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Lou Dobbs Tonight

Capitol Security Scare; Battle Over Bolton; Push for Peace; Project Minuteman Continues in Southwest

Aired April 11, 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.


KITTY PILGRIM, CNN ANCHOR: Well, tonight we'll be reporting on a major security scare on Capitol Hill. A man in black with a suspected bomb. A dramatic takedown by Capitol Hill Police. We'll have the video on that.
Also tonight, middle class squeeze. Does it feel like the paycheck doesn't go as far as it should? We'll have a report that talks about the pressures many people are feeling at the cash register.

Broken Borders. Millions of illegal aliens use Mexican government IDs in this country. Incredibly, the Mexican government is handing out those IDs inside the United States.

ANNOUNCER: This is LOU DOBBS for news, debate and opinion. Tonight, sitting in for Lou Dobbs, Kitty Pilgrim.

PILGRIM: Good evening.

Tonight, a dramatic security scare on Capitol Hill. Police ordered a partial evacuation of a building after a man with two suitcases stood outside the west front of the Capitol. After an hour- long standoff, police overpowered the man. The whole incident was caught on video.

Bob Franken reports from Capitol Hill.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, what we're talking about here is a building --a building where the security is exceedingly tight since September 11. Of course there were concerns that the U.S. Capitol was one of the targets of the terrorists. So there is little, little time that is spared when they have a problem with a suspicious package.

In this particular case, in the area in back of me, where the president's inauguration had been held, the west side of the Capitol, police waited just a few minutes and then they rushed a man standing there with two suitcases who refused to cooperate.

They quickly -- they quickly talked to him. They quickly dragged him to the ground, removed him, left the suitcases where they were. Took the man, put him in an ambulance, saw that he was all right, only slightly injured, and then took him away.

Then came a very, very careful inspection of the suitcases. First of all, they had to determine that there was nothing dangerous inside. The X-rays showed in one of them there were some wires and batteries. It turned out that they were a CD, part of a CD player. But they didn't know that, so they blew up that particular suitcase.

The other one, they confirmed that it only contained clothing. And so they looked in it, and they dragged it away. "They" being the people from the bomb squad who for a long time were dressed in protective gear.

Police officials say that the man who has not identified himself was somebody who had recently come to this country from China. He insisted he wanted to talk to the president.

As for the evacuation at the Capitol, they only had people leave the offices that face where the suitcase was here on the west front of the Capitol. That included, however, the Senate majority and minority leaders' offices, as well as the speaker of the House.

But now things are back to normal. The tourists who had been moved back have returned to be able to get a close-up look at the Capitol, something, Kitty, that they had expected when they came here. What they never expected was to witness the security scare that they did -- Kitty.

PILGRIM: Very tense couple of hours. Thanks very much, Bob Franken.

Elsewhere on Capitol Hill today, President Bush's nominee for ambassador to the United Nations faced tough questions during a Senate confirmation hearing for John Bolton. Democrats on the Foreign Relations Committee argued that Bolton is not the right man for the job. Now, Bolton has been an outspoken critic of the United Nations in the past, and today he said the U.N. has "gone off track."

Andrea Koppel reports from Washington.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): Determined to keep John Bolton out of the U.N., Democrats came out swinging.

SEN. JOSEPH BIDEN (D), DELAWARE: Some have said that sending you to New York would be like sending Nixon to China. I'm concerned it would be more like sending a bull into a china shop.

KOPPEL: Republicans countered that Bolton, an arms control specialist known for blunt talk, is perfect to push U.N. reform.

SEN. GEORGE ALLEN (R), VIRGINIA: He'll bring a credibility to the United Nations that they sorely need.

KOPPEL: Democrats laid out evidence President Bush's choice to be U.S. ambassador to the world body has for years been a U.N. basher.

SEN. BARBARA BOXER (D), CALIFORNIA: You can dance around it, you can run away from it, you can put perfume on it. But the bottom line is the bottom line.

KOPPEL: Democrat Barbara Boxer confronted Bolton with a videotaped speech he gave in 1994 when he was out of government, expressing open hostility.

JOHN BOLTON, NOMINEE, U.S. AMBASSADOR TO U.N.: The Secretariat Building in New York has 38 stories. If you lost 10 stories today, it wouldn't make a bit of difference.

KOPPEL: In his defense, Bolton sold senators he believes that for the U.N. to be effective it requires U.S. leadership.

BOLTON: My criticism during the 1990s were in large measure because of what I'd thought was the lack of effective American leadership.

KOPPEL: Democrats also grilled Bolton about allegations he tried to intimidate intelligence analysts at the State Department who disagreed on whether Castro's Cuba had a biological weapons program.

SEN. CHRISTOPHER DODD (D), CONNECTICUT: Trying to rob a bank and failing to do so is not -- is a crime, in my view. Trying to remove someone as an analyst from their job because you disagree with what they are saying I think is dreadfully wrong.

KOPPEL: Bolton denied trying to have anyone fired.

BOLTON: I thought in both cases, if I may say so, their conduct was unprofessional and broke my confidence and trust.

KOPPEL (on camera): Despite the Democrats' desire to call up at least seven witnesses to testify as to what Bolton did or did not do, so far committee chair, Lugar, has only approved one of them. At the moment, a vote on the Bolton nomination is scheduled for Thursday. And barring any last-minute surprises, is expected to be approved.

Andrea Koppel, CNN, Capitol Hill.

(END VIDEOTAPE)

PILGRIM: Up next, the great American giveaway. Wealthy foreigners refusing to pay their medical bills in our hospitals.

And assault on the middle class. A new threat to the living standards of working Americans and their families.

(COMMERCIAL BREAK)

PILGRIM: President Bush today urged Israeli Prime Minister Ariel Sharon not to expand a key Jewish settlement in the West Bank. President Bush and Prime Minister Sharon met at the president's ranch in Crawford, Texas. The meeting comes amid renewed tension in the Middle East as Israel plans to dismantle settlements in the West Bank and Gaza.

Dana Bash reports tonight from Crawford, Texas. (BEGIN VIDEOTAPE)

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): Sometimes among friends the saying goes, "You just have to agree to disagree." At his Texas ranch, the president made clear he very much disagrees with any Israeli move to expand West Bank settlements.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I told the prime minister of my concern that Israel not undertake any activity that contravenes road map obligations or prejudice final-status negotiations.

BASH: At issue, Israeli plans to add some 3,500 homes to its largest settlement outside Jerusalem, Ma'aleh Adumim.

ARIEL SHARON, ISRAELI PRIME MINISTER: We are very much interested that it will be contiguity between Ma'aleh Adumim and Jerusalem.

BASH: With the prime minister's defense, however, came an apparent concession he might eventually have to give it up.

SHARON: As for settlements, Israel will also meet all its obligations under the road map.

BASH: Tension over settlements, Bush as bad cop, showing Palestinians he can be tough on Israel. But it was Bush the good cop who invited Mr. Sharon here to praise his plans to pull out of 21 settlements in the Gaza Strip and four on the West Bank.

BUSH: The prime minister made a very courageous decision to withdraw from Gaza.

BASH: Mr. Bush first endorsed the plan exactly a year ago, when both leaders were frustrated by Yasser Arafat. Now with Arafat gone, Mr. Bush calls the withdraw plan critical to building trust and called on new Palestinian leader Mahmoud Abbas to give Mr. Sharon a chance.

BUSH: The prime minister is willing to coordinate the implementation of the disengagement plan with the Palestinians. I urge the Palestinian leadership to accept his offer.

BASH: A key Palestinian negotiator insists they're involved, talking to Israeli officials and getting ready.

NABIL SHAATH, PALESTINIAN DEPUTY PRIME MINISTER: Once the Israelis withdraw, we take over peacefully and we maintain law and order.

BASH: Even with help from Mr. Bush, or Palestinians, Mr. Sharon may still face the stiffest opposition inside Israel. Hundreds of protesters descended on Crawford, even some from Sharon's own party, emotionally objecting to removing some 9,000 Israelis from settlements.

(END VIDEOTAPE) BASH: So it was music to the prime minister's ears when President Bush once again said America will not expect Israel to withdraw from all settlements, saying the Palestinians must understand the reality of what Mr. Bush called "Israeli population centers" in any final talks if and when there are such talks -- Kitty.

PILGRIM: Thanks very much, Dana Bash.

Well, later in the broadcast, I'll be talking with one of this country's leading experts on the Israeli-Palestinian conflict. My guest has been involved in the Middle East diplomacy for three decades.

We've reported here on the huge influx of illegal aliens into hospital emergency rooms. Well, that invasion is stretching our health care system to the breaking point. Many hospitals are facing another critical problem from overseas. Wealthy foreigners are coming to this country for medical treatment and refusing to pay their bills.

Christine Romans reports.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): Aventura Hospital and Medical Center sits close to the wealthy beaches of North Miami and the trendy Aventura Mall. Yet this hospital has a growing problem with wealthy patients who don't pay their bills -- wealthy patients from other countries.

DAVIDE CARBONE, CEO, AVENTURA HOSPITAL: They think they can get something for free, and for them it is free. For the rest of us, we are paying for it. It's happening around the country, but especially in locations like ours and hospitals like ours that cater to and have a big international clientele.

ROMANS: Like the woman from Peru who had a stroke in the mall, the wife of a wealthy industrialist. She left with a $600,000 bill and threatened to sue when the hospital tried to collect.

(on camera): Here at Aventura Hospital, the patients abusing the system come from all over the world.

CARBONE: The case we talked about from Peru, it was actually $646,000. A case from Switzerland for $376,000. A case from Antigua that we spoke of, $477,000. Italy, a lung mass, $180,000. Dutch Antilles, $150,000.

ROMANS (voice-over): International patients can come to the United States for medical treatment on tourist visas with a referral from their home doctors. Since the 1990s, many large hospitals have courted these patients, and most now demand full payment up front from wealthy foreigners.

But by law, hospitals must stabilize anyone regardless of nationality or ability to pay. That's why Aventura Hospital would like to see immigration authorities deny future visas for foreigners who have run out on their bill.

(END VIDEOTAPE)

ROMANS: Now, Kitty, some hospitals just quietly eat these costs. Others go after the debtor with international collection agencies. But the reality is, the biggest problem for American hospitals are people who are simply not paying. The biggest problem are illegal aliens who aren't paying. But this is another small part of that same story.

PILGRIM: They're getting two parts of this. And I know you have been working on this for a while. And it's really awful these people skipping out.

ROMANS: The idea that anybody would get something like life- saving treatment and then just think you could walk out and not have to pay, some of these doctors and administrators say it's an interesting mindset. They don't know where it has come from, but there's really this feeling that if you're not an American it must be for free.

PILGRIM: You know, who does pay for this, Christine? I mean, do the hospitals just have to just rip the bills up and throw them in the trash?

ROMANS: It depends. Sometimes they try to get just a little bit. If they can get an international collection agency, they try to get just a little bit. But, you know, you and I pay. A half a million dollars is a piece of equipment that may be the average...

PILGRIM: They know where to find us.

ROMANS: Well, they know where to find us, exactly. And we are insured. But there are also a lot of uninsured Americans that they can't go after because they don't have any money.

But if somebody comes here wealthy, who takes up that bed and, you know, rings up $500,000 in bills, that's a piece of equipment they can't buy. And that's also a bed that has been filled this whole time. Somebody somewhere has to pay for it.

PILGRIM: Shocking. Thanks very much, Christine Romans.

ROMANS: You're welcome.

PILGRIM: Well, the standard of living for America's middle class is facing a major new threat tonight. For the first time in 14 years, pay raises are not keeping up with rising prices. And at the same time, millions of American jobs are being exported to cheap overseas labor markets. Corporations, however, are cleaning up.

Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Susan Seaman works two jobs and is in a corporate training program. Until last June, she was a Georgia schoolteacher. But her salary was not enough to make ends meet.

SUSAN SEAMAN, FMR. TEACHER: My husband lost his job and is having a hard time finding work due to off-shoring. So being on a teacher's salary, I couldn't support our family. So I had to look elsewhere.

SYLVESTER: She's among the American middle class family squeezed by low wages and higher prices for everything from gas to health care to college tuition. For the first time in 14 years, workers' wages have not kept up with inflation. Wages increased 2.5 percent, but the Consumer Price Index rose 2.7 percent. The reason wages have been stagnant, too many workers and too few jobs.

RON BLACKWELL, CHIEF ECONOMIST, AFL-CIO: The growth of the labor force, the number of people who are out there looking for work, is just exceeding the number of jobs there are. And employers are using that to bargain down the wages they have to pay to get somebody to work.

SYLVESTER: But worker productivity is up, and the economy is supposedly well into its fourth year of recovery. So who is gaining? Economists say corporations are cashing in with higher profits.

JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: You could make a very strong argument that when the bakers who are themselves responsible for a larger pie are getting every smaller slices, there is an equity problem.

SYLVESTER: And so, if workers feel like they are running in place, it's because they are, working harder but not necessarily earning more.

(END VIDEOTAPE)

SYLVESTER: Economists say workers who are trying to maintain their standard of living are compensating by working more than one job, working longer hours, and increasing consumer borrowing -- Kitty.

PILGRIM: Thanks very much, Lisa Sylvester.

Well, that does bring us to the subject of tonight's poll. What phrase best describes the change in your standard of living over the past year, improving, worsening or the same? Cast your vote at LOUDOBBS.com and we'll bring you the results a little bit later in the broadcast.

Now, there was more evidence today of the soaring cost of gasoline. Prices shot up by an average of 19 cents a gallon over the past three weeks. They are now a record $2.29 per gallon of regular gas.

That's an average. In some parts of this country prices are even higher. Sixty percent of our oil comes from foreign countries. And later in the broadcast I'll be talking with a guest who says our dependence on foreign oil is a rising threat to our national security.

Well, he's usually busy running around -- running the free world, but every once in a while he's just running or biking or exercising. And that's when President Bush has a chance to wind down and listen to music on his iPod. Which begs the question, what kind of music does the president listen to?

Well, of the 250 songs on the presidential iPod, a few include "Brown Eyed Girl," by Van Morrison; "Centerfield" by John Fogerty; and "My Sharona" by The Knack. President Bush may have time to listen to his iPod while exercising, but the downloading left to his personal aide.

Coming up, the House majority leader comes under fire again. And this time from an unexpected source.

And a group of citizens proves it is possible to secure our porous borders if the necessary resources are made available.

(COMMERCIAL BREAK)

PILGRIM: House Majority Leader Tom DeLay is under fire again today. And this time from a fellow Republican. Congressman Christopher Shays of Connecticut today said that he believes the majority leader should step down because of persistent questions surrounding ethical conflicts.

Ed Henry reports from Washington.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Kitty, one senior Republican aide privately acknowledged to CNN today that the Tom DeLay story has now turned into a full-scale feeding frenzy after Republican Congressman Shays came out and said DeLay has become an embarrassment and should step down.

But for now, party officials insist they're cautiously optimistic. Incidentally, criticism from Chris Shays is not unexpected. He's a moderate Republican; he's frequently clashed with GOP leaders. He's from a swing district in Connecticut where he only one 52 percent of the vote last November. So he's under heavy pressure to distance himself from Tom DeLay, and he did just that on camera today.

(BEGIN VIDEO CLIP)

REP. CHRISTOPHER SHAYS (R), CONNECTICUT: I'm not asking him to step down. You're asking me if I think he should? Yes, I think he should. That's just an honest answer to a question.

But I'm not arguing and demanding that he step down. He's still the leader. But if I think -- but that's what I think. I think he should step down.

(END VIDEO CLIP)

HENRY: But Republican officials note Chris Shays is no fan of Tom DeLay. He's an obvious person to criticize the majority leader.

As one party official told me, if a movement conservative breaks ranks, then it's a problem. And one such conservative, Senator Rick Santorum, stopped far short of calling for DeLay to step down yesterday.

But appearing on ABC's "This Week" program, Santorum said Mr. DeLay has to clear up all these questions about whether or not lobbyists paid for some of the majority leader's overseas travel, which could be and would be a clear violation of House rules if it was proven.

Now, another headache for DeLay came out today in a "Newsweek" story suggesting the lobbyist at the center of all of these allegations, Jack Abramoff, may be ready to cut a deal with prosecutors and may say that Tom DeLay knows a lot more than he's letting on. Abramoff, who's under federal investigation for various lobbying activities, is not commenting on the "Newsweek" report, but his legal team told CNN today that his involvement in Congressman's DeLay trips were legal and proper.

Still, Republicans are privately nervous this is not the last we'll hear about either the Abramoff or DeLay stories -- Kitty.

PILGRIM: Certainly not. It should continue. Thanks very much, Ed Henry.

Well, coming up, why citizens have been able to secure our nation's porous borders where the government has failed on that.

Also ahead, a former INS agent who says the Bush administration is running from the illegal immigration crisis in this country.

Also, assault on the middle class, why soaring gas prices may not come down anytime soon.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: In a moment, our special report on the Minuteman Project in Arizona. And now here's some of the other important stories that we're following tonight.

An American contractor was kidnapped today at a construction site in Baghdad. The U.S. Embassy has informed the man's family but has not released his name.

In Washington, health care experts are reviving a debate over the safety of silicone breast implants. The Food and Drug Administration banned those implants for most women in the United States in 1992. Well, now the agency is holding a three-day meeting to determine whether the implants have been made safe enough for widespread use. And an incident between the United States and a Dutch KLM airliner exposed a hole in our homeland security. The United States refused to allow the flight bound for Mexico to fly in U.S. airspace. And that's because two of the passengers onboard were on the U.S. no- fly list.

Well, this move is not actually required under U.S. Homeland Security policy. Only flights landing in the United States must be checked for the no-fly list passengers.

Well, another major threat to homeland security is the invasion of illegal aliens. But Minuteman volunteers have sharply reduced the number of illegal aliens entering the country through one stretch of our porous border with Mexico. Now, the Minutemen have been patrolling part of the Arizona border for 11 days.

Casey Wian reports from Naco, Texas -- Naco, Arizona.

(END VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Minuteman Project volunteers stake out a popular illegal alien hiding place. But this culvert and many other hot spots near Arizona's border with Mexico have cooled off thanks to the presence of the Minutemen.

CHRIS SIMCOX, MINUTEMAN PROJECT FOUNDER: In an area where Border Patrol averages 600 to 1,000 apprehension a day, yesterday they were down to 74. Today I have been listening to the scanner and there's very few. We've effectively shut down this sector of the border.

WIAN: During the project's first week, Minutemen helped the Border Patrol apprehend more than 200 illegal aliens.

PATRICK MICHAEL MEGARO, MINUTEMAN PROJECT VOLUNTEER: We've already accomplished our mission, which was to bring recognition to the issue.

PAUL FARMER, MINUTEMAN PROJECT VOLUNTEER: If we went home right now it's accomplished itself. But we're going to stay the full month.

WIAN: Project organizers were worried about sustaining their effort through the month. But news of their success spread quickly and more volunteers arrived.

Sixteen-year-old Arizona resident Brett Kloistra is a new recruit. He lives in Tucson and has seen first-hand the federal government's inability to secure the border.

BRETT KOISTRA, MINUTEMAN PROJECT VOLUNTEER: I've been to the border and, you know, you can look off to the side in Nogales and see just the crowds coming in. I have seen junk piles in the deserts and, you know, I know they are not doing a good job. And I wanted to do something about it.

So I signed up and called. And here I am today. WIAN: Paul Nilsson (ph) is a legal immigrant from Sweden who saw millions of illegal aliens receive amnesty in 1986 while he waited for a green card. He doesn't want that to happen again.

PAUL NILSSON, LEGAL IMMIGRANT: Mr. Bush, he wants to reward lawbreakers.

WIAN: These observers have been watching the Minutemen to deter what they call potential migrant abuses.

(on camera): Have there been any documented cases that you are aware of the Minutemen abusing anyone?

BETH SANDERS, AMERICAN FRIENDS SERVICE COMMITTEE: It looks like there haven't been.

WIAN (voice-over): While the Border Patrol officially opposes the Minuteman Project, privately field agents say they welcome the effort.

(on camera): The project has been so successful, organizers are now working on expanding the Minuteman Project to other states along the southern border.

Casey Wian, CNN, Naco, Arizona.

(END VIDEOTAPE)

PILGRIM: Well, my next guest says the Minuteman Project is a public backlash against the government that refuses to confront the illegal immigration crisis in this country. Neville Cramer is a former Immigration and Naturalization Service agent. He's also the author of "Fixing the Insanity: America's Immigration Crisis." And Neville Cramer joins me tonight from Phoenix, Arizona. Thanks for joining us, Mr. Cramer.

NEVILLE CRAMER, AUTHOR, "FIXING THE INSANITY": Kitty, thank you for having me.

PILGRIM: First of all, your thoughts on the Minuteman effort, and this has raised a lot of controversy, has it not?

CRAMER: Yes, it has. As a professional law enforcement officer, it's very difficult to support any effort where the public takes the law into their own hands in any manner. However, the Minuteman Project has done a great deal of good, because it's brought this issue to the public's view, and unfortunately that's what it has come to. We have to have this type of effort come forward so that people realize how porous the border really is.

PILGRIM: Let's tap into your 25 years experience at the INS. You say that border agents should be now border guards. Explain that a little bit to us. Do you think their duty should be expanded?

CRAMER: Well, I think we should first of all use the technology that we have in the United States to control the border. We -- the Border Patrol doesn't use any satellites that I'm aware of. We should increase the use of sensors, and fences, and satellite technology to watch the border, and then increase the number of people that are watching the border.

And when we have an incursion, use the Border Patrol to go after those individuals and to apprehend them, detain them, and then subsequently remove them.

However, Kitty, that's not the major issue that we face today with illegal immigration.

PILGRIM: Go ahead. Tell us what it is then.

CRAMER: In the interior of the United States, we have a vacuum of enforcement when it comes to immigration. What we need is a mandatory Social Security number verification system, where employers are required to verify the Social Security number of their employees, and an employer sanctions program that uses that system to fine employers who are noncompliant.

PILGRIM: You know, I looked through your book, and it's very interesting what you do. When you proposed this, you asked for a Social Security verification system, and then fines to be put on employers, and those fines then be applied to boosting the effort at the borders. It's a creative solution. Do you think it's workable?

CRAMER: Yes, absolutely. I toured Social Security many years ago and asked if the system could be developed. They said yes, it could be done, within six months.

And this would also do something else. It would allow local, state, and federal law enforcement agencies to work together and to use the funds that would be received from this fine -- from the fines they receive to go back to the local communities, to pay for the expenses that illegal immigration causes to the local communities.

PILGRIM: Let me go into another proposal that you have. And that's the issue of driver's licenses, something we've covered extensively on this program. And you say that people should not be allowed to have driver's license in two states. How does that help with the immigration issue?

CRAMER: Well, I think that when a person applies for any driver's license, their documentation that they are using to obtain that driver's license should be verified. Once again, we're dealing with a verification issue. We should have a national driver's license database that should be checked, so that when a person goes from one place to another, they simply give up their driver's license in one state and get another one.

The whole thing boils down to verification once again, where people cannot use fraudulent, counterfeit identification to obtain the right to drive in this country.

PILGRIM: Well, I have to applaud your common-sense suggestions in your book. And another one that I came across was that the Department of Homeland Security should work with local, state and federal officials to keep people from getting false documents in this country. It seems like a no-brainer.

CRAMER: Well, it's a no-brainer, but unfortunately, the Bush administration has done the same thing that most of the other administrations have done over the years, and that's run away from the real issue of controlling illegal immigration in the interior of the United States.

PILGRIM: Are we even close to getting that kind of coordination?

CRAMER: No, absolutely not. It's not even on the radar screen. The answer always that this country hears when it comes to illegal immigration is more Border Patrol, more Border Patrol.

When I was in the Border Patrol in 1976, we had 2,000 agents and we had approximately two million illegal aliens. We now have 10 million illegal aliens and 10,000 Border Patrol agents. Both of them have quintupled. Obviously, Kitty, something isn't working.

PILGRIM: But certainly, Mr. Cramer, you would agree that we need more people on the ground at the border.

CRAMER: I do, but I also think that we should use technology to support those individuals.

PILGRIM: Thanks very much for joining us this evening. Very interesting suggestions. Neville Cramer, the author of "Fixing the Insanity: America's Immigration Crisis." Thanks very much for joining us, Mr. Cramer.

CRAMER: Thank you, Kitty, my pleasure.

PILGRIM: A reminder now to vote in tonight's poll. And the question is: What phrase best describes the change in your standard of living over the past year -- improving, worsening, or the same? Cast your vote at LouDobbs.com. We'll bring you the results a little bit later, in just a few minutes.

And tonight, the thought is on American history. And here it is. "History is a guide to navigation in perilous times. History is who we are and why we are the way we are."

Next, reducing our dependence on foreign oil, as gas prices continue to sore.

And how illegal aliens obtain valid forms of identification inside the United States. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Many Americans are being squeezed by soaring gas prices across the country. Well, prices today hit a record for a fourth week in a row. Our demand for oil, still rising. We consume more than 20 million barrels of oil a day. Some 60 percent of that oil comes from other countries. Well, some Americans are now concerned about our dependence on foreign oil and what that means for our national security. And one of those Americans is Frank Gaffney, the founder and the president of the Center for Security Policy, and he joins me now from Washington. Always nice to talk to you, Frank.

FRANK GAFFNEY, PRESIDENT, CENTER FOR SECURITY POLICY: Thank you, Kitty.

PILGRIM: We are the largest consumer of oil, and yet our dependence keeps growing. What can be done? I know you've been doing a lot of work on this.

GAFFNEY: We have. We've put together a blueprint, a consortium of principally national security-minded practitioners and some think tanks here in Washington and some environmental groups to focus in on what we consider to be a perfect storm that is giving rise to conditions, both with respect to supply and demand, that are going to create a national security crisis for this country. If it isn't already upon us, it will be probably shortly.

And what we have devised is a strategy for using available technologies -- they can be looked at in greater details at SetAmericaFree.org -- to wean the country from its current dependence on principally imported oil, much of which is used in our transportation sector, by using flexible fuel vehicles, including those that can employ electricity as a transportation fuel. The fuels that need to power that, all of which can be produced indigenously in this country using our own resources, and, of course, the infrastructure that is necessary to provide both.

Those are things that we think can begin very quickly with the right leadership from the president and the Congress. We think the public is there for the demand, but the leadership needs to be there to get the supply going as quickly as possible.

PILGRIM: Frank, you know, market forces may be working here because Ford's results out, and they're saying that sales of SUVs are weak. Would you say that Americans are beginning to turn away from these bigger vehicles just because they're seeing in their wallets what's happening to oil prices?

GAFFNEY: I think you're seeing something akin to what we saw in the 1970s when we had a similar kind of sharp spike in oil prices. People are voting with their feet, as you say. Ford's down 29 percent according to today's reports. Last week I think it was GM was announcing even worse prognosis. GM and Ford and presumably perhaps others in the automotive industry in this county are going to lose their shirts if they don't make the switch to the fuels and technology that I was just talking about, specifically plug in hybrid technology. That is to say cars that can utilize both internal combustion engines that can accept these flexible fuels, ethanol, methanol combined with gasoline or just on their own. And electricity that you can use to recharge their batteries like you do your cell phone at night.

PILGRIM: Maybe people will rethink this if they pay more at the pump. We're at $2.29 a gallon -- record high -- that's an average. In many places it's much higher than that. Let me turn to something that intrigues me. So much of our oil is dependent on areas where terrorism is a problem. I refer to a Goldman Sachs report that says if a disruption in oil happens it could spike to $105 a barrel.

Do you think that's a credible scenario?

And how vulnerable are we to that kind of thing?

GAFFNEY: As I said earlier, that's part of this perfect storm. We do rely upon imported oil excessively. Much of that oil is coming from places that are at best unstable, and at worst actually hate us. The prospects of one or the other of those major suppliers being unwilling to supply us or perhaps terrorists succeeding in taking down the infrastructure makes that Goldman Sachs scenario, I think, entirely credible. And that's part of why I think it's going to be the case we as a country will adopt this blueprint, this Set America Free blueprint, perhaps after this calamity. We certainly should try to do it as much as we can before so as to cushion ourselves and our economy and our security from the consequences of such a devastating effect.

PILGRIM: Let me just look for a little short-term relief. OPEC says in the next month they will increase production by 500,000 barrel as day.

Do you think that will help in the short term on these gas prices, Frank?

GAFFNEY: It might result in some modest adjustment in prices, assuming there isn't either some great spike in demand, and that's what we're seeing out of particularly, communist China, to some extent India. Or we see, as I said, some attack. An attack on a pipeline. An attack on a refinery. An attack on -- tankers or off load facilities. Any and all of these have already been subject to either accidents or deliberate disruption. And it almost certainly will be a target for the future for terrorists aimed at hurting our economy and our security both.

PILGRIM: Thanks very much. Frank Gaffney, Center for Security Policy.

GAFFNEY: Thank you, Kitty.

PILGRIM: Thanks, Frank.

Well, at the top of the hour tonight on "ANDERSON COOPER 360" possible relief for people who suffer from migraine headaches. Heidi Collins -- Heidi Collins joins us now with a preview of that -- Heidi.

HEIDI COLLINS, GUEST HOST "ANDERSON COOPER 360": Hi, Kitty. How are you?

That's right. Next on "360" potential relief for millions of migraine suffers. Dr. Sanjay Gupta explains how plastic surgery may help cut the pain. Plus a combat killing, a U.S. soldier charged with murder. His family says the military is making him a casualty of war. What really happened that day in Iraq. We're covering all the angles at the top of the hour. Kitty, back to you.

PILGRIM: Thanks very much, Heidi.

Coming up next, why some businesses and even some law enforcement agencies accept a controversial form of identification from illegal aliens in this country. We'll have that story when we continue.

(COMMERCIAL BREAK)

PILGRIM: Millions of Mexican citizens in this country are issued a controversial form of identification by Mexican consulates all across the United States. Metrical Consular I.D. cards, they're accepted by police and financial institutions as a valid form of identification. But the millions of people carrying the cards are never asked to provide proof of legal status.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): These people are applying for a Matricular Consular I.D. from Mexico.

AGUSTIN ENHIQUEZ, MEXICAN ASSN. OF PERTH AMBOY: This is going to help the people to open accounts in the banks so they can have an I.D. Because a lot of people can't afford an I.D. here, so this help a lot of people out in that situation.

TUCKER: Since March of 2002 3.2 million Metricular I.D.s have been issued by Mexico's 47 consulates in the United States. The Mexican government makes it easy for their citizens to apply, by setting up what it calls these mobile consulates. A place where the area consulate offers its services to communities in its region. This one was held this past weekend in Perth Amboy, New Jersey. It was run by the New York consulate, which hosts about eight of these type events every year. The card is granted only after a series of questions are asked and answered and documented validated. But no one is ever asked if they're here illegally.

ARTURO SARUKHAN, CONSUL GEN. MEXICAN CONSULATE IN NY: We are in the process of providing the Consular I.D., it is not our job to ask that individual what his status is, migratory status in the United States is. We are not immigration authorities of the United States. We are a sovereign government giving out means of I.D. to Mexican nationals.

TUCKER: Sensitive to criticism, the Mexican government has made substantial improvements in upgrading the security of its card. Anti- counterfeiting measures have been added. And all applications are double checked against a database in Mexico. Such attention to detail and security may be impressive, but critics say it misses the point. REP. ELTON GALLEGLY (R-CA), HOUSE IMMIGRATION SUBCMTE.: In my opinion there shouldn't even be this document that would be recognized whether it's valid or not, because the only folks that have any need for this document to start with, are individuals that don't have a legal right to be in the country to begin with.

TUCKER: Congressman Gallegly has entered his legislation to prohibit the Metricular from being used as identification at banks or federal institutions.

(END VIDEOTAPE)

TUCKER: Now the Mexican government is not the only government issuing its own form of identification to its citizens. Argentina and Guatemala already issue their own Matricular. Peru, Bolivia and El Salvador are now expressing an interest in doing so themselves. And Kitty, these I.D.s are not so secure as the ones offered by Mexico. And I've got to underline again, none of the documents serve as valid immigration documents. They don't exist to prove that you are legal at all.

PILGRIM: And they are widely accepted.

TUCKER: They're widely accepted. Again, the only reason you might need one is that don't have a passport and you're not here legally.

PILGRIM: Thanks very much, Bill Tucker.

Well let's take a look at some of "Your Thoughts"

And David of Columbia, South Carolina writes, "I find it amazing how so many of your guests simply will not admit that crossing the borders of this country illegally is breaking the law. I've also noticed many of these same guests use the term 'undocumented' as a sugar-coated substitute for 'illegal.' What's next, bank robbers will now be called 'undocumented money collectors?'"

Steve of Bedford, New Hampshire writes, "Your continuing coverage about our 'Broken Borders' is a great service. I hope the appropriate members in Congress will finally begin to get the message. The reality must sink in: as a country, we must be more concerned about our physical and economic security. It's time to put our national interest ahead of the rest of the world. Our survival as a nation is at stake."

And Phil from Sutton, Alaska, writes, "I'm curious as to what level of free medical care I could expect to receive in, let's say Mexico, if I repeatedly showed up at the emergency room of one of their hospitals? Or in any country (including my own) for that matter."

We love hearing from you. Send us your thoughts, LouDobbs@CNN.com. Each of you whose e-mail is read on the broadcast will receive a copy of Lou's book, "Exporting America." Also, if you would like to receive our e-mail newsletter, sign up on our website at LouDobbs.com.

Well, we have some wacky weather across the country. That's left many wondering tonight if spring is really begun. A blizzard swept across parts of Colorado. Flights were delayed and canceled throughout the state with travelers left stranded at airports. Driving wasn't much easier with cars becoming stuck in the snow. Thousands also left without power and as up to two feet of snow fell there.

Just east of Colorado, more bizarre weather, in Kansas, with snow, sleet, hail, along with more common tornadoes. Now one official said there were 13 tornadoes alone spotted in the western half of Kansas. No serious injuries were reported in either state.

Well, our next guest says President Bush and the Israeli prime minister avoided difficult issues during today's meeting in Crawford, Texas. Plus, the results of tonight's poll and a preview of what's ahead tomorrow. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: President Bush met with Israeli Prime Minister Ariel Sharon at the president's ranch in Crawford, Texas. This meeting comes at a critical time for the Middle East peace process. Sharon's plan to dismantle Israeli settlements in Gaza is facing strong opposition in Israel, and there was new violence between Israelis and Palestinians in Gaza over the weekend.

Joining me now is Stephen Cohen. He's a national scholar of the Israel Policy Forum, and thanks very much for being here.

STEPHEN COHEN, ISRAEL POLICY FORUM: It's good to be here, Kitty.

PILGRIM: You know, Sharon is here in Crawford, but I really have to ask you: is he living up to the promises he made to President Bush a year ago?

COHEN: Well, I think the basic answer to that question is whether you consider this withdrawal from Gaza to be an effective response of the prime minister to what the president wanted when he proposed the program of the road map. Because what has happened is that the prime minister has put his emphasis on the withdrawal from Gaza from these settlements rather than on the project as proposed originally by the president, which was to stop settlement activity.

PILGRIM: Do you think that that's up to speed?

COHEN: I believe that it is, because I believe that it's creating a breakdown in the Israeli plan about focus on settlements and settlers as the center of their society. And, therefore, I believe that what he's done is taken the issue of settlements to a new level, and that's why there is so much trouble going on between Jews in Israel now.

PILGRIM: It's really Jews against Jews, internally, domestically, in Israel versus Jew versus Muslim, at this point, is it not?

COHEN: Right, right. That's the hard core of the issue today. The issue of Jews and Muslims will come back to us, we can count on it. As soon as the issue of Gaza is settled by the Israeli withdrawal, because then we'll have issues that divide Jews from Muslims like the future of Jerusalem.

PILGRIM: Now, do you believe that Sharon is doing enough to encourage Arafat's successor? Because, another big thing has been removed from the equation in the last year.

COHEN: I believe that Sharon and Abu Mazen have not yet found a way of helping each other succeed. Because Sharon has not really done much to improve the living situation of Palestinians on a day-to-day basis. He hasn't removed enough of the roadblocks, he continues to build the wall. He continues to build settlements, and the economic situation of the Palestinians has not really improved in any appreciable way.

On the part of Abu Mazen, he needed from Sharon a clear indication that Abu Mazen was moving towards what he promised the president which was a consolidation of all the Palestinian military groups into one command. And that he was going to help to create a situation where he was going to disarm those Palestinians who were still suspected by Israel of participating in terrorism.

PILGRIM: And is he doing enough on that? Some say he is not.

COHEN: It's not happening. And I think it's not because he doesn't want to do it, it's because he is still not strong enough in his control of the Palestinian system.

PILGRIM: Thanks very much for helping us sort out the day's events on that. Thank you Stephen Cohen.

COHEN: Thank you.

PILGRIM: Well, the results of tonight's poll, let's bring them.

84 percent of you say the standard of living is worsening when we asked you; 12 percent of you say it's the same. Only 4 percent of you say it's improving.

Well, thanks for being with us tonight. Please join us tomorrow, confirming the nation's first director of national intelligence, the chairman and vice chairman of the Senate Intelligence Committee, Senator Pat Roberts and Senator Jay Rockefeller will join us.

Also tomorrow, is the Mexican Army helping illegal aliens cross our southern border? We'll go into that.

For all of us here, good night from New York. "ANDERSON COOPER 360" starts right now, and sitting in for Anderson tonight is Heidi Collins.

Heidi? HEIDI COLLINS, CNN ANCHOR: Thanks, Kitty.

We have new details tonight about the death of 9-year-old Jessica Lunsford. 360 starts now.

END

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


Aired April 11, 2005 - 18:00:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KITTY PILGRIM, CNN ANCHOR: Well, tonight we'll be reporting on a major security scare on Capitol Hill. A man in black with a suspected bomb. A dramatic takedown by Capitol Hill Police. We'll have the video on that.
Also tonight, middle class squeeze. Does it feel like the paycheck doesn't go as far as it should? We'll have a report that talks about the pressures many people are feeling at the cash register.

Broken Borders. Millions of illegal aliens use Mexican government IDs in this country. Incredibly, the Mexican government is handing out those IDs inside the United States.

ANNOUNCER: This is LOU DOBBS for news, debate and opinion. Tonight, sitting in for Lou Dobbs, Kitty Pilgrim.

PILGRIM: Good evening.

Tonight, a dramatic security scare on Capitol Hill. Police ordered a partial evacuation of a building after a man with two suitcases stood outside the west front of the Capitol. After an hour- long standoff, police overpowered the man. The whole incident was caught on video.

Bob Franken reports from Capitol Hill.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, what we're talking about here is a building --a building where the security is exceedingly tight since September 11. Of course there were concerns that the U.S. Capitol was one of the targets of the terrorists. So there is little, little time that is spared when they have a problem with a suspicious package.

In this particular case, in the area in back of me, where the president's inauguration had been held, the west side of the Capitol, police waited just a few minutes and then they rushed a man standing there with two suitcases who refused to cooperate.

They quickly -- they quickly talked to him. They quickly dragged him to the ground, removed him, left the suitcases where they were. Took the man, put him in an ambulance, saw that he was all right, only slightly injured, and then took him away.

Then came a very, very careful inspection of the suitcases. First of all, they had to determine that there was nothing dangerous inside. The X-rays showed in one of them there were some wires and batteries. It turned out that they were a CD, part of a CD player. But they didn't know that, so they blew up that particular suitcase.

The other one, they confirmed that it only contained clothing. And so they looked in it, and they dragged it away. "They" being the people from the bomb squad who for a long time were dressed in protective gear.

Police officials say that the man who has not identified himself was somebody who had recently come to this country from China. He insisted he wanted to talk to the president.

As for the evacuation at the Capitol, they only had people leave the offices that face where the suitcase was here on the west front of the Capitol. That included, however, the Senate majority and minority leaders' offices, as well as the speaker of the House.

But now things are back to normal. The tourists who had been moved back have returned to be able to get a close-up look at the Capitol, something, Kitty, that they had expected when they came here. What they never expected was to witness the security scare that they did -- Kitty.

PILGRIM: Very tense couple of hours. Thanks very much, Bob Franken.

Elsewhere on Capitol Hill today, President Bush's nominee for ambassador to the United Nations faced tough questions during a Senate confirmation hearing for John Bolton. Democrats on the Foreign Relations Committee argued that Bolton is not the right man for the job. Now, Bolton has been an outspoken critic of the United Nations in the past, and today he said the U.N. has "gone off track."

Andrea Koppel reports from Washington.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): Determined to keep John Bolton out of the U.N., Democrats came out swinging.

SEN. JOSEPH BIDEN (D), DELAWARE: Some have said that sending you to New York would be like sending Nixon to China. I'm concerned it would be more like sending a bull into a china shop.

KOPPEL: Republicans countered that Bolton, an arms control specialist known for blunt talk, is perfect to push U.N. reform.

SEN. GEORGE ALLEN (R), VIRGINIA: He'll bring a credibility to the United Nations that they sorely need.

KOPPEL: Democrats laid out evidence President Bush's choice to be U.S. ambassador to the world body has for years been a U.N. basher.

SEN. BARBARA BOXER (D), CALIFORNIA: You can dance around it, you can run away from it, you can put perfume on it. But the bottom line is the bottom line.

KOPPEL: Democrat Barbara Boxer confronted Bolton with a videotaped speech he gave in 1994 when he was out of government, expressing open hostility.

JOHN BOLTON, NOMINEE, U.S. AMBASSADOR TO U.N.: The Secretariat Building in New York has 38 stories. If you lost 10 stories today, it wouldn't make a bit of difference.

KOPPEL: In his defense, Bolton sold senators he believes that for the U.N. to be effective it requires U.S. leadership.

BOLTON: My criticism during the 1990s were in large measure because of what I'd thought was the lack of effective American leadership.

KOPPEL: Democrats also grilled Bolton about allegations he tried to intimidate intelligence analysts at the State Department who disagreed on whether Castro's Cuba had a biological weapons program.

SEN. CHRISTOPHER DODD (D), CONNECTICUT: Trying to rob a bank and failing to do so is not -- is a crime, in my view. Trying to remove someone as an analyst from their job because you disagree with what they are saying I think is dreadfully wrong.

KOPPEL: Bolton denied trying to have anyone fired.

BOLTON: I thought in both cases, if I may say so, their conduct was unprofessional and broke my confidence and trust.

KOPPEL (on camera): Despite the Democrats' desire to call up at least seven witnesses to testify as to what Bolton did or did not do, so far committee chair, Lugar, has only approved one of them. At the moment, a vote on the Bolton nomination is scheduled for Thursday. And barring any last-minute surprises, is expected to be approved.

Andrea Koppel, CNN, Capitol Hill.

(END VIDEOTAPE)

PILGRIM: Up next, the great American giveaway. Wealthy foreigners refusing to pay their medical bills in our hospitals.

And assault on the middle class. A new threat to the living standards of working Americans and their families.

(COMMERCIAL BREAK)

PILGRIM: President Bush today urged Israeli Prime Minister Ariel Sharon not to expand a key Jewish settlement in the West Bank. President Bush and Prime Minister Sharon met at the president's ranch in Crawford, Texas. The meeting comes amid renewed tension in the Middle East as Israel plans to dismantle settlements in the West Bank and Gaza.

Dana Bash reports tonight from Crawford, Texas. (BEGIN VIDEOTAPE)

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): Sometimes among friends the saying goes, "You just have to agree to disagree." At his Texas ranch, the president made clear he very much disagrees with any Israeli move to expand West Bank settlements.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I told the prime minister of my concern that Israel not undertake any activity that contravenes road map obligations or prejudice final-status negotiations.

BASH: At issue, Israeli plans to add some 3,500 homes to its largest settlement outside Jerusalem, Ma'aleh Adumim.

ARIEL SHARON, ISRAELI PRIME MINISTER: We are very much interested that it will be contiguity between Ma'aleh Adumim and Jerusalem.

BASH: With the prime minister's defense, however, came an apparent concession he might eventually have to give it up.

SHARON: As for settlements, Israel will also meet all its obligations under the road map.

BASH: Tension over settlements, Bush as bad cop, showing Palestinians he can be tough on Israel. But it was Bush the good cop who invited Mr. Sharon here to praise his plans to pull out of 21 settlements in the Gaza Strip and four on the West Bank.

BUSH: The prime minister made a very courageous decision to withdraw from Gaza.

BASH: Mr. Bush first endorsed the plan exactly a year ago, when both leaders were frustrated by Yasser Arafat. Now with Arafat gone, Mr. Bush calls the withdraw plan critical to building trust and called on new Palestinian leader Mahmoud Abbas to give Mr. Sharon a chance.

BUSH: The prime minister is willing to coordinate the implementation of the disengagement plan with the Palestinians. I urge the Palestinian leadership to accept his offer.

BASH: A key Palestinian negotiator insists they're involved, talking to Israeli officials and getting ready.

NABIL SHAATH, PALESTINIAN DEPUTY PRIME MINISTER: Once the Israelis withdraw, we take over peacefully and we maintain law and order.

BASH: Even with help from Mr. Bush, or Palestinians, Mr. Sharon may still face the stiffest opposition inside Israel. Hundreds of protesters descended on Crawford, even some from Sharon's own party, emotionally objecting to removing some 9,000 Israelis from settlements.

(END VIDEOTAPE) BASH: So it was music to the prime minister's ears when President Bush once again said America will not expect Israel to withdraw from all settlements, saying the Palestinians must understand the reality of what Mr. Bush called "Israeli population centers" in any final talks if and when there are such talks -- Kitty.

PILGRIM: Thanks very much, Dana Bash.

Well, later in the broadcast, I'll be talking with one of this country's leading experts on the Israeli-Palestinian conflict. My guest has been involved in the Middle East diplomacy for three decades.

We've reported here on the huge influx of illegal aliens into hospital emergency rooms. Well, that invasion is stretching our health care system to the breaking point. Many hospitals are facing another critical problem from overseas. Wealthy foreigners are coming to this country for medical treatment and refusing to pay their bills.

Christine Romans reports.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): Aventura Hospital and Medical Center sits close to the wealthy beaches of North Miami and the trendy Aventura Mall. Yet this hospital has a growing problem with wealthy patients who don't pay their bills -- wealthy patients from other countries.

DAVIDE CARBONE, CEO, AVENTURA HOSPITAL: They think they can get something for free, and for them it is free. For the rest of us, we are paying for it. It's happening around the country, but especially in locations like ours and hospitals like ours that cater to and have a big international clientele.

ROMANS: Like the woman from Peru who had a stroke in the mall, the wife of a wealthy industrialist. She left with a $600,000 bill and threatened to sue when the hospital tried to collect.

(on camera): Here at Aventura Hospital, the patients abusing the system come from all over the world.

CARBONE: The case we talked about from Peru, it was actually $646,000. A case from Switzerland for $376,000. A case from Antigua that we spoke of, $477,000. Italy, a lung mass, $180,000. Dutch Antilles, $150,000.

ROMANS (voice-over): International patients can come to the United States for medical treatment on tourist visas with a referral from their home doctors. Since the 1990s, many large hospitals have courted these patients, and most now demand full payment up front from wealthy foreigners.

But by law, hospitals must stabilize anyone regardless of nationality or ability to pay. That's why Aventura Hospital would like to see immigration authorities deny future visas for foreigners who have run out on their bill.

(END VIDEOTAPE)

ROMANS: Now, Kitty, some hospitals just quietly eat these costs. Others go after the debtor with international collection agencies. But the reality is, the biggest problem for American hospitals are people who are simply not paying. The biggest problem are illegal aliens who aren't paying. But this is another small part of that same story.

PILGRIM: They're getting two parts of this. And I know you have been working on this for a while. And it's really awful these people skipping out.

ROMANS: The idea that anybody would get something like life- saving treatment and then just think you could walk out and not have to pay, some of these doctors and administrators say it's an interesting mindset. They don't know where it has come from, but there's really this feeling that if you're not an American it must be for free.

PILGRIM: You know, who does pay for this, Christine? I mean, do the hospitals just have to just rip the bills up and throw them in the trash?

ROMANS: It depends. Sometimes they try to get just a little bit. If they can get an international collection agency, they try to get just a little bit. But, you know, you and I pay. A half a million dollars is a piece of equipment that may be the average...

PILGRIM: They know where to find us.

ROMANS: Well, they know where to find us, exactly. And we are insured. But there are also a lot of uninsured Americans that they can't go after because they don't have any money.

But if somebody comes here wealthy, who takes up that bed and, you know, rings up $500,000 in bills, that's a piece of equipment they can't buy. And that's also a bed that has been filled this whole time. Somebody somewhere has to pay for it.

PILGRIM: Shocking. Thanks very much, Christine Romans.

ROMANS: You're welcome.

PILGRIM: Well, the standard of living for America's middle class is facing a major new threat tonight. For the first time in 14 years, pay raises are not keeping up with rising prices. And at the same time, millions of American jobs are being exported to cheap overseas labor markets. Corporations, however, are cleaning up.

Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Susan Seaman works two jobs and is in a corporate training program. Until last June, she was a Georgia schoolteacher. But her salary was not enough to make ends meet.

SUSAN SEAMAN, FMR. TEACHER: My husband lost his job and is having a hard time finding work due to off-shoring. So being on a teacher's salary, I couldn't support our family. So I had to look elsewhere.

SYLVESTER: She's among the American middle class family squeezed by low wages and higher prices for everything from gas to health care to college tuition. For the first time in 14 years, workers' wages have not kept up with inflation. Wages increased 2.5 percent, but the Consumer Price Index rose 2.7 percent. The reason wages have been stagnant, too many workers and too few jobs.

RON BLACKWELL, CHIEF ECONOMIST, AFL-CIO: The growth of the labor force, the number of people who are out there looking for work, is just exceeding the number of jobs there are. And employers are using that to bargain down the wages they have to pay to get somebody to work.

SYLVESTER: But worker productivity is up, and the economy is supposedly well into its fourth year of recovery. So who is gaining? Economists say corporations are cashing in with higher profits.

JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: You could make a very strong argument that when the bakers who are themselves responsible for a larger pie are getting every smaller slices, there is an equity problem.

SYLVESTER: And so, if workers feel like they are running in place, it's because they are, working harder but not necessarily earning more.

(END VIDEOTAPE)

SYLVESTER: Economists say workers who are trying to maintain their standard of living are compensating by working more than one job, working longer hours, and increasing consumer borrowing -- Kitty.

PILGRIM: Thanks very much, Lisa Sylvester.

Well, that does bring us to the subject of tonight's poll. What phrase best describes the change in your standard of living over the past year, improving, worsening or the same? Cast your vote at LOUDOBBS.com and we'll bring you the results a little bit later in the broadcast.

Now, there was more evidence today of the soaring cost of gasoline. Prices shot up by an average of 19 cents a gallon over the past three weeks. They are now a record $2.29 per gallon of regular gas.

That's an average. In some parts of this country prices are even higher. Sixty percent of our oil comes from foreign countries. And later in the broadcast I'll be talking with a guest who says our dependence on foreign oil is a rising threat to our national security.

Well, he's usually busy running around -- running the free world, but every once in a while he's just running or biking or exercising. And that's when President Bush has a chance to wind down and listen to music on his iPod. Which begs the question, what kind of music does the president listen to?

Well, of the 250 songs on the presidential iPod, a few include "Brown Eyed Girl," by Van Morrison; "Centerfield" by John Fogerty; and "My Sharona" by The Knack. President Bush may have time to listen to his iPod while exercising, but the downloading left to his personal aide.

Coming up, the House majority leader comes under fire again. And this time from an unexpected source.

And a group of citizens proves it is possible to secure our porous borders if the necessary resources are made available.

(COMMERCIAL BREAK)

PILGRIM: House Majority Leader Tom DeLay is under fire again today. And this time from a fellow Republican. Congressman Christopher Shays of Connecticut today said that he believes the majority leader should step down because of persistent questions surrounding ethical conflicts.

Ed Henry reports from Washington.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Kitty, one senior Republican aide privately acknowledged to CNN today that the Tom DeLay story has now turned into a full-scale feeding frenzy after Republican Congressman Shays came out and said DeLay has become an embarrassment and should step down.

But for now, party officials insist they're cautiously optimistic. Incidentally, criticism from Chris Shays is not unexpected. He's a moderate Republican; he's frequently clashed with GOP leaders. He's from a swing district in Connecticut where he only one 52 percent of the vote last November. So he's under heavy pressure to distance himself from Tom DeLay, and he did just that on camera today.

(BEGIN VIDEO CLIP)

REP. CHRISTOPHER SHAYS (R), CONNECTICUT: I'm not asking him to step down. You're asking me if I think he should? Yes, I think he should. That's just an honest answer to a question.

But I'm not arguing and demanding that he step down. He's still the leader. But if I think -- but that's what I think. I think he should step down.

(END VIDEO CLIP)

HENRY: But Republican officials note Chris Shays is no fan of Tom DeLay. He's an obvious person to criticize the majority leader.

As one party official told me, if a movement conservative breaks ranks, then it's a problem. And one such conservative, Senator Rick Santorum, stopped far short of calling for DeLay to step down yesterday.

But appearing on ABC's "This Week" program, Santorum said Mr. DeLay has to clear up all these questions about whether or not lobbyists paid for some of the majority leader's overseas travel, which could be and would be a clear violation of House rules if it was proven.

Now, another headache for DeLay came out today in a "Newsweek" story suggesting the lobbyist at the center of all of these allegations, Jack Abramoff, may be ready to cut a deal with prosecutors and may say that Tom DeLay knows a lot more than he's letting on. Abramoff, who's under federal investigation for various lobbying activities, is not commenting on the "Newsweek" report, but his legal team told CNN today that his involvement in Congressman's DeLay trips were legal and proper.

Still, Republicans are privately nervous this is not the last we'll hear about either the Abramoff or DeLay stories -- Kitty.

PILGRIM: Certainly not. It should continue. Thanks very much, Ed Henry.

Well, coming up, why citizens have been able to secure our nation's porous borders where the government has failed on that.

Also ahead, a former INS agent who says the Bush administration is running from the illegal immigration crisis in this country.

Also, assault on the middle class, why soaring gas prices may not come down anytime soon.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: In a moment, our special report on the Minuteman Project in Arizona. And now here's some of the other important stories that we're following tonight.

An American contractor was kidnapped today at a construction site in Baghdad. The U.S. Embassy has informed the man's family but has not released his name.

In Washington, health care experts are reviving a debate over the safety of silicone breast implants. The Food and Drug Administration banned those implants for most women in the United States in 1992. Well, now the agency is holding a three-day meeting to determine whether the implants have been made safe enough for widespread use. And an incident between the United States and a Dutch KLM airliner exposed a hole in our homeland security. The United States refused to allow the flight bound for Mexico to fly in U.S. airspace. And that's because two of the passengers onboard were on the U.S. no- fly list.

Well, this move is not actually required under U.S. Homeland Security policy. Only flights landing in the United States must be checked for the no-fly list passengers.

Well, another major threat to homeland security is the invasion of illegal aliens. But Minuteman volunteers have sharply reduced the number of illegal aliens entering the country through one stretch of our porous border with Mexico. Now, the Minutemen have been patrolling part of the Arizona border for 11 days.

Casey Wian reports from Naco, Texas -- Naco, Arizona.

(END VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Minuteman Project volunteers stake out a popular illegal alien hiding place. But this culvert and many other hot spots near Arizona's border with Mexico have cooled off thanks to the presence of the Minutemen.

CHRIS SIMCOX, MINUTEMAN PROJECT FOUNDER: In an area where Border Patrol averages 600 to 1,000 apprehension a day, yesterday they were down to 74. Today I have been listening to the scanner and there's very few. We've effectively shut down this sector of the border.

WIAN: During the project's first week, Minutemen helped the Border Patrol apprehend more than 200 illegal aliens.

PATRICK MICHAEL MEGARO, MINUTEMAN PROJECT VOLUNTEER: We've already accomplished our mission, which was to bring recognition to the issue.

PAUL FARMER, MINUTEMAN PROJECT VOLUNTEER: If we went home right now it's accomplished itself. But we're going to stay the full month.

WIAN: Project organizers were worried about sustaining their effort through the month. But news of their success spread quickly and more volunteers arrived.

Sixteen-year-old Arizona resident Brett Kloistra is a new recruit. He lives in Tucson and has seen first-hand the federal government's inability to secure the border.

BRETT KOISTRA, MINUTEMAN PROJECT VOLUNTEER: I've been to the border and, you know, you can look off to the side in Nogales and see just the crowds coming in. I have seen junk piles in the deserts and, you know, I know they are not doing a good job. And I wanted to do something about it.

So I signed up and called. And here I am today. WIAN: Paul Nilsson (ph) is a legal immigrant from Sweden who saw millions of illegal aliens receive amnesty in 1986 while he waited for a green card. He doesn't want that to happen again.

PAUL NILSSON, LEGAL IMMIGRANT: Mr. Bush, he wants to reward lawbreakers.

WIAN: These observers have been watching the Minutemen to deter what they call potential migrant abuses.

(on camera): Have there been any documented cases that you are aware of the Minutemen abusing anyone?

BETH SANDERS, AMERICAN FRIENDS SERVICE COMMITTEE: It looks like there haven't been.

WIAN (voice-over): While the Border Patrol officially opposes the Minuteman Project, privately field agents say they welcome the effort.

(on camera): The project has been so successful, organizers are now working on expanding the Minuteman Project to other states along the southern border.

Casey Wian, CNN, Naco, Arizona.

(END VIDEOTAPE)

PILGRIM: Well, my next guest says the Minuteman Project is a public backlash against the government that refuses to confront the illegal immigration crisis in this country. Neville Cramer is a former Immigration and Naturalization Service agent. He's also the author of "Fixing the Insanity: America's Immigration Crisis." And Neville Cramer joins me tonight from Phoenix, Arizona. Thanks for joining us, Mr. Cramer.

NEVILLE CRAMER, AUTHOR, "FIXING THE INSANITY": Kitty, thank you for having me.

PILGRIM: First of all, your thoughts on the Minuteman effort, and this has raised a lot of controversy, has it not?

CRAMER: Yes, it has. As a professional law enforcement officer, it's very difficult to support any effort where the public takes the law into their own hands in any manner. However, the Minuteman Project has done a great deal of good, because it's brought this issue to the public's view, and unfortunately that's what it has come to. We have to have this type of effort come forward so that people realize how porous the border really is.

PILGRIM: Let's tap into your 25 years experience at the INS. You say that border agents should be now border guards. Explain that a little bit to us. Do you think their duty should be expanded?

CRAMER: Well, I think we should first of all use the technology that we have in the United States to control the border. We -- the Border Patrol doesn't use any satellites that I'm aware of. We should increase the use of sensors, and fences, and satellite technology to watch the border, and then increase the number of people that are watching the border.

And when we have an incursion, use the Border Patrol to go after those individuals and to apprehend them, detain them, and then subsequently remove them.

However, Kitty, that's not the major issue that we face today with illegal immigration.

PILGRIM: Go ahead. Tell us what it is then.

CRAMER: In the interior of the United States, we have a vacuum of enforcement when it comes to immigration. What we need is a mandatory Social Security number verification system, where employers are required to verify the Social Security number of their employees, and an employer sanctions program that uses that system to fine employers who are noncompliant.

PILGRIM: You know, I looked through your book, and it's very interesting what you do. When you proposed this, you asked for a Social Security verification system, and then fines to be put on employers, and those fines then be applied to boosting the effort at the borders. It's a creative solution. Do you think it's workable?

CRAMER: Yes, absolutely. I toured Social Security many years ago and asked if the system could be developed. They said yes, it could be done, within six months.

And this would also do something else. It would allow local, state, and federal law enforcement agencies to work together and to use the funds that would be received from this fine -- from the fines they receive to go back to the local communities, to pay for the expenses that illegal immigration causes to the local communities.

PILGRIM: Let me go into another proposal that you have. And that's the issue of driver's licenses, something we've covered extensively on this program. And you say that people should not be allowed to have driver's license in two states. How does that help with the immigration issue?

CRAMER: Well, I think that when a person applies for any driver's license, their documentation that they are using to obtain that driver's license should be verified. Once again, we're dealing with a verification issue. We should have a national driver's license database that should be checked, so that when a person goes from one place to another, they simply give up their driver's license in one state and get another one.

The whole thing boils down to verification once again, where people cannot use fraudulent, counterfeit identification to obtain the right to drive in this country.

PILGRIM: Well, I have to applaud your common-sense suggestions in your book. And another one that I came across was that the Department of Homeland Security should work with local, state and federal officials to keep people from getting false documents in this country. It seems like a no-brainer.

CRAMER: Well, it's a no-brainer, but unfortunately, the Bush administration has done the same thing that most of the other administrations have done over the years, and that's run away from the real issue of controlling illegal immigration in the interior of the United States.

PILGRIM: Are we even close to getting that kind of coordination?

CRAMER: No, absolutely not. It's not even on the radar screen. The answer always that this country hears when it comes to illegal immigration is more Border Patrol, more Border Patrol.

When I was in the Border Patrol in 1976, we had 2,000 agents and we had approximately two million illegal aliens. We now have 10 million illegal aliens and 10,000 Border Patrol agents. Both of them have quintupled. Obviously, Kitty, something isn't working.

PILGRIM: But certainly, Mr. Cramer, you would agree that we need more people on the ground at the border.

CRAMER: I do, but I also think that we should use technology to support those individuals.

PILGRIM: Thanks very much for joining us this evening. Very interesting suggestions. Neville Cramer, the author of "Fixing the Insanity: America's Immigration Crisis." Thanks very much for joining us, Mr. Cramer.

CRAMER: Thank you, Kitty, my pleasure.

PILGRIM: A reminder now to vote in tonight's poll. And the question is: What phrase best describes the change in your standard of living over the past year -- improving, worsening, or the same? Cast your vote at LouDobbs.com. We'll bring you the results a little bit later, in just a few minutes.

And tonight, the thought is on American history. And here it is. "History is a guide to navigation in perilous times. History is who we are and why we are the way we are."

Next, reducing our dependence on foreign oil, as gas prices continue to sore.

And how illegal aliens obtain valid forms of identification inside the United States. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Many Americans are being squeezed by soaring gas prices across the country. Well, prices today hit a record for a fourth week in a row. Our demand for oil, still rising. We consume more than 20 million barrels of oil a day. Some 60 percent of that oil comes from other countries. Well, some Americans are now concerned about our dependence on foreign oil and what that means for our national security. And one of those Americans is Frank Gaffney, the founder and the president of the Center for Security Policy, and he joins me now from Washington. Always nice to talk to you, Frank.

FRANK GAFFNEY, PRESIDENT, CENTER FOR SECURITY POLICY: Thank you, Kitty.

PILGRIM: We are the largest consumer of oil, and yet our dependence keeps growing. What can be done? I know you've been doing a lot of work on this.

GAFFNEY: We have. We've put together a blueprint, a consortium of principally national security-minded practitioners and some think tanks here in Washington and some environmental groups to focus in on what we consider to be a perfect storm that is giving rise to conditions, both with respect to supply and demand, that are going to create a national security crisis for this country. If it isn't already upon us, it will be probably shortly.

And what we have devised is a strategy for using available technologies -- they can be looked at in greater details at SetAmericaFree.org -- to wean the country from its current dependence on principally imported oil, much of which is used in our transportation sector, by using flexible fuel vehicles, including those that can employ electricity as a transportation fuel. The fuels that need to power that, all of which can be produced indigenously in this country using our own resources, and, of course, the infrastructure that is necessary to provide both.

Those are things that we think can begin very quickly with the right leadership from the president and the Congress. We think the public is there for the demand, but the leadership needs to be there to get the supply going as quickly as possible.

PILGRIM: Frank, you know, market forces may be working here because Ford's results out, and they're saying that sales of SUVs are weak. Would you say that Americans are beginning to turn away from these bigger vehicles just because they're seeing in their wallets what's happening to oil prices?

GAFFNEY: I think you're seeing something akin to what we saw in the 1970s when we had a similar kind of sharp spike in oil prices. People are voting with their feet, as you say. Ford's down 29 percent according to today's reports. Last week I think it was GM was announcing even worse prognosis. GM and Ford and presumably perhaps others in the automotive industry in this county are going to lose their shirts if they don't make the switch to the fuels and technology that I was just talking about, specifically plug in hybrid technology. That is to say cars that can utilize both internal combustion engines that can accept these flexible fuels, ethanol, methanol combined with gasoline or just on their own. And electricity that you can use to recharge their batteries like you do your cell phone at night.

PILGRIM: Maybe people will rethink this if they pay more at the pump. We're at $2.29 a gallon -- record high -- that's an average. In many places it's much higher than that. Let me turn to something that intrigues me. So much of our oil is dependent on areas where terrorism is a problem. I refer to a Goldman Sachs report that says if a disruption in oil happens it could spike to $105 a barrel.

Do you think that's a credible scenario?

And how vulnerable are we to that kind of thing?

GAFFNEY: As I said earlier, that's part of this perfect storm. We do rely upon imported oil excessively. Much of that oil is coming from places that are at best unstable, and at worst actually hate us. The prospects of one or the other of those major suppliers being unwilling to supply us or perhaps terrorists succeeding in taking down the infrastructure makes that Goldman Sachs scenario, I think, entirely credible. And that's part of why I think it's going to be the case we as a country will adopt this blueprint, this Set America Free blueprint, perhaps after this calamity. We certainly should try to do it as much as we can before so as to cushion ourselves and our economy and our security from the consequences of such a devastating effect.

PILGRIM: Let me just look for a little short-term relief. OPEC says in the next month they will increase production by 500,000 barrel as day.

Do you think that will help in the short term on these gas prices, Frank?

GAFFNEY: It might result in some modest adjustment in prices, assuming there isn't either some great spike in demand, and that's what we're seeing out of particularly, communist China, to some extent India. Or we see, as I said, some attack. An attack on a pipeline. An attack on a refinery. An attack on -- tankers or off load facilities. Any and all of these have already been subject to either accidents or deliberate disruption. And it almost certainly will be a target for the future for terrorists aimed at hurting our economy and our security both.

PILGRIM: Thanks very much. Frank Gaffney, Center for Security Policy.

GAFFNEY: Thank you, Kitty.

PILGRIM: Thanks, Frank.

Well, at the top of the hour tonight on "ANDERSON COOPER 360" possible relief for people who suffer from migraine headaches. Heidi Collins -- Heidi Collins joins us now with a preview of that -- Heidi.

HEIDI COLLINS, GUEST HOST "ANDERSON COOPER 360": Hi, Kitty. How are you?

That's right. Next on "360" potential relief for millions of migraine suffers. Dr. Sanjay Gupta explains how plastic surgery may help cut the pain. Plus a combat killing, a U.S. soldier charged with murder. His family says the military is making him a casualty of war. What really happened that day in Iraq. We're covering all the angles at the top of the hour. Kitty, back to you.

PILGRIM: Thanks very much, Heidi.

Coming up next, why some businesses and even some law enforcement agencies accept a controversial form of identification from illegal aliens in this country. We'll have that story when we continue.

(COMMERCIAL BREAK)

PILGRIM: Millions of Mexican citizens in this country are issued a controversial form of identification by Mexican consulates all across the United States. Metrical Consular I.D. cards, they're accepted by police and financial institutions as a valid form of identification. But the millions of people carrying the cards are never asked to provide proof of legal status.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): These people are applying for a Matricular Consular I.D. from Mexico.

AGUSTIN ENHIQUEZ, MEXICAN ASSN. OF PERTH AMBOY: This is going to help the people to open accounts in the banks so they can have an I.D. Because a lot of people can't afford an I.D. here, so this help a lot of people out in that situation.

TUCKER: Since March of 2002 3.2 million Metricular I.D.s have been issued by Mexico's 47 consulates in the United States. The Mexican government makes it easy for their citizens to apply, by setting up what it calls these mobile consulates. A place where the area consulate offers its services to communities in its region. This one was held this past weekend in Perth Amboy, New Jersey. It was run by the New York consulate, which hosts about eight of these type events every year. The card is granted only after a series of questions are asked and answered and documented validated. But no one is ever asked if they're here illegally.

ARTURO SARUKHAN, CONSUL GEN. MEXICAN CONSULATE IN NY: We are in the process of providing the Consular I.D., it is not our job to ask that individual what his status is, migratory status in the United States is. We are not immigration authorities of the United States. We are a sovereign government giving out means of I.D. to Mexican nationals.

TUCKER: Sensitive to criticism, the Mexican government has made substantial improvements in upgrading the security of its card. Anti- counterfeiting measures have been added. And all applications are double checked against a database in Mexico. Such attention to detail and security may be impressive, but critics say it misses the point. REP. ELTON GALLEGLY (R-CA), HOUSE IMMIGRATION SUBCMTE.: In my opinion there shouldn't even be this document that would be recognized whether it's valid or not, because the only folks that have any need for this document to start with, are individuals that don't have a legal right to be in the country to begin with.

TUCKER: Congressman Gallegly has entered his legislation to prohibit the Metricular from being used as identification at banks or federal institutions.

(END VIDEOTAPE)

TUCKER: Now the Mexican government is not the only government issuing its own form of identification to its citizens. Argentina and Guatemala already issue their own Matricular. Peru, Bolivia and El Salvador are now expressing an interest in doing so themselves. And Kitty, these I.D.s are not so secure as the ones offered by Mexico. And I've got to underline again, none of the documents serve as valid immigration documents. They don't exist to prove that you are legal at all.

PILGRIM: And they are widely accepted.

TUCKER: They're widely accepted. Again, the only reason you might need one is that don't have a passport and you're not here legally.

PILGRIM: Thanks very much, Bill Tucker.

Well let's take a look at some of "Your Thoughts"

And David of Columbia, South Carolina writes, "I find it amazing how so many of your guests simply will not admit that crossing the borders of this country illegally is breaking the law. I've also noticed many of these same guests use the term 'undocumented' as a sugar-coated substitute for 'illegal.' What's next, bank robbers will now be called 'undocumented money collectors?'"

Steve of Bedford, New Hampshire writes, "Your continuing coverage about our 'Broken Borders' is a great service. I hope the appropriate members in Congress will finally begin to get the message. The reality must sink in: as a country, we must be more concerned about our physical and economic security. It's time to put our national interest ahead of the rest of the world. Our survival as a nation is at stake."

And Phil from Sutton, Alaska, writes, "I'm curious as to what level of free medical care I could expect to receive in, let's say Mexico, if I repeatedly showed up at the emergency room of one of their hospitals? Or in any country (including my own) for that matter."

We love hearing from you. Send us your thoughts, LouDobbs@CNN.com. Each of you whose e-mail is read on the broadcast will receive a copy of Lou's book, "Exporting America." Also, if you would like to receive our e-mail newsletter, sign up on our website at LouDobbs.com.

Well, we have some wacky weather across the country. That's left many wondering tonight if spring is really begun. A blizzard swept across parts of Colorado. Flights were delayed and canceled throughout the state with travelers left stranded at airports. Driving wasn't much easier with cars becoming stuck in the snow. Thousands also left without power and as up to two feet of snow fell there.

Just east of Colorado, more bizarre weather, in Kansas, with snow, sleet, hail, along with more common tornadoes. Now one official said there were 13 tornadoes alone spotted in the western half of Kansas. No serious injuries were reported in either state.

Well, our next guest says President Bush and the Israeli prime minister avoided difficult issues during today's meeting in Crawford, Texas. Plus, the results of tonight's poll and a preview of what's ahead tomorrow. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: President Bush met with Israeli Prime Minister Ariel Sharon at the president's ranch in Crawford, Texas. This meeting comes at a critical time for the Middle East peace process. Sharon's plan to dismantle Israeli settlements in Gaza is facing strong opposition in Israel, and there was new violence between Israelis and Palestinians in Gaza over the weekend.

Joining me now is Stephen Cohen. He's a national scholar of the Israel Policy Forum, and thanks very much for being here.

STEPHEN COHEN, ISRAEL POLICY FORUM: It's good to be here, Kitty.

PILGRIM: You know, Sharon is here in Crawford, but I really have to ask you: is he living up to the promises he made to President Bush a year ago?

COHEN: Well, I think the basic answer to that question is whether you consider this withdrawal from Gaza to be an effective response of the prime minister to what the president wanted when he proposed the program of the road map. Because what has happened is that the prime minister has put his emphasis on the withdrawal from Gaza from these settlements rather than on the project as proposed originally by the president, which was to stop settlement activity.

PILGRIM: Do you think that that's up to speed?

COHEN: I believe that it is, because I believe that it's creating a breakdown in the Israeli plan about focus on settlements and settlers as the center of their society. And, therefore, I believe that what he's done is taken the issue of settlements to a new level, and that's why there is so much trouble going on between Jews in Israel now.

PILGRIM: It's really Jews against Jews, internally, domestically, in Israel versus Jew versus Muslim, at this point, is it not?

COHEN: Right, right. That's the hard core of the issue today. The issue of Jews and Muslims will come back to us, we can count on it. As soon as the issue of Gaza is settled by the Israeli withdrawal, because then we'll have issues that divide Jews from Muslims like the future of Jerusalem.

PILGRIM: Now, do you believe that Sharon is doing enough to encourage Arafat's successor? Because, another big thing has been removed from the equation in the last year.

COHEN: I believe that Sharon and Abu Mazen have not yet found a way of helping each other succeed. Because Sharon has not really done much to improve the living situation of Palestinians on a day-to-day basis. He hasn't removed enough of the roadblocks, he continues to build the wall. He continues to build settlements, and the economic situation of the Palestinians has not really improved in any appreciable way.

On the part of Abu Mazen, he needed from Sharon a clear indication that Abu Mazen was moving towards what he promised the president which was a consolidation of all the Palestinian military groups into one command. And that he was going to help to create a situation where he was going to disarm those Palestinians who were still suspected by Israel of participating in terrorism.

PILGRIM: And is he doing enough on that? Some say he is not.

COHEN: It's not happening. And I think it's not because he doesn't want to do it, it's because he is still not strong enough in his control of the Palestinian system.

PILGRIM: Thanks very much for helping us sort out the day's events on that. Thank you Stephen Cohen.

COHEN: Thank you.

PILGRIM: Well, the results of tonight's poll, let's bring them.

84 percent of you say the standard of living is worsening when we asked you; 12 percent of you say it's the same. Only 4 percent of you say it's improving.

Well, thanks for being with us tonight. Please join us tomorrow, confirming the nation's first director of national intelligence, the chairman and vice chairman of the Senate Intelligence Committee, Senator Pat Roberts and Senator Jay Rockefeller will join us.

Also tomorrow, is the Mexican Army helping illegal aliens cross our southern border? We'll go into that.

For all of us here, good night from New York. "ANDERSON COOPER 360" starts right now, and sitting in for Anderson tonight is Heidi Collins.

Heidi? HEIDI COLLINS, CNN ANCHOR: Thanks, Kitty.

We have new details tonight about the death of 9-year-old Jessica Lunsford. 360 starts now.

END

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