibrant, and a more organized intelligence community that is going to give policymakers the information that they need to make the appropriate decisions.

(END VIDEO CLIP)

JOHNS: So, the Senate is expected to take that bill up sometime tomorrow afternoon, Wolf. A lot of people very happy that this bill apparently is going to clear the Congress and go to the president's desk for his signing.

BLITZER: All right. Joe Johns reporting from Capitol Hill. We'll watch for the formal roll call. That will be coming up soon.

Desperately needed extra doses of the flu vaccine on the way right here to the United States. But there's a catch.

Also, new information on the hunt for the most wanted terrorists in Iraq. I'll talk about that with Jordan's King Abdullah.

Plus this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I was terrified. Because I had already given him the money. Then he asked me to step from behind the counter.

(END VIDEO CLIP)

BLITZER: What happened next might surprise you. We'll show you the whole heist caught on tape. Stay with us.

(COMMERCIAL BREAK)

BLITZER: On the health front, the United States flu vaccine supply is getting a much needed shot in the arm. Millions of new doses of flu vaccine should be available in the weeks ahead, easing the country's vaccine shortage. But there's a catch. The additional doses are being made available under what's known as an investigational new drug application. CNN's Mary Snow is with us from New York to explain what this means to all of us -- Mary.

MARY SNOW, CNN CORRESPONDENT: Wolf, these flu vaccines are manufactured in Germany. Up until now, they have not been used in the U.S. The FDA says they are safe. By giving them investigational status, this means that patients will have to sign a consent form acknowledging risk, but health officials insist that that risk is low.

(BEGIN VIDEOTAPE)

(voice-over): Two months after a flu vaccine shortage prompted rations and long lines, the government is expanding its stockpile. Health and Human Services Secretary Tommy Thompson.

TOMMY THOMPSON, HEALTH & HUMAN SERVICES SECRETARY: We have access to an additional 1.2 million doses of vaccine.

SNOW: The supplier is GlaxoSmithKline, which has nearly 3 million more of its Fluorox (ph) shots available.

UNIDENTIFIED MALE: CDC will distribute the new doses to communities they deem to be most in need.

SNOW: Those with priority include the elderly, pregnant women and those with chronic illnesses. The vaccine is approved in about 30 countries, but not in the United States. The Food and Drug Administration has given it investigational status and insists it's safe.

LESTOR CRAWFORD, ACTING FDA COMMISSIONER: This vaccine we're bringing in is not investigational, because we have real questions about it. It's investigational because the company elected last year not to enter the U.S. market. So, they did not apply for an approval.

SNOW: For patients, that means having to sign a consent form that's a bit different from other waivers.

DR. MARK SIEGEL: The purpose of the consent is basically to protect the doctor and protect the company that supplies the vaccine and so that the patient really shouldn't be able to say, please get me this vaccine and then turn around and sue the person that gives it to them. I think that's a wise precaution for doctors to have in place.

SNOW: Doctors, like this Mark Siegel, have been rationing flu vaccine since October when roughly half of the nation's supply was wiped out. That's because one of two suppliers, Chiron, had to halt production because of contamination problems at a British plant. Health officials have been trying to fill the void ever since but even with the new vaccines added they're still about 35 million shots short of what the government was aiming to provide this year.

(END VIDEOTAPE)

(on camera): And the FDA says it is currently talking with two more suppliers about getting more flu shots and could have an announcement within the coming weeks -- Wolf.

BLITZER: Mary Snow reporting from New York. Thank you very much. To our viewers, here is your chance to weigh in on this story. Our web question of the day is this. Would you be willing to take an investigational new flu vaccine? You can vote right now. Go to CNN.com/wolf. We'll have the results later in this broadcast.

The probe into possible ecoterrorism. The latest on these damaging fires right outside Washington, D.C.

Plus this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Lady came back around, charging at us. I ran one way, my two brothers ran the other way.

(END VIDEO CLIP)

BLITZER: A driver charged, get this, with deliberately running down two teenage brothers. We'll hear from one of them. You won't believe what's going on.

And a child held hostage. The surprising ending to a very dramatic ordeal.

(COMMERCIAL BREAK)

BLITZER: He's a very close U.S. ally who lives in a very tough neighborhood. Earlier today I sat down with Jordan's King Abdullah for a wide ranging discussion. We began with Iraq. Here is part one of my exclusive interview.

(BEGIN VIDEOTAPE)

BLITZER: Your majesty, welcome to Washington.

KING ABDULLAH, JORDAN: Thank you.

BLITZER: Thanks very much for joining us.

ABDULLAH: Good to see you again.

BLITZER: You made some noise a few weeks ago when you said maybe it's not a good idea to hold the elections in Iraq on January 30. Where exactly do you stand on that?

ABDULLAH: Well, maybe I wasn't all that -- my statement wasn't clarified to the international press. What I said is that we hope that elections will be on time, that Jordan is working with the Iraqis and the international communities to have elections on January 30.

I did have concerns about the instability. But it's quite apparent to me that the Iraqi government and the international community wants to stick to January 30. I don't think that they are going to move on that.

I think that we have a responsibility to reach out to the Sunnis at the moment, who are worried about elections, to say, "Look, elections are going on on time, and if you don't commit to the elections, then you're going to miss the boat."

BLITZER: So they should take place January 30 as scheduled? Is that your sense right now?

ABDULLAH: Well, I was concerned about the -- the insecurity that we see in Iraq. But at the moment, I think everybody's committed to the date. Unless we hear an alternative of, OK, we delay elections, why are we going to delay elections? It has to be a reasonable program, and I haven't heard any suggestions. So...

BLITZER: A lot of the Sunnis, and you're a Sunni, are concerned. Adnan Pachachi, I interviewed him recently. He thinks maybe there should be a delay because the Sunnis, especially in that Sunni Triangle, are afraid to go out. A lot of them are worried about the security situation.

ABDULLAH: What I've said to the Sunni leadership is that, you know, if you're going to say delay, that's not good enough. Come up with reasons. Come up with a program. Come up with something that could convince the international community why it should be delayed and for how long. And that hasn't happened.

So I think we're presenting ourselves with circumstances where elections will be on time. And the Sunnis are going to have to step forward.

BLITZER: Is the situation in Iraq, based on everything you know, and you live right next door, worse than it was a year ago?

ABDULLAH: Well, the daily images present the impression that things are worse. But we want to move Iraqi society forward. There is an opportunity with elections. And I think if we can have elections, that will be a new phase of Iraq, hopefully a better one.

The problem that we have if the Sunnis do not engage in elections, the new government will be mandated in writing the constitution. And my concern is if you're going to write a constitution and part of the society is not involved, that could create its own problems.

So I'm -- I'm hoping that we in Jordan and Arab countries and leaders can convince the Sunnis to go to the polls.

BLITZER: But you must be concerned about a Shiite-led Iraqi government that would be moving towards some sort of clerical or Islamic fundamentalist nature. That's possible, given the fact that the Shiite leadership, Ayatollah al-Sistani and others, are pushing for the election.

ABDULLAH: Right. And again, it's a bit more complicated than that, because I believe that there are a lot of Shiite Iraqis that look at the independence of Iraq. Iranian influence, Shiite influence on the Iraqi stage is of concern to all of us.

So I think people have to come together and move forward. And again, the Sunnis need to realize that the Iraqis and the international community made their mind up on January 30. There is no alternative. And so we need to get them galvanized and to go to the polls.

BLITZER: Are you concerned that Iraq could split up into a Kurdish sector, a Sunni sector and a Shiite sector?

ABDULLAH: That is always a concern. And again, my -- my sort of red flag is -- is the constitution. And we have to think out of the box, because you can create circumstances where the constitution is written in such a way that it excludes part of society. And that might push people towards civil war.

But I think all of us in the international community are coming together, supporting the present Iraqi government. It has made very clear the elections are going to be on time, and we have to get everybody involved.

BLITZER: There have been reports, as you well know, in recent weeks that the insurgency was being financed in part by Iraqi exiles, Saddam loyalists, who are based in Syria but also in Jordan. Is that true?

ABDULLAH: I can talk about Jordan. That's not true. And we would work very closely with the Iraqi government to make sure that does never happen.

There are queries that there are issues coming out of Syria. That's something you're going to have to ask the Syrians.

There is an element of insurgency that is a problem to Iraq, and we're working with the Iraqi government to try and give them as much support to be able to put those insurgency down. But it's difficult.

BLITZER: The -- but are there Iraqi exiles, Saddam loyalists, who have received sanctuary in Jordan?

ABDULLAH: We have people coming across the borders basically looking for a better life. I mean, a lot of the property that's been bought up in Jordan is by Iraqis because of some of the instability. But they don't come across as political. They come across as individuals just looking for a more stable life.

We do not protect Ba'athi extremists in Jordan and never will.

BLITZER: And -- but Saddam Hussein's two daughters and their families still are living in Jordan?

ABDULLAH: Two -- the two girls, two of the girls are living in Jordan at the moment. Yes.

BLITZER: And they will continue -- they'll continue to...

ABDULLAH: Well, it's up to them. When they came across, we took it from a humanitarian point, that women and children needing to find a safe haven. They know that they're -- they're limited in their role in Jordan. If they wanted to get into the political issues that are complicated in Iraq, then we have a major problem with that.

BLITZER: Talk a little bit about Abu Musab al-Zarqawi, the Jordanian terrorist, enemy number one, according to the United States government, in Iraq right now. Is -- where do you think he is?

ABDULLAH: Well, I don't think he's in Falluja, obviously. He's -- I think he's moved out to -- I don't want to say, but into another part of Iraq. The Iraqis, Jordanians and coalition forces are working very hard to track him down, and we're getting close.

BLITZER: When you say we're getting close, based on what? Is there hard intelligence you have?

ABDULLAH: Well, of course, hard intelligence. He's slipped through the net once or twice, where -- where we got closer to him than he would have liked. It's ongoing, you know. It's a difficult individual to track down and very difficult circumstances.

Iraq is a large country, a lot of built-up areas, and he moves from place to place. But, you know, he's under pressure.

BLITZER: Is he responsible for the murder of the American diplomat Laurence Foley in Amman?

ABDULLAH: We believe that he was responsible for organizing the assassination, that it was his people who carried out the...

BLITZER: Is he directly connected to al Qaeda, based on everything you know?

ABDULLAH: I think that, Wolf, it's not that simple. I think there's a loose association with al Qaeda, and I think that groups like this tend to come together to fight what they feel is a common enemy. So there is a link, yes, I believe there is between Zarqawi and -- and al Qaeda.

BLITZER: And finally on this war on terror issue, do you have any insight into the whereabouts of Osama bin Laden?

ABDULLAH: Well, from again -- roughly, I think that he would be just inside the Afghan border or on the Pakistani side of the border.

BLITZER: You don't think he's in Iraq?

ABDULLAH: No.

BLITZER: We'll have more of my exclusive interview with Jordan's King Abdullah, that's coming up including some palace intrigue, a surprise change in the heir to the throne. We'll talk about that with His Majesty King Abdullah.

Also the latest on the arson fire in the controversial development just outside Washington D.C. Was it the work of ecoterrorists?

And a quick-thinking clerk turns the tables on a would-be robber, the whole incident caught on videotape.

Plus, this just in. The NBA star Latrell Sprewell suspended over a new incident, this one involving a fan.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

A woman charged with deliberately running two teenage boys down with her SUV. Details of this truly shocking story, that's coming up.

First, though, a quick check of some other stories now in the news.

Some American Marines stationed in Japan are picking up and heading off to the Philippines. Up to 600 Marines will be deployed to that country in the next several days to help clean up and assist areas devastated by two major typhoons. The Marines are based on Okinawa.

Another troubling incident involving a pro athlete to tell you about. The Minnesota Timberwolves' Latrell Sprewell will have to sit out a game after yelling a sexual vulgarity at a female fan during a game. Sprewell's comment was picked up by a courtside microphone and could be heard on broadcasts of the team's game against the Los Angeles Clippers on Saturday. It's the latest in a series of problems for Sprewell. You may recall, he was suspended for 68 games in 1997 for choking his coach.

Firefighters in Chicago had their hands full last night battling a raging fire in a downtown high-rise. The blaze in the LaSalle Bank building in Chicago's Loop injured more than three dozen people, most of them firefighters. But no deaths are reported. The fire broke out on the building's 29th floor.

To other fires now and the possibility of terrorism. The investigation continuing today into a series of suspicious fires that destroyed dozens of homes under construction right outside of Washington, D.C.

Our Brian Todd joining us now from southern Maryland with the latest -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, we have some new information on the fires that raged yesterday at the Hunters Brooke subdivision. This is in Indian Head, Maryland, about 30 miles southeast of Washington.

Investigators are now telling us that a total of 26 homes have been damaged by fire. Of those 26, 12 were totally destroyed. That number 26 is a number paired down from yesterday, but this has still become a massive and very tightly controlled crime scene.

(BEGIN VIDEOTAPE)

TODD (voice-over): Veteran investigators from the FBI and ATF tell CNN they have never seen a residential fire scene of this scope, more than two dozen damaged homes over at least 10 acres and a growing arson investigation.

MIKE CAMPBELL, ATF: Right now, we have seven homes of the 26, the cause has been identified as arson.

TODD: Investigators tell CNN they expect that number to grow, but they won't discuss possible suspects, motive or means, saying only the perpetrators and law enforcement know some of those details and they don't want to tip off the people they're chasing. They also would not elaborate on information previously obtained by CNN, that, according to law enforcement sources, incendiary devices consisting of an accelerant in jugs were discovered at the scene. But they did talk about the difficulties of this investigation.

UNIDENTIFIED MALE: One of the complexities is the size. You have got approximately 10 acres of a crime scene. You have got multiple dwellings that have been damaged by fire.

TODD: The Hunters Brooke subdivision, about 30 miles southeast of Washington, was under construction when the fires began early Monday morning. No one was hurt and only one house in the area of damaged homes was occupied. Environmental groups had sued to try to stop construction, claiming the development would damage an adjacent wetlands area.

But officials from three of the environmental groups involved in the effort to stop construction tell CNN they had nothing to do with it. Law enforcement officials tell CNN they have received no claims of responsibility and found no signature markings left by the Earth Liberation Front, or Elf, an organization that has resorted to violence for environmental causes.

UNIDENTIFIED MALE: I don't want to dwell on the ELF, ecoterrorism. I know you do. But that's not something that we're not focusing on. We're well aware of the ELF organization, other organizations. Everything is in and everything is out right now.

(END VIDEOTAPE)

TODD: There are now more than 100 investigators on the scene here from local, state and federal law enforcement agencies.

One important note. We asked investigators if there were security guards that were supposed to be here at the time of the fire. This was very early Monday morning. They said that a security guard company was contracted by the builders and they were scheduled to have guards at the scene at that time. We asked if guards were in fact at the scene. They would not answer the question -- Wolf. BLITZER: Brian today reporting for us from the scene of these fires -- thanks, Brian, very much.

Two brothers hurt, one in critical condition. Now a Florida woman is accused of attempted murder with her SUV. We'll give you the shocking details.

Also, this:

(BEGIN VIDEO CLIP)

KAREN SMITH, STORE CLERK: I just said, I'm going to try to shoot him first before he gets me.

(END VIDEO CLIP)

BLITZER: And that's exactly what this clerk did, the whole incident recorded by surveillance cameras.

Plus, what's behind a recent royal shuffle in Jordan? More of my exclusive interview with King Abdullah.

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

(BEGIN VIDEOTAPE)

BLITZER (voice-over): In Thailand, a man allegedly under the influence of drugs held a 9-year-old boy at knifepoint on a Bangkok street for four hours. A drama was witnessed by a large crowd of onlookers. The ordeal ended when the police shot at the man with rubber bullets. The man ran into the crowd, where he was beaten severely. The boy was unhurt.

Crime crackdown. Italian police staged a series of raids in Naples, detaining more than 50 suspected mafia figures. The raids were aimed at ending a deadly mob turf war.

We do; 101 couples were united in a mass marriage ceremony in western India presided over by Hindu and Muslim priests. Mass marriage ceremonies are becoming more popular in India because they allow lower- and middle-class couples to unite without incurring the price of a private wedding.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Earlier, we heard Jordan's King Abdullah discuss the situation in Iraq. Now, in part two of my exclusive interview, you'll get his views on the U.S. role in the Middle East and on what some describe as intrigue within his own royal palace.

(BEGIN VIDEOTAPE) BLITZER: Let's talk about after Arafat, after Yasser Arafat, the peace process in the Middle East.

A lot of people think -- the Palestinian elections scheduled for January 9 -- there's a moment right now where there's an opportunity to jump-start, to revive these peace talks. Do you believe there is?

ABDULLAH: I think we have a golden opportunity at the moment.

There are new players on the scene. I think Abu Mazen has the ability to be a strong leader for the Palestinian people and create new circumstances, so that we can't use the excuse that there's no partner for peace. This is why I think we're all very excited and very supportive of elections on January 9. We hope that the Palestinian leadership will organize themselves in the next couple of weeks.

And right after the elections, we need to reinvigorate the road map, move the process forward, get the Israelis and Palestinians talking to each other.

BLITZER: Abu Mazen, Mahmoud Abbas...

ABDULLAH: Yes.

BLITZER: ... the leader of the PLO now, after Arafat, he is running for leadership, of the Palestinian Authority.

ABDULLAH: Yes.

BLITZER: But he's being challenged by another Palestinian, Marwan Barghouti.

ABDULLAH: Yes.

BLITZER: Who is in prison serving five life sentences.

ABDULLAH: Yes.

BLITZER: The Israelis convicted him of terrorism. What do you make of that?

ABDULLAH: Well, it confuses the issue at the moment. I don't know if it's right at this particular time.

What we don't want is a conflict between Palestinian leadership at the time where they need to identify a leader, move forward and allow the international community to get the Palestinians engaged with the Israelis. So, yes, it's taken a lot of people by surprise. I think we'll just have to watch to see what happens over the next several weeks.

But our aim, I think, as part of the international community, is to get a leader of the Palestinian people identified as quickly as possible and get him engaged with the international community, the quartet, and the Israelis as soon as possible. BLITZER: And you so have confidence in Mahmoud Abbas, or Abu Mazen?

ABDULLAH: It comes down to elections, but, at the moment, he is a very strong candidate.

BLITZER: The Israeli withdrawal scheduled from Gaza, should that go forward now unilaterally or should the Israelis sort of wait and coordinate now with this new Palestinian leadership that emerges?

ABDULLAH: Well, again, the issue of Gaza is still not fully defined. And there are still questions being asked by a lot of us. We hope that the pullout of Gaza is part and parcel of the road map.

If it's a side issue, I think it will confuse the process. And it's still not 100 percent confirmed of what is happening in Gaza, what is the end game. As long as it's part of the process of a final peace between the Israelis and the Palestinians, fine. But that hasn't been clarified fully.

BLITZER: I've been hearing from some Americans who have recently met with Bashar al-Assad, the president of Syria, that he is ready to start negotiations with the Israelis once again right now, without preconditions. But you live right next to him. What do you think?

ABDULLAH: Well, we have heard the same signals. They seem to be positive.

I believe that, whenever statements are made like this, let's see where they will lead us. Bashar will be coming to Jordan in the next couple of weeks. I hope to see and hear positive things from him. And if he is committed to deal with the Israelis, let's take a look at what he has to say and give him the benefit of the doubt and hope that we can move the process between the Israelis and Syrians forward.

BLITZER: What did you hear from President Bush about U.S. involvement in the peace process?

ABDULLAH: I saw a strong commitment from the president.

We have been watching at -- many press statements. The first one that I thought was very significant was with Prime Minister Blair, where I think he went out of his way to commit himself to the process. He reassured me yesterday that he wants to have peace between the Israelis and the Palestinians. I have to remind people, again, he is the only American president that identified a viable independent Palestinian state and articulated a vehicle, the road map, to achieve those ends.

And I think that the president is very keen to move the process. He understands that we're running out of time and it's going to have to happen within his administration.

BLITZER: All right, one final question, because I know your time is limited. The decision that you made in recent days to have the crown prince no longer be the crown prince, a lot of our viewers are interested in that. They're interested in your monarchy. But what was the story behind the story there?

ABDULLAH: Well, just before his late majesty passed away, he had said that the issue of crown prince is one that should be just a role that is with very limited capabilities.

I have four very strong brothers, very, very capable. Two of them -- Hamza, who was the crown prince, coming back to serve Jordan within the next 12 months. And, basically, this allows him to be able to expand his horizons, get involved in the issues that he cares about that I believe will really serve the country, as opposed to be limited by the title, which his late majesty had dictated.

BLITZER: Is he happy about this?

ABDULLAH: I think this opens a new opportunity for him. So it's a challenge, because it means that he will work closer with me, I hope, and be able to have more of a breadth of getting involved with Jordanian society. He has a lot of capabilities that he can bring towards his country. And I'm looking forward to his return. And I think that you'll see tremendous things from him.

BLITZER: And your son is now effectively the crown prince?

ABDULLAH: No. He is only 10 years old. And the way that the system has been done is that the role of crown prince will not be filled. Depending on circumstances, if anything should happen, there are instructions and there's a system in place, where the most capable of my brothers will be the one who is responsible to continue the process.

BLITZER: I hope none of that is necessary. I hope you live many, many happy and wonderful years.

ABDULLAH: That's very kind of you.

(CROSSTALK)

BLITZER: Welcome to Washington. Thank you very much.

ABDULLAH: Thank you, Wolf.

(END VIDEOTAPE)

BLITZER: Jordan's King Abdullah speaking with me earlier today.

Tomorrow, this reminder, the president of Iraq, Ghazi al-Yawer, he will speak with me in Washington as well.

When we come back, he chose the wrong store to rob. And surveillance cameras captured what happened to one very unlucky thief.

And this:

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: She deliberately try today kill my grandkids.

(END VIDEO CLIP)

BLITZER: An amazing, shocking story, a Florida woman accused of deliberately running down two brothers. We'll tell you what happened.

(COMMERCIAL BREAK)

BLITZER: A man who tried to hold up a Columbus, Ohio, convenience store got much more than he bargained for. Some viewers may find the images intense.

(BEGIN VIDEO CLIP)

SMITH: I just said, I'm going to try to shoot him first before he gets me. He might shoot me, but I'm going to shoot him.

BLITZER (voice-over): Karen Smith says she's been robbed twice before. On both of those occasions, she offered no resistance because the robber fled as soon as he got the money. This time, it was different. And, this time, she was in fear for her life.

SMITH: I was terrified because I had already given him the money and then he asked me to step from behind the counter. So, the only thing I could think about is that he was getting ready to hurt me. He came over and he stuck his hand like that. And he said...

QUESTION: Right up on the counter here?

SMITH: He said, I'm going to need that. And I said, need what? And he said, you know what I'm talking about. And I said, oh, shoot, robbery. OK. Opened the drawer. Gave him the money. And then he said, now I'm going to need you to come from behind the counter. And I said, what? He was like, come from behind the counter. So, I said, shoot, he's going to hurt me. OK. And then I got up and I snatched the gun and shot him.

BLITZER: Smith said she never fired a gun before, but her shot wounded the man in the left shoulder. Police say Smith was acting in self-defense and she does not face any charges.

SMITH: I thank God I did hit him in the shoulder, because it could have been much worse for him. Fortunately, it hit him and it didn't kill him. I didn't want that on my conscience.

(END VIDEOTAPE)

BLITZER: And from Ohio to Florida. A woman there is being held without bail facing three counts of attempted murder. Police say she deliberately ran down two young boys, two brothers, with her SUV.

CNN's Eric Philips reports.

(BEGIN VIDEOTAPE)

JAMEL MARSHMAN, VICTIM'S BROTHER: I broke down. Man, I couldn't even stop crying seeing my brother like that.

ERIC PHILIPS, CNN CORRESPONDENT (voice-over): Sixteen-year-old Jamel Marshman managed to get out of the way of the SUV that hit his twin brother, Justin, and 13-year-old stepbrother, Isiah Grayer. Police says the boys were playing with a golf ball Sunday in a store parking lot when it accidentally hit 47-year-old Kathy Allen's SUV.

MARSHMAN: We apologized while she was still there, and I guess she didn't want to care.

PHILIPS: Police say Allen started to drive away, but then made a sudden U-turn, jumped a median and ran down Justin and Isiah, knocking over a light pole in the process.

MARSHMAN: I ran up to see what was wrong with them. And Isiah was bleeding constantly in his ear. Justin was bleeding all in the face.

PHILIPS: She then took aim at Jamel, according to police, crossing two medians to get aim at him, but she hit a utility box instead and the SUV wound up stuck in a ditch. And, according to Jamel and another witness:

MARSHMAN: The lady was smoking a cigarette thinking nothing happened.

PHILIPS: Relatives say Isiah is in critical condition and has slipped into a coma. Justin was treated for a fractured skull and released. Allen appointed in court yesterday, telling the judge she has mental problems. Her court-appointed attorney says Allen has a slightly different version of the events and that he is still gathering facts. As for Jamel, he just wants his brothers to make a full recovery.

MARSHMAN: They're like the best brothers I've ever known.

PHILIPS: Eric Philips, CNN, Atlanta.

(END VIDEOTAPE)

BLITZER: We'll have the results of our Web question of the day. That's coming up next.

(COMMERCIAL BREAK)

BLITZER: The results of our Web question of the day, remember, not a scientific poll.

"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 December 7, 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. Members of the House of Representatives getting ready to vote on the most sweeping changes in the U.S. intelligence network in five decades. Stand by for hard news on WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)

(voice-over): Going downhill? A secret CIA cable paints a gloomy picture about the situation in Iraq. President Bush begs to differ.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: A free Iraq will make America more secure and the world a peaceful place.

BLITZER: Exclusive. Can Iraq hold its elections? Can it hold together?

UNIDENTIFIED MALE: Well, the daily images present an impression that thing are worse, but we want to move the Iraqi society forward.

BLITZER: I'll speak with Jordan's King Abdullah.

Fighting the flu. More vaccine for this year but new fears about a pandemic in years to come.

UNIDENTIFIED FEMALE: The worst of these was in this country and around the world was in 1918 when 20 to 40 million people were killed around the world.

BLITZER: Was it ecoterrorism? Dozens of high-priced homes damaged or destroyed.

UNIDENTIFIED FEMALE: I've never seen anything like it. A whole row of flames.

BLITZER: We'll have the latest on the investigation.

ANNOUNCER: This is WOLF BLITZER REPORTS for Tuesday, December 7, 2004.

(END VIDEOTAPE)

BLITZER: We begin with the situation in Iraq. A blunt warning from Baghdad and a bleak forecast for the future. It's all in a secret report from a senior U.S. spy in Iraq. Our national security correspondent, David Ensor, has the story.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATL. SECURITY CORRESPONDENT (voice-over): The classified cable from the outgoing CIA station chief in Baghdad warns the situation is deteriorating and is likely to continue to do so. It warns of more violence and sectarian fighting among Iraq's Sunnis, Shia, and Kurds, unless there are clear improvements soon, control of the Iraqi government and in the economy. Bad news for the Bush administration.

FLYNT LEVERETT, SABAN CTR., BROOKINGS INST.: They are literally between a rock and a hard place right now. I think that's an accurate reading of the situation, and I think the CIA is doing its job to paint that picture as accurately and as vividly as it can for policymakers.

ENSOR: U.S. officials say the CIA cable's assessment is mixed in that it calls the Iraqi people resilient and says political progress towards elections is being made, but the station chief's bleak tone overall is in marked contrast with some of the administration's public statements on Iraq.

DONALD RUMSFELD, DEFENSE SECRETARY: The schools are open. The hospitals are open. The clinics are open. The stock market is open. This currency is stable. An awful lot is going well.

BUSH: The terrorists will be defeated. Iraq will be free and the world will be more secure.

ENSOR: Bush administration officials could hardly be pleased by the leak of an unvarnished CIA assessment. U.S. ambassador John Negroponte, U.S. official say, added a dissenting note saying he thinks the cable does not give enough credit to coalition efforts against Iraq insurgents. The cable was widely distributed in the government though so the leak could have come from a number of places.

LEVERETT: People leak in this town for a lot of different reasons. My experience is actually that the CIA leaks a lot less than most of the policy agencies in town do.

ENRON: Despite the uproar recently about intelligence chief's Porter Goss to staff saying they should, quote, "support the Bush administration," officials note that Goss approved distributing the CIA's station chief's warnings around the government. There was, after all, another line in that Goss memo. It said to CIA officials that their job is to tell truth to power and let the facts speak for themselves. David Ensor, CNN, Washington.

(END VIDEOTAPE)

BLITZER: As the violence rages in Iraq, some are having second thoughts about how to hold next month's scheduled elections. The interim prime minister Ayad Allawi, now visiting Russia, has suggested in newspaper interviews that the vote could be spread out over 15 or 20 days in a bid to boost security in the various provinces. Russian President Putin today was quoted as saying he can't imagine how elections can be held when Iraq is, in his words, occupied by foreign troops.

Tomorrow during this hour, a look at the future of Iraq, my special interview with the interim president of Iraq Ghazi Al-Yawar.

And on a day which saw another U.S. soldier killed in Iraq, falling to small arms fire in Baghdad, President Bush met with U.S. marines at Camp Pendleton in California. He acknowledged it's been tough going in Iraq for American forces but vowed the upcoming elections will lead to better days ahead.

(BEGIN VIDEO CLIP)

BUSH: The success of democracy in Iraq will also inspire others across the Middle East to defend their own freedom and to expose the terrorists for what they are: violent extremists on the fringe of society with no agenda for the future, except tyranny and death. So the terrorists will do all they can to disrupt and delay free elections in Iraq, and they will fail.

(END VIDEO CLIP)

BLITZER: That, in contrast to the gloomy assessment from the CIA station chief in Baghdad. And it seems much different than the drum beat of upbeat assessments. That one, at least, coming from the administration and the Pentagon in their public comments. Let's bring in our senior Pentagon correspondent, Jamie McIntyre. Jamie, it's one thing what they're saying in public, but behind the scenes over at the Pentagon, what are they saying about the situation on the ground now in Iraq?

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, you can talk to a lot of people here at the Pentagon who are very concerned about the trends in Iraq. Obviously, the United States feels it has no choice, but to persevere and to achieve the goals in Iraq, because they're already in it. There is a lot of concern about the level of violence and, particularly, the campaign of intimidation against Iraqi forces. This is a battle of wills and that intimidation campaign is having an effect. One Pentagon official remarked to me that he saw some pictures of Iraqi police with hoods on, because they didn't want to be identified as part of the Iraqi police force. That, he says, is a real problem.

BLITZER: Is there a sense among mid ranking or senior officials at the Pentagon that the defense secretary, in his public comments, which seem usually upbeat, that he is simply wrong?

MCINTYRE: No. I think it's really a matter of taking a look at what your perspective is, how you measure things. For instance, most of the people I've talked today in the Pentagon here do not think Iraq is heading for an all-out civil war which some people are saying is the case. But they're also pretty realistic. They understand that the key to this is the future of the Iraqi forces. That is not coming along as quickly as they like. They do have to put -- they did have to put an infusion of troops in there. So, it's kind of a glass half full, half empty situation, depending on what you want to emphasize. Nobody is saying Rumsfeld is wrong, but they also understand why he has to emphasize the positive. This is, after all, a psychological battle as well as a military battle on the battlefield.

One other question before I let you go, Jamie. This notion that Ayad Allawi is raising about spreading the elections out over two or three weeks, moving security forces around, that means U.S. troops, what, if anything, are you hearing about that over at the Pentagon?

MCINTYRE: I asked several officials about that today. None of them had heard the proposal. They thought it was fairly interesting. To some of them it brought up the question what would the U.S. role be during elections? Will they be providing security at polling places or will they be stepping back and allowing the Iraqi forces to go ahead? There's no clear answer to that question. It's not just that I don't know the answer to it. It's that here in the Pentagon, they haven't worked out the role of the U.S. troops. If an election were to slide over a couple of weeks, that would be an interesting question about how the U.S. would act and provide security in that situation.

BLITZER: I suspect there's a lot still sliding right now. Jamie McIntyre at the Pentagon. Thanks very much.

Better news for the Bush administration from Afghanistan, where the former interim leader Hamid Karzai was sworn in as the country's first popularly elected president. In his speech Karzai spoke of Afghanistan leaving a hard, dark past and entering what he described as a peaceful, prosperous new era. At a news conference, he thanked the United States.

(BEGIN VIDEO CLIP)

PRESIDENT HAMID KARZAI, AFGHANISTAN: The fact that Afghanistan is again a respected member of international community is for the help of the United States of America gave us. Without that help, Afghanistan would be in the hands of terrorists, destroyed, poverty stricken and without its children going to school or getting an education.

(END VIDEO CLIP)

BLITZER: Among those on hand in Kabul, the Vice President Dick Cheney and the defense secretary Donald Rumsfeld, both key architects of the overthrow of the Taliban.

On the CNN security watch, we're awaiting word from Capitol Hill on the post-9/11 intelligence plan bill. The House expected to vote on the measure very very soon. Our congressional correspondent Joe Johns joining us now live from Capitol Hill -- Joe.

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: A major moment approaching right now for the administration and the House of Representatives. If we can take a picture live of the House floor at this moment, Congressman Jim Sensenbrenner, the chairman of the House judiciary committee, he, of course, represents the opposition to this bill, one of two members of Congress who essentially held it up for weeks. His issue was immigration concerns. He wants tougher immigration provisions, including prohibition on driver's license for illegal immigrants. He is one of the members of Congress expected to vote against this bill. Perhaps 20, perhaps 40 Republicans or so expected to vote against it.

Still, that bill is expected to pass the House of Representatives fairly easily. Of course, this is a vote that would effectively conclude the business, the legislative business of the House of Representatives for this Congress. It has not been easy. It has not been pretty. Some say it's far from perfect, but the sponsors say, in their view, this is a bill that they can live with.

BLITZER: And we'll expect the Senate to take up the measure.

(BEGIN VIDEO CLIP)

REP. PETER HOEKSTRA (R), INTELLIGENCE CHAIRMAN: I feel very good about this bill as far as what is in the bill. This is a solid piece of legislation in terms of intelligence reform. We created director of national intelligence. We create a national counterterrorism center, but, most importantly, what we expect is that we are going to create a more aggressive, a more vibrant, and a more organized intelligence community that is going to give policymakers the information that they need to make the appropriate decisions.

(END VIDEO CLIP)

JOHNS: So, the Senate is expected to take that bill up sometime tomorrow afternoon, Wolf. A lot of people very happy that this bill apparently is going to clear the Congress and go to the president's desk for his signing.

BLITZER: All right. Joe Johns reporting from Capitol Hill. We'll watch for the formal roll call. That will be coming up soon.

Desperately needed extra doses of the flu vaccine on the way right here to the United States. But there's a catch.

Also, new information on the hunt for the most wanted terrorists in Iraq. I'll talk about that with Jordan's King Abdullah.

Plus this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I was terrified. Because I had already given him the money. Then he asked me to step from behind the counter.

(END VIDEO CLIP)

BLITZER: What happened next might surprise you. We'll show you the whole heist caught on tape. Stay with us.

(COMMERCIAL BREAK)

BLITZER: On the health front, the United States flu vaccine supply is getting a much needed shot in the arm. Millions of new doses of flu vaccine should be available in the weeks ahead, easing the country's vaccine shortage. But there's a catch. The additional doses are being made available under what's known as an investigational new drug application. CNN's Mary Snow is with us from New York to explain what this means to all of us -- Mary.

MARY SNOW, CNN CORRESPONDENT: Wolf, these flu vaccines are manufactured in Germany. Up until now, they have not been used in the U.S. The FDA says they are safe. By giving them investigational status, this means that patients will have to sign a consent form acknowledging risk, but health officials insist that that risk is low.

(BEGIN VIDEOTAPE)

(voice-over): Two months after a flu vaccine shortage prompted rations and long lines, the government is expanding its stockpile. Health and Human Services Secretary Tommy Thompson.

TOMMY THOMPSON, HEALTH & HUMAN SERVICES SECRETARY: We have access to an additional 1.2 million doses of vaccine.

SNOW: The supplier is GlaxoSmithKline, which has nearly 3 million more of its Fluorox (ph) shots available.

UNIDENTIFIED MALE: CDC will distribute the new doses to communities they deem to be most in need.

SNOW: Those with priority include the elderly, pregnant women and those with chronic illnesses. The vaccine is approved in about 30 countries, but not in the United States. The Food and Drug Administration has given it investigational status and insists it's safe.

LESTOR CRAWFORD, ACTING FDA COMMISSIONER: This vaccine we're bringing in is not investigational, because we have real questions about it. It's investigational because the company elected last year not to enter the U.S. market. So, they did not apply for an approval.

SNOW: For patients, that means having to sign a consent form that's a bit different from other waivers.

DR. MARK SIEGEL: The purpose of the consent is basically to protect the doctor and protect the company that supplies the vaccine and so that the patient really shouldn't be able to say, please get me this vaccine and then turn around and sue the person that gives it to them. I think that's a wise precaution for doctors to have in place.

SNOW: Doctors, like this Mark Siegel, have been rationing flu vaccine since October when roughly half of the nation's supply was wiped out. That's because one of two suppliers, Chiron, had to halt production because of contamination problems at a British plant. Health officials have been trying to fill the void ever since but even with the new vaccines added they're still about 35 million shots short of what the government was aiming to provide this year.

(END VIDEOTAPE)

(on camera): And the FDA says it is currently talking with two more suppliers about getting more flu shots and could have an announcement within the coming weeks -- Wolf.

BLITZER: Mary Snow reporting from New York. Thank you very much. To our viewers, here is your chance to weigh in on this story. Our web question of the day is this. Would you be willing to take an investigational new flu vaccine? You can vote right now. Go to CNN.com/wolf. We'll have the results later in this broadcast.

The probe into possible ecoterrorism. The latest on these damaging fires right outside Washington, D.C.

Plus this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Lady came back around, charging at us. I ran one way, my two brothers ran the other way.

(END VIDEO CLIP)

BLITZER: A driver charged, get this, with deliberately running down two teenage brothers. We'll hear from one of them. You won't believe what's going on.

And a child held hostage. The surprising ending to a very dramatic ordeal.

(COMMERCIAL BREAK)

BLITZER: He's a very close U.S. ally who lives in a very tough neighborhood. Earlier today I sat down with Jordan's King Abdullah for a wide ranging discussion. We began with Iraq. Here is part one of my exclusive interview.

(BEGIN VIDEOTAPE)

BLITZER: Your majesty, welcome to Washington.

KING ABDULLAH, JORDAN: Thank you.

BLITZER: Thanks very much for joining us.

ABDULLAH: Good to see you again.

BLITZER: You made some noise a few weeks ago when you said maybe it's not a good idea to hold the elections in Iraq on January 30. Where exactly do you stand on that?

ABDULLAH: Well, maybe I wasn't all that -- my statement wasn't clarified to the international press. What I said is that we hope that elections will be on time, that Jordan is working with the Iraqis and the international communities to have elections on January 30.

I did have concerns about the instability. But it's quite apparent to me that the Iraqi government and the international community wants to stick to January 30. I don't think that they are going to move on that.

I think that we have a responsibility to reach out to the Sunnis at the moment, who are worried about elections, to say, "Look, elections are going on on time, and if you don't commit to the elections, then you're going to miss the boat."

BLITZER: So they should take place January 30 as scheduled? Is that your sense right now?

ABDULLAH: Well, I was concerned about the -- the insecurity that we see in Iraq. But at the moment, I think everybody's committed to the date. Unless we hear an alternative of, OK, we delay elections, why are we going to delay elections? It has to be a reasonable program, and I haven't heard any suggestions. So...

BLITZER: A lot of the Sunnis, and you're a Sunni, are concerned. Adnan Pachachi, I interviewed him recently. He thinks maybe there should be a delay because the Sunnis, especially in that Sunni Triangle, are afraid to go out. A lot of them are worried about the security situation.

ABDULLAH: What I've said to the Sunni leadership is that, you know, if you're going to say delay, that's not good enough. Come up with reasons. Come up with a program. Come up with something that could convince the international community why it should be delayed and for how long. And that hasn't happened.

So I think we're presenting ourselves with circumstances where elections will be on time. And the Sunnis are going to have to step forward.

BLITZER: Is the situation in Iraq, based on everything you know, and you live right next door, worse than it was a year ago?

ABDULLAH: Well, the daily images present the impression that things are worse. But we want to move Iraqi society forward. There is an opportunity with elections. And I think if we can have elections, that will be a new phase of Iraq, hopefully a better one.

The problem that we have if the Sunnis do not engage in elections, the new government will be mandated in writing the constitution. And my concern is if you're going to write a constitution and part of the society is not involved, that could create its own problems.

So I'm -- I'm hoping that we in Jordan and Arab countries and leaders can convince the Sunnis to go to the polls.

BLITZER: But you must be concerned about a Shiite-led Iraqi government that would be moving towards some sort of clerical or Islamic fundamentalist nature. That's possible, given the fact that the Shiite leadership, Ayatollah al-Sistani and others, are pushing for the election.

ABDULLAH: Right. And again, it's a bit more complicated than that, because I believe that there are a lot of Shiite Iraqis that look at the independence of Iraq. Iranian influence, Shiite influence on the Iraqi stage is of concern to all of us.

So I think people have to come together and move forward. And again, the Sunnis need to realize that the Iraqis and the international community made their mind up on January 30. There is no alternative. And so we need to get them galvanized and to go to the polls.

BLITZER: Are you concerned that Iraq could split up into a Kurdish sector, a Sunni sector and a Shiite sector?

ABDULLAH: That is always a concern. And again, my -- my sort of red flag is -- is the constitution. And we have to think out of the box, because you can create circumstances where the constitution is written in such a way that it excludes part of society. And that might push people towards civil war.

But I think all of us in the international community are coming together, supporting the present Iraqi government. It has made very clear the elections are going to be on time, and we have to get everybody involved.

BLITZER: There have been reports, as you well know, in recent weeks that the insurgency was being financed in part by Iraqi exiles, Saddam loyalists, who are based in Syria but also in Jordan. Is that true?

ABDULLAH: I can talk about Jordan. That's not true. And we would work very closely with the Iraqi government to make sure that does never happen.

There are queries that there are issues coming out of Syria. That's something you're going to have to ask the Syrians.

There is an element of insurgency that is a problem to Iraq, and we're working with the Iraqi government to try and give them as much support to be able to put those insurgency down. But it's difficult.

BLITZER: The -- but are there Iraqi exiles, Saddam loyalists, who have received sanctuary in Jordan?

ABDULLAH: We have people coming across the borders basically looking for a better life. I mean, a lot of the property that's been bought up in Jordan is by Iraqis because of some of the instability. But they don't come across as political. They come across as individuals just looking for a more stable life.

We do not protect Ba'athi extremists in Jordan and never will.

BLITZER: And -- but Saddam Hussein's two daughters and their families still are living in Jordan?

ABDULLAH: Two -- the two girls, two of the girls are living in Jordan at the moment. Yes.

BLITZER: And they will continue -- they'll continue to...

ABDULLAH: Well, it's up to them. When they came across, we took it from a humanitarian point, that women and children needing to find a safe haven. They know that they're -- they're limited in their role in Jordan. If they wanted to get into the political issues that are complicated in Iraq, then we have a major problem with that.

BLITZER: Talk a little bit about Abu Musab al-Zarqawi, the Jordanian terrorist, enemy number one, according to the United States government, in Iraq right now. Is -- where do you think he is?

ABDULLAH: Well, I don't think he's in Falluja, obviously. He's -- I think he's moved out to -- I don't want to say, but into another part of Iraq. The Iraqis, Jordanians and coalition forces are working very hard to track him down, and we're getting close.

BLITZER: When you say we're getting close, based on what? Is there hard intelligence you have?

ABDULLAH: Well, of course, hard intelligence. He's slipped through the net once or twice, where -- where we got closer to him than he would have liked. It's ongoing, you know. It's a difficult individual to track down and very difficult circumstances.

Iraq is a large country, a lot of built-up areas, and he moves from place to place. But, you know, he's under pressure.

BLITZER: Is he responsible for the murder of the American diplomat Laurence Foley in Amman?

ABDULLAH: We believe that he was responsible for organizing the assassination, that it was his people who carried out the...

BLITZER: Is he directly connected to al Qaeda, based on everything you know?

ABDULLAH: I think that, Wolf, it's not that simple. I think there's a loose association with al Qaeda, and I think that groups like this tend to come together to fight what they feel is a common enemy. So there is a link, yes, I believe there is between Zarqawi and -- and al Qaeda.

BLITZER: And finally on this war on terror issue, do you have any insight into the whereabouts of Osama bin Laden?

ABDULLAH: Well, from again -- roughly, I think that he would be just inside the Afghan border or on the Pakistani side of the border.

BLITZER: You don't think he's in Iraq?

ABDULLAH: No.

BLITZER: We'll have more of my exclusive interview with Jordan's King Abdullah, that's coming up including some palace intrigue, a surprise change in the heir to the throne. We'll talk about that with His Majesty King Abdullah.

Also the latest on the arson fire in the controversial development just outside Washington D.C. Was it the work of ecoterrorists?

And a quick-thinking clerk turns the tables on a would-be robber, the whole incident caught on videotape.

Plus, this just in. The NBA star Latrell Sprewell suspended over a new incident, this one involving a fan.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

A woman charged with deliberately running two teenage boys down with her SUV. Details of this truly shocking story, that's coming up.

First, though, a quick check of some other stories now in the news.

Some American Marines stationed in Japan are picking up and heading off to the Philippines. Up to 600 Marines will be deployed to that country in the next several days to help clean up and assist areas devastated by two major typhoons. The Marines are based on Okinawa.

Another troubling incident involving a pro athlete to tell you about. The Minnesota Timberwolves' Latrell Sprewell will have to sit out a game after yelling a sexual vulgarity at a female fan during a game. Sprewell's comment was picked up by a courtside microphone and could be heard on broadcasts of the team's game against the Los Angeles Clippers on Saturday. It's the latest in a series of problems for Sprewell. You may recall, he was suspended for 68 games in 1997 for choking his coach.

Firefighters in Chicago had their hands full last night battling a raging fire in a downtown high-rise. The blaze in the LaSalle Bank building in Chicago's Loop injured more than three dozen people, most of them firefighters. But no deaths are reported. The fire broke out on the building's 29th floor.

To other fires now and the possibility of terrorism. The investigation continuing today into a series of suspicious fires that destroyed dozens of homes under construction right outside of Washington, D.C.

Our Brian Todd joining us now from southern Maryland with the latest -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, we have some new information on the fires that raged yesterday at the Hunters Brooke subdivision. This is in Indian Head, Maryland, about 30 miles southeast of Washington.

Investigators are now telling us that a total of 26 homes have been damaged by fire. Of those 26, 12 were totally destroyed. That number 26 is a number paired down from yesterday, but this has still become a massive and very tightly controlled crime scene.

(BEGIN VIDEOTAPE)

TODD (voice-over): Veteran investigators from the FBI and ATF tell CNN they have never seen a residential fire scene of this scope, more than two dozen damaged homes over at least 10 acres and a growing arson investigation.

MIKE CAMPBELL, ATF: Right now, we have seven homes of the 26, the cause has been identified as arson.

TODD: Investigators tell CNN they expect that number to grow, but they won't discuss possible suspects, motive or means, saying only the perpetrators and law enforcement know some of those details and they don't want to tip off the people they're chasing. They also would not elaborate on information previously obtained by CNN, that, according to law enforcement sources, incendiary devices consisting of an accelerant in jugs were discovered at the scene. But they did talk about the difficulties of this investigation.

UNIDENTIFIED MALE: One of the complexities is the size. You have got approximately 10 acres of a crime scene. You have got multiple dwellings that have been damaged by fire.

TODD: The Hunters Brooke subdivision, about 30 miles southeast of Washington, was under construction when the fires began early Monday morning. No one was hurt and only one house in the area of damaged homes was occupied. Environmental groups had sued to try to stop construction, claiming the development would damage an adjacent wetlands area.

But officials from three of the environmental groups involved in the effort to stop construction tell CNN they had nothing to do with it. Law enforcement officials tell CNN they have received no claims of responsibility and found no signature markings left by the Earth Liberation Front, or Elf, an organization that has resorted to violence for environmental causes.

UNIDENTIFIED MALE: I don't want to dwell on the ELF, ecoterrorism. I know you do. But that's not something that we're not focusing on. We're well aware of the ELF organization, other organizations. Everything is in and everything is out right now.

(END VIDEOTAPE)

TODD: There are now more than 100 investigators on the scene here from local, state and federal law enforcement agencies.

One important note. We asked investigators if there were security guards that were supposed to be here at the time of the fire. This was very early Monday morning. They said that a security guard company was contracted by the builders and they were scheduled to have guards at the scene at that time. We asked if guards were in fact at the scene. They would not answer the question -- Wolf. BLITZER: Brian today reporting for us from the scene of these fires -- thanks, Brian, very much.

Two brothers hurt, one in critical condition. Now a Florida woman is accused of attempted murder with her SUV. We'll give you the shocking details.

Also, this:

(BEGIN VIDEO CLIP)

KAREN SMITH, STORE CLERK: I just said, I'm going to try to shoot him first before he gets me.

(END VIDEO CLIP)

BLITZER: And that's exactly what this clerk did, the whole incident recorded by surveillance cameras.

Plus, what's behind a recent royal shuffle in Jordan? More of my exclusive interview with King Abdullah.

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

(BEGIN VIDEOTAPE)

BLITZER (voice-over): In Thailand, a man allegedly under the influence of drugs held a 9-year-old boy at knifepoint on a Bangkok street for four hours. A drama was witnessed by a large crowd of onlookers. The ordeal ended when the police shot at the man with rubber bullets. The man ran into the crowd, where he was beaten severely. The boy was unhurt.

Crime crackdown. Italian police staged a series of raids in Naples, detaining more than 50 suspected mafia figures. The raids were aimed at ending a deadly mob turf war.

We do; 101 couples were united in a mass marriage ceremony in western India presided over by Hindu and Muslim priests. Mass marriage ceremonies are becoming more popular in India because they allow lower- and middle-class couples to unite without incurring the price of a private wedding.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Earlier, we heard Jordan's King Abdullah discuss the situation in Iraq. Now, in part two of my exclusive interview, you'll get his views on the U.S. role in the Middle East and on what some describe as intrigue within his own royal palace.

(BEGIN VIDEOTAPE) BLITZER: Let's talk about after Arafat, after Yasser Arafat, the peace process in the Middle East.

A lot of people think -- the Palestinian elections scheduled for January 9 -- there's a moment right now where there's an opportunity to jump-start, to revive these peace talks. Do you believe there is?

ABDULLAH: I think we have a golden opportunity at the moment.

There are new players on the scene. I think Abu Mazen has the ability to be a strong leader for the Palestinian people and create new circumstances, so that we can't use the excuse that there's no partner for peace. This is why I think we're all very excited and very supportive of elections on January 9. We hope that the Palestinian leadership will organize themselves in the next couple of weeks.

And right after the elections, we need to reinvigorate the road map, move the process forward, get the Israelis and Palestinians talking to each other.

BLITZER: Abu Mazen, Mahmoud Abbas...

ABDULLAH: Yes.

BLITZER: ... the leader of the PLO now, after Arafat, he is running for leadership, of the Palestinian Authority.

ABDULLAH: Yes.

BLITZER: But he's being challenged by another Palestinian, Marwan Barghouti.

ABDULLAH: Yes.

BLITZER: Who is in prison serving five life sentences.

ABDULLAH: Yes.

BLITZER: The Israelis convicted him of terrorism. What do you make of that?

ABDULLAH: Well, it confuses the issue at the moment. I don't know if it's right at this particular time.

What we don't want is a conflict between Palestinian leadership at the time where they need to identify a leader, move forward and allow the international community to get the Palestinians engaged with the Israelis. So, yes, it's taken a lot of people by surprise. I think we'll just have to watch to see what happens over the next several weeks.

But our aim, I think, as part of the international community, is to get a leader of the Palestinian people identified as quickly as possible and get him engaged with the international community, the quartet, and the Israelis as soon as possible. BLITZER: And you so have confidence in Mahmoud Abbas, or Abu Mazen?

ABDULLAH: It comes down to elections, but, at the moment, he is a very strong candidate.

BLITZER: The Israeli withdrawal scheduled from Gaza, should that go forward now unilaterally or should the Israelis sort of wait and coordinate now with this new Palestinian leadership that emerges?

ABDULLAH: Well, again, the issue of Gaza is still not fully defined. And there are still questions being asked by a lot of us. We hope that the pullout of Gaza is part and parcel of the road map.

If it's a side issue, I think it will confuse the process. And it's still not 100 percent confirmed of what is happening in Gaza, what is the end game. As long as it's part of the process of a final peace between the Israelis and the Palestinians, fine. But that hasn't been clarified fully.

BLITZER: I've been hearing from some Americans who have recently met with Bashar al-Assad, the president of Syria, that he is ready to start negotiations with the Israelis once again right now, without preconditions. But you live right next to him. What do you think?

ABDULLAH: Well, we have heard the same signals. They seem to be positive.

I believe that, whenever statements are made like this, let's see where they will lead us. Bashar will be coming to Jordan in the next couple of weeks. I hope to see and hear positive things from him. And if he is committed to deal with the Israelis, let's take a look at what he has to say and give him the benefit of the doubt and hope that we can move the process between the Israelis and Syrians forward.

BLITZER: What did you hear from President Bush about U.S. involvement in the peace process?

ABDULLAH: I saw a strong commitment from the president.

We have been watching at -- many press statements. The first one that I thought was very significant was with Prime Minister Blair, where I think he went out of his way to commit himself to the process. He reassured me yesterday that he wants to have peace between the Israelis and the Palestinians. I have to remind people, again, he is the only American president that identified a viable independent Palestinian state and articulated a vehicle, the road map, to achieve those ends.

And I think that the president is very keen to move the process. He understands that we're running out of time and it's going to have to happen within his administration.

BLITZER: All right, one final question, because I know your time is limited. The decision that you made in recent days to have the crown prince no longer be the crown prince, a lot of our viewers are interested in that. They're interested in your monarchy. But what was the story behind the story there?

ABDULLAH: Well, just before his late majesty passed away, he had said that the issue of crown prince is one that should be just a role that is with very limited capabilities.

I have four very strong brothers, very, very capable. Two of them -- Hamza, who was the crown prince, coming back to serve Jordan within the next 12 months. And, basically, this allows him to be able to expand his horizons, get involved in the issues that he cares about that I believe will really serve the country, as opposed to be limited by the title, which his late majesty had dictated.

BLITZER: Is he happy about this?

ABDULLAH: I think this opens a new opportunity for him. So it's a challenge, because it means that he will work closer with me, I hope, and be able to have more of a breadth of getting involved with Jordanian society. He has a lot of capabilities that he can bring towards his country. And I'm looking forward to his return. And I think that you'll see tremendous things from him.

BLITZER: And your son is now effectively the crown prince?

ABDULLAH: No. He is only 10 years old. And the way that the system has been done is that the role of crown prince will not be filled. Depending on circumstances, if anything should happen, there are instructions and there's a system in place, where the most capable of my brothers will be the one who is responsible to continue the process.

BLITZER: I hope none of that is necessary. I hope you live many, many happy and wonderful years.

ABDULLAH: That's very kind of you.

(CROSSTALK)

BLITZER: Welcome to Washington. Thank you very much.

ABDULLAH: Thank you, Wolf.

(END VIDEOTAPE)

BLITZER: Jordan's King Abdullah speaking with me earlier today.

Tomorrow, this reminder, the president of Iraq, Ghazi al-Yawer, he will speak with me in Washington as well.

When we come back, he chose the wrong store to rob. And surveillance cameras captured what happened to one very unlucky thief.

And this:

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: She deliberately try today kill my grandkids.

(END VIDEO CLIP)

BLITZER: An amazing, shocking story, a Florida woman accused of deliberately running down two brothers. We'll tell you what happened.

(COMMERCIAL BREAK)

BLITZER: A man who tried to hold up a Columbus, Ohio, convenience store got much more than he bargained for. Some viewers may find the images intense.

(BEGIN VIDEO CLIP)

SMITH: I just said, I'm going to try to shoot him first before he gets me. He might shoot me, but I'm going to shoot him.

BLITZER (voice-over): Karen Smith says she's been robbed twice before. On both of those occasions, she offered no resistance because the robber fled as soon as he got the money. This time, it was different. And, this time, she was in fear for her life.

SMITH: I was terrified because I had already given him the money and then he asked me to step from behind the counter. So, the only thing I could think about is that he was getting ready to hurt me. He came over and he stuck his hand like that. And he said...

QUESTION: Right up on the counter here?

SMITH: He said, I'm going to need that. And I said, need what? And he said, you know what I'm talking about. And I said, oh, shoot, robbery. OK. Opened the drawer. Gave him the money. And then he said, now I'm going to need you to come from behind the counter. And I said, what? He was like, come from behind the counter. So, I said, shoot, he's going to hurt me. OK. And then I got up and I snatched the gun and shot him.

BLITZER: Smith said she never fired a gun before, but her shot wounded the man in the left shoulder. Police say Smith was acting in self-defense and she does not face any charges.

SMITH: I thank God I did hit him in the shoulder, because it could have been much worse for him. Fortunately, it hit him and it didn't kill him. I didn't want that on my conscience.

(END VIDEOTAPE)

BLITZER: And from Ohio to Florida. A woman there is being held without bail facing three counts of attempted murder. Police say she deliberately ran down two young boys, two brothers, with her SUV.

CNN's Eric Philips reports.

(BEGIN VIDEOTAPE)

JAMEL MARSHMAN, VICTIM'S BROTHER: I broke down. Man, I couldn't even stop crying seeing my brother like that.

ERIC PHILIPS, CNN CORRESPONDENT (voice-over): Sixteen-year-old Jamel Marshman managed to get out of the way of the SUV that hit his twin brother, Justin, and 13-year-old stepbrother, Isiah Grayer. Police says the boys were playing with a golf ball Sunday in a store parking lot when it accidentally hit 47-year-old Kathy Allen's SUV.

MARSHMAN: We apologized while she was still there, and I guess she didn't want to care.

PHILIPS: Police say Allen started to drive away, but then made a sudden U-turn, jumped a median and ran down Justin and Isiah, knocking over a light pole in the process.

MARSHMAN: I ran up to see what was wrong with them. And Isiah was bleeding constantly in his ear. Justin was bleeding all in the face.

PHILIPS: She then took aim at Jamel, according to police, crossing two medians to get aim at him, but she hit a utility box instead and the SUV wound up stuck in a ditch. And, according to Jamel and another witness:

MARSHMAN: The lady was smoking a cigarette thinking nothing happened.

PHILIPS: Relatives say Isiah is in critical condition and has slipped into a coma. Justin was treated for a fractured skull and released. Allen appointed in court yesterday, telling the judge she has mental problems. Her court-appointed attorney says Allen has a slightly different version of the events and that he is still gathering facts. As for Jamel, he just wants his brothers to make a full recovery.

MARSHMAN: They're like the best brothers I've ever known.

PHILIPS: Eric Philips, CNN, Atlanta.

(END VIDEOTAPE)

BLITZER: We'll have the results of our Web question of the day. That's coming up next.

(COMMERCIAL BREAK)

BLITZER: The results of our Web question of the day, remember, not a scientific poll.

"LOU DOBBS TONIGHT" starts right now.

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