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Lou Dobbs Tonight

Bin Laden Lashes Saudis in New Tape; Rumsfeld Faces Republican Critics; National Guard Bearing Heavy Losses in Iraq

Aired December 16, 2004 - 18:00   ET

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

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


(BEGIN VIDEOTAPE)
LOU DOBBS, HOST (voice-over): Tonight, Osama bin Laden is back on a new tape. Are radical Islamists winning the propaganda war against the United States? We'll have a special report.

COLIN POWELL, SECRETARY OF STATE: He is a criminal. He's a terrorist. He's a murderer. And we're going to continue to hunt for him.

DOBBS: A grim warning tonight about our government's failure to prepare for a massive terrorist attack. Former Senator Gary Hart says we've done little or nothing to prevent an attack, or to prepare for its aftermath. He's our guest.

Red star rising, the emergence of China as a potential superpower. Tonight, why China and an unlikely ally are working together to challenge U.S. power around the world.

UNIDENTIFIED MALE: We don't want French weapons to be shooting at us across the Taiwan Strait.

DOBBS: I'll be talking with author and journalist Mark Helprin who says the United States must do everything possible to maintain military superiority over China.

Millions of Mexican illegal aliens have crossed our border to escape poverty. But Mexico has more billionaires and millionaires than any country in Latin America. Tonight, why Mexico is so eager to send one-tenth of its population to live in the United States. We'll have that special report.

(END VIDEOTAPE)

ANNOUNCER: This is LOU DOBBS TONIGHT for Thursday, December 16th. Here now for an hour of news, debate and opinion is Lou Dobbs.

DOBBS: Good evening.

Tonight, a new audiotape by Osama bin Laden, a troubling new example of al Qaeda's rising propaganda skills.

The al Qaeda leader praised the radical Islamist terrorists who attacked the U.S. consulate in the Saudi city of Jeddah 10 days ago. Bin Laden also threatened to overthrow the Saudi royal family. What makes this tape so disturbing is how quickly it was recorded and then distributed. National security correspondent David Ensor reports.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): This time, Osama bin Laden chose to distribute his audio message not through Arabic language television, but through the Internet. That may have helped his security. It certainly helped with speed.

PETER BERGEN, CNN TERRORISM ANALYST: This is the fastest turnaround tape that I can remember. I mean, usually the turnaround is weeks or even month. When he's responding to actual news events here, it's within ten days.

ENSOR: Bin Laden proves that by referring to the attack December 6 against the U.S. consulate in Jeddah.

OSAMA BIN LADEN, AL QAEDA LEADER (through translator): We pray to Allah to accept the Mujahideen who stormed the U.S. consulate in Jeddah as martyrs.

ENSOR: But there's another possible reason bin Laden did not send this tape, as he usually does, to Al Jazeera Television in Qatar. The tape is a 70-plus minute diatribe, largely against the Saudi royal family, Qatar's powerful neighbors.

MICHAEL SCHEUER, FORMER CIA ANALYST: Al Jazeera is reluctant, a lot of times, to offend the Saudis gratuitously. And some of his more scathing remarks are excerpted by the Qatar government and Al Jazeera. So if he has something he wants to say that's very, very harsh toward the Saudis, he has chosen in the past to use other venues.

ENSOR (on camera): Besides Al Jazeera?

SCHEUER: Besides Al Jazeera, yes, sir. So the message comes out whole.

(END VIDEOTAPE)

ENSOR: That message is 74 minutes long. Translators in the U.S. government and around the world are working their way through it. And after a technical analysis, CIA officials say the agency has a high degree of confidence that the voice on the tape is, indeed, bin Laden -- Lou.

DOBBS: David, thank you very much. David Ensor.

The White House today vigorously defended Defense Secretary Donald Rumsfeld from rising criticism. An increasing number of those critics are supporters of President Bush.

Today, Senator Trent Lott declared that he is not a fan of Secretary Rumsfeld. Senior White House correspondent John King reports. (BEGIN VIDEOTAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): Defending the defense secretary is, of late, a staple theme at the White House briefing.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: I think Secretary Rumsfeld continues to do a great job while we're at war. We are a nation at war.

KING: No leading Republican lawmakers have demanded Rumsfeld's resignation, but a growing number are making clear they don't share the president's confidence in the defense secretary.

At home in Mississippi, GOP Senator Trent Lott said of Rumsfeld, "I don't think he listens enough to his uniformed officers."

"I'm not calling for his resignation," Lott went to say, "but I think we do need a change at some point."

Secretary Rumsfeld angered critics last week with his answer to a soldier in Kuwait who complained about a lack of armored vehicles in Iraq.

DONALD RUMSFELD, SECRETARY OF DEFENSE: You go to war with the army you have.

KING: Already a Rumsfeld critic, Republican Senator Susan Collins of Maine fired off a letter to the secretary late Wednesday, noting the Pentagon asked a supplier to speed up production of armored Humvees, apparently only after the soldier's complaint.

Why was this request not placed earlier, Senator Collins asked, promising the issue will be a major focus when Congress returns in January.

Earlier this week, Senator John McCain said he had no confidence in Rumsfeld. And Republican colleague Chuck Hagel of Nebraska also took aim.

SEN. CHUCK HAGEL (R), NEBRASKA: We didn't go into Iraq with enough troops. He's dismissed his general officers. He's dismissed all outside influence.

KING: One key congressional supporter suggests Rumsfeld's style is more an issue with the senators than his performance.

UNIDENTIFIED MALE: I think -- I think a lot of those folks want to be paid attention to. They're used to people listening to them at great length. And -- and I think sometimes the Senate thinks that the secretary has given them short shift.

KING: One senior White House official called the complaints Washington chatter, mostly from longtime Rumsfeld critics.

Senior Bush aides also say showing any displeasure now would be tantamount to embracing Rumsfeld's critics and acknowledging major mistakes in Iraq.

(END VIDEOTAPE)

KING: Senior White House officials say the president is well aware of this recent Republican grumbling and that he tells them to make clear he has no second thoughts at all about asking Secretary Rumsfeld to stay on into the second term and that he believes the secretary is doing a great job, Lou, at a very difficult time.

DOBBS: John King, thank you.

The rising controversy over the defense secretary caused, in part, by mounting concerns about the military's ability to fight a protracted war successfully in Iraq.

As many as 40 percent of our 150,000 troops are National Guardsmen and reservists. That means large numbers of troops who should be assigned to critical homeland security missions in this country are simply unavailable.

Peter Viles reports.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): By the tens of thousands, citizen soldiers from the National Guard are fighting the wars in Iraq and Afghanistan.

Lately they've complained of equipment shortages, lack of armor for their Humvees, but they haven't raised a bigger issue, why isn't the Guard at home guarding the United States against terrorists? That was, after all, the Guard's first assignment after September 11.

But since then, President Bush has sent the Guard overseas in huge numbers: 97,000 have either been to Iraq or are serving there now; 12,000 in all have been to Afghanistan. A huge burden for this part-time force of 450,000.

MICHAEL O'HANLON, BROOKINGS INSTITUTION: I am worried about how hard we are asking our guardsmen and guardswomen to work overseas. We are deploying them too much. We have a military that's simply too small in the ground forces for the demands of today's times.

VILES: Before 9/11, the U.S. Commission on National Security in the 21st Century urged, quote, "that the National Guard be given homeland security as a primary mission as the U.S. Constitution itself ordains. The guard should be reorganized and adequately equipped to undertake that mission."

That idea, however, was never seriously considered. The Pentagon believes the Guard can do two jobs: serve governors when needed at home, and fight foreign wars, reducing the size and the cost of the full-time army.

JAMES CARAFANO, THE HERITAGE FOUNDATION: I don't think you're ever going to want to create two militaries, one just as a home guard, and one just as an overseas. It doesn't make sense from a monetary standpoint, and it doesn't really make sense from a standpoint of strategy, because it doesn't give you a whole lot of flexibility.

VILES: Already more Guard members have died in Iraq than died in the entire Vietnam War.

(END VIDEOTAPE)

VILES: And despite these burdens, the Guard says it can still meet its main personnel goal here in the United States. And that is to have at least half of the Guard at home and at the ready should the governors need to call out the Guard on short notice -- Lou.

DOBBS: Pete, thank you very much. Peter Viles reporting from Los Angeles.

Tonight, the Army National Guard announced an increase in enlistment bonuses designed to attract more recruits. The commander of the Pentagon's National Guard bureau, General Steven Blume, said the guard has failed to meet its recruitment targets over the past two months.

General Blume acknowledged a major reason for that shortfall, the strain on guardsmen and their families as a result of the war in Iraq.

New questions tonight about possible links between Kofi Annan's son, Kojo, and the United Nations oil-for-food scandal. That program is at the center of a number of investigations into corruption at the United Nations.

Earlier this week, in an exclusive interview with CNN, Kojo Annan declared that he had never participated in any business related to the United Nations. But tonight, CNN has obtained documents that appear to contradict that assertion.

Jason Carroll reports from Washington.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): The thousands of pages of documents were provided by Cotecna, the Swiss company responsible for inspecting food and medicine shipments to Iraq. Several hundred related to Kojo Annan, the son of U.N. Secretary- General Kofi Annan.

Annan worked for Cotecna for two years and then continued as paid consultant, the same year Cotecna got its U.N. contract. Annan said he never misused his position by participating directly or indirectly in any U.N. business.

We were allowed to take notes but not take close-up photos. None of the documents we saw referenced the oil-for-food program or Iraq. But investigators want to know more about a few documents, including a fax marked "confidential," where Annan asked to be paid for time: "Compromised of six days in Abuja during my father's visit to Nigeria"; and "22 days in September of the same year"; "compromised of 15 days in New York for the General Assembly and various meetings relating to 'special projects'."

There's also this confidential fax addressed to Kojo Annan. "Thank you for representing come on at this important meeting. Your work and the contacts established at this meeting should ideally be followed up at the September 1998 U.N. General Assembly in New York."

When reached at his home in Lagos, Nigeria, Annan said, "I never attended a General Assembly, but was in New York for the time of the General Assembly to follow up with African government heads. I never, ever met with U.N. officials."

A Cotecna spokesman says "talking to people who attend the U.N. meetings does not mean that one is talking about U.N. matters."

Kofi Annan has faced criticism about the appearance of conflict of interest with his son as well as his own oversight of the U.N.'s oil-for-food program.

KOFI ANNAN, U.N. SECRETARY GENERAL: I am anxious to see the investigations concluded as quickly as possible so that we can get -- put it behind us and focus on the essential work of the United Nations.

(END VIDEOTAPE)

CAMPBELL: Kojo Annan has already been interviewed by U.N. investigators, and, when CNN asked if he would talk to congressional investigators, he said absolutely -- Lou.

DOBBS: And it looks like the opportunity may be presented.

Thank you very much.

Kofi Annan today met with top officials of the Bush administration to discuss Iraq and other critical issues. Annan met with Secretary of State Colin Powell and Powell's designated successor, National Security Adviser Condoleezza Rice.

Annan insisted that he did not feel snubbed by President Bush, who declined to meet with him at the White House.

(BEGIN VIDEO CLIP)

ANNAN: The president and I have met on many occasions, and we also do talk on the phone, and so I don't feel that if I come to Washington and we don't get a chance to meet, I should feel offended or snubbed. This is the nature of things.

(END VIDEO CLIP)

DOBBS: Kofi Annan had nothing to say about his son's business dealings today, nor the allegations that his son profited from the U.N.'s oil-for-food program.

Still ahead here tonight, former Senator Gary Hart will join us. We'll be talking about his chilling warning about the level of national security and also be talking with General David Grange about our military strategy in the global war on terror.

And Mexico's "Great Divide." Our special report tonight. Mexico is actually one of the richest nations in all of Latin America. So why are so many Mexicans fleeing poverty and coming to this country illegally with the support of their government? Our special report coming up.

And then, fears of a rude awakening in the American economy. Why foreigners are increasingly considering this country a tremendous financial risk. We'll have that and a great deal more still ahead.

(COMMERCIAL BREAK)

DOBBS: Tonight, an estimated 15 million illegal aliens live in this country, at least half of them from Mexico. Many are here because they chose to flee crushing poverty in Mexico.

But, in point of fact, Mexico is one of the richest countries in Latin America, amongst -- the millionaires, billionaires and its wealth concentrated in the hands of very few.

Casey Wian reports from Los Angeles.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): They sneak across the border seeking jobs they can't find in Mexico. The question isn't why they come, it's why can't Mexico's economy support its own people.

Nearly half of Mexico's population lives in poverty. Ten percent are indigent, existing on a dollar a day. Yet the nation has vast wealth. Mexico has more "Forbes" billionaires, 11, than all but eight other nations. It has more billionaires than Saudi Arabia, Switzerland or Taiwan. It also has more than 85,000 millionaires.

GEORGE W. GRAYSON, COLLEGE OF WILLIAM & MARY: There is a small economic elite who live like maharajas, and there's a political elite that protects them. Our border provides an escape valve which really lets the Mexican political and economic elite off the hook in terms of providing opportunities for their own people.

WIAN (on camera): About 10 percent of Mexico's 105 million people live here in the United States. They're called national heroes by President Vicente Fox because this year they'll send home about $16 billion, more than any Mexican industry except oil.

(voice-over): The country sits on oil reserves worth about $400 billion, but Mexico's state-owned oil company, Pemex, doesn't have the investment funds to tap those reserves, and Mexico's Congress refuses to allow foreign investment in Pemex.

Mexico's outdated tax system is plagued by widespread tax evasion. It collects taxes at less than half the rate of the United States. As a result, Mexico's public-school and health-care systems suffer. CHRIS WOODRUFF, CENTER FOR U.S.-MEXICO STUDIES: We now realize -- and particularly in a world where capitalists are mobile -- that redistribution isn't going to work, and what people focus on now instead is allowing the poor to build assets. Mexico has undertaken some programs which will allow the poor to do that. But that's not a process that changes overnight.

WIAN: Meanwhile, the gap between rich and poor is growing. So Mexico continues to export one of its most valuable assets, people.

Casey Wian, CNN, Los Angeles.

(END VIDEOTAPE)

DOBBS: The invasion of illegal aliens into this country is one of several threats to our wealth, our standard of living, our quality of life. Another is our exploding trade deficit and the rising export of American wealth overseas. The trend is beginning to discourage if none at home, some at least in foreign countries who are investing in this country.

Lisa Sylvester reports from Washington.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): The current account balance reflects what Americans earn and what they spend, including trade and international investment. The picture is not very pretty.

The United States last made ends meet in 1991 with a $10-1/2 billion surplus. Since then, the current account balance has been freefalling. The current account deficit for the last three months alone reached a record $164.7 billion.

To put that number into context, that's larger than Portugal's entire economy. Economists say we may be headed toward a day of reckoning.

CATHERINE MAIN, INSTITUTE FOR INTERNATIONAL ECONOMICS: Right now, basically, the entire deficit can be accounted for by the trade deficit in consumer goods and automobiles.

SYLVESTER: Americans are on a spending spree, but they're not buying American goods. So the money to finance the buying binge has come from foreigners.

China and Japan are the largest foreign holders of U.S. Treasury securities, but foreigners are increasingly growing skittish because of the large U.S. trade and budget deficits.

ASHRAF LAIDI, MG FINANCIAL GROUP: Now there are alternatives, unlike the '90s when the place to be was in the U.S. Now you could put money in Europe, in western Europe, in Asia and emerging markets.

SYLVESTER: So why should the average American care? Because it can hit them right in their pocketbook.

RANDALL DODD, FINANCIAL POLICY FORUM: If foreigners no longer want to invest in the U.S., it's going to make it more expensive for us to borrow for homes, borrow to buy a car. It's going to get harder for our corporations to issue bonds to raise capital for new investment.

SYLVESTER: And it will make it more expensive to finance the government's growing budget deficit.

(END VIDEOTAPE)

SYLVESTER: Many economists say the Bush administration is not doing enough to head off the rude awakening that could be in store, and, in the past when there were imbalances, the U.S. government worked with other countries to soften the landing, but that's not the case this time around, at least so far -- Lou.

DOBBS: Thank you, Lisa.

Tonight, an extraordinary sight in Hawaii. Giant waves, some as high as 40 feet, are crashing down on the north shore. Forecasters say the waves could hit as high as 50 feet. Some of the world's best surfers -- and you're seeing some of them here -- are in heaven. These waves are high enough for them to hold a rare big-wave competition on Oahu. The grand prize for these brave souls: $50,000.

Still ahead here tonight, former Senator Gary Hart will join me. We'll be talking about what he says this country must do to protect our national security.

And then, China rising, hoping to challenge U.S. power around the world. China has made new friends with one country that's been in a very public contest with the United States. We'll have that special report.

And Mark Helprin joins us.

And then, "Grange on Point." New questions tonight about whether the massive National Guard force in Iraq is jeopardizing security here at home. General David Grange will join us.

All of that and more still ahead.

(COMMERCIAL BREAK)

DOBBS: Now our special report on the rising influence of China militarily, economically and politically. Tonight, China's budding friendship with France. The leaders of both countries have visited one another this year. Both leaders are hoping their new relationship will allow them to challenge U.S. policy and influence around the world.

Mike Chinoy reports from Hong Kong.

(BEGIN VIDEOTAPE) MIKE CHINOY, CNN SENIOR ASIA CORRESPONDENT (voice-over): It wasn't just a red carpet France's Jacques Chirac laid out for China's visiting president earlier this year. Chirac literally bathed the Eiffel Tower in China's national color.

KENNETH LIEBERTHAL, BROOKINGS INSTITUTION: There are two motivations for Chirac in his embrace of China, and one is to needle the U.S. and to get out a little bit from under a U.S. shadow and assume some leadership role for the French, and the other is to do business.

CHINOY: When Chirac visited Beijing this fall, he came away with nearly $5 billion in Chinese contracts. But he set hit sights even higher. He's leading a campaign for the European Union to lift the arms embargo on China imposed after the 1989 Tiananmen Square crackdown so he can sell French weapons to Beijing despite China's human rights record.

ILARIA MARIA SALA, LE MONDE CORRESPONDENT: It does show either a conscious decision that human rights just do not really need to be on the agenda any longer, whether it's with China or any other place, or just a desire to please that is so strong that it goes beyond any principle.

CHINOY: And with China's continuing military buildup aimed at Democratic Taiwan, which the U.S. has vowed to defend from a Chinese attack, Chirac's gambit has alarmed the United States.

LIEBERTHAL: We don't want French weapons to be shooting at us across the Taiwan Strait. So I think that is a real concern.

CHINOY: Chirac, however, has ignored U.S. concerns on this as he has on so many other issues.

(on camera): And the French leader's campaign to make China into a lucrative counterweight to American power shows no sign of flagging.

Mike Chinoy, CNN, Hong Kong.

(END VIDEOTAPE)

DOBBS: We'll have much more ahead here tonight on the rise of China. Wall Street Journal contributing editor Mark Helprin joins me. He says this country is ignoring China's military and economic growth at our peril.

And also ahead here tonight, former Senator Gary Hart, whose commission warned of a terrorist attack in early 2001. Tonight, another warning. He says our leaders haven't done enough to prevent another terrorist attack. He'll be our guest.

And why a former Clinton administration official now says liberals are in disarray in this country. Former Labor Secretary Robert Reich has written a book entitled "Reason: Why Liberals Will Win the Battle for America." He joins us next.

Stay with us.

(COMMERCIAL BREAK)

ANNOUNCER: LOU DOBBS TONIGHT continues. Here now with more news, debate and opinion, Lou Dobbs.

DOBBS: I'll be joined by former Senator Gary Hart in just a moment. He says our leaders are not doing enough to protect this country from terrorist attack.

But, first, let's take a look at some of the top stories this evening.

Two months after announcing a shortage of flu vaccine, the Centers for Disease Control and Prevention now says tens of thousands of doses could go to waste. Officials say many Americans assumed they wouldn't be able to find a flu shot. As a result, more than half of all elderly adults have still not been vaccinated.

A security guard is under arrest tonight in connection with a series of fires that destroyed dozens of new homes in Maryland. Twenty-one-year-old Aaron Speed was working as a security guard in the community. Authorities have not released any specific information about the charges. He is scheduled to be arraigned in federal court tomorrow.

And a federal judge in Texas today dismissed charges against a defendant in an illegal alien smuggling case. The judge says there was no evidence the defendant profited from the smuggling scheme. Nineteen people were found dead in a truck found in southern Texas in 2003. Two co-defendants will stay on trial in that case.

Former Senator Gary Hart served as co-chairman of the United States Commission on National Security in the 21st Century along with former Senator Warren Rudman. That commission issued a warning to the nation in January of 2001 that a massive terrorist attack could occur on American soil.

Tonight, another disturbing warning. The former senator says three years after the September 11 attacks, our leaders have done little or nothing to prepare us for another major attack.

Gary Hart joins us tonight from Denver, Colorado.

Good to have you with us.

GARY HART, FORMER UNITED STATES SENATOR: Great pleasure.

DOBBS: Why, in your judgment, with all of the forces at work here, political, economic, national security concerns, why in the world are we not doing more to protect this nation, in your opinion?

HART: That's obviously a question that has to be directed at the current administration. I want to correct one thing you said, that -- you said little or nothing. Some things are being done, and I wouldn't want to be in the group of those saying nothing is being done. But as the title of the article that appears in "The Wall Street Journal" today, that four of us authored, I think summarizes it. Our hair is on fire. We have the same sense of you are urgency this administration seemed to have about Iraq. Now, Iraq turned out not to be a threat to the United States. But every terrorism expert that I'm aware of is -- they are all unified on the idea that we are going to be attacked again. And we just simply don't have the sense of urgency about getting ready to prevent that or respond to it, that we have about waging war in Iraq.

DOBBS: What should we be doing?

HART: Well, the list goes on. If you get into the details, the national guard ought to be trained and equipped. Disproportionately the national guard is in Iraq today, in support of our regular forces. They ought to be here being trained and equipped. Common databases and common communications systems, some of those won't be ready till 2008. That's unacceptable. The private sector is not being called upon to do nearly enough. This is a capitalist economy. The means of production are in private hands, not the government's hands. And yet no signal has been sent by the president or the White House to the private sector, the petrochemical industry, energy industry or any of the others that they must take steps to protect themselves. The sea ports are enormously porous, as one of our -- the authors of this article, Commander Steve Flynn (ph), has documented, and the list simply goes on and on and on.

DOBBS: Senator, actually, to maintain fairness here, the Department of Homeland Security just last week was addressing the issue with the petrochemical plants, in point of fact, trying to move some of that burden, appropriate burden-sharing as well, back on the chemical companies, in particular. Turning to the issue of border security, port security, why is it that this country, seemingly, at least our elected representatives and our government officials, cannot come to terms with the idea that without border security and port security, intelligence is of little help by itself.

Why is it, in your opinion, that is occurring?

HART: It's just beyond me. I think it's principally because geographically and historically, we've been an island nation protected by the oceans. But now this is the 21st, it's a globalized economy, as you well know. And we are dependent on world trade for our economy, both our input and our output. And 23 to 24,000 shipping containers come into our ports every day. We've got thousands of miles of unprotected border, and it's just a new threat and a new era that I think we simply don't have the imagination or creativity to deal with. And once again, to me, it's less a question of technology and much more a question of political will. I'm happy that we're moving with the petrochemical industry, but this is over three years after the first attack.

Why does it take so long?

DOBBS: Why does it take so long, and what, with the loss of almost 3,000 lives on American soil, is required for people to move from a state of denial and to establish a real political will? Senator Gary Hart, we thank you very much for being with us here.

HART: It's a great pleasure. Thank you.

DOBBS: Coming up next, we'll share some of "Your Thoughts" about retailers who are taking Christmas out of Christmas.

And the "Battle for America," Why one former Clinton cabinet member says liberals are poised to win. Former Labor Secretary Robert Reich joins us.

And "Red Star Rising," a chilling warning about China's rapid military expansion. Author, journalist Mark Helprin says China will be the next great military power. He's my guest next. Please stay with us.

(COMMERCIAL BREAK)

DOBBS: The national guard plays a critical role in homeland security, but tens of thousands of national guardsmen are now deployed overseas, supporting the global war on terror.

Joining me now is General David Grange and general, let's focus on this issue of the national guard burden, the burdens that are being placed upon them. It appears that it is all but unreasonable right now, what we're asking so many of our citizen soldiers to do.

Is that appearance correct?

BRIG. GEN. DAVID GRANGE, (RET.), CNN MILITARY ANALYST: Well, it's beyond the expectations. Many join the national guard not expecting to be deployed for such long period of times of time or one or two times more than they thought. And so that's causing a little bit of friction. Also, it's pulling away from some of the governors, some of the assets they would like to have stay back in their home state.

DOBBS: Absolutely. Because this raises the issue, the guard are those we first call upon in the event of an earthquake or serious flooding. Their comrades are in Afghanistan and Iraq. We've depleted those forces. Is it, in point of fact, a serious issue, that shortage of manpower, still in the guard in this country?

GRANGE: I don't think that's a serious issue, Lou, because having worked the same issue when I served in the Pentagon, the active forces and other national guard forces from another state will help in certain regions if there is a catastrophe, natural or manmade. The issue is, local communities losing people that are firefighters, policemen.

DOBBS: Absolutely.

GRANGE: Emergency medical techs that are in national guard. No one fills those voids locally.

DOBBS: And, of course, that is a problem that is being felt in communities all around the country. Also, within that -- the context of the national guard overseas. It is a question that is troubling a lot of people, many because so many of our guardsmen have been killed in combat in Iraq. More, in fact, than in all of Vietnam. Why is that occurring?

GRANGE: Well, compared to Vietnam, of course, was very few guardsmen in Vietnam over that decade of war. And in Iraq, it's a very short period of time compared to that -- with high density numbers of national guardsmen. And a lot of them also were in units, at least up front, that were in combat support units that were on lines of communication, transportation units, easy pickings, you might say, for insurgent groups. No one wants to take on the teeth of an army. They want to take on the logistics part of an army.

DOBBS: And the idea that the Guard is having to triple bonuses to recruit, that suggests, to at least me, that there is a serious recruiting problem, if you're going to raise incentives to that extent.

GRANGE: In the future, there will be -- it will get more critical, Lou. And that will solve some of the problem, money. But what they really want, especially those that have families, is predictability on rotation times if, in fact, the war in Iraq and the war on terrorism is going to be sustained indefinitely.

DOBBS: General David Grange. Thank you, sir.

GRANGE: My pleasure.

DOBBS: That brings us to the subject of our poll tonight. The question, do you believe the U.S. military has become too dependent on its National Guard and reservists? Yes or no? Cast your vote at loudobbs.com. We'll have the results later here in the broadcast.

One of our closest allies in the global war on terror is taking extraordinary measures to predict its coastline from a terrorist attack. Australia says it will enforce a maritime security zone, as it calls it, that extends more than 1,000 miles out to sea, far beyond its traditional territorial waters. Any ships entering that zone, the Australians say, will be required to give Australia information about their cargo and destinations.

Some of Australia's neighbors aren't too keen about the plan, however. That Australian security zone extends into Indonesian and New Zealand waters.

Taking a look now at some of your thoughts. Hundreds of you wrote in about our report last night on a very P.C. Christmas, on retailers who have stripped the word "Christmas" from their stores and their advertising.

Gary Slayton in Athens, Georgia. "What a joy it was to listen to you tell the world that merry Christmas would remain a part of your vocabulary. It's amazing to me how some so-called politically correct stores have taken this valuable phrase from their employees." Ryan in Derry, New Hampshire. "I agree wholeheartedly with you, Lou. This is the season for giving. How about a little tolerance for this time of year? If someone celebrates something other than Christmas, you should be able to say merry Christmas and have them respond with their usual seasonal greeting."

Christine Fischer in Lisle, Illinois -- "Lou, thanks for not letting the issue of using the phrase merry Christmas slide without a fight. I guess the way things are going, we're allowed to keep the tree and the greed, but the Christmas will have to go."

And Norm Friedman in Cleveland, Ohio, doesn't like me saying "merry Christmas" at all. He writes to say -- "Would you really enjoy your season so much less if salespeople wished you happy holidays instead of merry Christmas? I think happy holidays is a warm, lovely greeting that conveys sensitivity, something you obviously lack."

Ooh, what happened to that Christmas spirit?

We love hearing from you. E-mail us at loudobbs@cnn.com.

Still ahead, former Clinton administration official, former Labor Secretary Robert Reich says the Democratic Party in this country has turned timid. But he believes they can fight back and win. He's our guest here next.

And China's growing political, economic, military muscle. Mark Helprin, author/journalist says there is no way for the United States to contain China. He says the United States can only hope to keep up. We'll find out how when Mark Helprin joins us next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: My guest tonight says the Democratic Party has turned timid. He says liberals are in disarray and on the offensive, if not in hiding. But former Labor Secretary Robert Reich also says liberals can reclaim political influence from conservative Republicans. Reich, of course, served as secretary of labor in the Clinton administration, the author of "Reason: Why Liberals Will Win the Battle for America." And he joins us tonight from Boston. Good to have you with us.

ROBERT REICH, FORMER LABOR SECRETARY: Hi, Lou. How are you?

DOBBS: I am terrific. And you wrote this book, obviously, before the election. Did, in writing it, you assume that John Kerry and the Democrats would win that election?

REICH: Well, with my usual foresight impressions, I wrote it knowing that John Kerry would win.

No, Lou, actually, I wrote it slightly to be provocative. There are very few people in America who call themselves liberals, at least in mixed company. But, in fact, if you scratch the surface, most people, whether they call themselves conservatives or whatever they call themselves, actually do believe in liberal principles. Such as separation between church and state, or a concern that economic and political power in the country not become too concentrated. Or a dedication to the proposition that everybody should have equal opportunity to get ahead. Not equal results, but equal opportunity.

DOBBS: Now, let me sort of square that up in practical political terms. Senator John Kerry was not concerned about concentrated economic power. In point of fact, the Democratic Party in its entirety taking almost as much as the Republicans from large U.S. multinationals, corporate America. The idea that working men and women in this country can rely upon the Democratic Party, Senator John Kerry in the debate had an opportunity to talk about outsourcing and said, well, it's just a fact of economic life. This is not the stuff I hear. He didn't sound like a liberal to me.

REICH: Well, look, Lou, I think John Kerry did a good job. Almost 56 million Americans voted for him; 59 million voted for George W. Bush. It wasn't a Dukakis-type trounce at all.

But I will agree with you in one respect. I think for a Democrat to be elected, a Democrat has got to talk about the issues that affect working people in this country. The middle class under enormous stress. And you see it, when you go out to the country -- I see it all the time. I was in almost every battleground state.

But also, issues having to do with fundamental fairness. The fact that -- well, give you a good example. The Republicans talked a lot about morality. But what about morality as it applies to the Enron-type corporations? Or companies that are basically going offshore? As you talk about over and over again? Or issues concerning abuse of public trust? You know, Billy Tauzin and other key architects of the Medicare drug bill are apparently, according to today's newspapers, negotiating their future with the drug companies as major lobbyists, as they are doing the drug bill.

You know, those are issues, Lou, of public morality. Much, much more public, fundamental moral issues I think Democrats ought to be sounding from the rooftops.

DOBBS: Well, by the way, I did not assert, as some might interpret your remarks, I did not assert that John Kerry had not done a good job. I just asserted that he had not campaigned as a liberal, in the traditional Democratic sense, and that is working hard on the issues of, for example, job security, on the outsourcing issue, and I thought a number of others, including free trade policy.

What are the most, three most, Robert, the three most important issues that liberals can take to the public and build a case to win with?

REICH: Lou, I'll be very, very specific and very clear with you. Number one is health care. Forty-five million Americans don't have it. And 120 million Americans are paying more than they've ever paid and are in danger of losing it. That's a winning issue, and it's going to be a major issue in the future.

Number two has to do with better jobs and wages, and the fact that corporations are not only putting good jobs abroad, but doing nothing about building good jobs, very little about building good jobs here in the United States.

And the third big issue that people are concerned about is affording higher education and also early childhood education. Making sure that our educational system is good for all of our children and that everybody has a chance to get ahead, which is not the case today.

These are fundamental, Democratic issues, liberal issues. They have to do with the future, they have to do with working people. And look, if the Democratic party doesn't champion them, who's going to champion them?

DOBBS: Robert Reich, as always, good to talk with you.

REICH: Lou, good to talk with you, too. Bye-bye.

DOBBS: Tonight's thought is on America. Tonight's thought, "I see America not in the setting sun of a black night of despair ahead of us. I see America in the crimson light of a rising sun fresh from the burning creative hand of God, I see great days ahead, great days possible to men and women of will and vision."

A reminder now to vote in tonight's poll. Do you believe the United States states' military has become too dependent on its National Guard and reservists? Yes or no? Cast your vote at loudobbs.com. We'll have the results coming up just a few minutes.

Still ahead, red star rising, the emergence of China as a potential superpower. I'll be talking with author Mark Helprin. He says the United States must do everything possible to maintain military superiority over China. Stay with us.

(COMMERCIAL BREAK)

DOBBS: America is, quite literally, exports its wealth to China, while China is using some of that money to build its military. My guest tonight says it's just a matter of time before China achieves military and economic parity with the United States. Mark Helprin is contributing editor of the "Wall Street Journal," the author of the new book "The Pacific and other stories." Joining us tonight from Charlottesville, Virginia. Good to have you with us, Mark.

MARK HELPRIN, WALL STREET JOURNAL: Thank you. My pleasure.

DOBBS: The idea of China achieving parity with the United States I think in the minds of most would be something that they would see distant, five or six decades. How soon do you think that could occur?

HELPRIN: Well, because of China's astounding economic growth in the past several decades, it's grown approximately 10 percent a year every year. And this is, of course, compounded, and it's not taxed. China doubles its GNP about every 7 or 8 years.

Because it's an authoritarian society and can devote whatever proportion it wishes of its GNP to military spending, held back only by the question of stability, of keeping stability among its own people, it can, when it wishes, greatly increase the amount of GNP devoted to the military whenever it wants.

And that was what we call the breakout. My guess is that in 15 to 20 years, they will accomplish the breakout, devoting maybe double the 3.5 percent of GNP that they now devote to military spending. And by that time, their economy will have quadrupled. That would bring them to parity with us in terms of PPP military spending.

DOBBS: Right. The fact is that this country is effectively exchanging, in many cases, baubles for real weapons, rocket systems and significant technology. When we look at what we're importing from China. And what is being exported in terms of the knowledge base in technology. We're also about $160 billion in capital a year being pumped directly into China. Are we simply caught in a spiral here that will be destructive of U.S. interests while, obviously, significantly advantaging the Chinese?

HELPRIN: I don't think you can look at it that way, because trade is good. Both sides are getting what they want from trade. No one forces us to trade with them. We're getting what we want, and they're getting what they want. It's inevitable.

And the way to look at it is rather that instead of bemoaning their success, and they are going to push ahead, they will reach gross economic parity with us eventually because of their mass and their size. And they will reach gross military parity with us, too.

DOBBS: Let me be clear, Mark. I'm not bemoaning the Chinese success at all. I'm bemoaning, if I am bemoaning at all, an obvious failure of American policy and an ability to find markets for its exports.

HELPRIN: Well, I don't think that's the issue. I think the issue would be our military policy. We can easily afford, much better than the Chinese, to keep our Navy up to snuff. China is in the Pacific. Our allies there are islands. And the key to our success there, the key to holding them back, in a sense, for several generations more than we might, if we don't do this, is to develop the Navy.

We've neglected the Navy. We build fewer ships now than we did during the Clinton administration. The Navy is way below 300 major surface combatants. If we devoted the normal attention that we used to the Navy, we would be able to discourage their buildup.

And right now, they're building up very rapidly. Their submarine force is such that it's the exact complement of our degradation of our anti-submarine warfare capability.

DOBBS: Mark Helprin, we thank you very much. We appreciate it.

Mark Helprin, the author of "The Pacific and Other Stories."

Still ahead, the results of tonight's poll. A preview of what's ahead tomorrow. Stay with us.

(COMMERCIAL BREAK) DOBBS: Results of our poll tonight, 97 percent of you said the United States military has become too dependent upon our national guard and reservists.

Thanks for being with us here tonight. Please join us tomorrow. President Bush will sign the intelligence reform legislation into law. Senator Susan Collins, one of the chief negotiators of the bill joins us.

And in "Broken Borders" our special report, one lawmaker who is fighting to make sure local police are not enforcing immigration laws. We'll find out why.

Please be with us.

For all of us here. Good night from New York. "ANDERSON COOPER 360" is next.

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


Aired December 16, 2004 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
LOU DOBBS, HOST (voice-over): Tonight, Osama bin Laden is back on a new tape. Are radical Islamists winning the propaganda war against the United States? We'll have a special report.

COLIN POWELL, SECRETARY OF STATE: He is a criminal. He's a terrorist. He's a murderer. And we're going to continue to hunt for him.

DOBBS: A grim warning tonight about our government's failure to prepare for a massive terrorist attack. Former Senator Gary Hart says we've done little or nothing to prevent an attack, or to prepare for its aftermath. He's our guest.

Red star rising, the emergence of China as a potential superpower. Tonight, why China and an unlikely ally are working together to challenge U.S. power around the world.

UNIDENTIFIED MALE: We don't want French weapons to be shooting at us across the Taiwan Strait.

DOBBS: I'll be talking with author and journalist Mark Helprin who says the United States must do everything possible to maintain military superiority over China.

Millions of Mexican illegal aliens have crossed our border to escape poverty. But Mexico has more billionaires and millionaires than any country in Latin America. Tonight, why Mexico is so eager to send one-tenth of its population to live in the United States. We'll have that special report.

(END VIDEOTAPE)

ANNOUNCER: This is LOU DOBBS TONIGHT for Thursday, December 16th. Here now for an hour of news, debate and opinion is Lou Dobbs.

DOBBS: Good evening.

Tonight, a new audiotape by Osama bin Laden, a troubling new example of al Qaeda's rising propaganda skills.

The al Qaeda leader praised the radical Islamist terrorists who attacked the U.S. consulate in the Saudi city of Jeddah 10 days ago. Bin Laden also threatened to overthrow the Saudi royal family. What makes this tape so disturbing is how quickly it was recorded and then distributed. National security correspondent David Ensor reports.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): This time, Osama bin Laden chose to distribute his audio message not through Arabic language television, but through the Internet. That may have helped his security. It certainly helped with speed.

PETER BERGEN, CNN TERRORISM ANALYST: This is the fastest turnaround tape that I can remember. I mean, usually the turnaround is weeks or even month. When he's responding to actual news events here, it's within ten days.

ENSOR: Bin Laden proves that by referring to the attack December 6 against the U.S. consulate in Jeddah.

OSAMA BIN LADEN, AL QAEDA LEADER (through translator): We pray to Allah to accept the Mujahideen who stormed the U.S. consulate in Jeddah as martyrs.

ENSOR: But there's another possible reason bin Laden did not send this tape, as he usually does, to Al Jazeera Television in Qatar. The tape is a 70-plus minute diatribe, largely against the Saudi royal family, Qatar's powerful neighbors.

MICHAEL SCHEUER, FORMER CIA ANALYST: Al Jazeera is reluctant, a lot of times, to offend the Saudis gratuitously. And some of his more scathing remarks are excerpted by the Qatar government and Al Jazeera. So if he has something he wants to say that's very, very harsh toward the Saudis, he has chosen in the past to use other venues.

ENSOR (on camera): Besides Al Jazeera?

SCHEUER: Besides Al Jazeera, yes, sir. So the message comes out whole.

(END VIDEOTAPE)

ENSOR: That message is 74 minutes long. Translators in the U.S. government and around the world are working their way through it. And after a technical analysis, CIA officials say the agency has a high degree of confidence that the voice on the tape is, indeed, bin Laden -- Lou.

DOBBS: David, thank you very much. David Ensor.

The White House today vigorously defended Defense Secretary Donald Rumsfeld from rising criticism. An increasing number of those critics are supporters of President Bush.

Today, Senator Trent Lott declared that he is not a fan of Secretary Rumsfeld. Senior White House correspondent John King reports. (BEGIN VIDEOTAPE)

JOHN KING, CNN CORRESPONDENT (voice-over): Defending the defense secretary is, of late, a staple theme at the White House briefing.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: I think Secretary Rumsfeld continues to do a great job while we're at war. We are a nation at war.

KING: No leading Republican lawmakers have demanded Rumsfeld's resignation, but a growing number are making clear they don't share the president's confidence in the defense secretary.

At home in Mississippi, GOP Senator Trent Lott said of Rumsfeld, "I don't think he listens enough to his uniformed officers."

"I'm not calling for his resignation," Lott went to say, "but I think we do need a change at some point."

Secretary Rumsfeld angered critics last week with his answer to a soldier in Kuwait who complained about a lack of armored vehicles in Iraq.

DONALD RUMSFELD, SECRETARY OF DEFENSE: You go to war with the army you have.

KING: Already a Rumsfeld critic, Republican Senator Susan Collins of Maine fired off a letter to the secretary late Wednesday, noting the Pentagon asked a supplier to speed up production of armored Humvees, apparently only after the soldier's complaint.

Why was this request not placed earlier, Senator Collins asked, promising the issue will be a major focus when Congress returns in January.

Earlier this week, Senator John McCain said he had no confidence in Rumsfeld. And Republican colleague Chuck Hagel of Nebraska also took aim.

SEN. CHUCK HAGEL (R), NEBRASKA: We didn't go into Iraq with enough troops. He's dismissed his general officers. He's dismissed all outside influence.

KING: One key congressional supporter suggests Rumsfeld's style is more an issue with the senators than his performance.

UNIDENTIFIED MALE: I think -- I think a lot of those folks want to be paid attention to. They're used to people listening to them at great length. And -- and I think sometimes the Senate thinks that the secretary has given them short shift.

KING: One senior White House official called the complaints Washington chatter, mostly from longtime Rumsfeld critics.

Senior Bush aides also say showing any displeasure now would be tantamount to embracing Rumsfeld's critics and acknowledging major mistakes in Iraq.

(END VIDEOTAPE)

KING: Senior White House officials say the president is well aware of this recent Republican grumbling and that he tells them to make clear he has no second thoughts at all about asking Secretary Rumsfeld to stay on into the second term and that he believes the secretary is doing a great job, Lou, at a very difficult time.

DOBBS: John King, thank you.

The rising controversy over the defense secretary caused, in part, by mounting concerns about the military's ability to fight a protracted war successfully in Iraq.

As many as 40 percent of our 150,000 troops are National Guardsmen and reservists. That means large numbers of troops who should be assigned to critical homeland security missions in this country are simply unavailable.

Peter Viles reports.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): By the tens of thousands, citizen soldiers from the National Guard are fighting the wars in Iraq and Afghanistan.

Lately they've complained of equipment shortages, lack of armor for their Humvees, but they haven't raised a bigger issue, why isn't the Guard at home guarding the United States against terrorists? That was, after all, the Guard's first assignment after September 11.

But since then, President Bush has sent the Guard overseas in huge numbers: 97,000 have either been to Iraq or are serving there now; 12,000 in all have been to Afghanistan. A huge burden for this part-time force of 450,000.

MICHAEL O'HANLON, BROOKINGS INSTITUTION: I am worried about how hard we are asking our guardsmen and guardswomen to work overseas. We are deploying them too much. We have a military that's simply too small in the ground forces for the demands of today's times.

VILES: Before 9/11, the U.S. Commission on National Security in the 21st Century urged, quote, "that the National Guard be given homeland security as a primary mission as the U.S. Constitution itself ordains. The guard should be reorganized and adequately equipped to undertake that mission."

That idea, however, was never seriously considered. The Pentagon believes the Guard can do two jobs: serve governors when needed at home, and fight foreign wars, reducing the size and the cost of the full-time army.

JAMES CARAFANO, THE HERITAGE FOUNDATION: I don't think you're ever going to want to create two militaries, one just as a home guard, and one just as an overseas. It doesn't make sense from a monetary standpoint, and it doesn't really make sense from a standpoint of strategy, because it doesn't give you a whole lot of flexibility.

VILES: Already more Guard members have died in Iraq than died in the entire Vietnam War.

(END VIDEOTAPE)

VILES: And despite these burdens, the Guard says it can still meet its main personnel goal here in the United States. And that is to have at least half of the Guard at home and at the ready should the governors need to call out the Guard on short notice -- Lou.

DOBBS: Pete, thank you very much. Peter Viles reporting from Los Angeles.

Tonight, the Army National Guard announced an increase in enlistment bonuses designed to attract more recruits. The commander of the Pentagon's National Guard bureau, General Steven Blume, said the guard has failed to meet its recruitment targets over the past two months.

General Blume acknowledged a major reason for that shortfall, the strain on guardsmen and their families as a result of the war in Iraq.

New questions tonight about possible links between Kofi Annan's son, Kojo, and the United Nations oil-for-food scandal. That program is at the center of a number of investigations into corruption at the United Nations.

Earlier this week, in an exclusive interview with CNN, Kojo Annan declared that he had never participated in any business related to the United Nations. But tonight, CNN has obtained documents that appear to contradict that assertion.

Jason Carroll reports from Washington.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): The thousands of pages of documents were provided by Cotecna, the Swiss company responsible for inspecting food and medicine shipments to Iraq. Several hundred related to Kojo Annan, the son of U.N. Secretary- General Kofi Annan.

Annan worked for Cotecna for two years and then continued as paid consultant, the same year Cotecna got its U.N. contract. Annan said he never misused his position by participating directly or indirectly in any U.N. business.

We were allowed to take notes but not take close-up photos. None of the documents we saw referenced the oil-for-food program or Iraq. But investigators want to know more about a few documents, including a fax marked "confidential," where Annan asked to be paid for time: "Compromised of six days in Abuja during my father's visit to Nigeria"; and "22 days in September of the same year"; "compromised of 15 days in New York for the General Assembly and various meetings relating to 'special projects'."

There's also this confidential fax addressed to Kojo Annan. "Thank you for representing come on at this important meeting. Your work and the contacts established at this meeting should ideally be followed up at the September 1998 U.N. General Assembly in New York."

When reached at his home in Lagos, Nigeria, Annan said, "I never attended a General Assembly, but was in New York for the time of the General Assembly to follow up with African government heads. I never, ever met with U.N. officials."

A Cotecna spokesman says "talking to people who attend the U.N. meetings does not mean that one is talking about U.N. matters."

Kofi Annan has faced criticism about the appearance of conflict of interest with his son as well as his own oversight of the U.N.'s oil-for-food program.

KOFI ANNAN, U.N. SECRETARY GENERAL: I am anxious to see the investigations concluded as quickly as possible so that we can get -- put it behind us and focus on the essential work of the United Nations.

(END VIDEOTAPE)

CAMPBELL: Kojo Annan has already been interviewed by U.N. investigators, and, when CNN asked if he would talk to congressional investigators, he said absolutely -- Lou.

DOBBS: And it looks like the opportunity may be presented.

Thank you very much.

Kofi Annan today met with top officials of the Bush administration to discuss Iraq and other critical issues. Annan met with Secretary of State Colin Powell and Powell's designated successor, National Security Adviser Condoleezza Rice.

Annan insisted that he did not feel snubbed by President Bush, who declined to meet with him at the White House.

(BEGIN VIDEO CLIP)

ANNAN: The president and I have met on many occasions, and we also do talk on the phone, and so I don't feel that if I come to Washington and we don't get a chance to meet, I should feel offended or snubbed. This is the nature of things.

(END VIDEO CLIP)

DOBBS: Kofi Annan had nothing to say about his son's business dealings today, nor the allegations that his son profited from the U.N.'s oil-for-food program.

Still ahead here tonight, former Senator Gary Hart will join us. We'll be talking about his chilling warning about the level of national security and also be talking with General David Grange about our military strategy in the global war on terror.

And Mexico's "Great Divide." Our special report tonight. Mexico is actually one of the richest nations in all of Latin America. So why are so many Mexicans fleeing poverty and coming to this country illegally with the support of their government? Our special report coming up.

And then, fears of a rude awakening in the American economy. Why foreigners are increasingly considering this country a tremendous financial risk. We'll have that and a great deal more still ahead.

(COMMERCIAL BREAK)

DOBBS: Tonight, an estimated 15 million illegal aliens live in this country, at least half of them from Mexico. Many are here because they chose to flee crushing poverty in Mexico.

But, in point of fact, Mexico is one of the richest countries in Latin America, amongst -- the millionaires, billionaires and its wealth concentrated in the hands of very few.

Casey Wian reports from Los Angeles.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): They sneak across the border seeking jobs they can't find in Mexico. The question isn't why they come, it's why can't Mexico's economy support its own people.

Nearly half of Mexico's population lives in poverty. Ten percent are indigent, existing on a dollar a day. Yet the nation has vast wealth. Mexico has more "Forbes" billionaires, 11, than all but eight other nations. It has more billionaires than Saudi Arabia, Switzerland or Taiwan. It also has more than 85,000 millionaires.

GEORGE W. GRAYSON, COLLEGE OF WILLIAM & MARY: There is a small economic elite who live like maharajas, and there's a political elite that protects them. Our border provides an escape valve which really lets the Mexican political and economic elite off the hook in terms of providing opportunities for their own people.

WIAN (on camera): About 10 percent of Mexico's 105 million people live here in the United States. They're called national heroes by President Vicente Fox because this year they'll send home about $16 billion, more than any Mexican industry except oil.

(voice-over): The country sits on oil reserves worth about $400 billion, but Mexico's state-owned oil company, Pemex, doesn't have the investment funds to tap those reserves, and Mexico's Congress refuses to allow foreign investment in Pemex.

Mexico's outdated tax system is plagued by widespread tax evasion. It collects taxes at less than half the rate of the United States. As a result, Mexico's public-school and health-care systems suffer. CHRIS WOODRUFF, CENTER FOR U.S.-MEXICO STUDIES: We now realize -- and particularly in a world where capitalists are mobile -- that redistribution isn't going to work, and what people focus on now instead is allowing the poor to build assets. Mexico has undertaken some programs which will allow the poor to do that. But that's not a process that changes overnight.

WIAN: Meanwhile, the gap between rich and poor is growing. So Mexico continues to export one of its most valuable assets, people.

Casey Wian, CNN, Los Angeles.

(END VIDEOTAPE)

DOBBS: The invasion of illegal aliens into this country is one of several threats to our wealth, our standard of living, our quality of life. Another is our exploding trade deficit and the rising export of American wealth overseas. The trend is beginning to discourage if none at home, some at least in foreign countries who are investing in this country.

Lisa Sylvester reports from Washington.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): The current account balance reflects what Americans earn and what they spend, including trade and international investment. The picture is not very pretty.

The United States last made ends meet in 1991 with a $10-1/2 billion surplus. Since then, the current account balance has been freefalling. The current account deficit for the last three months alone reached a record $164.7 billion.

To put that number into context, that's larger than Portugal's entire economy. Economists say we may be headed toward a day of reckoning.

CATHERINE MAIN, INSTITUTE FOR INTERNATIONAL ECONOMICS: Right now, basically, the entire deficit can be accounted for by the trade deficit in consumer goods and automobiles.

SYLVESTER: Americans are on a spending spree, but they're not buying American goods. So the money to finance the buying binge has come from foreigners.

China and Japan are the largest foreign holders of U.S. Treasury securities, but foreigners are increasingly growing skittish because of the large U.S. trade and budget deficits.

ASHRAF LAIDI, MG FINANCIAL GROUP: Now there are alternatives, unlike the '90s when the place to be was in the U.S. Now you could put money in Europe, in western Europe, in Asia and emerging markets.

SYLVESTER: So why should the average American care? Because it can hit them right in their pocketbook.

RANDALL DODD, FINANCIAL POLICY FORUM: If foreigners no longer want to invest in the U.S., it's going to make it more expensive for us to borrow for homes, borrow to buy a car. It's going to get harder for our corporations to issue bonds to raise capital for new investment.

SYLVESTER: And it will make it more expensive to finance the government's growing budget deficit.

(END VIDEOTAPE)

SYLVESTER: Many economists say the Bush administration is not doing enough to head off the rude awakening that could be in store, and, in the past when there were imbalances, the U.S. government worked with other countries to soften the landing, but that's not the case this time around, at least so far -- Lou.

DOBBS: Thank you, Lisa.

Tonight, an extraordinary sight in Hawaii. Giant waves, some as high as 40 feet, are crashing down on the north shore. Forecasters say the waves could hit as high as 50 feet. Some of the world's best surfers -- and you're seeing some of them here -- are in heaven. These waves are high enough for them to hold a rare big-wave competition on Oahu. The grand prize for these brave souls: $50,000.

Still ahead here tonight, former Senator Gary Hart will join me. We'll be talking about what he says this country must do to protect our national security.

And then, China rising, hoping to challenge U.S. power around the world. China has made new friends with one country that's been in a very public contest with the United States. We'll have that special report.

And Mark Helprin joins us.

And then, "Grange on Point." New questions tonight about whether the massive National Guard force in Iraq is jeopardizing security here at home. General David Grange will join us.

All of that and more still ahead.

(COMMERCIAL BREAK)

DOBBS: Now our special report on the rising influence of China militarily, economically and politically. Tonight, China's budding friendship with France. The leaders of both countries have visited one another this year. Both leaders are hoping their new relationship will allow them to challenge U.S. policy and influence around the world.

Mike Chinoy reports from Hong Kong.

(BEGIN VIDEOTAPE) MIKE CHINOY, CNN SENIOR ASIA CORRESPONDENT (voice-over): It wasn't just a red carpet France's Jacques Chirac laid out for China's visiting president earlier this year. Chirac literally bathed the Eiffel Tower in China's national color.

KENNETH LIEBERTHAL, BROOKINGS INSTITUTION: There are two motivations for Chirac in his embrace of China, and one is to needle the U.S. and to get out a little bit from under a U.S. shadow and assume some leadership role for the French, and the other is to do business.

CHINOY: When Chirac visited Beijing this fall, he came away with nearly $5 billion in Chinese contracts. But he set hit sights even higher. He's leading a campaign for the European Union to lift the arms embargo on China imposed after the 1989 Tiananmen Square crackdown so he can sell French weapons to Beijing despite China's human rights record.

ILARIA MARIA SALA, LE MONDE CORRESPONDENT: It does show either a conscious decision that human rights just do not really need to be on the agenda any longer, whether it's with China or any other place, or just a desire to please that is so strong that it goes beyond any principle.

CHINOY: And with China's continuing military buildup aimed at Democratic Taiwan, which the U.S. has vowed to defend from a Chinese attack, Chirac's gambit has alarmed the United States.

LIEBERTHAL: We don't want French weapons to be shooting at us across the Taiwan Strait. So I think that is a real concern.

CHINOY: Chirac, however, has ignored U.S. concerns on this as he has on so many other issues.

(on camera): And the French leader's campaign to make China into a lucrative counterweight to American power shows no sign of flagging.

Mike Chinoy, CNN, Hong Kong.

(END VIDEOTAPE)

DOBBS: We'll have much more ahead here tonight on the rise of China. Wall Street Journal contributing editor Mark Helprin joins me. He says this country is ignoring China's military and economic growth at our peril.

And also ahead here tonight, former Senator Gary Hart, whose commission warned of a terrorist attack in early 2001. Tonight, another warning. He says our leaders haven't done enough to prevent another terrorist attack. He'll be our guest.

And why a former Clinton administration official now says liberals are in disarray in this country. Former Labor Secretary Robert Reich has written a book entitled "Reason: Why Liberals Will Win the Battle for America." He joins us next.

Stay with us.

(COMMERCIAL BREAK)

ANNOUNCER: LOU DOBBS TONIGHT continues. Here now with more news, debate and opinion, Lou Dobbs.

DOBBS: I'll be joined by former Senator Gary Hart in just a moment. He says our leaders are not doing enough to protect this country from terrorist attack.

But, first, let's take a look at some of the top stories this evening.

Two months after announcing a shortage of flu vaccine, the Centers for Disease Control and Prevention now says tens of thousands of doses could go to waste. Officials say many Americans assumed they wouldn't be able to find a flu shot. As a result, more than half of all elderly adults have still not been vaccinated.

A security guard is under arrest tonight in connection with a series of fires that destroyed dozens of new homes in Maryland. Twenty-one-year-old Aaron Speed was working as a security guard in the community. Authorities have not released any specific information about the charges. He is scheduled to be arraigned in federal court tomorrow.

And a federal judge in Texas today dismissed charges against a defendant in an illegal alien smuggling case. The judge says there was no evidence the defendant profited from the smuggling scheme. Nineteen people were found dead in a truck found in southern Texas in 2003. Two co-defendants will stay on trial in that case.

Former Senator Gary Hart served as co-chairman of the United States Commission on National Security in the 21st Century along with former Senator Warren Rudman. That commission issued a warning to the nation in January of 2001 that a massive terrorist attack could occur on American soil.

Tonight, another disturbing warning. The former senator says three years after the September 11 attacks, our leaders have done little or nothing to prepare us for another major attack.

Gary Hart joins us tonight from Denver, Colorado.

Good to have you with us.

GARY HART, FORMER UNITED STATES SENATOR: Great pleasure.

DOBBS: Why, in your judgment, with all of the forces at work here, political, economic, national security concerns, why in the world are we not doing more to protect this nation, in your opinion?

HART: That's obviously a question that has to be directed at the current administration. I want to correct one thing you said, that -- you said little or nothing. Some things are being done, and I wouldn't want to be in the group of those saying nothing is being done. But as the title of the article that appears in "The Wall Street Journal" today, that four of us authored, I think summarizes it. Our hair is on fire. We have the same sense of you are urgency this administration seemed to have about Iraq. Now, Iraq turned out not to be a threat to the United States. But every terrorism expert that I'm aware of is -- they are all unified on the idea that we are going to be attacked again. And we just simply don't have the sense of urgency about getting ready to prevent that or respond to it, that we have about waging war in Iraq.

DOBBS: What should we be doing?

HART: Well, the list goes on. If you get into the details, the national guard ought to be trained and equipped. Disproportionately the national guard is in Iraq today, in support of our regular forces. They ought to be here being trained and equipped. Common databases and common communications systems, some of those won't be ready till 2008. That's unacceptable. The private sector is not being called upon to do nearly enough. This is a capitalist economy. The means of production are in private hands, not the government's hands. And yet no signal has been sent by the president or the White House to the private sector, the petrochemical industry, energy industry or any of the others that they must take steps to protect themselves. The sea ports are enormously porous, as one of our -- the authors of this article, Commander Steve Flynn (ph), has documented, and the list simply goes on and on and on.

DOBBS: Senator, actually, to maintain fairness here, the Department of Homeland Security just last week was addressing the issue with the petrochemical plants, in point of fact, trying to move some of that burden, appropriate burden-sharing as well, back on the chemical companies, in particular. Turning to the issue of border security, port security, why is it that this country, seemingly, at least our elected representatives and our government officials, cannot come to terms with the idea that without border security and port security, intelligence is of little help by itself.

Why is it, in your opinion, that is occurring?

HART: It's just beyond me. I think it's principally because geographically and historically, we've been an island nation protected by the oceans. But now this is the 21st, it's a globalized economy, as you well know. And we are dependent on world trade for our economy, both our input and our output. And 23 to 24,000 shipping containers come into our ports every day. We've got thousands of miles of unprotected border, and it's just a new threat and a new era that I think we simply don't have the imagination or creativity to deal with. And once again, to me, it's less a question of technology and much more a question of political will. I'm happy that we're moving with the petrochemical industry, but this is over three years after the first attack.

Why does it take so long?

DOBBS: Why does it take so long, and what, with the loss of almost 3,000 lives on American soil, is required for people to move from a state of denial and to establish a real political will? Senator Gary Hart, we thank you very much for being with us here.

HART: It's a great pleasure. Thank you.

DOBBS: Coming up next, we'll share some of "Your Thoughts" about retailers who are taking Christmas out of Christmas.

And the "Battle for America," Why one former Clinton cabinet member says liberals are poised to win. Former Labor Secretary Robert Reich joins us.

And "Red Star Rising," a chilling warning about China's rapid military expansion. Author, journalist Mark Helprin says China will be the next great military power. He's my guest next. Please stay with us.

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DOBBS: The national guard plays a critical role in homeland security, but tens of thousands of national guardsmen are now deployed overseas, supporting the global war on terror.

Joining me now is General David Grange and general, let's focus on this issue of the national guard burden, the burdens that are being placed upon them. It appears that it is all but unreasonable right now, what we're asking so many of our citizen soldiers to do.

Is that appearance correct?

BRIG. GEN. DAVID GRANGE, (RET.), CNN MILITARY ANALYST: Well, it's beyond the expectations. Many join the national guard not expecting to be deployed for such long period of times of time or one or two times more than they thought. And so that's causing a little bit of friction. Also, it's pulling away from some of the governors, some of the assets they would like to have stay back in their home state.

DOBBS: Absolutely. Because this raises the issue, the guard are those we first call upon in the event of an earthquake or serious flooding. Their comrades are in Afghanistan and Iraq. We've depleted those forces. Is it, in point of fact, a serious issue, that shortage of manpower, still in the guard in this country?

GRANGE: I don't think that's a serious issue, Lou, because having worked the same issue when I served in the Pentagon, the active forces and other national guard forces from another state will help in certain regions if there is a catastrophe, natural or manmade. The issue is, local communities losing people that are firefighters, policemen.

DOBBS: Absolutely.

GRANGE: Emergency medical techs that are in national guard. No one fills those voids locally.

DOBBS: And, of course, that is a problem that is being felt in communities all around the country. Also, within that -- the context of the national guard overseas. It is a question that is troubling a lot of people, many because so many of our guardsmen have been killed in combat in Iraq. More, in fact, than in all of Vietnam. Why is that occurring?

GRANGE: Well, compared to Vietnam, of course, was very few guardsmen in Vietnam over that decade of war. And in Iraq, it's a very short period of time compared to that -- with high density numbers of national guardsmen. And a lot of them also were in units, at least up front, that were in combat support units that were on lines of communication, transportation units, easy pickings, you might say, for insurgent groups. No one wants to take on the teeth of an army. They want to take on the logistics part of an army.

DOBBS: And the idea that the Guard is having to triple bonuses to recruit, that suggests, to at least me, that there is a serious recruiting problem, if you're going to raise incentives to that extent.

GRANGE: In the future, there will be -- it will get more critical, Lou. And that will solve some of the problem, money. But what they really want, especially those that have families, is predictability on rotation times if, in fact, the war in Iraq and the war on terrorism is going to be sustained indefinitely.

DOBBS: General David Grange. Thank you, sir.

GRANGE: My pleasure.

DOBBS: That brings us to the subject of our poll tonight. The question, do you believe the U.S. military has become too dependent on its National Guard and reservists? Yes or no? Cast your vote at loudobbs.com. We'll have the results later here in the broadcast.

One of our closest allies in the global war on terror is taking extraordinary measures to predict its coastline from a terrorist attack. Australia says it will enforce a maritime security zone, as it calls it, that extends more than 1,000 miles out to sea, far beyond its traditional territorial waters. Any ships entering that zone, the Australians say, will be required to give Australia information about their cargo and destinations.

Some of Australia's neighbors aren't too keen about the plan, however. That Australian security zone extends into Indonesian and New Zealand waters.

Taking a look now at some of your thoughts. Hundreds of you wrote in about our report last night on a very P.C. Christmas, on retailers who have stripped the word "Christmas" from their stores and their advertising.

Gary Slayton in Athens, Georgia. "What a joy it was to listen to you tell the world that merry Christmas would remain a part of your vocabulary. It's amazing to me how some so-called politically correct stores have taken this valuable phrase from their employees." Ryan in Derry, New Hampshire. "I agree wholeheartedly with you, Lou. This is the season for giving. How about a little tolerance for this time of year? If someone celebrates something other than Christmas, you should be able to say merry Christmas and have them respond with their usual seasonal greeting."

Christine Fischer in Lisle, Illinois -- "Lou, thanks for not letting the issue of using the phrase merry Christmas slide without a fight. I guess the way things are going, we're allowed to keep the tree and the greed, but the Christmas will have to go."

And Norm Friedman in Cleveland, Ohio, doesn't like me saying "merry Christmas" at all. He writes to say -- "Would you really enjoy your season so much less if salespeople wished you happy holidays instead of merry Christmas? I think happy holidays is a warm, lovely greeting that conveys sensitivity, something you obviously lack."

Ooh, what happened to that Christmas spirit?

We love hearing from you. E-mail us at loudobbs@cnn.com.

Still ahead, former Clinton administration official, former Labor Secretary Robert Reich says the Democratic Party in this country has turned timid. But he believes they can fight back and win. He's our guest here next.

And China's growing political, economic, military muscle. Mark Helprin, author/journalist says there is no way for the United States to contain China. He says the United States can only hope to keep up. We'll find out how when Mark Helprin joins us next. Stay with us.

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DOBBS: My guest tonight says the Democratic Party has turned timid. He says liberals are in disarray and on the offensive, if not in hiding. But former Labor Secretary Robert Reich also says liberals can reclaim political influence from conservative Republicans. Reich, of course, served as secretary of labor in the Clinton administration, the author of "Reason: Why Liberals Will Win the Battle for America." And he joins us tonight from Boston. Good to have you with us.

ROBERT REICH, FORMER LABOR SECRETARY: Hi, Lou. How are you?

DOBBS: I am terrific. And you wrote this book, obviously, before the election. Did, in writing it, you assume that John Kerry and the Democrats would win that election?

REICH: Well, with my usual foresight impressions, I wrote it knowing that John Kerry would win.

No, Lou, actually, I wrote it slightly to be provocative. There are very few people in America who call themselves liberals, at least in mixed company. But, in fact, if you scratch the surface, most people, whether they call themselves conservatives or whatever they call themselves, actually do believe in liberal principles. Such as separation between church and state, or a concern that economic and political power in the country not become too concentrated. Or a dedication to the proposition that everybody should have equal opportunity to get ahead. Not equal results, but equal opportunity.

DOBBS: Now, let me sort of square that up in practical political terms. Senator John Kerry was not concerned about concentrated economic power. In point of fact, the Democratic Party in its entirety taking almost as much as the Republicans from large U.S. multinationals, corporate America. The idea that working men and women in this country can rely upon the Democratic Party, Senator John Kerry in the debate had an opportunity to talk about outsourcing and said, well, it's just a fact of economic life. This is not the stuff I hear. He didn't sound like a liberal to me.

REICH: Well, look, Lou, I think John Kerry did a good job. Almost 56 million Americans voted for him; 59 million voted for George W. Bush. It wasn't a Dukakis-type trounce at all.

But I will agree with you in one respect. I think for a Democrat to be elected, a Democrat has got to talk about the issues that affect working people in this country. The middle class under enormous stress. And you see it, when you go out to the country -- I see it all the time. I was in almost every battleground state.

But also, issues having to do with fundamental fairness. The fact that -- well, give you a good example. The Republicans talked a lot about morality. But what about morality as it applies to the Enron-type corporations? Or companies that are basically going offshore? As you talk about over and over again? Or issues concerning abuse of public trust? You know, Billy Tauzin and other key architects of the Medicare drug bill are apparently, according to today's newspapers, negotiating their future with the drug companies as major lobbyists, as they are doing the drug bill.

You know, those are issues, Lou, of public morality. Much, much more public, fundamental moral issues I think Democrats ought to be sounding from the rooftops.

DOBBS: Well, by the way, I did not assert, as some might interpret your remarks, I did not assert that John Kerry had not done a good job. I just asserted that he had not campaigned as a liberal, in the traditional Democratic sense, and that is working hard on the issues of, for example, job security, on the outsourcing issue, and I thought a number of others, including free trade policy.

What are the most, three most, Robert, the three most important issues that liberals can take to the public and build a case to win with?

REICH: Lou, I'll be very, very specific and very clear with you. Number one is health care. Forty-five million Americans don't have it. And 120 million Americans are paying more than they've ever paid and are in danger of losing it. That's a winning issue, and it's going to be a major issue in the future.

Number two has to do with better jobs and wages, and the fact that corporations are not only putting good jobs abroad, but doing nothing about building good jobs, very little about building good jobs here in the United States.

And the third big issue that people are concerned about is affording higher education and also early childhood education. Making sure that our educational system is good for all of our children and that everybody has a chance to get ahead, which is not the case today.

These are fundamental, Democratic issues, liberal issues. They have to do with the future, they have to do with working people. And look, if the Democratic party doesn't champion them, who's going to champion them?

DOBBS: Robert Reich, as always, good to talk with you.

REICH: Lou, good to talk with you, too. Bye-bye.

DOBBS: Tonight's thought is on America. Tonight's thought, "I see America not in the setting sun of a black night of despair ahead of us. I see America in the crimson light of a rising sun fresh from the burning creative hand of God, I see great days ahead, great days possible to men and women of will and vision."

A reminder now to vote in tonight's poll. Do you believe the United States states' military has become too dependent on its National Guard and reservists? Yes or no? Cast your vote at loudobbs.com. We'll have the results coming up just a few minutes.

Still ahead, red star rising, the emergence of China as a potential superpower. I'll be talking with author Mark Helprin. He says the United States must do everything possible to maintain military superiority over China. Stay with us.

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DOBBS: America is, quite literally, exports its wealth to China, while China is using some of that money to build its military. My guest tonight says it's just a matter of time before China achieves military and economic parity with the United States. Mark Helprin is contributing editor of the "Wall Street Journal," the author of the new book "The Pacific and other stories." Joining us tonight from Charlottesville, Virginia. Good to have you with us, Mark.

MARK HELPRIN, WALL STREET JOURNAL: Thank you. My pleasure.

DOBBS: The idea of China achieving parity with the United States I think in the minds of most would be something that they would see distant, five or six decades. How soon do you think that could occur?

HELPRIN: Well, because of China's astounding economic growth in the past several decades, it's grown approximately 10 percent a year every year. And this is, of course, compounded, and it's not taxed. China doubles its GNP about every 7 or 8 years.

Because it's an authoritarian society and can devote whatever proportion it wishes of its GNP to military spending, held back only by the question of stability, of keeping stability among its own people, it can, when it wishes, greatly increase the amount of GNP devoted to the military whenever it wants.

And that was what we call the breakout. My guess is that in 15 to 20 years, they will accomplish the breakout, devoting maybe double the 3.5 percent of GNP that they now devote to military spending. And by that time, their economy will have quadrupled. That would bring them to parity with us in terms of PPP military spending.

DOBBS: Right. The fact is that this country is effectively exchanging, in many cases, baubles for real weapons, rocket systems and significant technology. When we look at what we're importing from China. And what is being exported in terms of the knowledge base in technology. We're also about $160 billion in capital a year being pumped directly into China. Are we simply caught in a spiral here that will be destructive of U.S. interests while, obviously, significantly advantaging the Chinese?

HELPRIN: I don't think you can look at it that way, because trade is good. Both sides are getting what they want from trade. No one forces us to trade with them. We're getting what we want, and they're getting what they want. It's inevitable.

And the way to look at it is rather that instead of bemoaning their success, and they are going to push ahead, they will reach gross economic parity with us eventually because of their mass and their size. And they will reach gross military parity with us, too.

DOBBS: Let me be clear, Mark. I'm not bemoaning the Chinese success at all. I'm bemoaning, if I am bemoaning at all, an obvious failure of American policy and an ability to find markets for its exports.

HELPRIN: Well, I don't think that's the issue. I think the issue would be our military policy. We can easily afford, much better than the Chinese, to keep our Navy up to snuff. China is in the Pacific. Our allies there are islands. And the key to our success there, the key to holding them back, in a sense, for several generations more than we might, if we don't do this, is to develop the Navy.

We've neglected the Navy. We build fewer ships now than we did during the Clinton administration. The Navy is way below 300 major surface combatants. If we devoted the normal attention that we used to the Navy, we would be able to discourage their buildup.

And right now, they're building up very rapidly. Their submarine force is such that it's the exact complement of our degradation of our anti-submarine warfare capability.

DOBBS: Mark Helprin, we thank you very much. We appreciate it.

Mark Helprin, the author of "The Pacific and Other Stories."

Still ahead, the results of tonight's poll. A preview of what's ahead tomorrow. Stay with us.

(COMMERCIAL BREAK) DOBBS: Results of our poll tonight, 97 percent of you said the United States military has become too dependent upon our national guard and reservists.

Thanks for being with us here tonight. Please join us tomorrow. President Bush will sign the intelligence reform legislation into law. Senator Susan Collins, one of the chief negotiators of the bill joins us.

And in "Broken Borders" our special report, one lawmaker who is fighting to make sure local police are not enforcing immigration laws. We'll find out why.

Please be with us.

For all of us here. Good night from New York. "ANDERSON COOPER 360" is next.

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