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Lou Dobbs Tonight

Tel Aviv Bombing Threatens to Derail Peace Process

Aired February 25, 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.


ANNOUNCER: This is LOU DOBBS TONIGHT for Friday, February 25. Here now for an hour of news, debate and opinion, sitting in for Lou Dobbs, Kitty Pilgrim.
KITTY PILGRIM, HOST: Good evening.

Tonight, a potential setback to the path of peace in the Middle East. A suicide bomber detonated a bomb outside a Tel Aviv nightclub just two weeks after Israeli an Palestinian leaders agreed to a truce. Israeli officials say at least 40 people were wounded; three people were killed.

Guy Raz joins us now from Jerusalem with the very latest on this developing story.

Guy, what's the situation?

GUY RAZ, CNN CORRESPONDENT: Good evening, Kitty.

We understand that at least, as you say, three people have been confirmed killed, and as many as 50 wounded now, we're hearing from Israeli media.

This attack happened at about 11:15 local time in the evening at the Stage Club. That's one of the dozens of nightclubs in Tel Aviv along the beachfront there. This is an area and, of course, an evening when thousands of young people would have begun the evening, would have started to go out at night, lining up outside that club.

We understand that the suicide bomber detonated him or herself in a fairly densely, tightly packed group of people waiting outside of that club. And that explosion, as I say, wounding at least 50 people.

The familiar scenes now outside of that site, emergency vehicles, hospital workers also rummaging around, trying to get the wounded and the dead into their facilities.

Now, we have had a statement from the Palestinian Authority, condemning this attack, strongly condemning it, calling it devastating. There hasn't been any official reaction from the Israeli government, but as you mentioned this does, of course, come just two weeks after Palestinian President Mahmoud Abbas and Israeli Prime Minister Ariel Sharon met in Egypt at a summit in an attempt to revive the peace process.

It comes at a time where there does appear to be a momentum building between the two sides, at least on a political level, to get the peace process back on track -- Kitty.

PILGRIM: When was the last time, Guy, remind us, when -- when they had a bomb like this?

RAZ: Well, four months ago there was a suicide bombing in Tel Aviv, as well. That took place near the Carmel Market. That's an indoor and outdoor market, not too far from where this attack took place. That killed about three people at the time.

And about six weeks before that, another suicide bombing took place in Beersheba. That was a twin bus bombing which killed 16 people.

But this is the first time now in four months that there's been any kind of attack like this on this scale. And the new Palestinian president, Mahmoud Abbas, who was just elected last month, has made very strong attempts to try and rein in militant groups.

He has taken several trips to Gaza. He's met with leaders of militant groups, trying to win a public commitment from these groups to abide by an informal cease-fire between the two sides.

And in the past several weeks there's been a considerable reduction in violence, not just in Palestinian militant activity, but also in Israeli military incursions, as well, into Palestinian neighborhoods.

Now, there hasn't been any claim of responsibility so far, so it's unclear who carried out this attack. There have been -- there has been speculation that perhaps Hezbollah, a militant group that operates out of south Lebanon, may have been involved.

The Israeli government has long accused Hezbollah of trying to infiltrate into the Palestinian areas, trying to influence militant groups to carry out these kinds of attacks, perhaps in an effort to derail any kind of momentum that's building at the moment between the two sides -- Kitty.

PILGRIM: You -- you touched on the political situation. This does come at a time when there's a pullout from Gaza that's been proceeding. It's a very delicate time. How might you assess the political situation down? As you mentioned, a very strong condemnation from the Palestinian Authority almost immediately.

RAZ: Well, an extremely delicate time indeed, because you have, of course, a new Palestinian leadership. Just this week a new Palestinian cabinet was inaugurated, a cabinet with virtually entirely new faces, a cabinet made up of technocrats and reformers.

And of course, the new Palestinian Authority president, Mahmoud Abbas, has been a vocal and public critic of any kind of violent -- violence or militant activity. He has in the past condemned, strongly condemned these kinds of attacks. And he's been publicly -- publicly voiced his opposition to the armed Palestinian uprising of the past 4 1/2 years, the Intifada. Now, at the same time the Israeli government, as you mentioned, is planning to pull out, to withdraw and evacuate all of its settlements and soldiers from Gaza by the end of this year, essentially beginning the process of ending it's 37 1/2-year occupation of that area.

Now, this initially was designed as a unilateral plan. Now it appears the Israeli government will be coordinating this with the new Palestinian leadership. The Israeli government had long refused to negotiate with Yasser Arafat, the previous Palestinian authority president. Now the Israeli government is saying it's prepared to work with the new Palestinian leadership.

But at the same time, both sides have warned and have expected some kind of attack, have expected somebody who would want to scuttle any kind of momentum between the two sides to carry out this attack in an attempt to derail this apparent momentum that seems to be emerging between the two sides on a political level -- Kitty.

PILGRIM: All right. Thank you very much. Guy Raz, reporting from Jerusalem.

We'll continue on this story as the news comes in. In the meantime, we are known by Ra'anan Gissin, a senior adviser to Ariel Sharon, to give us his remarks on this incident.

Thank you very much for joining us, sir.

RA'ANAN GISSIN, SENIOR ADVISER TO ARIEL SHARON: Yes, good evening.

PILGRIM: What is your assessment of the damage?

GISSIN: First of all, before an assessment of the damage, your reporter needs to be corrected. There are four and a half months of no suicide attacks. That's only because we were able to scuttle in the past three weeks, 10 suicide bombings.

Now, there's been no letdown of the efforts. On the average, 50 alerts a week I repeat, 5-0, 50 alerts a week of pending suicide attacks and other forms of terrorist activity. In other words, terrorism did not let down.

And the Palestinian assumption or that school of thought that they could reach an agreement or deal with the Palestinian terrorist organizations failed, and therefore, there is no way that you can bypass or shortcut the need to fight terrorism. And that has not been done sufficiently.

So we are willing to continue in our efforts to reach peace. We stand by our understandings and commitments that were reached in the Sharm El Sheikh summit meeting, and we expect the Palestinians to do the same.

No condemnation and no excuse can substitute for the need to fight terrorism, dismantle -- I repeat that word again -- dismantle the terrorist organization. This is a requirement of President Bush set to fight terrorist activity around the world. This is our requirement, and the requirement that is necessary if we are to progress on the road map to peace.

PILGRIM: Are you suggesting, sir, that the path to peace has been somewhat interrupted by this incident? What exactly -- how can you proceed from here?

GISSIN: Well, we can proceed. It depends very much on the steps that the Palestinian authority and its leadership, the newly formed government will take in accordance with the obligation they've taken upon themselves both in the summit meeting in Sharm El Sheikh, as well as previously, the road to peace.

There is no way they can try to substitute an agreement with a terrorist organization with a need to fight terrorism. It's not enough to deploy forces. It's not enough to issue condemnations. These condemnations are not going to bring to life or to heal the injuries of over 50 people who are subject to this terrorist attack today.

What can change the situation is a combined effort by both sides, an understanding by the Palestinians that they need to take real steps against terrorism, and they don't have time. This is the time to do it right now, because later on, it will be an affront, an attack against the very sovereign rule of this new government that wants to reach peace.

PILGRIM: Sir, you do suggest that there have been many thwarted attempts, and the attempts to stop terrorism have been joint efforts. Do you think that that continues successfully? After all, you have had many successes, as you point out?

GISSIN: We are -- we are not giving up on hope to work together towards this kind of combined effort to fight terrorism, but the Palestinian leadership, the Palestinian government needs to prove its intention by action, by performance, and not by words alone.

PILGRIM: Thank you very much for joins us this evening, Ra'anan Gissin, senior adviser to Ariel Sharon. Thank you, sir.

GISSIN: Thank you. Bye-bye.

PILGRIM: We now proceed to John Vause, who joins us from Tel Aviv, the scene of the incident. And he gives us the very latest from there -- John.

JOHN VAUSE, CNN CORRESPONDENT: Hi, Kitty.

What we can tell you now -- I don't know what information you have from Ra'anan Gissin, the Israeli government spokesperson, but I spoke with Gil Kleiman (ph), who is the spokesperson with the Israeli police.

He confirmed that there are more than 50 people who have been wounded in the suicide blast. So far, at least three people killed by the suicide bomber.

It happened outside a nightclub not far from the beach in Tel Aviv. The nightclub was about to open. The blast happened around 11:30 p.m., local time. That's about an hour and 30 minutes ago. Nightclubs here at Tel Aviv tend to open late at night. There were a lot of people standing in line, a lot of people waiting to get in, and that blast wounding, as I said, at least 50 people.

Now, there have been some claims and some denials about people who were responsible for this. Earlier tonight, Islamic Jihad and Al Aqsa Martyrs Brigade reportedly claimed responsibility for this suicide blast. But within the last few minutes or so, we understand that those claims of responsibility have been retracted.

We've heard from a senior militant leader with the Al Aqsa Martyrs Brigade in Jenin. He has denied the fact that the Al Aqsa Martyrs Brigade was behind this attack, and so, too, Islamic Jihad denying reports that they were responsible for this blast.

And also, a statement coming from Beirut, according to The Associated Press, from the militant group Hezbollah. They too denying that they were behind this suicide bombing. I guess who was responsible, no doubt, will come out in the hours had, but this is not a good sign for that truce, which both Palestinian and Israeli leaders agreed to at Sharm el Sheikh in Egypt on February 8 -- Kitty.

PILGRIM: John, what is your assessment of how this impacts the political situation going forward? This of course a setback after such a nice period of peace, and a devastating attack at that. Very, very widespread casualties in this one.

VAUSE: Absolutely, Kitty. It's a setback, it's not the end.

What this does do, it gives way to Israel's claim that a cease- fire with the militant groups will not work. We know that Mahmoud Abbas, the newly elected president of the Palestinian Authority, throughout his election campaign preferred to try to work out some kind of cease-fire, a (UNINTELLIGIBLE), as it's known here, with militant groups like Hamas and Islamic Jihad.

Israel has demanded all along that the Palestinians Authority crack down on the militant groups and dismantle what it calls a terrorist infrastructure. Mahmoud Abbas has preferred not to do that, but, of course, this now strengthens Israel's demands that he move against the militant groups who are responsible for these kinds of suicide bombings.

But what will happen now in the hours ahead, we will wait and see what the response is from the Israeli government. And we'll have to find out what the Palestinian Authority tried to do to stop this attack as well.

We've heard from Saeb Erekat, the chief Palestinian negotiator, who condemned this bombing in the strongest of terms, saying that the people responsible for this suicide bombing are doing their best to try to wreck the peace process -- Kitty. PILGRIM: Let's talk a little bit about the timing. In terms of the peace process, things were very hopeful, and there was the expectation that someone would try to disrupt, some faction would try to disrupt this. In fact, many attacks were expected, and everyone was bracing for them, were they not, John?

VAUSE: That's right, Kitty. We've heard from Israeli intelligence over the last few weeks and months, and they've been telling us continually, over and over and over again, don't be fooled by this period of calm. Even though there has been a dramatic decrease in attacks on Israelis, what we've been hearing from Israeli intelligence officers is that the militant groups are still trying, that they are still foiling attacks -- foiling attempted attacks, rather, every single day, dozens a week, they say.

And there was a fear amongst Israeli intelligence that no matter how many they stop, there was always the possibility that one would get through. And that's what we've seen here tonight in Tel Aviv outside this nightclub -- Kitty.

PILGRIM: All right. Thanks very much. John Vause in Tel Aviv, thank you for bringing us the very latest on that. And we'll be checking back with you as the evening progresses. Thanks very much, John Vause.

Joining us now to further discuss this incident is Saeb Erekat, the chief Palestinian negotiator.

And thank you for joining us this evening. And I do have to ask you, what's your assessment of who is responsible for this?

SAEB EREKAT, CHIEF PALESTINIAN NEGOTIATOR: Kitty, let me first condemn with the strongest possible terms this attack, and to say that whoever is behind this attack has one goal in mind, to sabotage the efforts being exerted to start the peace process, the efforts to stop the cycle of violence counter-violence. And all I can say is they should not succeed.

It's premature to jump to any conclusions, but I think these people who are behind the attacks have one thing in mind, and that is sabotage the peace process. And I urge President Bush tonight, others to exert maximum efforts for the de-escalation, de-confliction, to use any amount of crisis management and damage control in order not to allow those to succeed.

Secondly, I would like to say that this attack undermines Palestinian national interests. This undermines our effort to begin the process of rebuilding, a process of healing, a process of reconstruction, a process to get to the implementation of the roadmap to our freedom, to the realization of the two-state solution.

So I would urge all to help in order to stop any expected escalation through crisis management, damage control. I think those behind the attack have one thing in mind, and that is sabotage the peace process, sabotage the efforts to revive the peace process.

PILGRIM: Do you think, sir, that a statement from Mahmoud Abbas will be forthcoming?

EREKAT: I'm speaking here on behalf of -- I'm his chief negotiator, Madame, and I'm sure he will go personally to the media very soon. I've been on the line with him about five minutes ago, and now as I'm speaking to you, my Palestinian colleagues and the security forces are calling their Israeli counterparts to offer a joint investigation committee to get to it immediately. And we hope the process will begin only -- you know, less than three weeks ago in Sharm el Sheikh will continue, will not be undermined.

I hope our security forces will be rebuilt and we will be handed over our city, because in the West Bank we don't control a single city. Everything is under Israeli occupation. And we need to do that (UNINTELLIGIBLE), to hand over the responsibilities and to exert maximum efforts jointly in order to stop such attacks and to bring the perpetrators to justice.

PILGRIM: Well, sir, thank you for joining us this evening. And we wish you every success for a peaceful continuation of the peace process. Saeb Erekat, chief Palestinian negotiator.

Still to come, another deadly day for U.S. forces in Iraq.

And border patrol officials say they have a new strategy to keep illegal aliens out of this country. Will it work? A special report next.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: It was another deadly day for American troops in Iraq. Three soldiers were killed in a bomb attack, nine others were wounded. A roadside bomb exploded near their convoy in northern Iraq.

(BEGIN VIDEOTAPE)

PILGRIM (voice-over): Today's bomb attack on American troops left a huge hole in the ground on the side of a highway. The attack took place about 20 miles north of Baghdad. Witnesses said the soldiers were on foot when the bomb exploded.

In Baghdad, the Iraqi government said a key associate of Abu Musab al-Zarqawi, al Qaeda's leader in Iraq, had been arrested. The capture is just the latest in a series of arrests announced by the Iraqi government since the elections last month.

The Iraqi politician expected to become the new prime minister, Ibrahim al-Jaafari, today won the endorsement of Iraq's most influential cleric, Grand Ayatollah Ali al-Sistani.

IBRAHIM AL-JAAFARI, IRAQI PRIME MINISTER CANDIDATE (through translator): The grand ayatollah blessed what the Iraqi people achieved under hard circumstances in the election process.

PILGRIM: One of the key tasks for the new prime minister will be to speed up the expansion and training for the Iraqi forces. U.S. military commanders are pleased with the progress, but they admit there's still plenty of work ahead.

MAJ. GEN. PETER CHIARELLI, COMMANDER, 1ST CAV DIVISION: You don't build an army in a few months or even a couple of years. It takes time to put that together.

PILGRIM: Meanwhile, a new rotation of American troops is taking place in Iraq. Among the returning troops, nearly 20,000 soldiers of the 3rd Infantry Division, the division that led the assault on Baghdad back in 2003.

(END VIDEOTAPE)

PILGRIM: The 3rd Infantry's Division's mission is to take over security duties in Baghdad from the 1st Cavalry Division, which is now on its way back home to Texas.

Well, law enforcement caught more than one million illegal aliens crossing our borders last year. That's more than 25 percent more than in 2003. But more people are being arrested, partly because more people are trying to enter the country illegally. Now the Border Patrol is working on a new strategy to secure our borders. Casey Wian reports.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): A ceremony marking several new beginnings for the Border Patrol. First, the swearing in of a new chief of California's El Centro sector.

UNIDENTIFIED MALE: ... do solemnly swear..

UNIDENTIFIED MALE: That I will support and defend.

UNIDENTIFIED MALE: ... that I will support and defend...

UNIDENTIFIED MALE: ... the Constitution...

WIAN: Then the unveiling of the first Homeland Security Department law enforcement badge. The Border Patrol used to be part of the INS. Now it's Customs and Border Protection. And finally, talk of a new strategy from CBP's commissioner that focuses first on catching terrorists, then illegal aliens.

ROBERT BONNER, CBP COMMISSIONER: Al Qaeda and its associated terrorist organizations have contemplated using our border with Mexican to infiltrate in significant numbers of terrorist operatives in order to carry out attacks in the United States. And we are doing and will continue to do -- and this is my pledge -- everything within our power to prevent that from happening.

WIAN: Congress has authorized 2,000 additional Border Patrol agents next year, but the Bush administration is only budgeting for 210. We asked Bonner if that's consistent with his pledge to do everything within the agency's power. BONNER: It's not all about increasing manpower. It's using technology. It's being able to deploy resources faster to weak spots on our borders than we've ever done before.

WIAN: The Border Patrol's new strategy will be formally unveiled in a few weeks. It will rely on more cameras, remote sensors and unmanned aerial vehicles, plus a reorganized command structure to enable agents to respond quickly to troubles pots.

Bonner also promised more resources for Arizona, where more than half of the Border Patrol's 1.1 million apprehensions were made last year. A growing number of those are what the Border Patrol calls OTM, other than Mexican. That's the category most likely to include terrorists. OTM arrests jumped 68 percent last year.

(END VIDEOTAPE)

WIAN: Bonner says he believe the Border Patrol is doing a good job of apprehending OTMs. But he says ICE, another Homeland Security agency, lacks the detention space to hold most of them. The White House has requested an extra $170 million for detention facilities next year -- Kitty.

PILGRIM: Thanks very much, Casey Wian.

Well, coming up next, how did your doctor get into medical school? One man was shocked to learn his doctor was accepted into medical school without even graduating from college.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: It might shock you to learn that a doctor could practice medicine in this country without ever graduating from college, but that is exactly what can happen when people attend medical schools outside the United States. Lisa Sylvester reports from Washington.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): John Nesteruk will feel a sharp pain in his left shoulder for the rest of his life. His spinal accessory nerve was mistakenly severed during surgery to remove a cyst on his neck. He successfully sued the Florida doctor, Jose Nabut.

JOHN NESTERUK, SUED DOCTOR: It was and continues to be a never- ending nightmare. Rarely a day goes by that I don't think about Dr. Nabut and what he's put me through.

SYLVESTER: Dr. Nabut also accidentally stapled Glenn O'Loughlin's bile duct.

GLENN O'LOUGHLIN, HAD BILE DUCT STAPLED: I take approximately 840 pills a month because I can't digest food correctly. I also can't eat and drink some of the things that you should normally be able to eat and drink.

SYLVESTER: Court papers later reveal Nabut never graduated from college, but he still was accepted to medical school in sunny Guadalajara, Mexico. The autonomous University of Guadalajara is one of several foreign universities that have acceptance criteria that falls far short of most U.S. medical schools.

Foreign doctors must still pass a test to be licensed to practice in the United States, but eight states go even further and have banned or placed restrictions on medical students graduating from certain Caribbean schools. California's medical board has done several site visits.

JOYCE HADNOT, MEDICAL BOARD OF CALIFORNIA: When we go out and we find that some schools may or may not actually provide them with the level of education that would ensure that they can come back to the United States and practice medicine on our consumers...

SYLVESTER: Dr. Nabut denies a connection between his medical mistakes and his education. In a statement, he said, "I have been practicing medicine without incident since then. They were unfortunate events. I did my best to avoid them. I have been through the system and have already been disciplined for them."

DR. SIDNEY WOLFE, CO-AUTHOR, "WORST PILLS, BEST PILLS": In this country, about 100 years ago almost, the worst medical schools were pretty much knocked out of existence. That has not happened, at least in some other countries.

SYLVESTER: John Nesteruk still has a high regard for doctors in general. He just wishes he never crossed paths with the medical doctor who graduated from Guadalajara.

(END VIDEOTAPE)

SYLVESTER: Three of Dr. Nabut's patients were awarded $50 millions, but they have seen very little of that money because Dr. Nabut did not have malpractice insurance. His medical license was suspended in 1999, but it was reinstated recently. So he continues to practice in Florida -- Kitty.

PILGRIM: Unbelievable story. Thanks very much, Lisa Sylvester.

Well, that does bring us to the subject of tonight's poll. Do you believe doctors who graduate from foreign medical school should be licensed to practice in the United States, yes or no? Cast your vote at LouDobbs.com. We'll bring you the results a bit later in the show.

Well, tonight a controversial new front on the battle over Social Security. A conservative lobbying group called USA Next has launched a multimillion-dollar advertising campaign. It attacked the AARP, which is a leading critic of President Bush's reform plan.

And I'm joined now by the head of USA Next, Charlie Jarvis. He joins us from Washington.

Thanks for being here.

CHARLIE JARVIS, CHAIRMAN & CEO, USA NEXT: Thank you, Kitty.

PILGRIM: You call yourself a conservative free market alternative to the AARP. What do you mean by that?

JARVIS: Well, we believe because about 40 percent of AARP's members identify themselves as conservatives, we believe that a lot of those members don't really know that AARP is really the largest liberal lobbying organization in the country.

And we stand for tax cuts, elimination of taxes on seniors, and their Social Security taxes, their benefit taxes, we want to eliminate that and AARP doesn't. We're strongly for cutting capital gains taxes. AARP doesn't support that. And we want to do away with issues like the death tax, which AARP, of course, opposes.

They have opposed every single tax cut under President Bush. We strongly support economic growth by reducing the taxes on American people, and we want personal savings accounts in Social Security for younger workers while protecting seniors.

PILGRIM: Is it Social Security that's really caused this division?

JARVIS: Social Security is clearly the most critical issue that we face in this country right now, mainly because in 1950 there were 16 workers per retiree now there are just over three workers per retiree. And when my four sons turn 40 years old, two of them are going to be supporting one retiree. That's not a system that we can't fix. We need to fix it, we need fix it now and the best way to fix it is to protect seniors and allow younger people to own their social security savings account.

PILGRIM: You say stop scaring seniors. What do you mean by that?

JARVIS: Well, we believe that the key tactic on the left today is a really sad tactic, but it's been one that's been used for the last four decades, the whole time AARP has existed and led the effort to, frankly, cause a disruption in Social Security. They have scared people year after year with about anyone even suggesting that they need to own their Social Security.

They go into nursing homes, they go into senior living centers and tell people that when President Bush says he wants younger workers to own their retirements in Social Security, that's going to be taken away from seniors. That is absolutely disreputable. It's tragic that the left would fall into that kind of rhetoric, frankly, of harm.

PILGRIM: Let me ask you a tough one, though. Some of the your consultants advised the Swift Boat Veterans for Truth. That turned into a very, very ugly fight. Do you anticipate this becoming as vituperative as that previous problem?

JARVIS: Well, because Social Security needs to be dealt with, it is facing a crisis. People may denied that, but the Senate Majority Harry Reid -- Democrat Senate Majority leader Harry Reid said in 1999 it was a crisis, we need to deal with t. And he even believed that people ought to be able to own some of their person account in Social Security. We believe the same thing.

Why he's reversed himself now when President Bush is actually saying what he said in '99 I don't know, but we think people should own their retirement future. And seniors can be protected, and at the same time what we need to do, it can be -- it can be a very, very energetic debate. It should be. We're a Democratic republic. We should work through these things.

And you know, Kitty, a Democratic republic can be a loud public square sometimes, but that's good, that's not bad.

PILGRIM: Well, we encourage energetic debate on this program certainly. And thanks very much for joining us, Charlie Jarvis of USA Next.

JARVIS: Thank you for having me.

PILGRIM: Coming up, the latest threat to American jobs, the author of a new book on the next so-called free trade agreement. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: We have breaking news coming in to CNN. Police may be close to making an arrest in the BTK serial killer association. Let's go to David Mattingly now for the very latest on that -- David.

DAVID MATTINGLY, CNN CORRESPONDENT: Kitty, this case we've been following for you all afternoon long. We are now hearing from our sources that police in Wichita, they have a person of interest that they have been asking questions all afternoon long.

Our sources are now telling us that confidence continues to grow at this hour that an arrest may soon be made, and that the person of interest that they have been talking to could be the person they've been looking for for more than 30 years in this on again/off again serial killer case called BTK. The killer calling himself for bind them, torture them, kill them, giving you an idea of what strange methods and cruelty he used in these killings.

This is a case that's been going on since 1974 with the first murders, the last were in 1986. This killer continuing to make headlines as he began communicating a year ago sending packages and communications to local media and to the police.

And now, again, our sources at this hour telling us that there could be an arrest pending in this case -- Kelly.

PILGRIM: David, you've been covering this extensively, was there a sense this was coming to a conclusion this afternoon, or is this a surprise? MATTINGLY: People close to the case, our sources are telling us, is there's been a great deal of confidence surrounding this latest development. There was an arrest last year that turned out to be nothing. everyone very cautious this time and now local television station KAKE saying police are just waiting for the DNA results to come back before going before the cameras and making an announcement.

So again, confidence continuing to grow at this hour in this case.

PILGRIM: Thank you very much, David Mattingly.

Well, let's turn to the so-called free trade agreements in this country. The controversial Central American Free Trade Agreement goes before Congress next month. The White House says the deal will open up new markets for U.S. made goods in 6 Central American countries. And critics compare the agreement to NAFTA, they say it will only cost more American jobs.

My next guest has written a new book on CAFTA. It's called "CAFTA and Free Trade: What Every American Should Know." And Greg Spotts is also the director of a highly acclaimed documentary, "American Jobs," which we have featured on this broadcast previously.

And thanks very much for being here, Greg.

GREG SPOTTS, AUTHOR/FILMMAKER: Thank you for having me.

PILGRIM: You went and sat in living rooms of America, not as an economist, not as a politician, as a filmmaker and now as an author, and heard the stories of people across this country whose jobs have been sent overseas. What do you take away from all of this anecdotal evidence? There is a conclusion, I'm sure.

SPOTTS: Yeah. The scary thing is other countries are finding ways to target jobs up and down the value chain. And the experiences of textile workers who's work has gone to Mexico or China are very similar to the experiences of software programmers whose work has gone to India. And I think we're starting to risk hollowing out the middle class and hollowing out our own earnings power if we just keep driving forward in the same direction.

PILGRIM: Your book is great. And I had a chance to look through it this afternoon. And you say the average American is more concerned about this than the experts are. How concerned are the average Americans? And why aren't the experts? The anecdotal evidence seems overwhelming.

SPOTTS: There's evidence that's more than anecdotal. We know that NAFTA resulted in the destruction of about 2 million American jobs. It also created about 1 million, so that's a net loss of 1 million jobs. We know that some of those jobs that went to Mexico have already been moved on to China.

There's a lot of hard, scientific, you know, numerical evidence to suggest that this corporate friendly style of free trade that we're pursuing is designed to open new labor markets, not to open new markets for our American-made goods.

PILGRIM: Some economists argue for global trade, but not the kind of free trade that we're seeing now. Do you see that distinction?

SPOTTS: Oh, definitely. A lot of people think that globalization is sort of an inevitable historical process, but the rules of the road are written by lawyers and politicians, and they've been written to benefit large multinational corporations. Imagine if we were really serious about, you know, developing Latin America. We could have an escalating minimum wage, the right to unionize, worker safety standards, environmental standards. We could invest in housing for the workers, and you know, social services, police protection, basic things that they need. And we may end up with relationship with a strengthening country instead of a very, very poor country that's forced to just work for us at the lowest possible rate.

PILGRIM: Do you think it's sufficient to just enforce the trade agreements and the provisions therein that are out there now, such as WTO?

SPOTTS: No, not at all, although I do think that we're the only naive honorable player in the whole system. I think because the U.S. designed the system, we think people should be sticking to it, but I don't think there's a developed or a developing country that's really adhering to the letter and the spirit of the trade laws, except for us.

PILGRIM: Greg Spotts, always a pleasure to talk to you, thank you very much.

SPOTTS: Thank you for having me.

PILGRIM: Well, outsourcing is booming more than expected in India. A new report shows that one million people there now have jobs that were outsourced from other countries. A staggering number of those jobs these workers now hold were once American jobs. Software experts say India will make more than $17 billion this year from software outsourcing alone. The president of India's National Software Association says India did not expect to make that much money from outsourcing because of the backlash from the United States, but he says the outsourcing wave has decreased, if not gone away fully.

Well, we can tell you right now we're not going to stop reporting on this issue on this broadcast anytime soon.

Coming up next, "Heroes," how one American soldier says he benefited from his severe wounds in Iraq. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: In "Heroes" tonight, the story of Sergeant Derick Hurt. Sergeant Hurt was wounded while serving in Mosul, Iraq, and he and his battalion were there helping reopen school and train Iraqi police. Well, now Hurt is training himself to walk again. Bill Tucker has his story. (BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Looking at Derick Hurt, you might not know he's missing a leg. He'd like that. It's taken him over a year to get to that point. He lost his leg on a routine night patrol in Mosul, Iraq, in an area that was seen as peaceful at the time.

SGT. DERICK HURT, U.S. ARMY (RET.): We went down this ally, a road we had been down, like I said, numerous times. And the next thing I know, a big old yellow flash underneath me, and then I couldn't hear. And about three seconds later, another boom goes off. And that -- when the second one went off, I knew I'd been hit by something.

TUCKER: A grenade tossed from the rooftop had exploded between his feet, on the floor of the humvee he was driving.

HURT: I was thinking I better make my peace with the big man upstairs, because any second now, they're probably just going to finish me off.

TUCKER: Instead he was rescued by his buddies and helicoptered out.

HURT: What I remember, I just woke up in Germany.

TUCKER: It was two days later, his right leg already amputated.

From there, he was flown to Walter Reed Army Hospital, where he had another 20 or so surgeries, and then came rehab.

HURT: You never thought you as a grown man you'd have to learn how to walk again, let alone with a fake leg. And your first few steps on your new leg is real shaky, and it's just, you know, the ankle doesn't bend like a real ankle. And it's tough, but the therapists, they do a wonderful job.

TUCKER: Today Hurt's gait is smooth. He was awarded a Purple Heart for his wounds. And as for being near making peace with the big man...

HURT: It makes you appreciate the small things in life, like a roof over your head, and running water, and family and friends, and all them little things that you -- clean air, you know? Life is a gift, not something that -- it's not to be taken advantage of.

TUCKER: Bill Tucker, CNN.

(END VIDEOTAPE)

PILGRIM: Well, we wish Sergeant Hurt the very best.

A number of veterans groups have been openly critical of the president's budget proposal. That proposal includes plans to charge millions of veterans a $250 enrollment fee for health care. And it would also double the co-payments many veterans pay for prescription drugs. Joining me now is the secretary of the Department of Veterans Affairs, Jim Nicholson. And thanks very much for being here.

And straight away, let me say we know your commitment to veterans is considerable, but there are some hard numbers that we have to go through, and one is this issue of enrollment fees and co-payments. Many veterans groups are worried that this would drive hundreds of thousands of veterans away from the system. What do you say to that?

JIM NICHOLSON, VETERANS AFFAIRS SECRETARY: Well, I think the first thing they have to do is look at the budget overall. And the trend. In the last four years, the VA budget has gone up 47 percent. And this year it's also up, in fact up at a record level, but flatter than it's been in the ascent of the past.

And what it contains is a provision asking that some of the veterans who are able-bodied, have no service-connected disabilities, and have good jobs, provide a small enrollment fee and a co-payment for some of their pharmaceuticals.

Now, there's an equity in this that I think needs to be considered, because if you look at someone who serves 20 or 30 years as a career in the service and they retire and they get what's called tri-care, they have to pay a co-pay, they have to pay an enrollment fee, and in some cases a deductible. What we're saying is a young man maybe serves two years in the service, and comes out, and has no service-connected disabilities, and has a good job, would -- if he wants to participate in VA services, he pays a modest co-pay. So there's an equity there, but the real priority of the VA remains in taking care of those people that need it the most. And for those that need it the most, who are down on their luck, who have a service- connected disability, a serious one, or a special need such as a spinal cord injury or something, there is no co-pay, no enrollment fee for them.

PILGRIM: Understood. You know, members of Congress have been going through the fine print on this. Senator Patty Murray points out the fact that there's no money in the president's 2006 budget for veterans returning from Iraq or Afghanistan. How do you square that up?

NICHOLSON: Well, I think that's a different matter. That's what they need for the combatant role in the down-range, as we say, in Iraq and Afghanistan. What we're concerned about are those people when they come back from there. And that's an absolute priority of ours, by the way, to have a seamless transition of those men and women from their active duty role into the veteran role. And if they are -- have wounds or damaged, both physically or mentally, we take over, and we're providing them absolutely world-class care, and this budget provides for that. It will do that amply, and it should. That's our job.

PILGRIM: A complicated issue, a lot of other issues to go into, but not sufficient time this evening for everything. Thank you for joining us, Jim Nicholson, secretary of veterans affairs.

NICHOLSON: Thank you for having me.

PILGRIM: OK. This week's "Newsmakers" coming up. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Joining me now are three of the nation's leading journalists. From Washington, Karen Tumulty of "Time," magazine. Roger Simon, "U.S. News & World Report." And here in New York is Steve Shepard of "Businessweek." And thanks for joining us.

You know, I'll start with you, Steve, since you're sitting there, you're the first person I will throw the question to. And you know, it's been an interesting week in the economy. We had a new inflation reading. Oil prices spiked up and tanked the market one day, then it all seemed to go away. What's your assessment of what is going on?

STEVE SHEPARD, BUSINESSWEEK: Well, the GDP number came out today, and it was relatively strong. I think the economy is strong, and what that says is that we have to start worrying a little bit about inflation going forward. You have oil prices up, you have the dollar down, which raises the price of imported goods. You have productivity growth slowing, which raises unit labor costs. So we have to be a little bit more concerned about inflation. You know, we have a large budget deficit, which is not good. So I think the markets are starting to react to inflation, and rightly so.

PILGRIM: Anyone else want to weigh in on the economy? Karen?

KAREN TUMULTY, TIME MAGAZINE: Well, the only thing is that the markets do start to react to inflation, that is going to make it that much harder for the president to sell his Social Security plan, because anything that makes the markets jumpy make people a little more concerned about putting -- banking their retirement on the market's performance.

PILGRIM: Roger?

ROGER SIMON, U.S. NEWS & WORLD REPORT: Well, the market has obviously reacted well today to the GDP numbers, even though it was a modest reassessment of what they thought it would be, but the economy looks stronger than we thought it would be, and as Steve indicates, things that look stronger can always be a negative, because it raises inflation fears.

PILGRIM: Let's go over -- let's review the president's trip overseas. Do you assess the trip to Europe a success, Karen?

TUMULTY: Oh, I think it was absolutely a success, primarily because it really did appear that the president and the European allies are focusing on a lot more of the agenda items that they can agree upon. For instance, one move that was very significant was NATO's decision, the decision of all the countries in NATO to sign on to the Iraq reconstruction. This, I think, was a show of political support for Iraq going forward that the administration badly needed, a real evidence that Europe is sort of moving to put behind its disagreements of the past. PILGRIM: And yet, Roger, strong words for Russia?

SIMON: I think strong words in public for Russia. In private, the White House press corps got a briefing after the press conference for what really went on. They published a transcript of it, and you learn that in private with Vladimir Putin, George Bush was not very tough at all. He indicated that he wanted to see Russia consolidate its institutions of democracy over the next few years, or make a move in that direction. That's not a very tough statement, and I think Putin looked slightly shocked during the press conference that Bush was talking tougher in public than he was in private, even though that's a democratic technique Vladimir Putin will probably learn.

PILGRIM: But the trip was a success, do you think, Roger?

SIMON: I think it was a modest success. I think the training of the military of Iraq is simply an extension of what was happening. I think the acceleration of the agreement of Russia to destroy nuclear warheads is another acceleration of what's already taking place. But there was a negative. Russia insists that it's going to sell a missile system to Syria. We say, don't do it. Russia says, we're going to do it anyway.

SHEPARD: We still have some leverage, because Russia wants to get into the WTO, and so we can maybe get some concessions there.

But the real success was in Europe rather than with Putin. Because symbolically, just doing what he did, going to the heart of the E.U., and saying some of the things he did and thawing the relationship in particular with Germany was very, very significant.

PILGRIM: Let me ask you a quick one, because I know your expertise on this is considerable. Today's "New York Times" said 10 of the 32 government advisers on the FDA, who voted, who supported the sale of Vioxx, Celebrex and Bextra last week used to consult with those drug makers, and so it may be some sort of a skewed panel. What's your assessment of that?

SHEPARD: Well, there's always a trade-off between getting experts on these kinds of panels who have done work for the drug companies in setting up some of these trials and having people who are independent. So this is not a new problem, but it looks very damaging.

The real issue here is having doctors prescribe these medicines only for people who need them, genuinely need them, and for whom other painkillers won't work. And I think that the decision to bring them back, let those drugs stay on the market probably is the right one for some patients, as long as doctors are more discriminating in the way they prescribe them.

PILGRIM: Certainly a good deal of attention being paid to this issue. We have run out of time. And I'm sorry about that, but thank you, Steve Shepard, Roger Simon and Karen Tumulty, thank you all. Have a good weekend.

Still ahead, the results of tonight's poll and a preview of what's ahead for Monday.

(COMMERCIAL BREAK)

PILGRIM: In our poll, 63 percent of you say doctors who graduated from foreign medical schools should not be licensed to practice in this country. Thanks for being with us tonight. Good night from New York. "ANDERSON COOPER 360" is next.

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Aired February 25, 2005 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is LOU DOBBS TONIGHT for Friday, February 25. Here now for an hour of news, debate and opinion, sitting in for Lou Dobbs, Kitty Pilgrim.
KITTY PILGRIM, HOST: Good evening.

Tonight, a potential setback to the path of peace in the Middle East. A suicide bomber detonated a bomb outside a Tel Aviv nightclub just two weeks after Israeli an Palestinian leaders agreed to a truce. Israeli officials say at least 40 people were wounded; three people were killed.

Guy Raz joins us now from Jerusalem with the very latest on this developing story.

Guy, what's the situation?

GUY RAZ, CNN CORRESPONDENT: Good evening, Kitty.

We understand that at least, as you say, three people have been confirmed killed, and as many as 50 wounded now, we're hearing from Israeli media.

This attack happened at about 11:15 local time in the evening at the Stage Club. That's one of the dozens of nightclubs in Tel Aviv along the beachfront there. This is an area and, of course, an evening when thousands of young people would have begun the evening, would have started to go out at night, lining up outside that club.

We understand that the suicide bomber detonated him or herself in a fairly densely, tightly packed group of people waiting outside of that club. And that explosion, as I say, wounding at least 50 people.

The familiar scenes now outside of that site, emergency vehicles, hospital workers also rummaging around, trying to get the wounded and the dead into their facilities.

Now, we have had a statement from the Palestinian Authority, condemning this attack, strongly condemning it, calling it devastating. There hasn't been any official reaction from the Israeli government, but as you mentioned this does, of course, come just two weeks after Palestinian President Mahmoud Abbas and Israeli Prime Minister Ariel Sharon met in Egypt at a summit in an attempt to revive the peace process.

It comes at a time where there does appear to be a momentum building between the two sides, at least on a political level, to get the peace process back on track -- Kitty.

PILGRIM: When was the last time, Guy, remind us, when -- when they had a bomb like this?

RAZ: Well, four months ago there was a suicide bombing in Tel Aviv, as well. That took place near the Carmel Market. That's an indoor and outdoor market, not too far from where this attack took place. That killed about three people at the time.

And about six weeks before that, another suicide bombing took place in Beersheba. That was a twin bus bombing which killed 16 people.

But this is the first time now in four months that there's been any kind of attack like this on this scale. And the new Palestinian president, Mahmoud Abbas, who was just elected last month, has made very strong attempts to try and rein in militant groups.

He has taken several trips to Gaza. He's met with leaders of militant groups, trying to win a public commitment from these groups to abide by an informal cease-fire between the two sides.

And in the past several weeks there's been a considerable reduction in violence, not just in Palestinian militant activity, but also in Israeli military incursions, as well, into Palestinian neighborhoods.

Now, there hasn't been any claim of responsibility so far, so it's unclear who carried out this attack. There have been -- there has been speculation that perhaps Hezbollah, a militant group that operates out of south Lebanon, may have been involved.

The Israeli government has long accused Hezbollah of trying to infiltrate into the Palestinian areas, trying to influence militant groups to carry out these kinds of attacks, perhaps in an effort to derail any kind of momentum that's building at the moment between the two sides -- Kitty.

PILGRIM: You -- you touched on the political situation. This does come at a time when there's a pullout from Gaza that's been proceeding. It's a very delicate time. How might you assess the political situation down? As you mentioned, a very strong condemnation from the Palestinian Authority almost immediately.

RAZ: Well, an extremely delicate time indeed, because you have, of course, a new Palestinian leadership. Just this week a new Palestinian cabinet was inaugurated, a cabinet with virtually entirely new faces, a cabinet made up of technocrats and reformers.

And of course, the new Palestinian Authority president, Mahmoud Abbas, has been a vocal and public critic of any kind of violent -- violence or militant activity. He has in the past condemned, strongly condemned these kinds of attacks. And he's been publicly -- publicly voiced his opposition to the armed Palestinian uprising of the past 4 1/2 years, the Intifada. Now, at the same time the Israeli government, as you mentioned, is planning to pull out, to withdraw and evacuate all of its settlements and soldiers from Gaza by the end of this year, essentially beginning the process of ending it's 37 1/2-year occupation of that area.

Now, this initially was designed as a unilateral plan. Now it appears the Israeli government will be coordinating this with the new Palestinian leadership. The Israeli government had long refused to negotiate with Yasser Arafat, the previous Palestinian authority president. Now the Israeli government is saying it's prepared to work with the new Palestinian leadership.

But at the same time, both sides have warned and have expected some kind of attack, have expected somebody who would want to scuttle any kind of momentum between the two sides to carry out this attack in an attempt to derail this apparent momentum that seems to be emerging between the two sides on a political level -- Kitty.

PILGRIM: All right. Thank you very much. Guy Raz, reporting from Jerusalem.

We'll continue on this story as the news comes in. In the meantime, we are known by Ra'anan Gissin, a senior adviser to Ariel Sharon, to give us his remarks on this incident.

Thank you very much for joining us, sir.

RA'ANAN GISSIN, SENIOR ADVISER TO ARIEL SHARON: Yes, good evening.

PILGRIM: What is your assessment of the damage?

GISSIN: First of all, before an assessment of the damage, your reporter needs to be corrected. There are four and a half months of no suicide attacks. That's only because we were able to scuttle in the past three weeks, 10 suicide bombings.

Now, there's been no letdown of the efforts. On the average, 50 alerts a week I repeat, 5-0, 50 alerts a week of pending suicide attacks and other forms of terrorist activity. In other words, terrorism did not let down.

And the Palestinian assumption or that school of thought that they could reach an agreement or deal with the Palestinian terrorist organizations failed, and therefore, there is no way that you can bypass or shortcut the need to fight terrorism. And that has not been done sufficiently.

So we are willing to continue in our efforts to reach peace. We stand by our understandings and commitments that were reached in the Sharm El Sheikh summit meeting, and we expect the Palestinians to do the same.

No condemnation and no excuse can substitute for the need to fight terrorism, dismantle -- I repeat that word again -- dismantle the terrorist organization. This is a requirement of President Bush set to fight terrorist activity around the world. This is our requirement, and the requirement that is necessary if we are to progress on the road map to peace.

PILGRIM: Are you suggesting, sir, that the path to peace has been somewhat interrupted by this incident? What exactly -- how can you proceed from here?

GISSIN: Well, we can proceed. It depends very much on the steps that the Palestinian authority and its leadership, the newly formed government will take in accordance with the obligation they've taken upon themselves both in the summit meeting in Sharm El Sheikh, as well as previously, the road to peace.

There is no way they can try to substitute an agreement with a terrorist organization with a need to fight terrorism. It's not enough to deploy forces. It's not enough to issue condemnations. These condemnations are not going to bring to life or to heal the injuries of over 50 people who are subject to this terrorist attack today.

What can change the situation is a combined effort by both sides, an understanding by the Palestinians that they need to take real steps against terrorism, and they don't have time. This is the time to do it right now, because later on, it will be an affront, an attack against the very sovereign rule of this new government that wants to reach peace.

PILGRIM: Sir, you do suggest that there have been many thwarted attempts, and the attempts to stop terrorism have been joint efforts. Do you think that that continues successfully? After all, you have had many successes, as you point out?

GISSIN: We are -- we are not giving up on hope to work together towards this kind of combined effort to fight terrorism, but the Palestinian leadership, the Palestinian government needs to prove its intention by action, by performance, and not by words alone.

PILGRIM: Thank you very much for joins us this evening, Ra'anan Gissin, senior adviser to Ariel Sharon. Thank you, sir.

GISSIN: Thank you. Bye-bye.

PILGRIM: We now proceed to John Vause, who joins us from Tel Aviv, the scene of the incident. And he gives us the very latest from there -- John.

JOHN VAUSE, CNN CORRESPONDENT: Hi, Kitty.

What we can tell you now -- I don't know what information you have from Ra'anan Gissin, the Israeli government spokesperson, but I spoke with Gil Kleiman (ph), who is the spokesperson with the Israeli police.

He confirmed that there are more than 50 people who have been wounded in the suicide blast. So far, at least three people killed by the suicide bomber.

It happened outside a nightclub not far from the beach in Tel Aviv. The nightclub was about to open. The blast happened around 11:30 p.m., local time. That's about an hour and 30 minutes ago. Nightclubs here at Tel Aviv tend to open late at night. There were a lot of people standing in line, a lot of people waiting to get in, and that blast wounding, as I said, at least 50 people.

Now, there have been some claims and some denials about people who were responsible for this. Earlier tonight, Islamic Jihad and Al Aqsa Martyrs Brigade reportedly claimed responsibility for this suicide blast. But within the last few minutes or so, we understand that those claims of responsibility have been retracted.

We've heard from a senior militant leader with the Al Aqsa Martyrs Brigade in Jenin. He has denied the fact that the Al Aqsa Martyrs Brigade was behind this attack, and so, too, Islamic Jihad denying reports that they were responsible for this blast.

And also, a statement coming from Beirut, according to The Associated Press, from the militant group Hezbollah. They too denying that they were behind this suicide bombing. I guess who was responsible, no doubt, will come out in the hours had, but this is not a good sign for that truce, which both Palestinian and Israeli leaders agreed to at Sharm el Sheikh in Egypt on February 8 -- Kitty.

PILGRIM: John, what is your assessment of how this impacts the political situation going forward? This of course a setback after such a nice period of peace, and a devastating attack at that. Very, very widespread casualties in this one.

VAUSE: Absolutely, Kitty. It's a setback, it's not the end.

What this does do, it gives way to Israel's claim that a cease- fire with the militant groups will not work. We know that Mahmoud Abbas, the newly elected president of the Palestinian Authority, throughout his election campaign preferred to try to work out some kind of cease-fire, a (UNINTELLIGIBLE), as it's known here, with militant groups like Hamas and Islamic Jihad.

Israel has demanded all along that the Palestinians Authority crack down on the militant groups and dismantle what it calls a terrorist infrastructure. Mahmoud Abbas has preferred not to do that, but, of course, this now strengthens Israel's demands that he move against the militant groups who are responsible for these kinds of suicide bombings.

But what will happen now in the hours ahead, we will wait and see what the response is from the Israeli government. And we'll have to find out what the Palestinian Authority tried to do to stop this attack as well.

We've heard from Saeb Erekat, the chief Palestinian negotiator, who condemned this bombing in the strongest of terms, saying that the people responsible for this suicide bombing are doing their best to try to wreck the peace process -- Kitty. PILGRIM: Let's talk a little bit about the timing. In terms of the peace process, things were very hopeful, and there was the expectation that someone would try to disrupt, some faction would try to disrupt this. In fact, many attacks were expected, and everyone was bracing for them, were they not, John?

VAUSE: That's right, Kitty. We've heard from Israeli intelligence over the last few weeks and months, and they've been telling us continually, over and over and over again, don't be fooled by this period of calm. Even though there has been a dramatic decrease in attacks on Israelis, what we've been hearing from Israeli intelligence officers is that the militant groups are still trying, that they are still foiling attacks -- foiling attempted attacks, rather, every single day, dozens a week, they say.

And there was a fear amongst Israeli intelligence that no matter how many they stop, there was always the possibility that one would get through. And that's what we've seen here tonight in Tel Aviv outside this nightclub -- Kitty.

PILGRIM: All right. Thanks very much. John Vause in Tel Aviv, thank you for bringing us the very latest on that. And we'll be checking back with you as the evening progresses. Thanks very much, John Vause.

Joining us now to further discuss this incident is Saeb Erekat, the chief Palestinian negotiator.

And thank you for joining us this evening. And I do have to ask you, what's your assessment of who is responsible for this?

SAEB EREKAT, CHIEF PALESTINIAN NEGOTIATOR: Kitty, let me first condemn with the strongest possible terms this attack, and to say that whoever is behind this attack has one goal in mind, to sabotage the efforts being exerted to start the peace process, the efforts to stop the cycle of violence counter-violence. And all I can say is they should not succeed.

It's premature to jump to any conclusions, but I think these people who are behind the attacks have one thing in mind, and that is sabotage the peace process. And I urge President Bush tonight, others to exert maximum efforts for the de-escalation, de-confliction, to use any amount of crisis management and damage control in order not to allow those to succeed.

Secondly, I would like to say that this attack undermines Palestinian national interests. This undermines our effort to begin the process of rebuilding, a process of healing, a process of reconstruction, a process to get to the implementation of the roadmap to our freedom, to the realization of the two-state solution.

So I would urge all to help in order to stop any expected escalation through crisis management, damage control. I think those behind the attack have one thing in mind, and that is sabotage the peace process, sabotage the efforts to revive the peace process.

PILGRIM: Do you think, sir, that a statement from Mahmoud Abbas will be forthcoming?

EREKAT: I'm speaking here on behalf of -- I'm his chief negotiator, Madame, and I'm sure he will go personally to the media very soon. I've been on the line with him about five minutes ago, and now as I'm speaking to you, my Palestinian colleagues and the security forces are calling their Israeli counterparts to offer a joint investigation committee to get to it immediately. And we hope the process will begin only -- you know, less than three weeks ago in Sharm el Sheikh will continue, will not be undermined.

I hope our security forces will be rebuilt and we will be handed over our city, because in the West Bank we don't control a single city. Everything is under Israeli occupation. And we need to do that (UNINTELLIGIBLE), to hand over the responsibilities and to exert maximum efforts jointly in order to stop such attacks and to bring the perpetrators to justice.

PILGRIM: Well, sir, thank you for joining us this evening. And we wish you every success for a peaceful continuation of the peace process. Saeb Erekat, chief Palestinian negotiator.

Still to come, another deadly day for U.S. forces in Iraq.

And border patrol officials say they have a new strategy to keep illegal aliens out of this country. Will it work? A special report next.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: It was another deadly day for American troops in Iraq. Three soldiers were killed in a bomb attack, nine others were wounded. A roadside bomb exploded near their convoy in northern Iraq.

(BEGIN VIDEOTAPE)

PILGRIM (voice-over): Today's bomb attack on American troops left a huge hole in the ground on the side of a highway. The attack took place about 20 miles north of Baghdad. Witnesses said the soldiers were on foot when the bomb exploded.

In Baghdad, the Iraqi government said a key associate of Abu Musab al-Zarqawi, al Qaeda's leader in Iraq, had been arrested. The capture is just the latest in a series of arrests announced by the Iraqi government since the elections last month.

The Iraqi politician expected to become the new prime minister, Ibrahim al-Jaafari, today won the endorsement of Iraq's most influential cleric, Grand Ayatollah Ali al-Sistani.

IBRAHIM AL-JAAFARI, IRAQI PRIME MINISTER CANDIDATE (through translator): The grand ayatollah blessed what the Iraqi people achieved under hard circumstances in the election process.

PILGRIM: One of the key tasks for the new prime minister will be to speed up the expansion and training for the Iraqi forces. U.S. military commanders are pleased with the progress, but they admit there's still plenty of work ahead.

MAJ. GEN. PETER CHIARELLI, COMMANDER, 1ST CAV DIVISION: You don't build an army in a few months or even a couple of years. It takes time to put that together.

PILGRIM: Meanwhile, a new rotation of American troops is taking place in Iraq. Among the returning troops, nearly 20,000 soldiers of the 3rd Infantry Division, the division that led the assault on Baghdad back in 2003.

(END VIDEOTAPE)

PILGRIM: The 3rd Infantry's Division's mission is to take over security duties in Baghdad from the 1st Cavalry Division, which is now on its way back home to Texas.

Well, law enforcement caught more than one million illegal aliens crossing our borders last year. That's more than 25 percent more than in 2003. But more people are being arrested, partly because more people are trying to enter the country illegally. Now the Border Patrol is working on a new strategy to secure our borders. Casey Wian reports.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): A ceremony marking several new beginnings for the Border Patrol. First, the swearing in of a new chief of California's El Centro sector.

UNIDENTIFIED MALE: ... do solemnly swear..

UNIDENTIFIED MALE: That I will support and defend.

UNIDENTIFIED MALE: ... that I will support and defend...

UNIDENTIFIED MALE: ... the Constitution...

WIAN: Then the unveiling of the first Homeland Security Department law enforcement badge. The Border Patrol used to be part of the INS. Now it's Customs and Border Protection. And finally, talk of a new strategy from CBP's commissioner that focuses first on catching terrorists, then illegal aliens.

ROBERT BONNER, CBP COMMISSIONER: Al Qaeda and its associated terrorist organizations have contemplated using our border with Mexican to infiltrate in significant numbers of terrorist operatives in order to carry out attacks in the United States. And we are doing and will continue to do -- and this is my pledge -- everything within our power to prevent that from happening.

WIAN: Congress has authorized 2,000 additional Border Patrol agents next year, but the Bush administration is only budgeting for 210. We asked Bonner if that's consistent with his pledge to do everything within the agency's power. BONNER: It's not all about increasing manpower. It's using technology. It's being able to deploy resources faster to weak spots on our borders than we've ever done before.

WIAN: The Border Patrol's new strategy will be formally unveiled in a few weeks. It will rely on more cameras, remote sensors and unmanned aerial vehicles, plus a reorganized command structure to enable agents to respond quickly to troubles pots.

Bonner also promised more resources for Arizona, where more than half of the Border Patrol's 1.1 million apprehensions were made last year. A growing number of those are what the Border Patrol calls OTM, other than Mexican. That's the category most likely to include terrorists. OTM arrests jumped 68 percent last year.

(END VIDEOTAPE)

WIAN: Bonner says he believe the Border Patrol is doing a good job of apprehending OTMs. But he says ICE, another Homeland Security agency, lacks the detention space to hold most of them. The White House has requested an extra $170 million for detention facilities next year -- Kitty.

PILGRIM: Thanks very much, Casey Wian.

Well, coming up next, how did your doctor get into medical school? One man was shocked to learn his doctor was accepted into medical school without even graduating from college.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: It might shock you to learn that a doctor could practice medicine in this country without ever graduating from college, but that is exactly what can happen when people attend medical schools outside the United States. Lisa Sylvester reports from Washington.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): John Nesteruk will feel a sharp pain in his left shoulder for the rest of his life. His spinal accessory nerve was mistakenly severed during surgery to remove a cyst on his neck. He successfully sued the Florida doctor, Jose Nabut.

JOHN NESTERUK, SUED DOCTOR: It was and continues to be a never- ending nightmare. Rarely a day goes by that I don't think about Dr. Nabut and what he's put me through.

SYLVESTER: Dr. Nabut also accidentally stapled Glenn O'Loughlin's bile duct.

GLENN O'LOUGHLIN, HAD BILE DUCT STAPLED: I take approximately 840 pills a month because I can't digest food correctly. I also can't eat and drink some of the things that you should normally be able to eat and drink.

SYLVESTER: Court papers later reveal Nabut never graduated from college, but he still was accepted to medical school in sunny Guadalajara, Mexico. The autonomous University of Guadalajara is one of several foreign universities that have acceptance criteria that falls far short of most U.S. medical schools.

Foreign doctors must still pass a test to be licensed to practice in the United States, but eight states go even further and have banned or placed restrictions on medical students graduating from certain Caribbean schools. California's medical board has done several site visits.

JOYCE HADNOT, MEDICAL BOARD OF CALIFORNIA: When we go out and we find that some schools may or may not actually provide them with the level of education that would ensure that they can come back to the United States and practice medicine on our consumers...

SYLVESTER: Dr. Nabut denies a connection between his medical mistakes and his education. In a statement, he said, "I have been practicing medicine without incident since then. They were unfortunate events. I did my best to avoid them. I have been through the system and have already been disciplined for them."

DR. SIDNEY WOLFE, CO-AUTHOR, "WORST PILLS, BEST PILLS": In this country, about 100 years ago almost, the worst medical schools were pretty much knocked out of existence. That has not happened, at least in some other countries.

SYLVESTER: John Nesteruk still has a high regard for doctors in general. He just wishes he never crossed paths with the medical doctor who graduated from Guadalajara.

(END VIDEOTAPE)

SYLVESTER: Three of Dr. Nabut's patients were awarded $50 millions, but they have seen very little of that money because Dr. Nabut did not have malpractice insurance. His medical license was suspended in 1999, but it was reinstated recently. So he continues to practice in Florida -- Kitty.

PILGRIM: Unbelievable story. Thanks very much, Lisa Sylvester.

Well, that does bring us to the subject of tonight's poll. Do you believe doctors who graduate from foreign medical school should be licensed to practice in the United States, yes or no? Cast your vote at LouDobbs.com. We'll bring you the results a bit later in the show.

Well, tonight a controversial new front on the battle over Social Security. A conservative lobbying group called USA Next has launched a multimillion-dollar advertising campaign. It attacked the AARP, which is a leading critic of President Bush's reform plan.

And I'm joined now by the head of USA Next, Charlie Jarvis. He joins us from Washington.

Thanks for being here.

CHARLIE JARVIS, CHAIRMAN & CEO, USA NEXT: Thank you, Kitty.

PILGRIM: You call yourself a conservative free market alternative to the AARP. What do you mean by that?

JARVIS: Well, we believe because about 40 percent of AARP's members identify themselves as conservatives, we believe that a lot of those members don't really know that AARP is really the largest liberal lobbying organization in the country.

And we stand for tax cuts, elimination of taxes on seniors, and their Social Security taxes, their benefit taxes, we want to eliminate that and AARP doesn't. We're strongly for cutting capital gains taxes. AARP doesn't support that. And we want to do away with issues like the death tax, which AARP, of course, opposes.

They have opposed every single tax cut under President Bush. We strongly support economic growth by reducing the taxes on American people, and we want personal savings accounts in Social Security for younger workers while protecting seniors.

PILGRIM: Is it Social Security that's really caused this division?

JARVIS: Social Security is clearly the most critical issue that we face in this country right now, mainly because in 1950 there were 16 workers per retiree now there are just over three workers per retiree. And when my four sons turn 40 years old, two of them are going to be supporting one retiree. That's not a system that we can't fix. We need to fix it, we need fix it now and the best way to fix it is to protect seniors and allow younger people to own their social security savings account.

PILGRIM: You say stop scaring seniors. What do you mean by that?

JARVIS: Well, we believe that the key tactic on the left today is a really sad tactic, but it's been one that's been used for the last four decades, the whole time AARP has existed and led the effort to, frankly, cause a disruption in Social Security. They have scared people year after year with about anyone even suggesting that they need to own their Social Security.

They go into nursing homes, they go into senior living centers and tell people that when President Bush says he wants younger workers to own their retirements in Social Security, that's going to be taken away from seniors. That is absolutely disreputable. It's tragic that the left would fall into that kind of rhetoric, frankly, of harm.

PILGRIM: Let me ask you a tough one, though. Some of the your consultants advised the Swift Boat Veterans for Truth. That turned into a very, very ugly fight. Do you anticipate this becoming as vituperative as that previous problem?

JARVIS: Well, because Social Security needs to be dealt with, it is facing a crisis. People may denied that, but the Senate Majority Harry Reid -- Democrat Senate Majority leader Harry Reid said in 1999 it was a crisis, we need to deal with t. And he even believed that people ought to be able to own some of their person account in Social Security. We believe the same thing.

Why he's reversed himself now when President Bush is actually saying what he said in '99 I don't know, but we think people should own their retirement future. And seniors can be protected, and at the same time what we need to do, it can be -- it can be a very, very energetic debate. It should be. We're a Democratic republic. We should work through these things.

And you know, Kitty, a Democratic republic can be a loud public square sometimes, but that's good, that's not bad.

PILGRIM: Well, we encourage energetic debate on this program certainly. And thanks very much for joining us, Charlie Jarvis of USA Next.

JARVIS: Thank you for having me.

PILGRIM: Coming up, the latest threat to American jobs, the author of a new book on the next so-called free trade agreement. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: We have breaking news coming in to CNN. Police may be close to making an arrest in the BTK serial killer association. Let's go to David Mattingly now for the very latest on that -- David.

DAVID MATTINGLY, CNN CORRESPONDENT: Kitty, this case we've been following for you all afternoon long. We are now hearing from our sources that police in Wichita, they have a person of interest that they have been asking questions all afternoon long.

Our sources are now telling us that confidence continues to grow at this hour that an arrest may soon be made, and that the person of interest that they have been talking to could be the person they've been looking for for more than 30 years in this on again/off again serial killer case called BTK. The killer calling himself for bind them, torture them, kill them, giving you an idea of what strange methods and cruelty he used in these killings.

This is a case that's been going on since 1974 with the first murders, the last were in 1986. This killer continuing to make headlines as he began communicating a year ago sending packages and communications to local media and to the police.

And now, again, our sources at this hour telling us that there could be an arrest pending in this case -- Kelly.

PILGRIM: David, you've been covering this extensively, was there a sense this was coming to a conclusion this afternoon, or is this a surprise? MATTINGLY: People close to the case, our sources are telling us, is there's been a great deal of confidence surrounding this latest development. There was an arrest last year that turned out to be nothing. everyone very cautious this time and now local television station KAKE saying police are just waiting for the DNA results to come back before going before the cameras and making an announcement.

So again, confidence continuing to grow at this hour in this case.

PILGRIM: Thank you very much, David Mattingly.

Well, let's turn to the so-called free trade agreements in this country. The controversial Central American Free Trade Agreement goes before Congress next month. The White House says the deal will open up new markets for U.S. made goods in 6 Central American countries. And critics compare the agreement to NAFTA, they say it will only cost more American jobs.

My next guest has written a new book on CAFTA. It's called "CAFTA and Free Trade: What Every American Should Know." And Greg Spotts is also the director of a highly acclaimed documentary, "American Jobs," which we have featured on this broadcast previously.

And thanks very much for being here, Greg.

GREG SPOTTS, AUTHOR/FILMMAKER: Thank you for having me.

PILGRIM: You went and sat in living rooms of America, not as an economist, not as a politician, as a filmmaker and now as an author, and heard the stories of people across this country whose jobs have been sent overseas. What do you take away from all of this anecdotal evidence? There is a conclusion, I'm sure.

SPOTTS: Yeah. The scary thing is other countries are finding ways to target jobs up and down the value chain. And the experiences of textile workers who's work has gone to Mexico or China are very similar to the experiences of software programmers whose work has gone to India. And I think we're starting to risk hollowing out the middle class and hollowing out our own earnings power if we just keep driving forward in the same direction.

PILGRIM: Your book is great. And I had a chance to look through it this afternoon. And you say the average American is more concerned about this than the experts are. How concerned are the average Americans? And why aren't the experts? The anecdotal evidence seems overwhelming.

SPOTTS: There's evidence that's more than anecdotal. We know that NAFTA resulted in the destruction of about 2 million American jobs. It also created about 1 million, so that's a net loss of 1 million jobs. We know that some of those jobs that went to Mexico have already been moved on to China.

There's a lot of hard, scientific, you know, numerical evidence to suggest that this corporate friendly style of free trade that we're pursuing is designed to open new labor markets, not to open new markets for our American-made goods.

PILGRIM: Some economists argue for global trade, but not the kind of free trade that we're seeing now. Do you see that distinction?

SPOTTS: Oh, definitely. A lot of people think that globalization is sort of an inevitable historical process, but the rules of the road are written by lawyers and politicians, and they've been written to benefit large multinational corporations. Imagine if we were really serious about, you know, developing Latin America. We could have an escalating minimum wage, the right to unionize, worker safety standards, environmental standards. We could invest in housing for the workers, and you know, social services, police protection, basic things that they need. And we may end up with relationship with a strengthening country instead of a very, very poor country that's forced to just work for us at the lowest possible rate.

PILGRIM: Do you think it's sufficient to just enforce the trade agreements and the provisions therein that are out there now, such as WTO?

SPOTTS: No, not at all, although I do think that we're the only naive honorable player in the whole system. I think because the U.S. designed the system, we think people should be sticking to it, but I don't think there's a developed or a developing country that's really adhering to the letter and the spirit of the trade laws, except for us.

PILGRIM: Greg Spotts, always a pleasure to talk to you, thank you very much.

SPOTTS: Thank you for having me.

PILGRIM: Well, outsourcing is booming more than expected in India. A new report shows that one million people there now have jobs that were outsourced from other countries. A staggering number of those jobs these workers now hold were once American jobs. Software experts say India will make more than $17 billion this year from software outsourcing alone. The president of India's National Software Association says India did not expect to make that much money from outsourcing because of the backlash from the United States, but he says the outsourcing wave has decreased, if not gone away fully.

Well, we can tell you right now we're not going to stop reporting on this issue on this broadcast anytime soon.

Coming up next, "Heroes," how one American soldier says he benefited from his severe wounds in Iraq. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: In "Heroes" tonight, the story of Sergeant Derick Hurt. Sergeant Hurt was wounded while serving in Mosul, Iraq, and he and his battalion were there helping reopen school and train Iraqi police. Well, now Hurt is training himself to walk again. Bill Tucker has his story. (BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Looking at Derick Hurt, you might not know he's missing a leg. He'd like that. It's taken him over a year to get to that point. He lost his leg on a routine night patrol in Mosul, Iraq, in an area that was seen as peaceful at the time.

SGT. DERICK HURT, U.S. ARMY (RET.): We went down this ally, a road we had been down, like I said, numerous times. And the next thing I know, a big old yellow flash underneath me, and then I couldn't hear. And about three seconds later, another boom goes off. And that -- when the second one went off, I knew I'd been hit by something.

TUCKER: A grenade tossed from the rooftop had exploded between his feet, on the floor of the humvee he was driving.

HURT: I was thinking I better make my peace with the big man upstairs, because any second now, they're probably just going to finish me off.

TUCKER: Instead he was rescued by his buddies and helicoptered out.

HURT: What I remember, I just woke up in Germany.

TUCKER: It was two days later, his right leg already amputated.

From there, he was flown to Walter Reed Army Hospital, where he had another 20 or so surgeries, and then came rehab.

HURT: You never thought you as a grown man you'd have to learn how to walk again, let alone with a fake leg. And your first few steps on your new leg is real shaky, and it's just, you know, the ankle doesn't bend like a real ankle. And it's tough, but the therapists, they do a wonderful job.

TUCKER: Today Hurt's gait is smooth. He was awarded a Purple Heart for his wounds. And as for being near making peace with the big man...

HURT: It makes you appreciate the small things in life, like a roof over your head, and running water, and family and friends, and all them little things that you -- clean air, you know? Life is a gift, not something that -- it's not to be taken advantage of.

TUCKER: Bill Tucker, CNN.

(END VIDEOTAPE)

PILGRIM: Well, we wish Sergeant Hurt the very best.

A number of veterans groups have been openly critical of the president's budget proposal. That proposal includes plans to charge millions of veterans a $250 enrollment fee for health care. And it would also double the co-payments many veterans pay for prescription drugs. Joining me now is the secretary of the Department of Veterans Affairs, Jim Nicholson. And thanks very much for being here.

And straight away, let me say we know your commitment to veterans is considerable, but there are some hard numbers that we have to go through, and one is this issue of enrollment fees and co-payments. Many veterans groups are worried that this would drive hundreds of thousands of veterans away from the system. What do you say to that?

JIM NICHOLSON, VETERANS AFFAIRS SECRETARY: Well, I think the first thing they have to do is look at the budget overall. And the trend. In the last four years, the VA budget has gone up 47 percent. And this year it's also up, in fact up at a record level, but flatter than it's been in the ascent of the past.

And what it contains is a provision asking that some of the veterans who are able-bodied, have no service-connected disabilities, and have good jobs, provide a small enrollment fee and a co-payment for some of their pharmaceuticals.

Now, there's an equity in this that I think needs to be considered, because if you look at someone who serves 20 or 30 years as a career in the service and they retire and they get what's called tri-care, they have to pay a co-pay, they have to pay an enrollment fee, and in some cases a deductible. What we're saying is a young man maybe serves two years in the service, and comes out, and has no service-connected disabilities, and has a good job, would -- if he wants to participate in VA services, he pays a modest co-pay. So there's an equity there, but the real priority of the VA remains in taking care of those people that need it the most. And for those that need it the most, who are down on their luck, who have a service- connected disability, a serious one, or a special need such as a spinal cord injury or something, there is no co-pay, no enrollment fee for them.

PILGRIM: Understood. You know, members of Congress have been going through the fine print on this. Senator Patty Murray points out the fact that there's no money in the president's 2006 budget for veterans returning from Iraq or Afghanistan. How do you square that up?

NICHOLSON: Well, I think that's a different matter. That's what they need for the combatant role in the down-range, as we say, in Iraq and Afghanistan. What we're concerned about are those people when they come back from there. And that's an absolute priority of ours, by the way, to have a seamless transition of those men and women from their active duty role into the veteran role. And if they are -- have wounds or damaged, both physically or mentally, we take over, and we're providing them absolutely world-class care, and this budget provides for that. It will do that amply, and it should. That's our job.

PILGRIM: A complicated issue, a lot of other issues to go into, but not sufficient time this evening for everything. Thank you for joining us, Jim Nicholson, secretary of veterans affairs.

NICHOLSON: Thank you for having me.

PILGRIM: OK. This week's "Newsmakers" coming up. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Joining me now are three of the nation's leading journalists. From Washington, Karen Tumulty of "Time," magazine. Roger Simon, "U.S. News & World Report." And here in New York is Steve Shepard of "Businessweek." And thanks for joining us.

You know, I'll start with you, Steve, since you're sitting there, you're the first person I will throw the question to. And you know, it's been an interesting week in the economy. We had a new inflation reading. Oil prices spiked up and tanked the market one day, then it all seemed to go away. What's your assessment of what is going on?

STEVE SHEPARD, BUSINESSWEEK: Well, the GDP number came out today, and it was relatively strong. I think the economy is strong, and what that says is that we have to start worrying a little bit about inflation going forward. You have oil prices up, you have the dollar down, which raises the price of imported goods. You have productivity growth slowing, which raises unit labor costs. So we have to be a little bit more concerned about inflation. You know, we have a large budget deficit, which is not good. So I think the markets are starting to react to inflation, and rightly so.

PILGRIM: Anyone else want to weigh in on the economy? Karen?

KAREN TUMULTY, TIME MAGAZINE: Well, the only thing is that the markets do start to react to inflation, that is going to make it that much harder for the president to sell his Social Security plan, because anything that makes the markets jumpy make people a little more concerned about putting -- banking their retirement on the market's performance.

PILGRIM: Roger?

ROGER SIMON, U.S. NEWS & WORLD REPORT: Well, the market has obviously reacted well today to the GDP numbers, even though it was a modest reassessment of what they thought it would be, but the economy looks stronger than we thought it would be, and as Steve indicates, things that look stronger can always be a negative, because it raises inflation fears.

PILGRIM: Let's go over -- let's review the president's trip overseas. Do you assess the trip to Europe a success, Karen?

TUMULTY: Oh, I think it was absolutely a success, primarily because it really did appear that the president and the European allies are focusing on a lot more of the agenda items that they can agree upon. For instance, one move that was very significant was NATO's decision, the decision of all the countries in NATO to sign on to the Iraq reconstruction. This, I think, was a show of political support for Iraq going forward that the administration badly needed, a real evidence that Europe is sort of moving to put behind its disagreements of the past. PILGRIM: And yet, Roger, strong words for Russia?

SIMON: I think strong words in public for Russia. In private, the White House press corps got a briefing after the press conference for what really went on. They published a transcript of it, and you learn that in private with Vladimir Putin, George Bush was not very tough at all. He indicated that he wanted to see Russia consolidate its institutions of democracy over the next few years, or make a move in that direction. That's not a very tough statement, and I think Putin looked slightly shocked during the press conference that Bush was talking tougher in public than he was in private, even though that's a democratic technique Vladimir Putin will probably learn.

PILGRIM: But the trip was a success, do you think, Roger?

SIMON: I think it was a modest success. I think the training of the military of Iraq is simply an extension of what was happening. I think the acceleration of the agreement of Russia to destroy nuclear warheads is another acceleration of what's already taking place. But there was a negative. Russia insists that it's going to sell a missile system to Syria. We say, don't do it. Russia says, we're going to do it anyway.

SHEPARD: We still have some leverage, because Russia wants to get into the WTO, and so we can maybe get some concessions there.

But the real success was in Europe rather than with Putin. Because symbolically, just doing what he did, going to the heart of the E.U., and saying some of the things he did and thawing the relationship in particular with Germany was very, very significant.

PILGRIM: Let me ask you a quick one, because I know your expertise on this is considerable. Today's "New York Times" said 10 of the 32 government advisers on the FDA, who voted, who supported the sale of Vioxx, Celebrex and Bextra last week used to consult with those drug makers, and so it may be some sort of a skewed panel. What's your assessment of that?

SHEPARD: Well, there's always a trade-off between getting experts on these kinds of panels who have done work for the drug companies in setting up some of these trials and having people who are independent. So this is not a new problem, but it looks very damaging.

The real issue here is having doctors prescribe these medicines only for people who need them, genuinely need them, and for whom other painkillers won't work. And I think that the decision to bring them back, let those drugs stay on the market probably is the right one for some patients, as long as doctors are more discriminating in the way they prescribe them.

PILGRIM: Certainly a good deal of attention being paid to this issue. We have run out of time. And I'm sorry about that, but thank you, Steve Shepard, Roger Simon and Karen Tumulty, thank you all. Have a good weekend.

Still ahead, the results of tonight's poll and a preview of what's ahead for Monday.

(COMMERCIAL BREAK)

PILGRIM: In our poll, 63 percent of you say doctors who graduated from foreign medical schools should not be licensed to practice in this country. Thanks for being with us tonight. Good night from New York. "ANDERSON COOPER 360" is next.

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