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Lou Dobbs Tonight

Aid Workers Concerned about Disease; U.S. Military Aids Relief Efforts

Aired January 03, 2005 - 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, millions of tsunami survivors struggle for life in South Asia. Thousands upon thousands of corpses are threatening water supplies and food. We'll have a live report from Banda Aceh, Indonesia.

The United States taking an active, leading role in the recovery and relief efforts, delivering much needed supplies and shuttling survivors to hospitals.

President Bush calls on the American people to send help on their own.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The greatest source of America's generosity is not our government. It's the good heart of the American people.

DOBBS: We'll have the latest on global relief efforts, and three of this country's top journalists join us tonight.

Has Mexico gone too far this time? The Mexican government printing and passing out a handbook to help Mexicans cross our border illegally. How much longer will the U.S. government tolerate Mexico's blatant encouragement of illegal immigration to this country? We'll have a special report.

And last year, the United States imported record amounts of Chinese products and goods. This year, the American textile industry says it's all but wiped out. And now the Chinese carmaker that allegedly stole designs from General Motors will soon be selling cars here in the United States. It just gets better and better.

(END VIDEOTAPE)

ANNOUNCER: This is LOU DOBBS TONIGHT for Monday, January 3. Here now for an hour of news, debate and opinion is Lou Dobbs.

DOBBS: Good evening.

Tonight, relief from the United States and the rest of the world is pouring into South Asia to help survivors of the catastrophic tsunamis.

The death toll from the disaster has now risen to at least 154,000 people. Indonesia has again significantly raised its death toll, which now stands at more than 94,000.

Secretary of State Colin Powell today arrived in the region. The secretary of state said as many as 5,000 Americans remain unaccounted for around the Indian Ocean rim. Secretary Powell and Florida Governor Jeb Bush are touring damage in Thailand, Indonesia, and Sri Lanka.

And the U.S. military as well, as government and private aid agencies are helping to deliver helicopters full of emergency supplies to that region. More than 12,000 U.S. military personnel are now involved in the relief effort.

Despite that aid, tonight there are new fears of an epidemic in one of the most devastated areas in the Aceh province in Indonesia. Officials there are struggling to find enough clean water for thousands upon thousands of survivors. Mike Chinoy is live now in Banda Aceh with the report -- Mike.

MIKE CHINOY, CNN CORRESPONDENT: Hello, Lou.

Well, tens of thousands of people here are struggling to survive in rubble of the kind you see behind me. This is the central business district of Banda Aceh, completely destroyed.

Aid officials and workers say that a key concern is getting safe drinking water to people. The entire water supply system here has been badly contaminated and there's a big concern about an increase in water-borne diseases, the possibility of major epidemics.

The Australian army, working with UNICEF, has set up purification machines. And as of the last day or so, are been able to provide people about 20,000 liters of water an hour. And during the day people have been lining up, trying to get plastic cans full of water.

The other big concern, aid workers say, is just the sheer logistics of handling this huge aid effort in a city where there's no infrastructure, no communication, no transportation, no housing. It's a mess, but the aid community is working hard -- Lou.

DOBBS: Mike, the number of personnel involved there now, your best estimate worldwide. You mentioned the Australian army. The U.S. Marines are obviously there. And your best assessment as to how much more is needed.

CHINOY: What people say here is that the issue is not supplies. The issue is not money. The issue is not even personnel on the ground.

The issue is coordination, because so many people have come in. There's so many different organizations, and there's so many different kinds of needs that it's managing it so that the right aid gets to the right people in the right place at the right time. And that is really difficult.

One big target, the aid workers say, is to get the mobile phone system here in Banda Aceh working. Because people who have what the survivors need aren't able to communicate with the other folks who could deliver it on the ground, because you can't make a phone call. Something as simple as that, Lou, would make a big difference.

DOBBS: The deprivation, the threat to the public health of all of the inhabitants in that region throughout South Asia is obvious. What do the health officials there say right now is the principal threat?

CHINOY: Well, the principal threat is water-borne diseases. A great concern is that the water supply here comes from rivers, and it's from that water supply that the Australians have been getting the water that they've been purifying.

But even just a few hundred yards from where I'm standing, there are literally hundreds of decomposing bodies in the water. And so a key concern now is to collect and dispose of the corpses. And unfortunately, there are thousands of them here. And I'm sure many, many more beyond Banda Aceh.

And that is posing a great concern about the possibility that all of the decomposing bodies could spread disease -- Lou.

DOBBS: Mike, thank you very much. Our Mike Chinoy reporting.

As the scale of this disaster becomes clearer day by day, President Bush taking further action.

Today he announced a new effort to raise money for the millions of people devastated by the tsunamis. It's a private fund-raising drive. It will be led by former presidents Bush and Clinton. President Bush said his predecessors will lobby American citizens and companies to donate money for relief efforts.

Also today, those former presidents joined President Bush and the first lady as they visited the embassies of Indonesia, Sri Lanka, India, and Thailand.

The disaster relief has created one of the largest military missions in Asia since the end of the Vietnam War. The USS Abraham Lincoln is now stationed off Indonesia, and more American ships are on the way.

Senior Pentagon correspondent Jamie McIntyre has that report.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): A Navy helicopter from the U.S. aircraft carrier Abraham Lincoln delivers food and milk to a remote part of the hardest-hit area of Indonesia. The isolated refugees are both desperate and grateful, rushing for the supplies that could save their lives.

The pilot of one mercy flight, Navy lieutenant Greg Knutson, told CNN the helicopters often can't land, either because of flooding or large crowds. LT. GREG KNUTSON, U.S. NAVY: We've been coming to a ten-foot hover when there's just crowds of people wanting to get food into our helicopters, so we don't want to set down on the ground.

But sometimes we will have the -- all the people over to the one side, and then we'll fly about a quarter of a mile away, set down. Then we'll start putting food out.

MCINTYRE: Round the clock flights by Air Force C-130 cargo planes have so far delivered nearly a quarter of a million tons of relief supplies to regional hubs. Now the biggest challenge is logistics.

BRIG. GEN. JOHN ALLEN, DIRECTOR, ASIA AND PACIFIC AFFAIRS: If you're not careful, pretty quickly, you have a buildup of supplies that you now must move forward. And the commanders who are on the scene are using those helicopters now to move as much of those supplies forward as they possibly can.

MCINTYRE: Nineteen helicopters are flying from the carrier Lincoln off the coast of the Indonesian island of Sumatra. In another day or so, the USS Bonhomme Richard Expeditionary Group will arrive with two dozen more helicopters and 2,200 Marines. With some ships and Marines moving on to Sri Lanka.

JAMES KUNDER, USAID: This is a classic situation where the needs are going to be of such magnitude that we've got to make sure we ready, aim, fire not ready, fire, aim. So we're trying to get a clear picture of what the needs are on the ground.

MCINTYRE: Hundreds of U.S. troops, including Marines from Hawaii and Okinawa, have been flown in to help unload and distribute aid on the ground. All told, more than 12,000 U.S. military personnel are involved in relief efforts, counting everyone from aircrews to the cook on the carrier Lincoln, who is busy baking bread for the disaster victims.

(END VIDEOTAPE)

MCINTYRE: And a sign that this relief operation won't anytime -- won't end anytime soon, the Pentagon is considering sending the 100- bed hospital ship Mercy to the region, even though it will take almost a month to get there from its home port in San Diego -- Lou.

DOBBS: Jamie, thank you very much. Jamie McIntyre, our senior Pentagon correspondent.

Relief workers are struggling to distribute aid in another area devastated by the tsunamis. More than 46,000 people were killed in Sri Lanka. And tonight, nearly a million survivors there are homeless, and many of them are fighting to survive.

Paula Hancocks reports from Sri Lanka.

(BEGIN VIDEOTAPE) PAULA HANCOCKS, CNN CORRESPONDENT (voice-over): This hospital in Hamban-tota on the south coast of Sri Lanka is the first stop for aid agency AmeriCares.

This doctor had to deal with 900 patients in the first two days in a hospital which can cope with just 300.

JONATHAN FINE, AMERICARES: What was revealed to me was that the damage done to the infrastructure of the hospitals. The linens are gone because they were used to wrap dead bodies. The hospitals are a mess. Disinfectants.

HANCOCKS: The medicine is delivered, and AmeriCares walks away with a detailed wish list for the next shipment.

A truck of donated food and water arrives just up the road at a coordination center. It will be handed out to more than 30 refugee camps in the area, holding around 1,500 of those whose homes were destroyed.

Sri Lankan prime minister visited Hamban-tota, discussing immediate need with the townspeople.

MARINDA RAJAPAKSA, SRI LANKAN PRIME MINISTER: We are getting aid, and we are now coordinating -- we are coordinating throughout the area sending it to the affected areas, where there is not these sort of lists (ph).

HANCOCKS: But for many not in refugee camps, food and water remains scarce. Coconuts are being given out in the streets. Many people don't want to leave the area where their or their relatives' houses once stood.

(on camera): We're just a couple of roads down from the hospital here, and this is where the locals are starting the cleanup operation. But it's an extremely delicate process.

Most of the people that have lived in this area would have died in their houses. So, as locals are sifting through the rubble, they're discovering more bodies.

(voice-over): And it's the state of mind of these volunteers and survivors that is another health concern. Doctors in the area understand medical support for the Sri Lankans is more than just material.

Once the immediate physical needs are met, then comes the harder task of helping locals come to terms with what they've been through.

Paula Hancocks, CNN, Hambonto (ph), Sri Lanka.

(END VIDEOTAPE)

DOBBS: Coming up here tonight, a new wave of violence across Iraq. Less than four weeks now remain before that country's first elections. We'll have the latest for you from Baghdad. And then the American textile industry. It's been devastated by cheap imports from China. Newly expired quotas could put thousands more American jobs at risk. Union leader Bruce Raynor will be here to tell us why he says our government should have saved those jobs long ago.

All of that, a great deal more coming up still ahead here tonight.

(COMMERCIAL BREAK)

DOBBS: An American soldier was killed and three others were injured in an ambush today in Kabul, Afghanistan. This, the second fatality in as many days. American troops were fired upon after two homemade bombs exploded. The U.S.-led coalition has more than 18,000 troops now in Afghanistan fighting Taliban and Al Qaeda-linked terrorists.

In Iraq, insurgents pressed ahead with their campaign to disrupt national elections. A roadside explosion and four separate car bombs killed more than a dozen people today.

Jeff Koinange reports from Baghdad.

(BEGIN VIDEOTAPE)

JEFF KOINANGE, CNN CORRESPONDENT (voice-over): An all-too- familiar scene on the streets of Baghdad. In the morning rush hour, a vehicle laden with explosives rams into a police checkpoint, killing three officers and wounding more than 20, half of them policemen.

The target was the headquarters of the Iraqi National Accord, the political party of interim Prime Minister Iyad Allawi. Iraqi National Guardsmen and the U.S. military moved in to seal off the area while helicopters hovered.

And even before the smoke had cleared, the insurgent group Ansar al-Sunna was claiming responsibility for the attack.

A short distance away on the edge of the heavily fortified green zone, a suicide bomber, possibly targeting westerners, slammed his vehicle into a three-car civilian convoy.

UNIDENTIFIED MALE (through translator): A car bomb exploded on Baghdad Airport Road between Al Caracia (ph) neighborhood and Baghdad Airport. The blast targeted an American convoy.

KOINANGE: At least three people were reportedly killed. Their identifies have not been released.

(on camera): And the pattern of attacks is not restricted to the capital. In Balad, 80 kilometers northwest of Baghdad, four Iraqi National Guardsmen were killed and 14 wounded when a suicide bomber detonated his car at a checkpoint.

(voice-over): The insurgents are targeting Iraqi officials and security forces, as well as western contractors and civilians, and even oil pipelines, with a single aim: to make Iraq ungovernable. Across the country, the daily casualty count frequently runs into dozens.

U.S. commanders here had warned that violence would increase in the runup to the elections now less than 30 days away, as insurgents try to frighten Iraqis away from the polls. They are being proved grimly accurate.

Jeff Koinange, CNN, Baghdad.

(END VIDEOTAPE)

DOBBS: In North Korea, the state-run newspapers welcomed in the new year with a chilling editorial: preparing for nuclear war. The editorial warned the United States that it is ready for war on the Korean peninsula if Washington does not drop its "hostile policy towards North Korea."

Back at home, President Bush today met with newly elected members of Congress. President Bush will have a strengthened majority with the 109th Congress. Nevertheless, the battle lines are already being drawn, often within the Republican Party itself.

Ed Henry joins us now from Washington with a look at the president's ambitious second-term agenda -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good evening, Lou.

Republicans broke out the champagne after an election night that, as you mentioned, gave them increased majorities in the House and Senate, and they thought they could pass much of President Bush's second-term agenda.

But now that post-election glow has worn off a bit, and the 109th Congress kicks off tomorrow with the Republicans realizing they might not accomplish as much as they had hoped.

The Republicans fear some of the president's biggest headaches may not come from Democrats. They may come from fellow conservatives. The Republican rift over the intelligence bill late last year suggests conservatives may be emboldened a bit to stand up to the lame-duck president on issues like judicial nominations, Social Security reform and overhaul the tax reform.

But the biggest Republican split will come over immigration reform. Late last year, as you remember, Republican leaders promised Congressman James Sensenbrenner that early this year in the first must-pass bill, they would consider his package of immigration changes which were left out of the 9/11 bill, and a large block of conservatives want to crack down on illegal aliens in part by stopping them from getting driver's licenses out of a fear that they're using them as a national I.D. card.

They also want to finish a wall on the California-Mexico border near San Diego, and they want to make it harder for illegal aliens to seek political asylum. But there have been suggestions the White House wants to go slow on such reform in part because the president did so well among Hispanic voters in the last election.

So Republicans are expecting some major political fireworks on this issue, Lou, and Democrats are eager to stay out of the way and enjoy the show -- Lou.

DOBBS: There is implicit, Ed, in what you're saying and what so many reporters are suggesting at this time and as we begin looking closely at the immigration issues that Hispanics somehow are all for an open border. We find that's not the case, and perhaps we should be careful to point that out.

Hispanics are as interested in traditional values as any other segment of the population. In point of fact, half of them supported the Proposition 200 initiative in Arizona. Do we really see in Washington some suggestion that this is an absolute uniform Hispanic support for open borders?

HENRY: No. Obviously, on a lot of these issues, you will see that battle lines are drawn, and people end up being pushed into different corners.

But you're right. Clearly, Hispanics, just like any other group of voters in the country, do not vote or do not think in block on every single issue, but there is a sense, politically speaking, that the White House may be concerned that, given the fact that the president did so well and really stunned John Kerry and the Democrats with how well he did with Hispanic voters, that this might be an issue he doesn't want to touch right now.

It doesn't mean that all Hispanic voters are on the president's side or against him on this issue, but it's a sign that politically Republicans on the Hill are very nervous this issue could boomerang on them -- Lou.

DOBBS: Ed Henry.

Thank you, sir.

Another contentious issue, of course, is Social Security reform. And, tomorrow, I'll be joined by John Rother, the director of policy and strategy for the AARP, the Association of Retired Persons, which will begin a campaign opposing the president's call for privatization of at least part of the Social Security program.

And that brings us to the subject of tonight's poll. The question: What do you believe should be the top priority for Congress this year -- immigration reform, Social Security reform, trade reform and outsourcing, or the federal deficit? Cast your vote at loudobbs.com. We'll have the results for you later in the broadcast.

The standard of behavior for members of the House of Representatives may soon be on the decline. Republican leaders are considering a change in House Ethics rules. The proposed change would essentially make it more difficult to discipline lawmakers. House Democratic leader Nancy Pelosi denounced the proposal.

Coming up next here, welcome to the wild, wild west. Snow, ice, heavy winds pelting Northern California. We'll have a live report for you from one of the worst-effected areas.

And later, proud to be an American. From flag bumper stickers to red, white and blue apparel, more Americans are outwardly showing pride in our country. Trouble is: Many of these products are made just about everywhere but the USA.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Wild weather is still battering parts of the West Coast. Some areas have been hit with as much as nine feet of snow and heavy winds. Forecasters say there's more to come.

Ted Rowlands reports mow from Soda Springs, California.

TED ROWLANDS, CNN CORRESPONDENT: Lou, it has been relentless here. As you mentioned, nine feet of snow over the last week, and it has caused travel problems for holiday travelers. Much of that snow coming over the holiday weekend, New Year's Day. The highways here were jampacked.

Today, a bit of a respite for locals as they first had to find their cars and then dig them out and dig themselves out. Snowplow vehicles were working 24 hours a day.

Folks here are used to a lot of snow, just not this much in such little time.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Six, seven foot snow banks beside the roads. Actually typical right around Christmas, but it usually comes over a succession of several snows instead of pretty much all at once. We had only about two feet before this came down.

(END VIDEO CLIP)

ROWLANDS: And the sun came out for the first time in a week today, this afternoon. Folks are enjoying the little break in the weather. Forecasters say they should expect more later this week.

In Southern California, it's a different story. They have been pelted all day long with rain in the lower elevations and snow in the higher elevations, notably Interstate 5.

The grapevine which connects northern and southern California has been closed for much of the day, stranding travelers in the snow because of unsafe conditions on that freeway.

It's unclear when that will open, and it is unclear when all of this will stop for Californians -- Lou. DOBBS: Ted, thank you very much.

I think we probably should point out that the drought-ravaged West probably appreciates, at least in part, some of this snowfall.

Ted Rowlands from Soda Springs, California.

Thank you.

Several thousand people living in El Dorado, Arkansas, don't know when they'll be able to return home. They were evacuated after a fire broke out yesterday at a hazardous waste disposal plant. That fire was sparked by several small explosions. The cause of the explosions is now under investigation. And the good news: No injuries were reported.

Coming up next, from textiles to toys, you may want to add automobiles to the list of popular Chinese imports. We'll tell you about an ambitious plan now underway.

And coming to America -- illegally. A how-to guide, in fact, for those looking to sneak into the United States. That guide courtesy of the Mexican government.

(COMMERCIAL BREAK)

DOBBS: In just a moment, I'll be talking with Bruce Raynor, the head of a union representing hundreds of thousands of American workers that he says will be devastated by the expiration of quotas on cheap foreign products into this country.

But, first, these stories.

Delta Airlines is reportedly planning to cut fares by as much as 60 percent in a bid to compete with low-fare rivals. TIME magazine reports Delta has been restructuring to avoid filing for bankruptcy. Delta also plans to cut back on some rules and restrictions, such as Saturday night stays.

The Department of Homeland Security today said the FBI has not been able to find any link between recent incidents involving laser beams and terrorism. The FBI has been investigating eight incidents since Christmas in which laser beams were directed at various aircraft across the country. The matter remains under investigation.

Canadian officials today said their beef supply is not threatened by the latest case of mad cow disease. That after a dairy cow in Alberta tested positive for the disease. Authorities have quarantined all the animals where the cow was born and are trying to locate its most recent offspring.

It will not be long before some of the cars on the road in this country bear a new label, "Made in China." An American company has partnered with a Chinese auto manufacturer to import cheap cars to this country, but those cars are coming -- are already controversial for reasons other than the sticker price. Bill Tucker has the story. (BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): The man who brought you the Yugo has another idea for the American driver -- cars made in China. While the Yugo had to debut in America before anyone heard of it, Detroit is well aware of Chery Automotive. General Motors is suing Chery alleging that it stole the design of its best-selling model by copying its Chery QQ by copying its Chevy Spark model. GM won't discuss the case, but trade critics say GM and other automakers have no one to blame but themselves.

ALAN TONELSON, U.S. BUSINESS & INDUSTRIAL COUNCIL: They must have understood that intellectual property theft in China is widespread and that the Chinese courts are not reliable instruments for achieving justice, and they must have understood that they were going to be victimized by Chinese competition.

TUCKER: Clearly sensitive to the charge that Visionary Vehicles is hastening the exit of jobs from America to China, the company wasted no time in releasing a statement saying that its dealerships will create jobs in the States. The man behind Visionary Vehicles is Malcolm Bricklin, and he has grand ambitions, 250 dealerships, five models, and sales of 250,000 cars in the first year of operation, which is planned to be 2007. That would be the fastest launch of a car brand in history.

ED LAPHAM, EXEC. EDITOR, "AUTOMOTIVE NEWS": There are all kinds of logistical and production hurdles that need to be cleared, and that's before the vehicles even get to the market here.

TUCKER: But make no mistake this deal is a signal that the Chinese are coming.

(END VIDEOTAPE)

(on camera): The United States is still the largest market for autos in the world. It is the market that every carmaker wants to be in, to sell in, but not necessarily to build in -- Lou.

DOBBS: And we should point out as well, the U.S. carmakers, what's left of the big three, are losing market share to foreign imports every year.

TUCKER: That's right.

DOBBS: Bill Tucker, thank you.

Tonight, more and more companies are using the lure of American pride and prestige to sell their products. The problem, it turns out, many of those products are anything but American. Christine Romans has the report.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): The American Girl doll is sold at American Girl Place. And just about the only thing American here are your American dollars. Little girls all over this country are in love with these dolls. Each representing a different time in American history. But these dolls are American in name only. They are made in China. Mattel owns the American Girl brand. In the third quarter, it rang up $61 million in sales related to American Girl.

HAYES ROTH, LANDOR ASSOCIATES: The brand successfully communicates the promise of being an American icon, an American product, whatever that all comes to mean, and it's successful at it, then I think people will forgive wherever it may be made.

ROMANS: American Girl is not alone. Polo Ralph Lauren wraps itself in what it calls the American lifestyle experience. 70 percent of its sales last year were in the U.S. but many of its products are made in China. Tommy Hilfiger and its red, white and blue flag logo are the epitome of American urban hip. But this company is incorporated in the British Virgin Islands, and its headquarters is in Hong Kong. 72 percent of its sales were in the U.S. last year. A company spokesman couldn't say how much of its product is made overseas. No matter where they make it, what they're selling is America.

DAVID AAKER, AUTHOR, "BRAND PORTFOLIO STRATEGY": They sort of tell that story by invoking all of these images of America, the horses, the grandfather, the sunsets and so forth. They're using the American association to help dial up a certain perspective on America.

(END VIDEOTAPE)

ROMANS: The perspective may be American, but the sourcing is anything but. Many of the classic American consumer brands, one by one, have closed up their factories in the United States, Lou, Playdough, Matchbox Toys, Etch-A-Sketch, Hot Wheels cars, all made in China now.

DOBBS: Even Hot Wheels?

ROMANS: For some time now.

DOBBS: Don't tell me. Not Hot Wheels, too?

ROMANS: It's true.

DOBBS: Christine Romans, thank you very much.

A federal judge ruled to allow a class-action lawsuit against Wal-Mart. That suit was filed by illegal aliens who claimed the company violated labor laws. The court accepted the argument that illegal workers have minimum wage and overtime pay rates under the Federal Fair Labor Standards Act. This ruling could lead to an even larger lawsuit against Wal-Mart as notices about the case are being sent to more potential plaintiffs.

Wal-Mart is just one of the retailers that will benefit considerably from the end of textile quotas between China and the United States, Canada and Europe. This weekend marked the end of the 30-year program. My guest tonight says the expiration of the textile quotas is a disaster that everyone knew was coming, our government has done absolutely nothing to stop it. Bruce Raynor is the union president for 450, 000 workers in the apparel, textile and service industries and joins you us here in New York tonight. Good to have you with us, Bruce.

We knew this was coming for some time, as you point out. But the fact is, this is consonant with the free trade policies of both the Clinton administration and this Bush administration. What's the surprise at all in this?

BRUCE RAYNOR, UNITE HERE: Lou, it should be no surprise from people who have been watching it. What's going to happen is this is going to be one of the largest transfers of wealth in the history of our world. We're going to see jobs not only go from the United States to China in record numbers, we will see millions of jobs go from the third world to China. Because the countries of Africa and Latin America, they can't compete with Chinese labor, Chinese practices that the companies and the government practice in that country.

DOBBS: The idea, though, of even discussing these issues, I notice you bring up on the impact on other countries. It seems as if that is almost an adjustment, if you will, for public relations today because it's necessary to say we're concerned about third world countries instead of worrying just about the U.S. worker. You represent nearly a half million workers in this country.

The AFL-CIO is supporting policies, trade policies, that corporate America, U.S. multinationals, are supporting. It's hard to tell where the unions begin and the corporations leave off these days when it comes to trade policy, when it comes to immigration policy. What direction are you all taking?

RAYNOR: Well, the American Labor Movement has been consistently supporting the protection of American jobs. We oppose NAFTA. We said that NAFTA would cause the loss of jobs. In the textile and payroll industry, there have been 800,000 jobs lost since NAFTA was passed. There are still 686,000 apparel and textile workers in America. It's the largest manufacturing industry in New York City, and in Los Angeles. It deserves support. It deserves protection. The only way that's going to happen is the government has to step in and protect our citizens and our jobs.

DOBBS: Do you think there's any chance in the world that's going to happen? We should point out again, 96 percent of the apparel in this country is imported now.

RAYNOR: I think that there's no question. And it's, I think, a scandal. I think it's something that America ought to be ashamed of. But do I think there's a chance? Yes. I think there's a chance, if public opinion continues to say that we don't support corporations and retailers making outrageous profits by taking jobs away from American workers, when they say the few cents an hour that Wal-Mart will save you in prices is worth the cost of another 300,000 or 400,000 American jobs, I think most Americans can't afford those cheap prices. And I think the public believes that. It's the politicians that have to be convinced. The safeguard petitions that the government could file to protect this surge of imports from China they have a decision to make between now and February. And I believe that if public opinion is raised, and the issue is raised that the government officials will respond.

DOBBS: Your membership has been declining, that of the AFL-CIO has been declining, except in one area for them, that is, of course, in terms of public employees. Their membership rising. Nearly every other category is declining and declining significantly. The role of the union here, to stand up for American workers, are you guys going to do something here for the working man and woman? I mean, Bruce, you're standing up. Your union's standing up on this issue. But the fact is, we're watching jobs basically either hold steady or decline in wages. And the worker -- I mean, the unions built the standards for labor protection in this country for health and safety standards, and it seems to be eroding as quickly as every trade agreement can be signed.

RAYNOR: There's no question. The continued erosion of American living standards, the decline of manufacturing jobs, we have been the voice that's fought to protect American jobs. And we'll continue to do that. Whether it's in the textile industry, whether it's in the steel industry, whether it's in the automobile industry, but what we've got to do is get politicians who have been consistent in selling out American workers, and we have been the one voice that has stood up -- now, American corporations are not American corporations. They're global organizations that expect to make money manufacturing in China. It's the American people and American political leaders that have to be persuaded. And it's the unions that have been sing the voice, and we'll continue to be that.

DOBBS: And the consumer's voice is being heard at the cash register selecting the low-priced import every time. What can be done about that?

RAYNOR: I don't agree that it's the consumer selector. It's the retailers selecting. Wal-Mart puts in Chinese-made goods and American consumers buy them. And American consumers have their living standards lowered so they can't afford to pay more money for goods. It's the American retailers making that decision, and they ought to be held accountable. The Wal-Marts of the world are lowering the living standards of American workers, and it needs to stop now.

DOBBS: Bruce Raynor, couldn't agree more. Thanks for being here.

RAYNOR: Thank you.

DOBBS: A reminder now to vote in our poll tonight. Question: What do you believe should be the top priority for Congress this year? Immigration reform? Social Security reform? Trade and outsourcing? Or the federal deficit? Please cast your vote at loudobbs.com. We'll have the results coming up here in a matter of minutes.

Still ahead, how Mexico is encouraging its citizens to cross our borders illegally. That's right. The Mexican government has even printed and pushed a guide book for illegal aliens. We'll have a special report for you.

And "Jackpot Justice." How frivolous lawsuits are hurting Americans and American business. Stay with us for that special report as well.

(COMMERCIAL BREAK)

DOBBS: An unbelievable story tonight out of Mexico, where officials have published a guide, a guide filled with tips for Mexican citizens to help illegal aliens safely cross the border into this country. Although the book warns against illegally crossing that border, it lays out step by step instructions on how to do just that. Casey Wian reports from Los Angeles.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Mexicans trying to sneak into the United States now have more help, from their own government. Mexico's Foreign Ministry is distributing a 24-page booklet titled "The Guide for the Mexican Migrant." It contains safety information about how to survive desert or river crossings, such as adding salt tablets to water to prevent dehydration, and warning not to cross during intense heat.

While the booklet does say obtaining a visa is the best way to enter another country, it then provides a step by step guide to crossing without one. From advice about dealing with coyotes or smugglers to tips such as following power lines or train tracks when lost. It's all there.

MARK KRIKORIAN, CENTER FOR IMMIGRATION STUDIES: Clearly, part of it is to protect the lives of people who are going to cross anyway. It's also intended to facilitate illegal immigration, to make it more normal, more routine and less risky, so that it continues.

WIAN: Much of the guide focuses on what illegal aliens should do if caught by the border patrol. It tells them not to throw rocks at border patrol agents, saying that would be considered provocation. It points out the rights illegal aliens enjoy in this country, and offers tips on how to avoid detection once they've made it across.

The Mexican embassy says the booklet is an effort to save lives, and denies that it encourages illegal immigration. The booklet is being distributed as a free insert in a popular Spanish-language cowboy comic book and over the Internet. Mexico has published more than a million copies of the guide.

(END VIDEOTAPE)

WIAN: Today, a White House spokesman said he was unaware of the border crossing guide, but would look into it. One immigration control advocate, somewhat tongue-in-cheek, says he's surprised the Bush administration is not listed as a co-publisher, since it's done so much to encourage illegal immigration -- Lou.

DOBBS: Casey, thank you very much. Casey Wian reporting from Los Angeles.

Tonight, we begin what will be a week-long series on this broadcast of special reports on tort reform. "Jackpot Justice," we call it. Tonight we're focusing on the growing popularity of frivolous lawsuits in this country, and why reforming the system has become a national, if controversial, priority. Lisa Sylvester reports from Washington.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): This quiet county in Illinois has been dubbed the country's number one judicial hellhole. The American Tort Reform Association gave Madison County the distinction for its court system, known to be overly friendly to plaintiffs' lawyers. Reports of multimillion dollar awards and frivolous lawsuits are driving calls for tort reform.

President Bush, in a forum last month, made it a top priority for his second term.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The cost of litigation in America makes it more difficult for us to compete with nations in Europe.

SYLVESTER: Studies show that nearly 74 percent of all tort cases are settled. About 10 percent are dismissed. And only about 3 percent end up going to trial.

But even if a case does not go to trial, tort reform advocates say it's the cost of defending against litigation that's pushing up prices. Doctors' insurance premiums have increased 25 percent since 1993.

SHERMAN JOYCE, AMERICAN TORT REFORM ASSOCIATION: One of the hidden costs in our health care system is what we call defensive medicine. Doctors ordering tests, not because they necessarily think a particular test is essential, it's simply because they're concerned down the road that there could be litigation.

SYLVESTER: But consumer advocacy groups say the legal system is not to blame for the high malpractice insurance costs. They say it's the insurance companies trying to increase profits. And they argue tort reform would make it harder to hold companies accountable.

JOANNE DOROSHOW, CENTER FOR JUSTICE AND DEMOCRACY: Ultimately, society is going to be hurt, because reckless corporations are going to be keeping unsafe products on the market, hospitals are not going to be made safer, and so we're all going to suffer as a result of that.

SYLVESTER: Last congressional session, the House passed limits on class-action lawsuits and medical malpractice claims. But the measure stalled in the Senate.

(END VIDEOTAPE) SYLVESTER: This year, with a different makeup in Congress and President Bush throwing his full support behind tort reform, it's likely that lawmakers will put in place some curbs on class-action and medical malpractice cases, including a $250,000 cap on pain and suffering awards -- Lou.

DOBBS: Thank you, Lisa. And this week, we'll be focusing on how other countries are handling the issue of tort reform and personal injury lawsuits in particular, and most are nothing like the system practiced in the United States.

Still ahead here tonight, I'll be talking about President Bush's latest move to help those devastated by the tsunamis. And the issues of the United Nations and Iraq and Russia, and all of the top news stories, with three of this country's top political journalists. Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Joining me now from Washington, Ron Brownstein of "The Los Angeles Times," Karen Tumulty of "Time" magazine, Roger Simon of "U.S. News and World Report." And happy new year to all three of you.

ROGER SIMON, "U.S. NEWS AND WORLD REPORT": Happy new year.

KAREN TUMULTY, "TIME" MAGAZINE: Happy new year.

DOBBS: Ron, let's begin with the 12,000 U.S. military that are now in Asia, who are working on the relief efforts, the aid efforts to the victims, the survivors of the tsunamis. Jeb Bush, the governor of Florida, and Secretary of State Colin Powell there now in country.

How much do you think this will be -- how much more do you think is going to be required of the United States, in particular, in this worldwide relief effort?

RON BROWNSTEIN, "LOS ANGELES TIMES": Probably quite a bit more before it's over, Lou. But I think you have to say that after a slow start -- I think even people in the White House -- some people in the White House believe the president was remiss in waiting so long to go before the cameras in the immediate aftermath of the disaster.

I think the administration has produced a significant response here on many fronts. We are seeing, of course, the big increase in aid last Friday, the $350 million, the announcement of Colin Powell and his brother, Jeb Bush, going. I think an important signal of personal support. Naming President Clinton and former President Bush to spearhead an effort to raise money among the American public, which was contributing quite a bit already, and the very impressive performance of the military. All of this I think does suggest that we can see the -- I think this can be a positive for the U.S. image in the world if we stay in the forefront of those working to help.

DOBBS: Karen, as Ron suggests, arguably, a slow start for the U.S. government in relief efforts. But at the same time, President Bush, it seems, in this environment, would have been accused, through his own personal statements, of either grandstanding or showboating had he taken on a personal imprimatur -- put a personal imprimatur on this effort. What do you think?

TUMULTY: Well, I do think that it probably would have been helpful, though, however, for him to at least make some sort of statement in the first few hours after the disaster. But the fact is, in the long run, when it comes to what is really going to matter in building goodwill toward this country around the world, I do think it's not going to be what we do in the first week or two after this disaster, but a year from now and two years from now, when, you know, this is not playing hour by hour on CNN. And the real important commitments and the much larger commitments are going to be there required for rebuilding these countries.

DOBBS: Roger, the kind of commitment that Karen is talking about is going to be, every expert tells us, a longstanding effort, if it is to be successful. Perhaps five years, perhaps more to really rebuild. Does the United States -- do other countries have the resources and the wherewithal to sustain that kind of effort?

SIMON: Oh, I think we do. And I think we have to. Not only from a humanitarian viewpoint, but from a business viewpoint. After all, these are people who we trade with and who buy our products. If their economies are shattered, it doesn't help everyone. And a number of nations, I think recognizing that, although their primary motivation is humanitarian -- are stepping up to the plate. Japan has made a huge contribution, reminding the world that this was an Asian disaster.

What seems surprising to me is that China has been so quiet. The Asian superpower, I think they've pledged $300 million, which is far less than $1 per person for those studying the per capita contributions. And it's also a country hosting the Olympics in four years -- three years now -- and wants the world to like them. I'm really surprised at how quiet China has been.

BROWNSTEIN: Can I just add one point, Lou?

DOBBS: Sure.

BROWNSTEIN: There's a tendency, I think, and I think a mistaken tendency, to sort of measure each country here solely by how much we put in, the input. I think we also have to focus on the output. And once we move past the immediate crisis and the relief effort to keep people alive, I think it's important for the U.S. to show that we can not only be generous, but smart.

One of the things President Bush has done that has drawn a lot of support from across the political spectrum is to argue that foreign aid should be tied more closely to results, to reform on the part of the receiving countries. And I think as we go forward here, this offers an opportunity to test that principle, and try to ensure that the money, the enormous sums of money that are moving into this region of the world is going to the needy rather than the connected. DOBBS: Let's turn to the president's domestic agenda as well, putting -- banking a tremendous amount of his -- frankly I'm so tired of hearing discussion about spending his political capital, but his political capital, nonetheless, in Social Security reform. Why in the world, and the AARP are going to be tomorrow night -- joined by the head of the AARP strategy group, opposing it. Why is the president investing capital in what is a minor element of the total program? Karen?

TUMULTY: Well, this is something clearly that the president believes in. I mean, that is something that you've got to give him here. And -- but to get any kind of movement at all out of this Congress, and particularly to get it before the politics of the mid- term election kick in, he has really got to convince not only lawmakers but the public that there is, indeed, a crisis looming. And I think that that is going to be, in some ways, his hardest and most immediate challenge. And particularly when he is not getting a chorus of support from groups like AARP, which did help him on the Medicare prescription drug program.

DOBBS: And the best estimates are that that crisis will be here come 2042.

Immigration, Roger. The president has joined on this issue as well. With his guest worker program, opposition to that program to effectively legalize illegal aliens is mounting almost daily in both parties.

SIMON: The president went out of his way in his last press conference to make two statements, and repeat them, that have been disputed by experts who appear on this show all the time -- one, that illegal aliens are only taking jobs that Americans want, and two, that we should stop hunting illegal aliens and go after the terrorists. That is not where the Republican Party, or at least the members of Congress, seem to stand on this issue right now.

DOBBS: Roger, thank you very much. Karen, Ron, we thank you, all three, as always.

BROWNSTEIN: Thank you.

TUMULTY: Thank you.

DOBBS: Our nation lost two political leaders this weekend. California Congressman Robert Matsui, who was overwhelmingly elected to his 14th term in November, died of a rare blood disorder Saturday evening. A leading Democratic voice on social issues, he was known as one of his party's greatest champions. Congressman Matsui was 63 years old.

And Shirley Chisholm, the first black woman to serve in the U.S. Congress, died at her home in Ormond Beach, Florida, after several recent strokes. Chisholm was the first woman to seek the Democratic presidential nomination. She was 80 years old. We'll continue in one moment.

(COMMERCIAL BREAK)

DOBBS: Now, the results of our poll question. Twenty-nine percent of you say immigration reform should be the top priority for Congress this year. Only 2 percent said Social Security. Thirty-two percent said trade and outsourcing, and 37 percent the federal budget deficit.

Thanks for being with us tonight. Please join us here tomorrow. Author Tracy Dahlby is my guest. His new book, "Allah's Torch." We'll be discussing how we can defend ourselves against new terrorist threats.

And one amazing year on Mars. Steve Squires, lead scientist for the Spirit rover, joins me to talk about NASA's discoveries.

And our series of special reports continues on tort reform, "Jackpot Justice." Tomorrow, are lawyers to blame for frivolous lawsuits? Please be with us.

For all of us here, good night from New York. CNN special report on the tsunami disaster 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 January 3, 2005 - 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, millions of tsunami survivors struggle for life in South Asia. Thousands upon thousands of corpses are threatening water supplies and food. We'll have a live report from Banda Aceh, Indonesia.

The United States taking an active, leading role in the recovery and relief efforts, delivering much needed supplies and shuttling survivors to hospitals.

President Bush calls on the American people to send help on their own.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The greatest source of America's generosity is not our government. It's the good heart of the American people.

DOBBS: We'll have the latest on global relief efforts, and three of this country's top journalists join us tonight.

Has Mexico gone too far this time? The Mexican government printing and passing out a handbook to help Mexicans cross our border illegally. How much longer will the U.S. government tolerate Mexico's blatant encouragement of illegal immigration to this country? We'll have a special report.

And last year, the United States imported record amounts of Chinese products and goods. This year, the American textile industry says it's all but wiped out. And now the Chinese carmaker that allegedly stole designs from General Motors will soon be selling cars here in the United States. It just gets better and better.

(END VIDEOTAPE)

ANNOUNCER: This is LOU DOBBS TONIGHT for Monday, January 3. Here now for an hour of news, debate and opinion is Lou Dobbs.

DOBBS: Good evening.

Tonight, relief from the United States and the rest of the world is pouring into South Asia to help survivors of the catastrophic tsunamis.

The death toll from the disaster has now risen to at least 154,000 people. Indonesia has again significantly raised its death toll, which now stands at more than 94,000.

Secretary of State Colin Powell today arrived in the region. The secretary of state said as many as 5,000 Americans remain unaccounted for around the Indian Ocean rim. Secretary Powell and Florida Governor Jeb Bush are touring damage in Thailand, Indonesia, and Sri Lanka.

And the U.S. military as well, as government and private aid agencies are helping to deliver helicopters full of emergency supplies to that region. More than 12,000 U.S. military personnel are now involved in the relief effort.

Despite that aid, tonight there are new fears of an epidemic in one of the most devastated areas in the Aceh province in Indonesia. Officials there are struggling to find enough clean water for thousands upon thousands of survivors. Mike Chinoy is live now in Banda Aceh with the report -- Mike.

MIKE CHINOY, CNN CORRESPONDENT: Hello, Lou.

Well, tens of thousands of people here are struggling to survive in rubble of the kind you see behind me. This is the central business district of Banda Aceh, completely destroyed.

Aid officials and workers say that a key concern is getting safe drinking water to people. The entire water supply system here has been badly contaminated and there's a big concern about an increase in water-borne diseases, the possibility of major epidemics.

The Australian army, working with UNICEF, has set up purification machines. And as of the last day or so, are been able to provide people about 20,000 liters of water an hour. And during the day people have been lining up, trying to get plastic cans full of water.

The other big concern, aid workers say, is just the sheer logistics of handling this huge aid effort in a city where there's no infrastructure, no communication, no transportation, no housing. It's a mess, but the aid community is working hard -- Lou.

DOBBS: Mike, the number of personnel involved there now, your best estimate worldwide. You mentioned the Australian army. The U.S. Marines are obviously there. And your best assessment as to how much more is needed.

CHINOY: What people say here is that the issue is not supplies. The issue is not money. The issue is not even personnel on the ground.

The issue is coordination, because so many people have come in. There's so many different organizations, and there's so many different kinds of needs that it's managing it so that the right aid gets to the right people in the right place at the right time. And that is really difficult.

One big target, the aid workers say, is to get the mobile phone system here in Banda Aceh working. Because people who have what the survivors need aren't able to communicate with the other folks who could deliver it on the ground, because you can't make a phone call. Something as simple as that, Lou, would make a big difference.

DOBBS: The deprivation, the threat to the public health of all of the inhabitants in that region throughout South Asia is obvious. What do the health officials there say right now is the principal threat?

CHINOY: Well, the principal threat is water-borne diseases. A great concern is that the water supply here comes from rivers, and it's from that water supply that the Australians have been getting the water that they've been purifying.

But even just a few hundred yards from where I'm standing, there are literally hundreds of decomposing bodies in the water. And so a key concern now is to collect and dispose of the corpses. And unfortunately, there are thousands of them here. And I'm sure many, many more beyond Banda Aceh.

And that is posing a great concern about the possibility that all of the decomposing bodies could spread disease -- Lou.

DOBBS: Mike, thank you very much. Our Mike Chinoy reporting.

As the scale of this disaster becomes clearer day by day, President Bush taking further action.

Today he announced a new effort to raise money for the millions of people devastated by the tsunamis. It's a private fund-raising drive. It will be led by former presidents Bush and Clinton. President Bush said his predecessors will lobby American citizens and companies to donate money for relief efforts.

Also today, those former presidents joined President Bush and the first lady as they visited the embassies of Indonesia, Sri Lanka, India, and Thailand.

The disaster relief has created one of the largest military missions in Asia since the end of the Vietnam War. The USS Abraham Lincoln is now stationed off Indonesia, and more American ships are on the way.

Senior Pentagon correspondent Jamie McIntyre has that report.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): A Navy helicopter from the U.S. aircraft carrier Abraham Lincoln delivers food and milk to a remote part of the hardest-hit area of Indonesia. The isolated refugees are both desperate and grateful, rushing for the supplies that could save their lives.

The pilot of one mercy flight, Navy lieutenant Greg Knutson, told CNN the helicopters often can't land, either because of flooding or large crowds. LT. GREG KNUTSON, U.S. NAVY: We've been coming to a ten-foot hover when there's just crowds of people wanting to get food into our helicopters, so we don't want to set down on the ground.

But sometimes we will have the -- all the people over to the one side, and then we'll fly about a quarter of a mile away, set down. Then we'll start putting food out.

MCINTYRE: Round the clock flights by Air Force C-130 cargo planes have so far delivered nearly a quarter of a million tons of relief supplies to regional hubs. Now the biggest challenge is logistics.

BRIG. GEN. JOHN ALLEN, DIRECTOR, ASIA AND PACIFIC AFFAIRS: If you're not careful, pretty quickly, you have a buildup of supplies that you now must move forward. And the commanders who are on the scene are using those helicopters now to move as much of those supplies forward as they possibly can.

MCINTYRE: Nineteen helicopters are flying from the carrier Lincoln off the coast of the Indonesian island of Sumatra. In another day or so, the USS Bonhomme Richard Expeditionary Group will arrive with two dozen more helicopters and 2,200 Marines. With some ships and Marines moving on to Sri Lanka.

JAMES KUNDER, USAID: This is a classic situation where the needs are going to be of such magnitude that we've got to make sure we ready, aim, fire not ready, fire, aim. So we're trying to get a clear picture of what the needs are on the ground.

MCINTYRE: Hundreds of U.S. troops, including Marines from Hawaii and Okinawa, have been flown in to help unload and distribute aid on the ground. All told, more than 12,000 U.S. military personnel are involved in relief efforts, counting everyone from aircrews to the cook on the carrier Lincoln, who is busy baking bread for the disaster victims.

(END VIDEOTAPE)

MCINTYRE: And a sign that this relief operation won't anytime -- won't end anytime soon, the Pentagon is considering sending the 100- bed hospital ship Mercy to the region, even though it will take almost a month to get there from its home port in San Diego -- Lou.

DOBBS: Jamie, thank you very much. Jamie McIntyre, our senior Pentagon correspondent.

Relief workers are struggling to distribute aid in another area devastated by the tsunamis. More than 46,000 people were killed in Sri Lanka. And tonight, nearly a million survivors there are homeless, and many of them are fighting to survive.

Paula Hancocks reports from Sri Lanka.

(BEGIN VIDEOTAPE) PAULA HANCOCKS, CNN CORRESPONDENT (voice-over): This hospital in Hamban-tota on the south coast of Sri Lanka is the first stop for aid agency AmeriCares.

This doctor had to deal with 900 patients in the first two days in a hospital which can cope with just 300.

JONATHAN FINE, AMERICARES: What was revealed to me was that the damage done to the infrastructure of the hospitals. The linens are gone because they were used to wrap dead bodies. The hospitals are a mess. Disinfectants.

HANCOCKS: The medicine is delivered, and AmeriCares walks away with a detailed wish list for the next shipment.

A truck of donated food and water arrives just up the road at a coordination center. It will be handed out to more than 30 refugee camps in the area, holding around 1,500 of those whose homes were destroyed.

Sri Lankan prime minister visited Hamban-tota, discussing immediate need with the townspeople.

MARINDA RAJAPAKSA, SRI LANKAN PRIME MINISTER: We are getting aid, and we are now coordinating -- we are coordinating throughout the area sending it to the affected areas, where there is not these sort of lists (ph).

HANCOCKS: But for many not in refugee camps, food and water remains scarce. Coconuts are being given out in the streets. Many people don't want to leave the area where their or their relatives' houses once stood.

(on camera): We're just a couple of roads down from the hospital here, and this is where the locals are starting the cleanup operation. But it's an extremely delicate process.

Most of the people that have lived in this area would have died in their houses. So, as locals are sifting through the rubble, they're discovering more bodies.

(voice-over): And it's the state of mind of these volunteers and survivors that is another health concern. Doctors in the area understand medical support for the Sri Lankans is more than just material.

Once the immediate physical needs are met, then comes the harder task of helping locals come to terms with what they've been through.

Paula Hancocks, CNN, Hambonto (ph), Sri Lanka.

(END VIDEOTAPE)

DOBBS: Coming up here tonight, a new wave of violence across Iraq. Less than four weeks now remain before that country's first elections. We'll have the latest for you from Baghdad. And then the American textile industry. It's been devastated by cheap imports from China. Newly expired quotas could put thousands more American jobs at risk. Union leader Bruce Raynor will be here to tell us why he says our government should have saved those jobs long ago.

All of that, a great deal more coming up still ahead here tonight.

(COMMERCIAL BREAK)

DOBBS: An American soldier was killed and three others were injured in an ambush today in Kabul, Afghanistan. This, the second fatality in as many days. American troops were fired upon after two homemade bombs exploded. The U.S.-led coalition has more than 18,000 troops now in Afghanistan fighting Taliban and Al Qaeda-linked terrorists.

In Iraq, insurgents pressed ahead with their campaign to disrupt national elections. A roadside explosion and four separate car bombs killed more than a dozen people today.

Jeff Koinange reports from Baghdad.

(BEGIN VIDEOTAPE)

JEFF KOINANGE, CNN CORRESPONDENT (voice-over): An all-too- familiar scene on the streets of Baghdad. In the morning rush hour, a vehicle laden with explosives rams into a police checkpoint, killing three officers and wounding more than 20, half of them policemen.

The target was the headquarters of the Iraqi National Accord, the political party of interim Prime Minister Iyad Allawi. Iraqi National Guardsmen and the U.S. military moved in to seal off the area while helicopters hovered.

And even before the smoke had cleared, the insurgent group Ansar al-Sunna was claiming responsibility for the attack.

A short distance away on the edge of the heavily fortified green zone, a suicide bomber, possibly targeting westerners, slammed his vehicle into a three-car civilian convoy.

UNIDENTIFIED MALE (through translator): A car bomb exploded on Baghdad Airport Road between Al Caracia (ph) neighborhood and Baghdad Airport. The blast targeted an American convoy.

KOINANGE: At least three people were reportedly killed. Their identifies have not been released.

(on camera): And the pattern of attacks is not restricted to the capital. In Balad, 80 kilometers northwest of Baghdad, four Iraqi National Guardsmen were killed and 14 wounded when a suicide bomber detonated his car at a checkpoint.

(voice-over): The insurgents are targeting Iraqi officials and security forces, as well as western contractors and civilians, and even oil pipelines, with a single aim: to make Iraq ungovernable. Across the country, the daily casualty count frequently runs into dozens.

U.S. commanders here had warned that violence would increase in the runup to the elections now less than 30 days away, as insurgents try to frighten Iraqis away from the polls. They are being proved grimly accurate.

Jeff Koinange, CNN, Baghdad.

(END VIDEOTAPE)

DOBBS: In North Korea, the state-run newspapers welcomed in the new year with a chilling editorial: preparing for nuclear war. The editorial warned the United States that it is ready for war on the Korean peninsula if Washington does not drop its "hostile policy towards North Korea."

Back at home, President Bush today met with newly elected members of Congress. President Bush will have a strengthened majority with the 109th Congress. Nevertheless, the battle lines are already being drawn, often within the Republican Party itself.

Ed Henry joins us now from Washington with a look at the president's ambitious second-term agenda -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good evening, Lou.

Republicans broke out the champagne after an election night that, as you mentioned, gave them increased majorities in the House and Senate, and they thought they could pass much of President Bush's second-term agenda.

But now that post-election glow has worn off a bit, and the 109th Congress kicks off tomorrow with the Republicans realizing they might not accomplish as much as they had hoped.

The Republicans fear some of the president's biggest headaches may not come from Democrats. They may come from fellow conservatives. The Republican rift over the intelligence bill late last year suggests conservatives may be emboldened a bit to stand up to the lame-duck president on issues like judicial nominations, Social Security reform and overhaul the tax reform.

But the biggest Republican split will come over immigration reform. Late last year, as you remember, Republican leaders promised Congressman James Sensenbrenner that early this year in the first must-pass bill, they would consider his package of immigration changes which were left out of the 9/11 bill, and a large block of conservatives want to crack down on illegal aliens in part by stopping them from getting driver's licenses out of a fear that they're using them as a national I.D. card.

They also want to finish a wall on the California-Mexico border near San Diego, and they want to make it harder for illegal aliens to seek political asylum. But there have been suggestions the White House wants to go slow on such reform in part because the president did so well among Hispanic voters in the last election.

So Republicans are expecting some major political fireworks on this issue, Lou, and Democrats are eager to stay out of the way and enjoy the show -- Lou.

DOBBS: There is implicit, Ed, in what you're saying and what so many reporters are suggesting at this time and as we begin looking closely at the immigration issues that Hispanics somehow are all for an open border. We find that's not the case, and perhaps we should be careful to point that out.

Hispanics are as interested in traditional values as any other segment of the population. In point of fact, half of them supported the Proposition 200 initiative in Arizona. Do we really see in Washington some suggestion that this is an absolute uniform Hispanic support for open borders?

HENRY: No. Obviously, on a lot of these issues, you will see that battle lines are drawn, and people end up being pushed into different corners.

But you're right. Clearly, Hispanics, just like any other group of voters in the country, do not vote or do not think in block on every single issue, but there is a sense, politically speaking, that the White House may be concerned that, given the fact that the president did so well and really stunned John Kerry and the Democrats with how well he did with Hispanic voters, that this might be an issue he doesn't want to touch right now.

It doesn't mean that all Hispanic voters are on the president's side or against him on this issue, but it's a sign that politically Republicans on the Hill are very nervous this issue could boomerang on them -- Lou.

DOBBS: Ed Henry.

Thank you, sir.

Another contentious issue, of course, is Social Security reform. And, tomorrow, I'll be joined by John Rother, the director of policy and strategy for the AARP, the Association of Retired Persons, which will begin a campaign opposing the president's call for privatization of at least part of the Social Security program.

And that brings us to the subject of tonight's poll. The question: What do you believe should be the top priority for Congress this year -- immigration reform, Social Security reform, trade reform and outsourcing, or the federal deficit? Cast your vote at loudobbs.com. We'll have the results for you later in the broadcast.

The standard of behavior for members of the House of Representatives may soon be on the decline. Republican leaders are considering a change in House Ethics rules. The proposed change would essentially make it more difficult to discipline lawmakers. House Democratic leader Nancy Pelosi denounced the proposal.

Coming up next here, welcome to the wild, wild west. Snow, ice, heavy winds pelting Northern California. We'll have a live report for you from one of the worst-effected areas.

And later, proud to be an American. From flag bumper stickers to red, white and blue apparel, more Americans are outwardly showing pride in our country. Trouble is: Many of these products are made just about everywhere but the USA.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Wild weather is still battering parts of the West Coast. Some areas have been hit with as much as nine feet of snow and heavy winds. Forecasters say there's more to come.

Ted Rowlands reports mow from Soda Springs, California.

TED ROWLANDS, CNN CORRESPONDENT: Lou, it has been relentless here. As you mentioned, nine feet of snow over the last week, and it has caused travel problems for holiday travelers. Much of that snow coming over the holiday weekend, New Year's Day. The highways here were jampacked.

Today, a bit of a respite for locals as they first had to find their cars and then dig them out and dig themselves out. Snowplow vehicles were working 24 hours a day.

Folks here are used to a lot of snow, just not this much in such little time.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Six, seven foot snow banks beside the roads. Actually typical right around Christmas, but it usually comes over a succession of several snows instead of pretty much all at once. We had only about two feet before this came down.

(END VIDEO CLIP)

ROWLANDS: And the sun came out for the first time in a week today, this afternoon. Folks are enjoying the little break in the weather. Forecasters say they should expect more later this week.

In Southern California, it's a different story. They have been pelted all day long with rain in the lower elevations and snow in the higher elevations, notably Interstate 5.

The grapevine which connects northern and southern California has been closed for much of the day, stranding travelers in the snow because of unsafe conditions on that freeway.

It's unclear when that will open, and it is unclear when all of this will stop for Californians -- Lou. DOBBS: Ted, thank you very much.

I think we probably should point out that the drought-ravaged West probably appreciates, at least in part, some of this snowfall.

Ted Rowlands from Soda Springs, California.

Thank you.

Several thousand people living in El Dorado, Arkansas, don't know when they'll be able to return home. They were evacuated after a fire broke out yesterday at a hazardous waste disposal plant. That fire was sparked by several small explosions. The cause of the explosions is now under investigation. And the good news: No injuries were reported.

Coming up next, from textiles to toys, you may want to add automobiles to the list of popular Chinese imports. We'll tell you about an ambitious plan now underway.

And coming to America -- illegally. A how-to guide, in fact, for those looking to sneak into the United States. That guide courtesy of the Mexican government.

(COMMERCIAL BREAK)

DOBBS: In just a moment, I'll be talking with Bruce Raynor, the head of a union representing hundreds of thousands of American workers that he says will be devastated by the expiration of quotas on cheap foreign products into this country.

But, first, these stories.

Delta Airlines is reportedly planning to cut fares by as much as 60 percent in a bid to compete with low-fare rivals. TIME magazine reports Delta has been restructuring to avoid filing for bankruptcy. Delta also plans to cut back on some rules and restrictions, such as Saturday night stays.

The Department of Homeland Security today said the FBI has not been able to find any link between recent incidents involving laser beams and terrorism. The FBI has been investigating eight incidents since Christmas in which laser beams were directed at various aircraft across the country. The matter remains under investigation.

Canadian officials today said their beef supply is not threatened by the latest case of mad cow disease. That after a dairy cow in Alberta tested positive for the disease. Authorities have quarantined all the animals where the cow was born and are trying to locate its most recent offspring.

It will not be long before some of the cars on the road in this country bear a new label, "Made in China." An American company has partnered with a Chinese auto manufacturer to import cheap cars to this country, but those cars are coming -- are already controversial for reasons other than the sticker price. Bill Tucker has the story. (BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): The man who brought you the Yugo has another idea for the American driver -- cars made in China. While the Yugo had to debut in America before anyone heard of it, Detroit is well aware of Chery Automotive. General Motors is suing Chery alleging that it stole the design of its best-selling model by copying its Chery QQ by copying its Chevy Spark model. GM won't discuss the case, but trade critics say GM and other automakers have no one to blame but themselves.

ALAN TONELSON, U.S. BUSINESS & INDUSTRIAL COUNCIL: They must have understood that intellectual property theft in China is widespread and that the Chinese courts are not reliable instruments for achieving justice, and they must have understood that they were going to be victimized by Chinese competition.

TUCKER: Clearly sensitive to the charge that Visionary Vehicles is hastening the exit of jobs from America to China, the company wasted no time in releasing a statement saying that its dealerships will create jobs in the States. The man behind Visionary Vehicles is Malcolm Bricklin, and he has grand ambitions, 250 dealerships, five models, and sales of 250,000 cars in the first year of operation, which is planned to be 2007. That would be the fastest launch of a car brand in history.

ED LAPHAM, EXEC. EDITOR, "AUTOMOTIVE NEWS": There are all kinds of logistical and production hurdles that need to be cleared, and that's before the vehicles even get to the market here.

TUCKER: But make no mistake this deal is a signal that the Chinese are coming.

(END VIDEOTAPE)

(on camera): The United States is still the largest market for autos in the world. It is the market that every carmaker wants to be in, to sell in, but not necessarily to build in -- Lou.

DOBBS: And we should point out as well, the U.S. carmakers, what's left of the big three, are losing market share to foreign imports every year.

TUCKER: That's right.

DOBBS: Bill Tucker, thank you.

Tonight, more and more companies are using the lure of American pride and prestige to sell their products. The problem, it turns out, many of those products are anything but American. Christine Romans has the report.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): The American Girl doll is sold at American Girl Place. And just about the only thing American here are your American dollars. Little girls all over this country are in love with these dolls. Each representing a different time in American history. But these dolls are American in name only. They are made in China. Mattel owns the American Girl brand. In the third quarter, it rang up $61 million in sales related to American Girl.

HAYES ROTH, LANDOR ASSOCIATES: The brand successfully communicates the promise of being an American icon, an American product, whatever that all comes to mean, and it's successful at it, then I think people will forgive wherever it may be made.

ROMANS: American Girl is not alone. Polo Ralph Lauren wraps itself in what it calls the American lifestyle experience. 70 percent of its sales last year were in the U.S. but many of its products are made in China. Tommy Hilfiger and its red, white and blue flag logo are the epitome of American urban hip. But this company is incorporated in the British Virgin Islands, and its headquarters is in Hong Kong. 72 percent of its sales were in the U.S. last year. A company spokesman couldn't say how much of its product is made overseas. No matter where they make it, what they're selling is America.

DAVID AAKER, AUTHOR, "BRAND PORTFOLIO STRATEGY": They sort of tell that story by invoking all of these images of America, the horses, the grandfather, the sunsets and so forth. They're using the American association to help dial up a certain perspective on America.

(END VIDEOTAPE)

ROMANS: The perspective may be American, but the sourcing is anything but. Many of the classic American consumer brands, one by one, have closed up their factories in the United States, Lou, Playdough, Matchbox Toys, Etch-A-Sketch, Hot Wheels cars, all made in China now.

DOBBS: Even Hot Wheels?

ROMANS: For some time now.

DOBBS: Don't tell me. Not Hot Wheels, too?

ROMANS: It's true.

DOBBS: Christine Romans, thank you very much.

A federal judge ruled to allow a class-action lawsuit against Wal-Mart. That suit was filed by illegal aliens who claimed the company violated labor laws. The court accepted the argument that illegal workers have minimum wage and overtime pay rates under the Federal Fair Labor Standards Act. This ruling could lead to an even larger lawsuit against Wal-Mart as notices about the case are being sent to more potential plaintiffs.

Wal-Mart is just one of the retailers that will benefit considerably from the end of textile quotas between China and the United States, Canada and Europe. This weekend marked the end of the 30-year program. My guest tonight says the expiration of the textile quotas is a disaster that everyone knew was coming, our government has done absolutely nothing to stop it. Bruce Raynor is the union president for 450, 000 workers in the apparel, textile and service industries and joins you us here in New York tonight. Good to have you with us, Bruce.

We knew this was coming for some time, as you point out. But the fact is, this is consonant with the free trade policies of both the Clinton administration and this Bush administration. What's the surprise at all in this?

BRUCE RAYNOR, UNITE HERE: Lou, it should be no surprise from people who have been watching it. What's going to happen is this is going to be one of the largest transfers of wealth in the history of our world. We're going to see jobs not only go from the United States to China in record numbers, we will see millions of jobs go from the third world to China. Because the countries of Africa and Latin America, they can't compete with Chinese labor, Chinese practices that the companies and the government practice in that country.

DOBBS: The idea, though, of even discussing these issues, I notice you bring up on the impact on other countries. It seems as if that is almost an adjustment, if you will, for public relations today because it's necessary to say we're concerned about third world countries instead of worrying just about the U.S. worker. You represent nearly a half million workers in this country.

The AFL-CIO is supporting policies, trade policies, that corporate America, U.S. multinationals, are supporting. It's hard to tell where the unions begin and the corporations leave off these days when it comes to trade policy, when it comes to immigration policy. What direction are you all taking?

RAYNOR: Well, the American Labor Movement has been consistently supporting the protection of American jobs. We oppose NAFTA. We said that NAFTA would cause the loss of jobs. In the textile and payroll industry, there have been 800,000 jobs lost since NAFTA was passed. There are still 686,000 apparel and textile workers in America. It's the largest manufacturing industry in New York City, and in Los Angeles. It deserves support. It deserves protection. The only way that's going to happen is the government has to step in and protect our citizens and our jobs.

DOBBS: Do you think there's any chance in the world that's going to happen? We should point out again, 96 percent of the apparel in this country is imported now.

RAYNOR: I think that there's no question. And it's, I think, a scandal. I think it's something that America ought to be ashamed of. But do I think there's a chance? Yes. I think there's a chance, if public opinion continues to say that we don't support corporations and retailers making outrageous profits by taking jobs away from American workers, when they say the few cents an hour that Wal-Mart will save you in prices is worth the cost of another 300,000 or 400,000 American jobs, I think most Americans can't afford those cheap prices. And I think the public believes that. It's the politicians that have to be convinced. The safeguard petitions that the government could file to protect this surge of imports from China they have a decision to make between now and February. And I believe that if public opinion is raised, and the issue is raised that the government officials will respond.

DOBBS: Your membership has been declining, that of the AFL-CIO has been declining, except in one area for them, that is, of course, in terms of public employees. Their membership rising. Nearly every other category is declining and declining significantly. The role of the union here, to stand up for American workers, are you guys going to do something here for the working man and woman? I mean, Bruce, you're standing up. Your union's standing up on this issue. But the fact is, we're watching jobs basically either hold steady or decline in wages. And the worker -- I mean, the unions built the standards for labor protection in this country for health and safety standards, and it seems to be eroding as quickly as every trade agreement can be signed.

RAYNOR: There's no question. The continued erosion of American living standards, the decline of manufacturing jobs, we have been the voice that's fought to protect American jobs. And we'll continue to do that. Whether it's in the textile industry, whether it's in the steel industry, whether it's in the automobile industry, but what we've got to do is get politicians who have been consistent in selling out American workers, and we have been the one voice that has stood up -- now, American corporations are not American corporations. They're global organizations that expect to make money manufacturing in China. It's the American people and American political leaders that have to be persuaded. And it's the unions that have been sing the voice, and we'll continue to be that.

DOBBS: And the consumer's voice is being heard at the cash register selecting the low-priced import every time. What can be done about that?

RAYNOR: I don't agree that it's the consumer selector. It's the retailers selecting. Wal-Mart puts in Chinese-made goods and American consumers buy them. And American consumers have their living standards lowered so they can't afford to pay more money for goods. It's the American retailers making that decision, and they ought to be held accountable. The Wal-Marts of the world are lowering the living standards of American workers, and it needs to stop now.

DOBBS: Bruce Raynor, couldn't agree more. Thanks for being here.

RAYNOR: Thank you.

DOBBS: A reminder now to vote in our poll tonight. Question: What do you believe should be the top priority for Congress this year? Immigration reform? Social Security reform? Trade and outsourcing? Or the federal deficit? Please cast your vote at loudobbs.com. We'll have the results coming up here in a matter of minutes.

Still ahead, how Mexico is encouraging its citizens to cross our borders illegally. That's right. The Mexican government has even printed and pushed a guide book for illegal aliens. We'll have a special report for you.

And "Jackpot Justice." How frivolous lawsuits are hurting Americans and American business. Stay with us for that special report as well.

(COMMERCIAL BREAK)

DOBBS: An unbelievable story tonight out of Mexico, where officials have published a guide, a guide filled with tips for Mexican citizens to help illegal aliens safely cross the border into this country. Although the book warns against illegally crossing that border, it lays out step by step instructions on how to do just that. Casey Wian reports from Los Angeles.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Mexicans trying to sneak into the United States now have more help, from their own government. Mexico's Foreign Ministry is distributing a 24-page booklet titled "The Guide for the Mexican Migrant." It contains safety information about how to survive desert or river crossings, such as adding salt tablets to water to prevent dehydration, and warning not to cross during intense heat.

While the booklet does say obtaining a visa is the best way to enter another country, it then provides a step by step guide to crossing without one. From advice about dealing with coyotes or smugglers to tips such as following power lines or train tracks when lost. It's all there.

MARK KRIKORIAN, CENTER FOR IMMIGRATION STUDIES: Clearly, part of it is to protect the lives of people who are going to cross anyway. It's also intended to facilitate illegal immigration, to make it more normal, more routine and less risky, so that it continues.

WIAN: Much of the guide focuses on what illegal aliens should do if caught by the border patrol. It tells them not to throw rocks at border patrol agents, saying that would be considered provocation. It points out the rights illegal aliens enjoy in this country, and offers tips on how to avoid detection once they've made it across.

The Mexican embassy says the booklet is an effort to save lives, and denies that it encourages illegal immigration. The booklet is being distributed as a free insert in a popular Spanish-language cowboy comic book and over the Internet. Mexico has published more than a million copies of the guide.

(END VIDEOTAPE)

WIAN: Today, a White House spokesman said he was unaware of the border crossing guide, but would look into it. One immigration control advocate, somewhat tongue-in-cheek, says he's surprised the Bush administration is not listed as a co-publisher, since it's done so much to encourage illegal immigration -- Lou.

DOBBS: Casey, thank you very much. Casey Wian reporting from Los Angeles.

Tonight, we begin what will be a week-long series on this broadcast of special reports on tort reform. "Jackpot Justice," we call it. Tonight we're focusing on the growing popularity of frivolous lawsuits in this country, and why reforming the system has become a national, if controversial, priority. Lisa Sylvester reports from Washington.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): This quiet county in Illinois has been dubbed the country's number one judicial hellhole. The American Tort Reform Association gave Madison County the distinction for its court system, known to be overly friendly to plaintiffs' lawyers. Reports of multimillion dollar awards and frivolous lawsuits are driving calls for tort reform.

President Bush, in a forum last month, made it a top priority for his second term.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The cost of litigation in America makes it more difficult for us to compete with nations in Europe.

SYLVESTER: Studies show that nearly 74 percent of all tort cases are settled. About 10 percent are dismissed. And only about 3 percent end up going to trial.

But even if a case does not go to trial, tort reform advocates say it's the cost of defending against litigation that's pushing up prices. Doctors' insurance premiums have increased 25 percent since 1993.

SHERMAN JOYCE, AMERICAN TORT REFORM ASSOCIATION: One of the hidden costs in our health care system is what we call defensive medicine. Doctors ordering tests, not because they necessarily think a particular test is essential, it's simply because they're concerned down the road that there could be litigation.

SYLVESTER: But consumer advocacy groups say the legal system is not to blame for the high malpractice insurance costs. They say it's the insurance companies trying to increase profits. And they argue tort reform would make it harder to hold companies accountable.

JOANNE DOROSHOW, CENTER FOR JUSTICE AND DEMOCRACY: Ultimately, society is going to be hurt, because reckless corporations are going to be keeping unsafe products on the market, hospitals are not going to be made safer, and so we're all going to suffer as a result of that.

SYLVESTER: Last congressional session, the House passed limits on class-action lawsuits and medical malpractice claims. But the measure stalled in the Senate.

(END VIDEOTAPE) SYLVESTER: This year, with a different makeup in Congress and President Bush throwing his full support behind tort reform, it's likely that lawmakers will put in place some curbs on class-action and medical malpractice cases, including a $250,000 cap on pain and suffering awards -- Lou.

DOBBS: Thank you, Lisa. And this week, we'll be focusing on how other countries are handling the issue of tort reform and personal injury lawsuits in particular, and most are nothing like the system practiced in the United States.

Still ahead here tonight, I'll be talking about President Bush's latest move to help those devastated by the tsunamis. And the issues of the United Nations and Iraq and Russia, and all of the top news stories, with three of this country's top political journalists. Please stay with us.

(COMMERCIAL BREAK)

DOBBS: Joining me now from Washington, Ron Brownstein of "The Los Angeles Times," Karen Tumulty of "Time" magazine, Roger Simon of "U.S. News and World Report." And happy new year to all three of you.

ROGER SIMON, "U.S. NEWS AND WORLD REPORT": Happy new year.

KAREN TUMULTY, "TIME" MAGAZINE: Happy new year.

DOBBS: Ron, let's begin with the 12,000 U.S. military that are now in Asia, who are working on the relief efforts, the aid efforts to the victims, the survivors of the tsunamis. Jeb Bush, the governor of Florida, and Secretary of State Colin Powell there now in country.

How much do you think this will be -- how much more do you think is going to be required of the United States, in particular, in this worldwide relief effort?

RON BROWNSTEIN, "LOS ANGELES TIMES": Probably quite a bit more before it's over, Lou. But I think you have to say that after a slow start -- I think even people in the White House -- some people in the White House believe the president was remiss in waiting so long to go before the cameras in the immediate aftermath of the disaster.

I think the administration has produced a significant response here on many fronts. We are seeing, of course, the big increase in aid last Friday, the $350 million, the announcement of Colin Powell and his brother, Jeb Bush, going. I think an important signal of personal support. Naming President Clinton and former President Bush to spearhead an effort to raise money among the American public, which was contributing quite a bit already, and the very impressive performance of the military. All of this I think does suggest that we can see the -- I think this can be a positive for the U.S. image in the world if we stay in the forefront of those working to help.

DOBBS: Karen, as Ron suggests, arguably, a slow start for the U.S. government in relief efforts. But at the same time, President Bush, it seems, in this environment, would have been accused, through his own personal statements, of either grandstanding or showboating had he taken on a personal imprimatur -- put a personal imprimatur on this effort. What do you think?

TUMULTY: Well, I do think that it probably would have been helpful, though, however, for him to at least make some sort of statement in the first few hours after the disaster. But the fact is, in the long run, when it comes to what is really going to matter in building goodwill toward this country around the world, I do think it's not going to be what we do in the first week or two after this disaster, but a year from now and two years from now, when, you know, this is not playing hour by hour on CNN. And the real important commitments and the much larger commitments are going to be there required for rebuilding these countries.

DOBBS: Roger, the kind of commitment that Karen is talking about is going to be, every expert tells us, a longstanding effort, if it is to be successful. Perhaps five years, perhaps more to really rebuild. Does the United States -- do other countries have the resources and the wherewithal to sustain that kind of effort?

SIMON: Oh, I think we do. And I think we have to. Not only from a humanitarian viewpoint, but from a business viewpoint. After all, these are people who we trade with and who buy our products. If their economies are shattered, it doesn't help everyone. And a number of nations, I think recognizing that, although their primary motivation is humanitarian -- are stepping up to the plate. Japan has made a huge contribution, reminding the world that this was an Asian disaster.

What seems surprising to me is that China has been so quiet. The Asian superpower, I think they've pledged $300 million, which is far less than $1 per person for those studying the per capita contributions. And it's also a country hosting the Olympics in four years -- three years now -- and wants the world to like them. I'm really surprised at how quiet China has been.

BROWNSTEIN: Can I just add one point, Lou?

DOBBS: Sure.

BROWNSTEIN: There's a tendency, I think, and I think a mistaken tendency, to sort of measure each country here solely by how much we put in, the input. I think we also have to focus on the output. And once we move past the immediate crisis and the relief effort to keep people alive, I think it's important for the U.S. to show that we can not only be generous, but smart.

One of the things President Bush has done that has drawn a lot of support from across the political spectrum is to argue that foreign aid should be tied more closely to results, to reform on the part of the receiving countries. And I think as we go forward here, this offers an opportunity to test that principle, and try to ensure that the money, the enormous sums of money that are moving into this region of the world is going to the needy rather than the connected. DOBBS: Let's turn to the president's domestic agenda as well, putting -- banking a tremendous amount of his -- frankly I'm so tired of hearing discussion about spending his political capital, but his political capital, nonetheless, in Social Security reform. Why in the world, and the AARP are going to be tomorrow night -- joined by the head of the AARP strategy group, opposing it. Why is the president investing capital in what is a minor element of the total program? Karen?

TUMULTY: Well, this is something clearly that the president believes in. I mean, that is something that you've got to give him here. And -- but to get any kind of movement at all out of this Congress, and particularly to get it before the politics of the mid- term election kick in, he has really got to convince not only lawmakers but the public that there is, indeed, a crisis looming. And I think that that is going to be, in some ways, his hardest and most immediate challenge. And particularly when he is not getting a chorus of support from groups like AARP, which did help him on the Medicare prescription drug program.

DOBBS: And the best estimates are that that crisis will be here come 2042.

Immigration, Roger. The president has joined on this issue as well. With his guest worker program, opposition to that program to effectively legalize illegal aliens is mounting almost daily in both parties.

SIMON: The president went out of his way in his last press conference to make two statements, and repeat them, that have been disputed by experts who appear on this show all the time -- one, that illegal aliens are only taking jobs that Americans want, and two, that we should stop hunting illegal aliens and go after the terrorists. That is not where the Republican Party, or at least the members of Congress, seem to stand on this issue right now.

DOBBS: Roger, thank you very much. Karen, Ron, we thank you, all three, as always.

BROWNSTEIN: Thank you.

TUMULTY: Thank you.

DOBBS: Our nation lost two political leaders this weekend. California Congressman Robert Matsui, who was overwhelmingly elected to his 14th term in November, died of a rare blood disorder Saturday evening. A leading Democratic voice on social issues, he was known as one of his party's greatest champions. Congressman Matsui was 63 years old.

And Shirley Chisholm, the first black woman to serve in the U.S. Congress, died at her home in Ormond Beach, Florida, after several recent strokes. Chisholm was the first woman to seek the Democratic presidential nomination. She was 80 years old. We'll continue in one moment.

(COMMERCIAL BREAK)

DOBBS: Now, the results of our poll question. Twenty-nine percent of you say immigration reform should be the top priority for Congress this year. Only 2 percent said Social Security. Thirty-two percent said trade and outsourcing, and 37 percent the federal budget deficit.

Thanks for being with us tonight. Please join us here tomorrow. Author Tracy Dahlby is my guest. His new book, "Allah's Torch." We'll be discussing how we can defend ourselves against new terrorist threats.

And one amazing year on Mars. Steve Squires, lead scientist for the Spirit rover, joins me to talk about NASA's discoveries.

And our series of special reports continues on tort reform, "Jackpot Justice." Tomorrow, are lawyers to blame for frivolous lawsuits? Please be with us.

For all of us here, good night from New York. CNN special report on the tsunami disaster is next.

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