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CNN Wolf Blitzer Reports

Bernard Kerik Resigns Position at Giuliani Firm; Ripples from Mosul Attack, Fort Lewis, Washington Braces for Bad News; Can Airports Handle High Volume of Holiday Travelers?; Dangerous Rebuilding Effort in Iraq; Winter Storm Warnings for Parts of U.S.

Aired December 22, 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, CNN ANCHOR: Happening now, late word from the Pentagon about the likely cause of that deadly blast at the U.S. military base in Mosul. Stand by for hard news on WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)

BLITZER (voice-over): After the attack, the casualties are moved out as the military moves in to Mosul. Who carried out the attack and how?

Echoes of another era. President Reagan cut America's losses and left Lebanon. Should President Bush do the same in Iraq?

Holiday worries. Snow slams the center of the country. But is that the only threat facing travelers? I'll ask a top homeland security official and a top terrorism expert.

ANNOUNCER: This is WOLF BLITZER REPORTS for Wednesday, December 22, 2004.

(END VIDEOTAPE)

BLITZER: Thanks very much for joining us. Investigators now think they know what happened in that Mosul mess hall. It was a devastating blow that sent this country reeling. The explosion killed 22 people, 18 of them Americans, including 13 soldiers. Dozens more were hurt. The wounded today were flown to Germany. Our Matthew Chance is live at the Ramstein air base. And we'll go live to CNN's Karl Penhaul. He's in Baghdad. But we begin over at the Pentagon, where the top brass are saying it was, in all likelihood, a suicide strike. CNN's Kathleen Koch is joining us from there -- Kathleen.

KATHLEEN KOCH, CNN CORRESPONDENT: Wolf, this mess hall, like most U.S. military installations in Iraq, had been attacked in the past by both mortars and rockets. But we learned in a briefing here at the Pentagon this afternoon that it was an enemy within who caused the carnage.

(BEGIN VIDEOTAPE)

KOCH (voice-over): Not a rocket, not a mortar, but a bomb, says the Pentagon, was carried right into the midst of the Camp Merez mess hall Tuesday, just as soldiers were sitting down to eat.

GEN. RICHARD MYERS, CHAIRMAN, JOINT CHIEFS OF STAFF: We've had a suicide bomber, apparently, strap something to his body, apparently a him, and go into a dining hall.

KOCH: An Iraqi militant group had claimed responsibility, saying it was a suicide attack carried by a single individual. The coalition says among the dead is one unidentified non-U.S. person. The Pentagon says it does not yet know whether or not that person was the bomber. It's believed key evidence came from small, circular holes found in metal kitchen equipment in the mess hall, signs of ball bearings used as shrapnel to increase the deadliness of the bomb.

Secretary Rumsfeld, under fire recently for perceived insensitivity to troops and their families, try tried to wipe the slate clean.

DONALD RUMSFELD, SECRETARY OF DEFENSE: I am truly saddened by the thought that anyone could have the impression that I or others here are doing anything other than working urgently to see that the lives of the fighting men and women are protected and are cared for in every way humanly possible. And I hope and pray that every family member, of those who have died so bravely, knows how deeply I feel their loss.

KOCH: A multinational force spokesman says Iraqis working at U.S. bases do have to show ID to gain entry, but are not always bodily searched.

(END VIDEOTAPE)

KOCH: Nor are they always accompanied once they enter U.S. military facilities. General Myers and Defense Secretary Rumsfeld did promise that steps would be taken to make sure -- to prevent such attacks in the future, though they would not specify. But when it comes to large gatherings in places like mess halls, General Myers says that that practice will continue. He says it is, quote, "simply not a viable strategy to ask everybody to separate," -- Wolf.

BLITZER: A very somber secretary of defense, Donald Rumsfeld, indeed. Kathleen Koch at the Pentagon, thanks very much.

As investigators comb through the scene of the mess hall bombing, U.S. troops are clamping down on the city of Mosul. For more on the aftermath of that bloody attack, let's go live to CNN's Karl Penhaul. He's joining us in Baghdad -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi there, Wolf. We have seen signs in Mosul today that U.S. troops are starting to react to this insurgent attack. And they have been blocking certain streets in Mosul, looking for these insurgents. That said, they have been waging what they have been calling an offensive for the last several weeks to try and fight insurgents there who have regularly raided police stations in that area, though to little effect, judging by Tuesday's strike. The insurgent groups there seem to be well and carrying on the fight. The insurgent group that has claimed responsibility for yesterday's attack goes by the name of Ansar al-Sunna. And that is well-known in Iraq. It announced its appearance back in September, and since then, has claimed responsibility for a string of deadly strikes across the country.

It claims to be made up of remnants of the Ansar al-Islam group, together with some former al Qaeda loyalists and members of the Sunni Arab population, both from Iraq and from abroad.

One of its most prominent strikes was that back in February of this year, when two suicide bombers walked into the headquarters of the two main Kurdish political parties in Erbil, set off those devices and killed more than 106 people.

This attack on the base on Tuesday in Mosul is, of course, not the first time such an attack has been carried out on a heavily- defended U.S. compound. Think back to October the 14th. Two suicide bombers walked into the Green Zone here in Baghdad. And in their bomb attacks, more than 10 people were killed -- Wolf.

BLITZER: CNN's Karl Penhaul, with the latest from Baghdad. Karl, thank you very much.

Dozens of wounded from yesterday's attack have now been flown to Germany for medical treatment. CNN's Matthew Chance was on-hand when they were slowly, gently taken off the transport plane. He is joining us now live from the Ramstein air base -- Matthew.

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Wolf, thanks very much. And it has now been confirmed that 42 U.S. personnel were evacuated here to Landstuhl, near the Landstuhl medical facility, near where I am right now. Thirty-five of those said to be U.S. troops. Another seven of them civilian contractors, U.S. citizens, caught up in the blast in that dining facility, that mess tent in Mosul that came under attack.

They'll be spending their first night under the close medical supervision of the specialist teams at the Landstuhl medical facility that has been set up here to meet and to greet these injured people, to give them whatever treatment they need. Landstuhl, of course, the biggest U.S. Army hospital outside of the United States.

There has been, as yet, no public access, no media access, to the injured. And so we haven't had a chance to sit down with any of them and get their first-hand accounts of exactly what it was that happened during that attack.

But what we have learned is that at least eight of those who were evacuated today are in extremely serious condition, in critical condition, according to the doctors. Only 13 of the 42 that were evacuated were able to walk unassisted. And so, some very grave injuries, indeed, sustained during this devastating attack on Mosul.

What doctors at the Landstuhl medical facility now say is that their challenge is to get these individuals back on their feet and strong enough to sustain a flight back home to the United States.

Now, for some that's only going to take a few days. But for others, those who have been injured much more seriously, it could take a lot longer -- Wolf.

BLITZER: Matthew Chance, reporting for us from Germany. Matthew, thank you very much.

For the soldiers who didn't survive the attack in Mosul, a final journey is now under way. Their remains arrived in Kuwait earlier this morning, on their way back to the United States. I spoke earlier today to our Pentagon correspondent, Barbara Starr, she was at a remote airfield in Kuwait for the solemn return of flag-draped coffins.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: When we left Kuwait City, very early this morning, from a remote airfield there, it was a quiet, sad moment. As we were at the airfield, a C-130 aircraft from Iraq landed at the airfield. The back of the plane opened up and a honor guard, two lines of troops, approached the rear of the plane and very quietly, very reverently, began taking the body bags off the plane, the human remains from the attack in Mosul.

This was a very unique opportunity because, as you know, Wolf, there -- media is not allowed to cover or film the return of remains from the war. And, indeed, we could not take our camera out. But we were given permission there to very quietly stand at a distance and watch this honor guard.

There was no one else at the airfield. And yet, these troops gave these remains every honor. There was a quiet funeral salute, pace (ph) salute, as the body bags came off the plane, as they were loaded into vehicles, and then taken to another location on the Kuwait airfield for mortuary affairs, of course, before they make their final journey home, back to the United States.

(END VIDEOTAPE)

BLITZER: Barbara Starr, speaking with me earlier today. She was actually aboard the aircraft carrier Harry Truman in the Persian Gulf when we spoke earlier in the day. She had been in Kuwait and eyewitnessed the arrival of those coffins.

Relatives waiting to hear about the fate of their loved ones serving in Mosul, many of those families are in Ft. Lewis, Washington, home of 4,000 members of the Stryker Brigade. We'll get a live update. That's coming up next.

With new worries about security and violence, will U.S. civilian contractors drop their efforts to try to rebuild Iraq?

And terrorism concerns in America this holiday season. Will travelers be safe? A top homeland security official and a terror expert, they will join us this hour. (COMMERCIAL BREAK)

And terrorism concerns in America this holiday season. Will travelers be safe? A top homeland official and a terror expert, they will join us this hour.

(COMMERCIAL BREAK)

BLITZER: We're getting this, just in to CNN. The former New York City police commissioner, Bernard Kerik has added another former to his resume. Later this afternoon, he resigned his post over at Giuliani Partners, the company of the former New York City mayor and Kerik's mentor Rudy Giuliani. Kerik had been a partner in that firm. The move comes two weeks after Kerik withdrew his nomination for homeland security secretary, citing a possibly illegal nanny who once worked for him. Kerik says there are several reasons for his resignation from the Giuliani company.

(BEGIN VIDEO CLIP)

BERNARD KERIK, FMR. NYC POLICE COMMISSIONER: I want to thank Rudy Giuliani for his leadership, his friendship, his encouragement. I want to publicly wish him and all of my colleagues at GK&GP all the best in their future endeavors with the company. I plan to take some time off to focus on my family, on things that have to be focused on at this point. And to clear my good name.

(END VIDEO CLIP)

BLITZER: In addition to the nanny issue, questions arose about Kerik's financial dealings and ties to people allegedly linked to organized crime, as well as many questions about his own personal life.

More, now, on the deadly attack on the U.S. military base in Mosul. Many of the soldiers there are based at Fort Lewis in Washington state. And with identities of the injured still trickling out, it's understandably a very tense time there. CNN's Kimberly Osias, is joining us now live from Fort Lewis with more. Kimberly, must be very somber there.

KIMBERLY OSIAS, CNN CORRESPONDENT: Very much so. Definitely a pall over Fort Lewis, as you can imagine, especially in light of the Christmas holiday just around the corner, Wolf. The chaplain here at Fort Lewis is a available to receive families should they want to avail themselves of that opportunity. But what I've been told by the soldiers I spoke with, is that there are a number of informal meetings where families are getting together, looking at the Internet in their homes here. The family members that are still on base. Many have left for vacation for block leave. One group has just come back about a month ago from Mosul.

This is not just thought the families affected. It is a community that's been affected, as well, since war broke out about 20 months ago. This community really wrapped themselves around these soldiers. A bridge a stone's throw from where we are standing has been a tribute for the soldiers. There have been a number of yellow ribbons that have been blowing in the wind. Fresh ones, new ones, that were added yesterday. As well as the fact that some people come out and stand in support. Especially yesterday, blowing their flags and doing anything they can to show solidarity with these troops.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Just knowing there was one or two strikers in our convoy, we felt more secure knowing they were there with us. It was better than just having one or two gun trucks with us on a convoy. It was helpful knowing they were there. They really took care of us out there.

UNIDENTIFIED FEMALE: To see him helping somebody, would be just -- just to know he was OK. You know? I just want to see his face.

(END VIDEO CLIP)

OSIAS: It is certainly a tough juxtaposition. The families that do know their loved ones are OK still have unease and nervousness, for colleagues that still don't know what their fate is. Interestingly, there is another unit that's returning back to Fort Lewis tomorrow. 195 will be returning here about 4:45 Pacific Time. We will be there when that happens.

BLITZER: A quick question -- how do they actually go about delivering that very grim news that a loved one has been killed in action, the family notification process -- what goes on?

OSIAS: I'm told that that will be trickling in. As I mentioned, of course, being Christmas time, they have to locate these families. They -- it is done in person. There will be a support person there, a counselor there. That will be happening over the next several days. We will not know, here at Fort Lewis, until that last family member has been told. 24 hours after that, we will know, as well.

BLITZER: Kimberly Osias reporting for us from Fort Lewis in Washington state. Kimberly, thanks very much.

Terrorism threats during the holiday season. Are the nation's airports prepared to handle the high volume of travelers? And a winter storm warning. A powerful front bringing a foot or more of snow to some parts of the country.

And later -- the man famous for saying you're fired. My interview from earlier this year with Donald Trump as we look back at some of the best of WOLF BLITZER REPORTS. Stay with us.

(COMMERCIAL BREAK)

BLITZER: From New Mexico to the Great Lakes, the best way to describe today's weather is wintry. Up to half a foot of snow is predicted for parts of Missouri, along with windchills down to the single digits. A similar scene in southwest Indiana, which has had more snow from this one storm, namely seven inches, than it got all of last year. CNN meteorologist Jacqui Jeras, is right in the thick of it all in Evansville, Indiana.

JACQUI JERAS, CNN METEOROLOGIST: To some, it's a winter wonderland. To others, it's a travel nightmare. We're here along Interstate 64 and U.S. 41, in southwest Indiana near Evansville, where traffic has been very hazardous today, and at a crawl, at best averaging 30 to 35 miles per hour. There have been dozens of travel accidents. But the Indiana state police say that the traffic numbers have been down a little bit. They are expecting very high numbers today and tomorrow, both.

Some people just decided to wait out the storm altogether. You can see dozens of truckers behind me, who said they're just going to call it a night and wait until tomorrow. This all started in the overnight hours, with freezing rain and sleet. On top of that is about 12 inches of very dry, fluffy snow. Good news for Evansville. This should be over and done with by mid morning but those down the Ohio River over towards Louisville into Cincinnati, and then extending up towards Cleveland, could see freezing rain overnight tonight. And then changing to additional snowfall amounts into tomorrow. The forecast for the southeast, though, has severe weather, all associated with the same storm. Back to you.

BLITZER: Jacqui Jeras, thanks very much. Right in the middle of things in Evansville, Indiana.

Another story we're following, the Washington state supreme court has just ruled that hundreds of ballots in King County should be recounted in that governor's race. The ruling reverses a superior court ruling and could result in a victory for the Democrat Christine Gregoire. She won 58 percent of the vote in King County, compared to 40 percent for the Republican Dino Rossi. After the initial count of all ballots cast in the election, Rossi led by 261 votes out of nearly 2.9 million cast. That narrow margin triggered a mandatory, state- wide machine recount.

Snowy roads and jammed airports may not be your only problems this holiday season. Could terrorism derail your travel plans? The assistant secretary of homeland security and a top terrorism expert will join us live to weigh in.

Striking parallels -- terror strikes in Iraq resemble what happened in Lebanon two decades ago. Is history repeating itself?

Plus, from inside so-called Camp Cupcake, Martha Stewart's Christmas message and complaints of bad prison food.

(COMMERCIAL BREAK)

BLITZER: Welcome back. The risks in Iraq extend to those trying to rebuild the war-torn country. Four Halliburton employees died in the attack on the U.S. base in Mosul yesterday. And another company is stopping a project because of growing security costs. CNN's Chris Huntington is looking into the dangers built in to this multibillion- dollar rebuilding effort in Iraq -- Chris.

CHRIS HUNTINGTON, CNN CORRESPONDENT: For anybody doing business in Iraq, security is the number one concern. It is one of the highest components of the cost of any project in Iraq and as the attack in Mosul provides yesterday a deadly reminder of just how dangerous that business can be.

(BEGIN VIDEOTAPE)

(voice-over): The blast that ripped through the mess tent at the U.S. military base in Mosul killed four employees of Halliburton subsidiary, Kellogg, Brown & Root and wounded 16 others who also worked for the company. In a statement, Halliburton called the Mosul attack, quote, "the worst for KBR and our subcontractors in almost two years of the war in Iraq." Halliburton and KBR, which have been under constant fire for their contracts in Iraq, have also been literally in the line of fire. The company says that 59 employees have been killed in Iraq, more than any other single contractor. For now, Halliburton says it has no plans to pull out of Iraq but the cost of security for contractors there, in lives and in dollars, continues to rise.

MICHAEL O'HANLON, BROOKINGS INSTITUTION: We've been hearing for months about how much money has to be spent on security. And these companies are still losing people. Again, just this week in Mosul. So I think a number of firms could reconsider whether they want to be in Iraq.

HUNTINGTON: According to the defense department's Iraq project and contracting office in Baghdad, no U.S. contractors have pulled out of work in Iraq, solely due to security concerns. One firm, Contrack International tells CNN it recently agreed with the Pentagon to halt a project for road and bridge repair, due to rising costs, that included security costs. John Sullivan recently conducted a survey of businesses in Iraq and found security costs to be the major concern.

JOHN SULLIVAN, CTR. FOR PRIVATE ENTERPRISE: Security is the primary obstacle. There's no question about that.

HUNTINGTON: The U.S. government does not keep official statistics of private contractor casualties. But ICasulties.org posts what it calls an incomplete list of 192 contract workers killed in Iraq. 66 of them American. Researchers at the Brookings Institution estimate 170 private contract workers have been killed in Iraq, with more than 800 wounded. Brookings also estimates that close to 60 percent of those killed were private security forces, often former special forces.

(END VIDEOTAPE)

(on camera): Now, those familiar with the going rate for private security or what some call private military say that former U.S. soldiers with special forces training are the most sought after and the most highly paid typically earning about $1,000 a day per man plus the perks of body armor and armored vehicles.

BLITZER: Chris Huntington reporting for us in New York. Thanks very much.

Our security watch today focuses in on holiday travel. AAA estimates a record 62 million people will be on the move this holiday season. CNN's Mary Snow is live at New York's Penn Station with more -- Mary.

MARY SNOW, CNN CORRESPONDENT: (AUDIO GAP).

(BEGIN VIDEOTAPE)

(voice-over): Whether it's by train, plane or automobile the number of holiday travelers this season is expected to set a record.

JUSTIN MCNAULL, AAA SPOKESMAN: (UNINTELLIGIBLE) and most people feel pretty decent about travel security, certainly better than they did a year ago or two years ago so we're traveling again.

SNOW: Airlines expect the number of passengers to surpass levels reached before September 11, when air travel reached its previous record high. Observes say Americans are getting more used to security procedures.

MCNAULL: As you go through now at the airport vs. a year ago, and it's a more hands-on, it's a more involved process. There's a little more touching. There's a little more taking off involved than there was. And travelers, we've gotten used to it, by and large.

SNOW: Low-cost fares from discount airlines are also prompting more people to fly. Because of extra security, transportation officials say the average wait time at airports during the Thanksgiving weekend was 12 minutes in peak hours. But Travelocity says it found those waits can be a lot longer in major cities.

AMY ZIFF, EDITOR AT LARGE, TRAVELOCITY: Some of the New York airports, La Guardia, JFK, Newark, Miami, we saw this, also the Chicago airports, where we saw spikes upwards of an hour, at times, throughout that holiday weekend.

SNOW: It's not just air travel hitting records. AAA expects 50.9 million people to drive more than 50 miles from their home. That's an all-time high. And that comes despite the fact that the average gasoline price is $1.83 a gallon.

(END VIDEOTAPE)

SNOW: And experts, Wolf, say that patience is really going to be key this holiday season. Also, the wild card is weather. We spoke to a few passengers here today about their security concerns. They tell me that they've eased somewhat. They're still there. But it hasn't stopped them from traveling -- Wolf.

BLITZER: So, generally, Mary, would you say that the mood is upbeat among these people that you're seeing over there at Penn Station? Or are they concerned?

SNOW: I would say for the people we have spoken with, somewhat upbeat. And there are a couple different factors being cited for the increase, expected increase in travel. That is the concerns about security easing somewhat. Some people told me that they felt more secure because of the checks that are being undertaken at the airports and more hands-on approach.

Also, the economy, it's also helping lift some spirits among travelers this year.

BLITZER: Mary Snow, reporting for us from New York -- Mary, thank you very much.

And joining us now with their take on possible terrorist activity during these holidays, retired Rear Admiral David Stone. He's the homeland security assistant secretary for the Transportation Security Administration. That would be the TSA. And Brian Jenkins, a well- known terrorism analyst with the RAND Corporation, he's joining us from Los Angeles.

Gentlemen, thanks to both of you.

How concerned, Admiral Stone, should Americans be between Christmas and New Year's these holidays?

DAVID STONE, TSA ADMINISTRATOR: Well, we have no specific threat information. So, I think the traveling public should be very confident that there's a sense of urgency in all those involved in the homeland security business go about their travel and feel confident that people have their eye on the ball.

BLITZER: So, at least at this point, no expectations to raise the threat level, the color-coded threat level?

STONE: None whatsoever. And, like I said, we're approaching this with a sense of urgency over a period of time that we always have. And people should be very confident about traveling.

BLITZER: Brian, many of our viewers know you. Is that a fair assessment, that Americans should simply go about their holiday travel as they would like?

BRIAN JENKINS, RAND CORPORATION: I think they should.

Look, the threat is real. The threat continues. Even though we're not going to take it up a notch during the holidays, we're still operating at an elevated threat level throughout the country. And that's because we know, over the past several years, terrorists continue to target commercial aviation, as well as surface transportation.

But here's what the traveler has to remember. Even the heightened probability of a terrorist attack does not translate into significantly increased risk for the individual traveler.

BLITZER: Admiral Stone, give our viewers a little practical advice. Millions of them are, for example, going to be going to airports. And your people, the TSA officials, they are going to be checking them out. What should they know going into this process?

STONE: Well, they should be checking carefully what they pack, so they don't have items that are prohibited. We still have two to three guns per day that people bring to our checkpoint that slow down the lines for everyone and cause some concern until we sort that out.

BLITZER: And they bring these guns -- simply, they think they can get on a plane?

STONE: They forget. They say that, oh, I forget I packed that. And, as you can imagine, that causes concern and delays when that takes place. Also, when you go through the walk-through metal detector, to divest yourself on things that would set that detector off. So, being smart about checking you have on your person and also packing correctly makes a lot sense and helps the entire process.

BLITZER: And if they're selected for additional screening, including the extra patting down that's become a little bit controversial, what do you do in that situation?

STONE: Yes.

Well, I think you be very cooperative. In fact, if you're in the secondary screening area and you're having a pat-down, if in fact you feel that there's something that's being done inappropriately, please speak up, because we want to hear that. We're servants to the American people. We're there to serve them, so we're very eager to get that feedback, so we can remedy it if it's a training issue for one our screeners.

But a partnership agreement between the passenger and those that are entrusted for their security is what we're looking for.

BLITZER: All those patting down, that's all on camera. You monitor that. There's surveillance there, right?

STONE: There are, at most of our checkpoints, surveillance cameras. But, also, we have law enforcement there, our managers, our supervisor overseeing it. It's a very public area. So, in fact, if a passenger feels something is being done improperly, we really want to hear about that so we can fix it.

BLITZER: And shouldn't men be patting down other men and women be patting down women? Because sometimes there's a switch.

STONE: We have as a requirement that it should be the same sex for that pat-down. If that's not happening, once again, we need to hear that so that we can look into that and advise the passenger as to what took place at that airport.

BLITZER: Brian, are American travelers, people traveling on planes, really much safer today than they were only a few years ago?

JENKINS: Oh, I think they're much safer today.

And that's not only because of increased security over the last several years. But, over the long run, there have been significant improvements in the design of aircraft, in avionics, in air traffic control; 2003 was the safest year to travel since 1946. People have to keep that in mind. The odds of being a victim in an aircraft accident are one in millions. And while we may all buy lottery tickets, we don't plan our financial futures on the presumption we're going to win. Neither should we be frightened of traveling on airplanes, because the odds are in the same territory.

BLITZER: We know, Admiral Stone, that there's been an enormous focus on planes, commercial aircraft. But what about trains, subways, buses, for example? We remember what happened in Madrid not that long ago.

STONE: Yes. We have put out a security directive, in fact, in the wake of the Madrid incident and very partnered closely with the mass transit and rail stakeholders, those that have a stake in that, those that do business there. We have a very close relationship with them, as well as with those involved in the bus industry, such as Greyhound.

BLITZER: But you can get on a train, if you take the Amtrak from New York to Washington or from Washington to New York, without going through any checkpoints.

STONE: That's correct. And we have law enforcement presence there. We have really good situational awareness.

In other words, here in Washington, D.C., the program of, hey, is that your bag, where it's the passengers that notes an anomaly and bring it to the attention of those...

(CROSSTALK)

BLITZER: Are you considering having metal detectors at train stations, at bus stations, Greyhounds, things like that?

STONE: We don't currently have that planned. But we have tested some technology here in New Carrollton, Maryland, recently, where an explosive portal took a look at passengers coming through. And so what we're engaged in is taking a look at those technologies and best practices with the industry and work as partners together to secure every mode of transportation.

BLITZER: Brian, you've studied this for many years. Do you think we need that?

JENKINS: I don't think it's realistic to apply the same set of procedures we have at airports for surface transportation. First of all, it's simply...

BLITZER: Unfortunately, I think we just lost Brian Jenkins in Los Angeles. But let's try to reconnect with him. And we apologize to Brian for that technical glitch.

The whole nature, though, of concern, you understand, Admiral, why Americans are deeply concerned right now, whenever they travel, given what happened only yesterday in Mosul. A suicide bomber walks in into a supposedly secure U.S. military facility, supposedly, and blows himself up.

STONE: Exactly.

And so, that emphasis on intelligence and making sure someone's got their eye on the ball, that they're looking for trends in all modes of transportation, is a key focus point for TSA, as it should be, to analyze what's going on within each of those sectors, whether it's mass transit or rail or highway or aviation. I think that's crucial. And we're spending a lot of time, as we should, on trend analysis of intelligence.

BLITZER: Brian, you got cut off because we had a technical glitch there.

JENKINS: Right.

BLITZER: But go ahead and wrap this up. Give us your bottom- line assessment right now, what Americans who are getting ready to travel during this holiday season, what they need to focus on first and foremost.

JENKINS: Drive very carefully on the way to the airport and enjoy the holiday.

BLITZER: That's a good assessment. I'll take that advice myself. Brian Jenkins, always good to speak with you.

Admiral Stone, you got a tough job at the TSA. Good luck to you and all the men and women who are working together to try to make all of us safer.

STONE: Thank you, Wolf. Thank you so much. Happy holiday.

BLITZER: Thank you.

BLITZER: And to our viewers, here's your chance to weigh in on this story. Our Web question of the day is this: Are terrorism concerns affecting your travel plans this holiday season? You can vote right now. Go to CNN.com/Wolf. We'll have the results coming up later in this broadcast.

And please stay tuned to CNN day and night for the most reliable news about your security.

Echoes from another era. With increasing terror attacks against U.S. forces, is Iraq beginning to look like a new Lebanon? We'll take a look back and a look ahead.

Making up for lost time. The British prime minister visits the Middle East and makes an offer. Is there hope that the peace process can move forward?

And, later, from bankruptcy to multimillionaire, my interview with the real estate mogul Donald Trump, as we look back at some of the best work we did here over this past year at WOLF BLITZER REPORTS.

(COMMERCIAL BREAK)

BLITZER: The bloody attack on that base in Mosul and the chaotic conflict which U.S. troops face virtually every day in Iraq bear some eerie echoes of another time and another place.

CNN's Brian Todd is standing by with an explanation -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, we have indeed seen this before on a very devastating scale. And many experts we've spoken with have a disturbing feeling the U.S. may be heading in that direction again.

(BEGIN VIDEOTAPE)

TODD (voice-over): A tough-talking Republican president who uses a moral platform for key political decisions leads the United States into a troubled Middle Eastern nation. The idea, to stabilize and spread democracy. U.S. forces, not expecting a full-blown insurgency, get drawn into religious and ethnic fragmentation, street battles, high body count, and a massive attack on a fortified position. This could be Iraq in 2004 or Lebanon more than 20 years earlier.

KENNETH POLLACK, CNN ANALYST: Clearly, the similarities there are very frightening.

TODD: Nineteen Eighty-Two, Lebanon is a boil of vicious infighting between Christian, Druse and various Muslim factions, including Palestinians. Israel has invaded. Order must be restored. President Ronald Reagan deploys U.S. forces. They, too, are swept into the chaos. As in Iraq, the Americans face an insurgency backed by elements of the local population and are drawn into deadly traps by what experts see as a certain naivete.

RETIRED COL. PATRICK LANG, CNN MILITARY ANALYST: In the case of Beirut, the Marines were induced by our government to believe that Lebanese society was coming around. There would be a new nonconfessional society, that kind of thing. And it resulted in not shooting fast enough at a pie truck full of explosives.

TODD: October 23, 1983, a truck bomb obliterates the U.S. Marine barracks in Beirut; 241 Americans are killed.

RONALD REAGAN, PRESIDENT OF THE UNITED STATES: There are no words to properly express our outrage.

TODD: Four months later, President Reagan announces a U.S. withdrawal from Lebanon. Experts are divided on whether that was the right move. And many feel it would be disastrous for the U.S. to follow the same course with Iraq. The rationale for going into each country may have been different, they add. But, once on the ground, perception of the U.S. mission was a huge problem in both places.

POLLACK: In both cases, the United States has come into it as an outside power and increasingly is being seen by one group as the partisan of another. TODD: In Lebanon, many among the majority Muslim population saw the Americans as slanted toward the minority Christian government. In Iraq, Sunni insurgents and their followers believe the United States favors the Shia and Kurdish factions.

(END VIDEOTAPE)

TODD: But experts say, if we're drawing parallels to Lebanon, then also focus on one key point of difference. Many Iraqis, they say, remember Lebanon, don't want to become Lebanon. And they fear their country might spiral into that if the Americans leave -- Wolf.

BLITZER: Brian Todd, good piece. Thanks very much.

The British prime minister, Tony Blair, met with the Israeli and Palestinian leadership and offered to host a Middle East conference. Mr. Blair visited the West Bank tomb of Yasser Arafat with interim Palestinian leader Mahmoud Abbas. Both spoke of the need to make up for years of lost time in the peace process.

Earlier, in Jerusalem, Prime Minister Ariel Sharon says Israel backs Mr. Blair's idea for a conference, but won't attend, because it's mainly aimed at helping the Palestinians get a new administration up and running.

Let's take a quick look at some other news making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Two French journalists held hostage by an Iraqi insurgent group for four months are back home. They were greeted by overjoyed relatives and President Jacques Chirac on their arrival at a military airport outside Paris.

Ukraine rally. Opposition leader Viktor Yushchenko greeted thousands of supporters massed in Kiev's Independence Square just four days before a new presidential election. The demonstration came as hundreds of election observers began arriving in the country. Ukraine's Supreme Court, cited mass fraud, annulled Prime Minister Viktor Yanukovych's victory in last month's runoff election.

Luck of the draw. A Spanish town called Luck has lived up to its name. The winning ticket in Spain's Christmas lottery was sold in the town's Golden Witch lottery office. And the prize, $522 million.

And that's our look around the world.

(END VIDEOTAPE)

BLITZER: And continuing a look back at some of the best of WOLF BLITZER REPORTS from this year, when we return, my talk with the real estate mogul and TV star Donald Trump.

Plus, Martha Stewart's back in the news. And she has a brand-new message just out for you. All that coming up next.

(COMMERCIAL BREAK)

BLITZER: Through the end of the year, we're looking back at some of the fascinating people we've interviewed in 2004 in a series we call the best of WOLF BLITZER REPORTS.

Today, the man with the Midas touch who's reinvented himself once again and made a kind of a trademark of one of the most dreaded phrases in any language, namely, you're fired. Here's my interview, at least part of it, with Donald Trump. It took place earlier this year in March in New York.

(BEGIN VIDEOTAPE)

BLITZER: Donald Trump, thanks for joining us. Did you ever in your wildest imagination expect this TV show to be this successful?

DONALD TRUMP, DEVELOPER/BUSINESSMAN: Well, I'm very honored to be the largest developer in New York. I never thought I was going to be a television star, if you could call it that. But the show has turned out to be amazing.

BLITZER: When you say you're fired, do you ever really say that? Have you ever fired someone?

TRUMP: Well, yes, I have fired a lot of people. Generally, I like other people to fire, because it's always a lousy task, but I have fired many people.

But the words you're fired didn't happen for the show. It was sort of a little bit of a -- I don't say it was a mistake, because it turned out to be really an asset. But when I came into the first board room meeting, the person that I was going to fire, I wasn't going to say, you're fired. I was going to say, it didn't work out for you. Don't worry about it. You'll come back.

And all of a sudden, I'm sitting there. And it's really essentially like live television. You can't do much about it. It's just, as far as I'm concerned, reality. I don't want double takes. I don't want any of this. And I came out and said, you are fired, and everyone went crazy. The whole place went crazy.

All of the folks at NBC, they were in the back because this was the first session -- and they spent a lot of money on the show, over $2 million an episode. And they had a lot of NBC executives in the control room watching. And they heard the words you're fired, and everybody started jumping up and applauding. And they thought it was great. So it was a little bit by accident that the term you're fired came about. But when you think about it, it's a very precise, very beautiful two words. There's no arguing. There's no anything. There's no beating around the bush. You're fired is a very strong term.

BLITZER: And it's become the signature phrase for the show. Who would have thought?

TRUMP: Well, who would have thought?

And I walked down Fifth Avenue the other day and there were hundreds of people shouting out from buses and cars and everything else, you're fired, Donald, you're fired. They were all laughing and having a good time. But it's become quite the phrase.

BLITZER: Were you ever an apprentice?

TRUMP: I really went to work for a great guy known as my father. And he liked the job I did. A lot of people have asked, did he ever fire you? Were you ever fired? My father loved the job I did. I did a great job for my father, a really good job. And so he was never even close to it. I know many fathers have fired their sons, but my father was very happy with the job I did, so I was never fired.

BLITZER: What about you as a boss? Would you like to work for someone like Donald Trump?

TRUMP: Well, I think I'm fair.

I think if one thing came out of the program that's really good for me, it's hard to believe. It softened my image. People I guess thought of me as much tougher, almost like a flamethrower, but erratically tough and crazily tough. And I went to the Wharton School of Finance. I got very good marks. I was a good student. It's the best business school in the world, as far as my concerned, but is rated the best business school in the United States.

I was a good student. I did everything right. And yet I had this image of being a flamethrower. And I'm not. So, if the show did anything, it softened the image.

BLITZER: You possibly saw the criticism from Jeffrey Sonnenfeld from the Yale School of Management.

He wrote this. He said: "Many CEOs I talk with shudder at this ill-timed portrait of corporate leadership just when we need to restore trust in corporate values."

TRUMP: Well, I don't know Professor Sonnenfeld, but he couldn't get into Wharton, as far as I'm concerned. I don't think he's living in the real world. He also said there is too much sex in the boardroom.

Well, business is also about sex. It does enter into it, and I just think he's not a real-world person. He's a man who is good at teaching people from the books, but I don't think he has real-world experience. And I don't think a guy like Sonnenfeld would do very well in the business world. I really don't. I don't he's -- I think it's just the opposite. He's sort of saying this isn't necessarily the real world. Well, the fact is, I don't think he's living in the real world, because "The Apprentice" really is very much reality and very much the real world.

(END VIDEOTAPE)

BLITZER: Donald Trump, part of the interview I had with him earlier this year, always outspoken.

Tomorrow, we'll revisit my interview with the hip-hop star, turned entrepreneur, turned Broadway actor, P. Diddy, also known as Sean Combs.

In a holiday greeting on her Web site, Martha Stewart asks Americans to think about sentencing reforms. Stewart is now in a West Virginia prison camp on charges related to a stock sale. On her site, MarthaTalks.com, she says she's fine. She also calls for sentencing reforms for first-time offenders and people convicted on drug charges. Due out in March, Stewart will spend five months in home detention.

The results of our Web question of the day, that is coming up next.

Plus, she was the size of a cell phone at birth. Now there's good news for this tiny baby and her twin.

(COMMERCIAL BREAK)

BLITZER: Take a look at our Web question of the day. Look at the results, knowing this is not a scientific poll.

A small wonder, it's our picture of the day. Officials at Loyola University Medical Center near Chicago say this baby, named Rumaisa, is believed to be the smallest in the world ever to survive. She and her twin sister were born 14 weeks premature, with Rumaisa the smaller of the two, weighing just 8.6 ounces. Now, she's up to 2 pounds, 10 ounces. Good work.

"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 22, 2004 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: Happening now, late word from the Pentagon about the likely cause of that deadly blast at the U.S. military base in Mosul. Stand by for hard news on WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)

BLITZER (voice-over): After the attack, the casualties are moved out as the military moves in to Mosul. Who carried out the attack and how?

Echoes of another era. President Reagan cut America's losses and left Lebanon. Should President Bush do the same in Iraq?

Holiday worries. Snow slams the center of the country. But is that the only threat facing travelers? I'll ask a top homeland security official and a top terrorism expert.

ANNOUNCER: This is WOLF BLITZER REPORTS for Wednesday, December 22, 2004.

(END VIDEOTAPE)

BLITZER: Thanks very much for joining us. Investigators now think they know what happened in that Mosul mess hall. It was a devastating blow that sent this country reeling. The explosion killed 22 people, 18 of them Americans, including 13 soldiers. Dozens more were hurt. The wounded today were flown to Germany. Our Matthew Chance is live at the Ramstein air base. And we'll go live to CNN's Karl Penhaul. He's in Baghdad. But we begin over at the Pentagon, where the top brass are saying it was, in all likelihood, a suicide strike. CNN's Kathleen Koch is joining us from there -- Kathleen.

KATHLEEN KOCH, CNN CORRESPONDENT: Wolf, this mess hall, like most U.S. military installations in Iraq, had been attacked in the past by both mortars and rockets. But we learned in a briefing here at the Pentagon this afternoon that it was an enemy within who caused the carnage.

(BEGIN VIDEOTAPE)

KOCH (voice-over): Not a rocket, not a mortar, but a bomb, says the Pentagon, was carried right into the midst of the Camp Merez mess hall Tuesday, just as soldiers were sitting down to eat.

GEN. RICHARD MYERS, CHAIRMAN, JOINT CHIEFS OF STAFF: We've had a suicide bomber, apparently, strap something to his body, apparently a him, and go into a dining hall.

KOCH: An Iraqi militant group had claimed responsibility, saying it was a suicide attack carried by a single individual. The coalition says among the dead is one unidentified non-U.S. person. The Pentagon says it does not yet know whether or not that person was the bomber. It's believed key evidence came from small, circular holes found in metal kitchen equipment in the mess hall, signs of ball bearings used as shrapnel to increase the deadliness of the bomb.

Secretary Rumsfeld, under fire recently for perceived insensitivity to troops and their families, try tried to wipe the slate clean.

DONALD RUMSFELD, SECRETARY OF DEFENSE: I am truly saddened by the thought that anyone could have the impression that I or others here are doing anything other than working urgently to see that the lives of the fighting men and women are protected and are cared for in every way humanly possible. And I hope and pray that every family member, of those who have died so bravely, knows how deeply I feel their loss.

KOCH: A multinational force spokesman says Iraqis working at U.S. bases do have to show ID to gain entry, but are not always bodily searched.

(END VIDEOTAPE)

KOCH: Nor are they always accompanied once they enter U.S. military facilities. General Myers and Defense Secretary Rumsfeld did promise that steps would be taken to make sure -- to prevent such attacks in the future, though they would not specify. But when it comes to large gatherings in places like mess halls, General Myers says that that practice will continue. He says it is, quote, "simply not a viable strategy to ask everybody to separate," -- Wolf.

BLITZER: A very somber secretary of defense, Donald Rumsfeld, indeed. Kathleen Koch at the Pentagon, thanks very much.

As investigators comb through the scene of the mess hall bombing, U.S. troops are clamping down on the city of Mosul. For more on the aftermath of that bloody attack, let's go live to CNN's Karl Penhaul. He's joining us in Baghdad -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi there, Wolf. We have seen signs in Mosul today that U.S. troops are starting to react to this insurgent attack. And they have been blocking certain streets in Mosul, looking for these insurgents. That said, they have been waging what they have been calling an offensive for the last several weeks to try and fight insurgents there who have regularly raided police stations in that area, though to little effect, judging by Tuesday's strike. The insurgent groups there seem to be well and carrying on the fight. The insurgent group that has claimed responsibility for yesterday's attack goes by the name of Ansar al-Sunna. And that is well-known in Iraq. It announced its appearance back in September, and since then, has claimed responsibility for a string of deadly strikes across the country.

It claims to be made up of remnants of the Ansar al-Islam group, together with some former al Qaeda loyalists and members of the Sunni Arab population, both from Iraq and from abroad.

One of its most prominent strikes was that back in February of this year, when two suicide bombers walked into the headquarters of the two main Kurdish political parties in Erbil, set off those devices and killed more than 106 people.

This attack on the base on Tuesday in Mosul is, of course, not the first time such an attack has been carried out on a heavily- defended U.S. compound. Think back to October the 14th. Two suicide bombers walked into the Green Zone here in Baghdad. And in their bomb attacks, more than 10 people were killed -- Wolf.

BLITZER: CNN's Karl Penhaul, with the latest from Baghdad. Karl, thank you very much.

Dozens of wounded from yesterday's attack have now been flown to Germany for medical treatment. CNN's Matthew Chance was on-hand when they were slowly, gently taken off the transport plane. He is joining us now live from the Ramstein air base -- Matthew.

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Wolf, thanks very much. And it has now been confirmed that 42 U.S. personnel were evacuated here to Landstuhl, near the Landstuhl medical facility, near where I am right now. Thirty-five of those said to be U.S. troops. Another seven of them civilian contractors, U.S. citizens, caught up in the blast in that dining facility, that mess tent in Mosul that came under attack.

They'll be spending their first night under the close medical supervision of the specialist teams at the Landstuhl medical facility that has been set up here to meet and to greet these injured people, to give them whatever treatment they need. Landstuhl, of course, the biggest U.S. Army hospital outside of the United States.

There has been, as yet, no public access, no media access, to the injured. And so we haven't had a chance to sit down with any of them and get their first-hand accounts of exactly what it was that happened during that attack.

But what we have learned is that at least eight of those who were evacuated today are in extremely serious condition, in critical condition, according to the doctors. Only 13 of the 42 that were evacuated were able to walk unassisted. And so, some very grave injuries, indeed, sustained during this devastating attack on Mosul.

What doctors at the Landstuhl medical facility now say is that their challenge is to get these individuals back on their feet and strong enough to sustain a flight back home to the United States.

Now, for some that's only going to take a few days. But for others, those who have been injured much more seriously, it could take a lot longer -- Wolf.

BLITZER: Matthew Chance, reporting for us from Germany. Matthew, thank you very much.

For the soldiers who didn't survive the attack in Mosul, a final journey is now under way. Their remains arrived in Kuwait earlier this morning, on their way back to the United States. I spoke earlier today to our Pentagon correspondent, Barbara Starr, she was at a remote airfield in Kuwait for the solemn return of flag-draped coffins.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: When we left Kuwait City, very early this morning, from a remote airfield there, it was a quiet, sad moment. As we were at the airfield, a C-130 aircraft from Iraq landed at the airfield. The back of the plane opened up and a honor guard, two lines of troops, approached the rear of the plane and very quietly, very reverently, began taking the body bags off the plane, the human remains from the attack in Mosul.

This was a very unique opportunity because, as you know, Wolf, there -- media is not allowed to cover or film the return of remains from the war. And, indeed, we could not take our camera out. But we were given permission there to very quietly stand at a distance and watch this honor guard.

There was no one else at the airfield. And yet, these troops gave these remains every honor. There was a quiet funeral salute, pace (ph) salute, as the body bags came off the plane, as they were loaded into vehicles, and then taken to another location on the Kuwait airfield for mortuary affairs, of course, before they make their final journey home, back to the United States.

(END VIDEOTAPE)

BLITZER: Barbara Starr, speaking with me earlier today. She was actually aboard the aircraft carrier Harry Truman in the Persian Gulf when we spoke earlier in the day. She had been in Kuwait and eyewitnessed the arrival of those coffins.

Relatives waiting to hear about the fate of their loved ones serving in Mosul, many of those families are in Ft. Lewis, Washington, home of 4,000 members of the Stryker Brigade. We'll get a live update. That's coming up next.

With new worries about security and violence, will U.S. civilian contractors drop their efforts to try to rebuild Iraq?

And terrorism concerns in America this holiday season. Will travelers be safe? A top homeland security official and a terror expert, they will join us this hour. (COMMERCIAL BREAK)

And terrorism concerns in America this holiday season. Will travelers be safe? A top homeland official and a terror expert, they will join us this hour.

(COMMERCIAL BREAK)

BLITZER: We're getting this, just in to CNN. The former New York City police commissioner, Bernard Kerik has added another former to his resume. Later this afternoon, he resigned his post over at Giuliani Partners, the company of the former New York City mayor and Kerik's mentor Rudy Giuliani. Kerik had been a partner in that firm. The move comes two weeks after Kerik withdrew his nomination for homeland security secretary, citing a possibly illegal nanny who once worked for him. Kerik says there are several reasons for his resignation from the Giuliani company.

(BEGIN VIDEO CLIP)

BERNARD KERIK, FMR. NYC POLICE COMMISSIONER: I want to thank Rudy Giuliani for his leadership, his friendship, his encouragement. I want to publicly wish him and all of my colleagues at GK&GP all the best in their future endeavors with the company. I plan to take some time off to focus on my family, on things that have to be focused on at this point. And to clear my good name.

(END VIDEO CLIP)

BLITZER: In addition to the nanny issue, questions arose about Kerik's financial dealings and ties to people allegedly linked to organized crime, as well as many questions about his own personal life.

More, now, on the deadly attack on the U.S. military base in Mosul. Many of the soldiers there are based at Fort Lewis in Washington state. And with identities of the injured still trickling out, it's understandably a very tense time there. CNN's Kimberly Osias, is joining us now live from Fort Lewis with more. Kimberly, must be very somber there.

KIMBERLY OSIAS, CNN CORRESPONDENT: Very much so. Definitely a pall over Fort Lewis, as you can imagine, especially in light of the Christmas holiday just around the corner, Wolf. The chaplain here at Fort Lewis is a available to receive families should they want to avail themselves of that opportunity. But what I've been told by the soldiers I spoke with, is that there are a number of informal meetings where families are getting together, looking at the Internet in their homes here. The family members that are still on base. Many have left for vacation for block leave. One group has just come back about a month ago from Mosul.

This is not just thought the families affected. It is a community that's been affected, as well, since war broke out about 20 months ago. This community really wrapped themselves around these soldiers. A bridge a stone's throw from where we are standing has been a tribute for the soldiers. There have been a number of yellow ribbons that have been blowing in the wind. Fresh ones, new ones, that were added yesterday. As well as the fact that some people come out and stand in support. Especially yesterday, blowing their flags and doing anything they can to show solidarity with these troops.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Just knowing there was one or two strikers in our convoy, we felt more secure knowing they were there with us. It was better than just having one or two gun trucks with us on a convoy. It was helpful knowing they were there. They really took care of us out there.

UNIDENTIFIED FEMALE: To see him helping somebody, would be just -- just to know he was OK. You know? I just want to see his face.

(END VIDEO CLIP)

OSIAS: It is certainly a tough juxtaposition. The families that do know their loved ones are OK still have unease and nervousness, for colleagues that still don't know what their fate is. Interestingly, there is another unit that's returning back to Fort Lewis tomorrow. 195 will be returning here about 4:45 Pacific Time. We will be there when that happens.

BLITZER: A quick question -- how do they actually go about delivering that very grim news that a loved one has been killed in action, the family notification process -- what goes on?

OSIAS: I'm told that that will be trickling in. As I mentioned, of course, being Christmas time, they have to locate these families. They -- it is done in person. There will be a support person there, a counselor there. That will be happening over the next several days. We will not know, here at Fort Lewis, until that last family member has been told. 24 hours after that, we will know, as well.

BLITZER: Kimberly Osias reporting for us from Fort Lewis in Washington state. Kimberly, thanks very much.

Terrorism threats during the holiday season. Are the nation's airports prepared to handle the high volume of travelers? And a winter storm warning. A powerful front bringing a foot or more of snow to some parts of the country.

And later -- the man famous for saying you're fired. My interview from earlier this year with Donald Trump as we look back at some of the best of WOLF BLITZER REPORTS. Stay with us.

(COMMERCIAL BREAK)

BLITZER: From New Mexico to the Great Lakes, the best way to describe today's weather is wintry. Up to half a foot of snow is predicted for parts of Missouri, along with windchills down to the single digits. A similar scene in southwest Indiana, which has had more snow from this one storm, namely seven inches, than it got all of last year. CNN meteorologist Jacqui Jeras, is right in the thick of it all in Evansville, Indiana.

JACQUI JERAS, CNN METEOROLOGIST: To some, it's a winter wonderland. To others, it's a travel nightmare. We're here along Interstate 64 and U.S. 41, in southwest Indiana near Evansville, where traffic has been very hazardous today, and at a crawl, at best averaging 30 to 35 miles per hour. There have been dozens of travel accidents. But the Indiana state police say that the traffic numbers have been down a little bit. They are expecting very high numbers today and tomorrow, both.

Some people just decided to wait out the storm altogether. You can see dozens of truckers behind me, who said they're just going to call it a night and wait until tomorrow. This all started in the overnight hours, with freezing rain and sleet. On top of that is about 12 inches of very dry, fluffy snow. Good news for Evansville. This should be over and done with by mid morning but those down the Ohio River over towards Louisville into Cincinnati, and then extending up towards Cleveland, could see freezing rain overnight tonight. And then changing to additional snowfall amounts into tomorrow. The forecast for the southeast, though, has severe weather, all associated with the same storm. Back to you.

BLITZER: Jacqui Jeras, thanks very much. Right in the middle of things in Evansville, Indiana.

Another story we're following, the Washington state supreme court has just ruled that hundreds of ballots in King County should be recounted in that governor's race. The ruling reverses a superior court ruling and could result in a victory for the Democrat Christine Gregoire. She won 58 percent of the vote in King County, compared to 40 percent for the Republican Dino Rossi. After the initial count of all ballots cast in the election, Rossi led by 261 votes out of nearly 2.9 million cast. That narrow margin triggered a mandatory, state- wide machine recount.

Snowy roads and jammed airports may not be your only problems this holiday season. Could terrorism derail your travel plans? The assistant secretary of homeland security and a top terrorism expert will join us live to weigh in.

Striking parallels -- terror strikes in Iraq resemble what happened in Lebanon two decades ago. Is history repeating itself?

Plus, from inside so-called Camp Cupcake, Martha Stewart's Christmas message and complaints of bad prison food.

(COMMERCIAL BREAK)

BLITZER: Welcome back. The risks in Iraq extend to those trying to rebuild the war-torn country. Four Halliburton employees died in the attack on the U.S. base in Mosul yesterday. And another company is stopping a project because of growing security costs. CNN's Chris Huntington is looking into the dangers built in to this multibillion- dollar rebuilding effort in Iraq -- Chris.

CHRIS HUNTINGTON, CNN CORRESPONDENT: For anybody doing business in Iraq, security is the number one concern. It is one of the highest components of the cost of any project in Iraq and as the attack in Mosul provides yesterday a deadly reminder of just how dangerous that business can be.

(BEGIN VIDEOTAPE)

(voice-over): The blast that ripped through the mess tent at the U.S. military base in Mosul killed four employees of Halliburton subsidiary, Kellogg, Brown & Root and wounded 16 others who also worked for the company. In a statement, Halliburton called the Mosul attack, quote, "the worst for KBR and our subcontractors in almost two years of the war in Iraq." Halliburton and KBR, which have been under constant fire for their contracts in Iraq, have also been literally in the line of fire. The company says that 59 employees have been killed in Iraq, more than any other single contractor. For now, Halliburton says it has no plans to pull out of Iraq but the cost of security for contractors there, in lives and in dollars, continues to rise.

MICHAEL O'HANLON, BROOKINGS INSTITUTION: We've been hearing for months about how much money has to be spent on security. And these companies are still losing people. Again, just this week in Mosul. So I think a number of firms could reconsider whether they want to be in Iraq.

HUNTINGTON: According to the defense department's Iraq project and contracting office in Baghdad, no U.S. contractors have pulled out of work in Iraq, solely due to security concerns. One firm, Contrack International tells CNN it recently agreed with the Pentagon to halt a project for road and bridge repair, due to rising costs, that included security costs. John Sullivan recently conducted a survey of businesses in Iraq and found security costs to be the major concern.

JOHN SULLIVAN, CTR. FOR PRIVATE ENTERPRISE: Security is the primary obstacle. There's no question about that.

HUNTINGTON: The U.S. government does not keep official statistics of private contractor casualties. But ICasulties.org posts what it calls an incomplete list of 192 contract workers killed in Iraq. 66 of them American. Researchers at the Brookings Institution estimate 170 private contract workers have been killed in Iraq, with more than 800 wounded. Brookings also estimates that close to 60 percent of those killed were private security forces, often former special forces.

(END VIDEOTAPE)

(on camera): Now, those familiar with the going rate for private security or what some call private military say that former U.S. soldiers with special forces training are the most sought after and the most highly paid typically earning about $1,000 a day per man plus the perks of body armor and armored vehicles.

BLITZER: Chris Huntington reporting for us in New York. Thanks very much.

Our security watch today focuses in on holiday travel. AAA estimates a record 62 million people will be on the move this holiday season. CNN's Mary Snow is live at New York's Penn Station with more -- Mary.

MARY SNOW, CNN CORRESPONDENT: (AUDIO GAP).

(BEGIN VIDEOTAPE)

(voice-over): Whether it's by train, plane or automobile the number of holiday travelers this season is expected to set a record.

JUSTIN MCNAULL, AAA SPOKESMAN: (UNINTELLIGIBLE) and most people feel pretty decent about travel security, certainly better than they did a year ago or two years ago so we're traveling again.

SNOW: Airlines expect the number of passengers to surpass levels reached before September 11, when air travel reached its previous record high. Observes say Americans are getting more used to security procedures.

MCNAULL: As you go through now at the airport vs. a year ago, and it's a more hands-on, it's a more involved process. There's a little more touching. There's a little more taking off involved than there was. And travelers, we've gotten used to it, by and large.

SNOW: Low-cost fares from discount airlines are also prompting more people to fly. Because of extra security, transportation officials say the average wait time at airports during the Thanksgiving weekend was 12 minutes in peak hours. But Travelocity says it found those waits can be a lot longer in major cities.

AMY ZIFF, EDITOR AT LARGE, TRAVELOCITY: Some of the New York airports, La Guardia, JFK, Newark, Miami, we saw this, also the Chicago airports, where we saw spikes upwards of an hour, at times, throughout that holiday weekend.

SNOW: It's not just air travel hitting records. AAA expects 50.9 million people to drive more than 50 miles from their home. That's an all-time high. And that comes despite the fact that the average gasoline price is $1.83 a gallon.

(END VIDEOTAPE)

SNOW: And experts, Wolf, say that patience is really going to be key this holiday season. Also, the wild card is weather. We spoke to a few passengers here today about their security concerns. They tell me that they've eased somewhat. They're still there. But it hasn't stopped them from traveling -- Wolf.

BLITZER: So, generally, Mary, would you say that the mood is upbeat among these people that you're seeing over there at Penn Station? Or are they concerned?

SNOW: I would say for the people we have spoken with, somewhat upbeat. And there are a couple different factors being cited for the increase, expected increase in travel. That is the concerns about security easing somewhat. Some people told me that they felt more secure because of the checks that are being undertaken at the airports and more hands-on approach.

Also, the economy, it's also helping lift some spirits among travelers this year.

BLITZER: Mary Snow, reporting for us from New York -- Mary, thank you very much.

And joining us now with their take on possible terrorist activity during these holidays, retired Rear Admiral David Stone. He's the homeland security assistant secretary for the Transportation Security Administration. That would be the TSA. And Brian Jenkins, a well- known terrorism analyst with the RAND Corporation, he's joining us from Los Angeles.

Gentlemen, thanks to both of you.

How concerned, Admiral Stone, should Americans be between Christmas and New Year's these holidays?

DAVID STONE, TSA ADMINISTRATOR: Well, we have no specific threat information. So, I think the traveling public should be very confident that there's a sense of urgency in all those involved in the homeland security business go about their travel and feel confident that people have their eye on the ball.

BLITZER: So, at least at this point, no expectations to raise the threat level, the color-coded threat level?

STONE: None whatsoever. And, like I said, we're approaching this with a sense of urgency over a period of time that we always have. And people should be very confident about traveling.

BLITZER: Brian, many of our viewers know you. Is that a fair assessment, that Americans should simply go about their holiday travel as they would like?

BRIAN JENKINS, RAND CORPORATION: I think they should.

Look, the threat is real. The threat continues. Even though we're not going to take it up a notch during the holidays, we're still operating at an elevated threat level throughout the country. And that's because we know, over the past several years, terrorists continue to target commercial aviation, as well as surface transportation.

But here's what the traveler has to remember. Even the heightened probability of a terrorist attack does not translate into significantly increased risk for the individual traveler.

BLITZER: Admiral Stone, give our viewers a little practical advice. Millions of them are, for example, going to be going to airports. And your people, the TSA officials, they are going to be checking them out. What should they know going into this process?

STONE: Well, they should be checking carefully what they pack, so they don't have items that are prohibited. We still have two to three guns per day that people bring to our checkpoint that slow down the lines for everyone and cause some concern until we sort that out.

BLITZER: And they bring these guns -- simply, they think they can get on a plane?

STONE: They forget. They say that, oh, I forget I packed that. And, as you can imagine, that causes concern and delays when that takes place. Also, when you go through the walk-through metal detector, to divest yourself on things that would set that detector off. So, being smart about checking you have on your person and also packing correctly makes a lot sense and helps the entire process.

BLITZER: And if they're selected for additional screening, including the extra patting down that's become a little bit controversial, what do you do in that situation?

STONE: Yes.

Well, I think you be very cooperative. In fact, if you're in the secondary screening area and you're having a pat-down, if in fact you feel that there's something that's being done inappropriately, please speak up, because we want to hear that. We're servants to the American people. We're there to serve them, so we're very eager to get that feedback, so we can remedy it if it's a training issue for one our screeners.

But a partnership agreement between the passenger and those that are entrusted for their security is what we're looking for.

BLITZER: All those patting down, that's all on camera. You monitor that. There's surveillance there, right?

STONE: There are, at most of our checkpoints, surveillance cameras. But, also, we have law enforcement there, our managers, our supervisor overseeing it. It's a very public area. So, in fact, if a passenger feels something is being done improperly, we really want to hear about that so we can fix it.

BLITZER: And shouldn't men be patting down other men and women be patting down women? Because sometimes there's a switch.

STONE: We have as a requirement that it should be the same sex for that pat-down. If that's not happening, once again, we need to hear that so that we can look into that and advise the passenger as to what took place at that airport.

BLITZER: Brian, are American travelers, people traveling on planes, really much safer today than they were only a few years ago?

JENKINS: Oh, I think they're much safer today.

And that's not only because of increased security over the last several years. But, over the long run, there have been significant improvements in the design of aircraft, in avionics, in air traffic control; 2003 was the safest year to travel since 1946. People have to keep that in mind. The odds of being a victim in an aircraft accident are one in millions. And while we may all buy lottery tickets, we don't plan our financial futures on the presumption we're going to win. Neither should we be frightened of traveling on airplanes, because the odds are in the same territory.

BLITZER: We know, Admiral Stone, that there's been an enormous focus on planes, commercial aircraft. But what about trains, subways, buses, for example? We remember what happened in Madrid not that long ago.

STONE: Yes. We have put out a security directive, in fact, in the wake of the Madrid incident and very partnered closely with the mass transit and rail stakeholders, those that have a stake in that, those that do business there. We have a very close relationship with them, as well as with those involved in the bus industry, such as Greyhound.

BLITZER: But you can get on a train, if you take the Amtrak from New York to Washington or from Washington to New York, without going through any checkpoints.

STONE: That's correct. And we have law enforcement presence there. We have really good situational awareness.

In other words, here in Washington, D.C., the program of, hey, is that your bag, where it's the passengers that notes an anomaly and bring it to the attention of those...

(CROSSTALK)

BLITZER: Are you considering having metal detectors at train stations, at bus stations, Greyhounds, things like that?

STONE: We don't currently have that planned. But we have tested some technology here in New Carrollton, Maryland, recently, where an explosive portal took a look at passengers coming through. And so what we're engaged in is taking a look at those technologies and best practices with the industry and work as partners together to secure every mode of transportation.

BLITZER: Brian, you've studied this for many years. Do you think we need that?

JENKINS: I don't think it's realistic to apply the same set of procedures we have at airports for surface transportation. First of all, it's simply...

BLITZER: Unfortunately, I think we just lost Brian Jenkins in Los Angeles. But let's try to reconnect with him. And we apologize to Brian for that technical glitch.

The whole nature, though, of concern, you understand, Admiral, why Americans are deeply concerned right now, whenever they travel, given what happened only yesterday in Mosul. A suicide bomber walks in into a supposedly secure U.S. military facility, supposedly, and blows himself up.

STONE: Exactly.

And so, that emphasis on intelligence and making sure someone's got their eye on the ball, that they're looking for trends in all modes of transportation, is a key focus point for TSA, as it should be, to analyze what's going on within each of those sectors, whether it's mass transit or rail or highway or aviation. I think that's crucial. And we're spending a lot of time, as we should, on trend analysis of intelligence.

BLITZER: Brian, you got cut off because we had a technical glitch there.

JENKINS: Right.

BLITZER: But go ahead and wrap this up. Give us your bottom- line assessment right now, what Americans who are getting ready to travel during this holiday season, what they need to focus on first and foremost.

JENKINS: Drive very carefully on the way to the airport and enjoy the holiday.

BLITZER: That's a good assessment. I'll take that advice myself. Brian Jenkins, always good to speak with you.

Admiral Stone, you got a tough job at the TSA. Good luck to you and all the men and women who are working together to try to make all of us safer.

STONE: Thank you, Wolf. Thank you so much. Happy holiday.

BLITZER: Thank you.

BLITZER: And to our viewers, here's your chance to weigh in on this story. Our Web question of the day is this: Are terrorism concerns affecting your travel plans this holiday season? You can vote right now. Go to CNN.com/Wolf. We'll have the results coming up later in this broadcast.

And please stay tuned to CNN day and night for the most reliable news about your security.

Echoes from another era. With increasing terror attacks against U.S. forces, is Iraq beginning to look like a new Lebanon? We'll take a look back and a look ahead.

Making up for lost time. The British prime minister visits the Middle East and makes an offer. Is there hope that the peace process can move forward?

And, later, from bankruptcy to multimillionaire, my interview with the real estate mogul Donald Trump, as we look back at some of the best work we did here over this past year at WOLF BLITZER REPORTS.

(COMMERCIAL BREAK)

BLITZER: The bloody attack on that base in Mosul and the chaotic conflict which U.S. troops face virtually every day in Iraq bear some eerie echoes of another time and another place.

CNN's Brian Todd is standing by with an explanation -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, we have indeed seen this before on a very devastating scale. And many experts we've spoken with have a disturbing feeling the U.S. may be heading in that direction again.

(BEGIN VIDEOTAPE)

TODD (voice-over): A tough-talking Republican president who uses a moral platform for key political decisions leads the United States into a troubled Middle Eastern nation. The idea, to stabilize and spread democracy. U.S. forces, not expecting a full-blown insurgency, get drawn into religious and ethnic fragmentation, street battles, high body count, and a massive attack on a fortified position. This could be Iraq in 2004 or Lebanon more than 20 years earlier.

KENNETH POLLACK, CNN ANALYST: Clearly, the similarities there are very frightening.

TODD: Nineteen Eighty-Two, Lebanon is a boil of vicious infighting between Christian, Druse and various Muslim factions, including Palestinians. Israel has invaded. Order must be restored. President Ronald Reagan deploys U.S. forces. They, too, are swept into the chaos. As in Iraq, the Americans face an insurgency backed by elements of the local population and are drawn into deadly traps by what experts see as a certain naivete.

RETIRED COL. PATRICK LANG, CNN MILITARY ANALYST: In the case of Beirut, the Marines were induced by our government to believe that Lebanese society was coming around. There would be a new nonconfessional society, that kind of thing. And it resulted in not shooting fast enough at a pie truck full of explosives.

TODD: October 23, 1983, a truck bomb obliterates the U.S. Marine barracks in Beirut; 241 Americans are killed.

RONALD REAGAN, PRESIDENT OF THE UNITED STATES: There are no words to properly express our outrage.

TODD: Four months later, President Reagan announces a U.S. withdrawal from Lebanon. Experts are divided on whether that was the right move. And many feel it would be disastrous for the U.S. to follow the same course with Iraq. The rationale for going into each country may have been different, they add. But, once on the ground, perception of the U.S. mission was a huge problem in both places.

POLLACK: In both cases, the United States has come into it as an outside power and increasingly is being seen by one group as the partisan of another. TODD: In Lebanon, many among the majority Muslim population saw the Americans as slanted toward the minority Christian government. In Iraq, Sunni insurgents and their followers believe the United States favors the Shia and Kurdish factions.

(END VIDEOTAPE)

TODD: But experts say, if we're drawing parallels to Lebanon, then also focus on one key point of difference. Many Iraqis, they say, remember Lebanon, don't want to become Lebanon. And they fear their country might spiral into that if the Americans leave -- Wolf.

BLITZER: Brian Todd, good piece. Thanks very much.

The British prime minister, Tony Blair, met with the Israeli and Palestinian leadership and offered to host a Middle East conference. Mr. Blair visited the West Bank tomb of Yasser Arafat with interim Palestinian leader Mahmoud Abbas. Both spoke of the need to make up for years of lost time in the peace process.

Earlier, in Jerusalem, Prime Minister Ariel Sharon says Israel backs Mr. Blair's idea for a conference, but won't attend, because it's mainly aimed at helping the Palestinians get a new administration up and running.

Let's take a quick look at some other news making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Two French journalists held hostage by an Iraqi insurgent group for four months are back home. They were greeted by overjoyed relatives and President Jacques Chirac on their arrival at a military airport outside Paris.

Ukraine rally. Opposition leader Viktor Yushchenko greeted thousands of supporters massed in Kiev's Independence Square just four days before a new presidential election. The demonstration came as hundreds of election observers began arriving in the country. Ukraine's Supreme Court, cited mass fraud, annulled Prime Minister Viktor Yanukovych's victory in last month's runoff election.

Luck of the draw. A Spanish town called Luck has lived up to its name. The winning ticket in Spain's Christmas lottery was sold in the town's Golden Witch lottery office. And the prize, $522 million.

And that's our look around the world.

(END VIDEOTAPE)

BLITZER: And continuing a look back at some of the best of WOLF BLITZER REPORTS from this year, when we return, my talk with the real estate mogul and TV star Donald Trump.

Plus, Martha Stewart's back in the news. And she has a brand-new message just out for you. All that coming up next.

(COMMERCIAL BREAK)

BLITZER: Through the end of the year, we're looking back at some of the fascinating people we've interviewed in 2004 in a series we call the best of WOLF BLITZER REPORTS.

Today, the man with the Midas touch who's reinvented himself once again and made a kind of a trademark of one of the most dreaded phrases in any language, namely, you're fired. Here's my interview, at least part of it, with Donald Trump. It took place earlier this year in March in New York.

(BEGIN VIDEOTAPE)

BLITZER: Donald Trump, thanks for joining us. Did you ever in your wildest imagination expect this TV show to be this successful?

DONALD TRUMP, DEVELOPER/BUSINESSMAN: Well, I'm very honored to be the largest developer in New York. I never thought I was going to be a television star, if you could call it that. But the show has turned out to be amazing.

BLITZER: When you say you're fired, do you ever really say that? Have you ever fired someone?

TRUMP: Well, yes, I have fired a lot of people. Generally, I like other people to fire, because it's always a lousy task, but I have fired many people.

But the words you're fired didn't happen for the show. It was sort of a little bit of a -- I don't say it was a mistake, because it turned out to be really an asset. But when I came into the first board room meeting, the person that I was going to fire, I wasn't going to say, you're fired. I was going to say, it didn't work out for you. Don't worry about it. You'll come back.

And all of a sudden, I'm sitting there. And it's really essentially like live television. You can't do much about it. It's just, as far as I'm concerned, reality. I don't want double takes. I don't want any of this. And I came out and said, you are fired, and everyone went crazy. The whole place went crazy.

All of the folks at NBC, they were in the back because this was the first session -- and they spent a lot of money on the show, over $2 million an episode. And they had a lot of NBC executives in the control room watching. And they heard the words you're fired, and everybody started jumping up and applauding. And they thought it was great. So it was a little bit by accident that the term you're fired came about. But when you think about it, it's a very precise, very beautiful two words. There's no arguing. There's no anything. There's no beating around the bush. You're fired is a very strong term.

BLITZER: And it's become the signature phrase for the show. Who would have thought?

TRUMP: Well, who would have thought?

And I walked down Fifth Avenue the other day and there were hundreds of people shouting out from buses and cars and everything else, you're fired, Donald, you're fired. They were all laughing and having a good time. But it's become quite the phrase.

BLITZER: Were you ever an apprentice?

TRUMP: I really went to work for a great guy known as my father. And he liked the job I did. A lot of people have asked, did he ever fire you? Were you ever fired? My father loved the job I did. I did a great job for my father, a really good job. And so he was never even close to it. I know many fathers have fired their sons, but my father was very happy with the job I did, so I was never fired.

BLITZER: What about you as a boss? Would you like to work for someone like Donald Trump?

TRUMP: Well, I think I'm fair.

I think if one thing came out of the program that's really good for me, it's hard to believe. It softened my image. People I guess thought of me as much tougher, almost like a flamethrower, but erratically tough and crazily tough. And I went to the Wharton School of Finance. I got very good marks. I was a good student. It's the best business school in the world, as far as my concerned, but is rated the best business school in the United States.

I was a good student. I did everything right. And yet I had this image of being a flamethrower. And I'm not. So, if the show did anything, it softened the image.

BLITZER: You possibly saw the criticism from Jeffrey Sonnenfeld from the Yale School of Management.

He wrote this. He said: "Many CEOs I talk with shudder at this ill-timed portrait of corporate leadership just when we need to restore trust in corporate values."

TRUMP: Well, I don't know Professor Sonnenfeld, but he couldn't get into Wharton, as far as I'm concerned. I don't think he's living in the real world. He also said there is too much sex in the boardroom.

Well, business is also about sex. It does enter into it, and I just think he's not a real-world person. He's a man who is good at teaching people from the books, but I don't think he has real-world experience. And I don't think a guy like Sonnenfeld would do very well in the business world. I really don't. I don't he's -- I think it's just the opposite. He's sort of saying this isn't necessarily the real world. Well, the fact is, I don't think he's living in the real world, because "The Apprentice" really is very much reality and very much the real world.

(END VIDEOTAPE)

BLITZER: Donald Trump, part of the interview I had with him earlier this year, always outspoken.

Tomorrow, we'll revisit my interview with the hip-hop star, turned entrepreneur, turned Broadway actor, P. Diddy, also known as Sean Combs.

In a holiday greeting on her Web site, Martha Stewart asks Americans to think about sentencing reforms. Stewart is now in a West Virginia prison camp on charges related to a stock sale. On her site, MarthaTalks.com, she says she's fine. She also calls for sentencing reforms for first-time offenders and people convicted on drug charges. Due out in March, Stewart will spend five months in home detention.

The results of our Web question of the day, that is coming up next.

Plus, she was the size of a cell phone at birth. Now there's good news for this tiny baby and her twin.

(COMMERCIAL BREAK)

BLITZER: Take a look at our Web question of the day. Look at the results, knowing this is not a scientific poll.

A small wonder, it's our picture of the day. Officials at Loyola University Medical Center near Chicago say this baby, named Rumaisa, is believed to be the smallest in the world ever to survive. She and her twin sister were born 14 weeks premature, with Rumaisa the smaller of the two, weighing just 8.6 ounces. Now, she's up to 2 pounds, 10 ounces. Good work.

"LOU DOBBS TONIGHT" starts right now.

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