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Lou Dobbs Tonight

Iran to Restart Nuclear Enrichment; Marines Killed in Attack on Anbar Province; Bush Attends Russian Ceremony Marking V.E. Day; Attorney General Enters Fight Over Judicial Nominees; Key Portion of Communications Grid Sold to India; Students File Lawsuit Over Illegal Aliens

Aired May 09, 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.


LOU DOBBS, HOST: Thank you, Wolf. Have a great evening.
Tonight, nuclear challenge. Iran is defying the world and moving closer to building nuclear weapons. My guest is the chairman of the Senate Intelligence Committee, Senator Pat Roberts.

ANNOUNCER: Also ahead on LOU DOBBS TONIGHT, judicial battle. The Senate fight over judicial filibusters intensifies.

Selling out our national security. New concerns tonight about the sale of a critical part of the world's communications grid to India.

And rising opposition in Congress to a so-called free trade agreement with Central America.

This is Lou Dobbs, for news, debate and opinion, tonight.

DOBBS: Good evening.

Iran today sharply escalated its nuclear challenge to the United States. The Iranian government declared that it will resume work to enrich uranium. That process is a critically step toward the construction of nuclear weapons. And Iran says it will do so within a matter of days.

Kitty Pilgrim reports.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Iran Monday said it was going to resume its uranium enrichment activities at Isfahan within days. The U.S. State Department is reacting.

TOM CASEY, STATE DEPARTMENT SPOKESMAN: They have a choice before them. They know what the international community's requiring about them. They understand what they need to do to comply with it. And the choice is up to them.

PILGRIM: Britain, Germany and France have been trying to negotiate with Iran to give up its enrichment program. And Iran agreed to freeze the program last year.

The United States fears the civilian enrichment program could be easily converted to military use.

Meanwhile, Chinese president Hu Jintao and South Korean president Roh Moo-Hyun called on North Korea to go back to nuclear talks, which have been stalled for nearly a year. U.S. Secretary of State Condoleezza Rice today saying that is the only way North Korea can avoid its current isolation.

CONDOLEEZZA RICE, SECRETARY OF STATE: Their obligation is to dismantle their nuclear weapons programs as a means by which to enter the international community and to receive from the international community the benefits that would help them economically and the like.

PILGRIM: North Korea has recently set a pattern of aggressive behavior, declaring it had nuclear weapons, recently firing a missile over the Sea of Japan.

The head of U.N. nuclear watchdog agency IAEA increased alarm over the situation.

MOHAMED ELBARADEI, DIRECTOR GENERAL, IAEA: My concern is the longer we do not talk to each other the more dangerous the situation will become.

PILGRIM: Some experts believe satellite photos may show a nuclear test is being prepared in North Korea.

(END VIDEOTAPE)

PILGRIM: Both Iran and North Korea have long-established patterns of concealing their programs and breaking all past agreements with the international community.

Well, the good-faith efforts to call North Korea and Iran to account have thus far had little effect, and both countries are making increasingly aggressive statements, Lou, about their right to pursue a nuclear program. And they make these statements without apology.

DOBBS: They make it without apology and without, so far, accountability. The fact is that neither the United States or the world community has in any way intimated what would be the repercussions, should they proceed -- both of these members of the so- called axis of evil.

PILGRIM: Yes. The next step would be -- of course be the Security Council, but in the case of North Korea, they're hoping that the six-way talks will do the job. But we're coming up on the one- year deadline of stalled talks. So...

DOBBS: Kitty, thank you very much. Kitty Pilgrim.

Three American Marines have been killed in combat in western Iraq. They served with the 2nd Marine Division. The Marines were killed as U.S. troops launched a new offensive on al-Anbar province near the border with Syria. The U.S. military says troops killed 75 insurgents over the first 24 hours of that operation.

Ryan Chilcote has the report from Baghdad.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice-over): The Anbar province, the west of Iraq, has long been of interest to the U.S. military, but this operation, they're saying, is quite large, involving U.S. soldiers, U.S. Marines, and U.S. sailors.

They're saying that they got some very specific intelligence from local Iraqis in a desert portion of the Anbar province up in the northwest near the Syrian border that there were foreign fighters in the area. It has long been considered a transit route for foreign fighters, many of whom the U.S. military says are coming from Syria.

They started this operation about 24 hours ago. They say that so far they've already killed 75 suspected insurgents.

Meanwhile, however, no let-up in the insurgent violence in the Iraqi capital. Again today more car bombs. Three of them in all. Two are them targeting Iraqi security forces, very similar to what we've seen before. A total of six -- at least six Iraqis killed. At least more than a dozen wounded by those attacks.

And the U.S. military is now saying that this really looks like it's becoming the M.O. of the insurgents. They say that the number of car bombings has doubled, or doubled in the month of April in comparison with February, which was considered to be a less violent, if you will, month here in Iraq following the election.

All in all, in the last 10 days since the government was announced in this country, 300 Iraqis have been killed in the violence, many of them by those car bombs.

Ryan Chilcote, CNN, Baghdad.

(END VIDEOTAPE)

DOBBS: Two other U.S. Marines have been killed in combat in Afghanistan. The Marines were killed in a five-hour battle with radical Islamists near the eastern city of Jalalabad. The military said as many as 23 terrorists were killed in the engagement. U.S. officials say radical Islamists have suffered heavy casualties as a result of U.S. operations over recent weeks.

Thousands of U.S. Marines serving in combat have been issued body armor with life threatening flaws. An investigation by the "Marine Corps Times" finds that as many as 19,000 Interceptor vests are incapable of stopping pistol rounds and other bullets.

These vests are, of course, designed to save the lives of Marines in combat. And the Marines continued issuing the vests to troops, although those tests failed ballistic tests.

According to the "Marine Corps Times," the Marines have withdrawn now more than 5,000 of those vests from service. Another 10,000 are in storage. The Marines have not yet decided what to do with 4,000 other Interceptor vests that are still being used by our Marines.

The Army issues a different type of Interceptor vest to its troops. The army said it has never issued a waiver for ballistic performance.

President Bush is tonight making his first visit to the former Soviet Republic of Georgia. President Bush received a warm welcome from thousands of people. And tomorrow President Bush will deliver a speech on democracy and freedom. The president arrived in Georgia after attending ceremonies in Moscow for the 60th anniversary of the end of World War II.

Dana Bash has the report from Moscow.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CORRESPONDENT (voice-over): Cannons fired. The Soviet, now Russian, anthem plays. In Red Square, hundreds of soldiers march lock step carrying flags bearing the hammer and sickle. Flower holding veterans ride in vintage Soviet war vehicles.

And next to Lenin's tomb in the reviewing stand, the American president, among the dozens of heads of state here, paying tribute to the 27 million Soviets killed in World War II. An extraordinary gathering, sitting side by side the victors of 60 years ago and the adversaries they defeated -- leaders from Germany, Japan and Italy.

Open nostalgia for the Soviet war legacy, a seemingly awkward event for the president to attend, especially one hoping to make spreading democracy his legacy. But he's here to honor Russia's incredible sacrifice and show respect for his friend, Vladimir Putin. Taking a seat of honor, Mr. Bush temporarily put aside increasingly public concern the Russian leader's retreating from Democratic ideals.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There's a lot we can do together.

BUSH: At one on one meetings the night before, Bush aides say he did press his fear Mr. Putin's backsliding on freedoms for Russians and trying to intimidate his neighbors moving toward democracy.

But this was a day to put aside differences about the course of the future and instead honor the past and the unknown soldiers who never returned from what the Russians call the great patriotic victory.

(on camera) Despite the public nicety, Russia is clearly irritated Mr. Bush is also visiting former Soviet states on this trip, publicly challenging Mr. Putin on Democratic reform. The White House says the Russian leader is talking more about freedoms, but one top official admits he has yet to turn those words into deeds.

Dana Bash, CNN, Moscow.

(END VIDEOTAPE) DOBBS: Up next, President Bush steps into the midst of an escalating battle in the U.S. Senate over a vote on his judicial nominees and the future of the filibuster.

And selling out our national security. New concerns about the U.S. sale of a critical part of the world's telecommunications network to India. Those stories are next.

(COMMERCIAL BREAK)

DOBBS: President Bush today called upon the Senate to put an end to years of partisan politics and to hold a simple up or down vote on each of his judicial nominees.

Some of President Bush's nominees to serve on the federal courts have been on hold for four years. And during that time, President Bush said the blocking of judicial nominees in the Senate has escalating to an unprecedented level.

He added, quote, "I urge the Senate to put aside the partition practices of the past and work together to ensure that all nominees are treated fairly."

Joe Johns reports tonight from Capitol Hill.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT (voice-over): On the fourth anniversary of Priscilla Owen's first nomination to the federal bench, Attorney General Alberto Gonzales was trying to put to rest claims by Democrats that he once admonished Owen for judicial activism.

ALBERTO GONZALES, ATTORNEY GENERAL: Judges disagree from time to time on particular issues. That doesn't in any way detract from my view she would -- she would make a terrific judge on the Fifth Circuit. I've never accused her of being an activist judge.

JOHNS: It's important, because Judge Owen, who once served with Gonzales on the Texas Supreme Court, could be the first test case nominee when and if the Senate majority leader tries to get judicial filibusters ruled unconstitutional in a Senate floor vote.

The end of a week-long Senate recess renewed the sparring between the right and the left on and off Capitol Hill over whether Democrats should have the right to demand a 60-vote majority to put a federal judge on the bench.

SEN. JOHN CORNYN (R), TEXAS: Fundamentally, what we have is a partisan minority blocking a bipartisan majority from being able to act on the Senate floor. And this is something that we think needs to come to an end.

JOHNS: Meanwhile, attempts continue to try to find a way out of a full blown Senate confrontation. The Senate Democratic leader proposed moving forward with a vote on one nominee who is not among the most controversial judges. SEN. HARRY REID (D), MINORITY LEADER: We know the difference between opposing nominees and blocking nominees. And I believe this is the time to put all of this behind us.

JOHNS: There was also a setback in a behind the scenes negotiation to get six Republicans and six Democrats essentially to declare a truce. Senator Trent Lott, the chairman of the rules committee, put out a statement saying he'd been trying to find common ground but there is no deal.

(END VIDEOTAPE)

JOHNS: As for Senator Reid's offer of a vote of one judge, the Senate Republican leader issued a statement today, essentially saying this is not about one judge, it's about getting an up or down vote on all of the president's nominees -- Lou.

DOBBS: Joe, the Republicans obviously have the upper hand, the majority in the Senate. Do they have, in fact, the 51 votes necessary, the so-called nuclear option, the 51 necessary votes to eliminate the filibuster at the committee level.

JOHNS: That is, of course, the million dollar question on Capitol Hill, and quite frankly, Democrats say they don't. Republicans say they will have the votes when they finally actually bring this up, if they do. There has been some betting, of course, around the Capitol that Senator Frist will come to the floor with this pretty quickly if and when he does have all the votes he needs.

DOBBS: Joe, thank you very much. Joe Johns reporting from Capitol Hill.

In the latest collision of politics and religion in this country, a pastor in North Carolina now is denying that he ever asked members of his church to leave the church because of their political views.

Nine members of the East Waynesville Baptist Church say Reverend Chan Chandler asked them to leave the church because they did not support President Bush. The ousted church members, or allegedly ousted church members, who attended Jed's church services with their attorney, are calling for Reverend Chandler to resign.

The reverend now says it was all a great misunderstanding, his words. And he never, he says, asked anyone to leave because of their politics.

Coming up next, selling out our national security. New questions about the integrity of an India company that has made a critical promise to the United States. And new questions about just how thorough is our vetting of these important deals. Our special report is next.

Then, a new group of American citizens is mobilizing the help our nation's border patrol keep out illegal aliens. The group's founder is our guest, coming up next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Tonight, there are new questions and mounting concerns about a huge deal that critics say could threaten our national security. The last piece of an American built undersea telecommunications network will be turned over to an Indian company within days, an India company that is paying millions for a multi- billion dollar network. That deal is causing concern because of the buyer's close ties to India's military.

Christine Romans is here tonight and has the report -- Christine.

CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, this deal has barreled through the government review process with hardly any resistance. After cries that turning over this valuable communications system to a foreign company would leave no secure U.S. owned bandwidth, VSNL, the company, promised it will do nothing to hurt U.S. national security.

But tonight serious questions about how well this company keeps its promises.

(BEGIN VIDEOTAPE)

ROMANS (voice-over): VSNL stands accused of breach of contract in a billion and a half dollar lawsuit from rival telecom company Polargrid. Polargrid wants to build an Arctic network, and it dropped out of the bidding for Tyco's undersea cable system when VSNL said it would partner with Polargrid on that Arctic network. Then VSNL won the bidding for Tyco Global Network, and Polargrid says it broke its promise.

JIM HICKMAN, PRESIDENT AND CEO, POLARGRID: We would raise a serious question about how well they honor their promises. And certainly in the deal that is about to be completed, they've made very serious promises to the U.S. government about how they will act in the security area.

I believe that we need similar promises in the economic area. Even then, would he have to look seriously at whether or not they're a reliable partner and a trustworthy partner.

ROMANS: Yet the government has put this deal on the fast track. The Federal Communications Commission swiftly approved it. No resistance from the Treasury Department, defense, or homeland security.

Even though a group of U.S. senators, led by Senator Jon Kyl of Arizona, worried the sale to VSNL would give, quote, "the Indian government control over a significant portion of the world's submarine cable network" and said that VSNL has acted, quote, "in a fashion demonstrably hostile to U.S. military and commercial interests."

(END VIDEOTAPE)

ROMANS: Particular in the early 1990s, VSNL refused to allow another carrier access to a landing point at Diego Garcia, which houses a U.S. military base. Despite these concerns, the United States government believes that VSNL will not hurt American national security. VSNL has said it has no intention to monopolize that bandwidth. And in court filings, it denied Polargrid's breach of contract charges, Lou.

DOBBS: There is something on its face that is troubling. The United States government is resting the national interest on, quote unquote, "promises" from a foreign company that is paying literally less than $200 million for an investment of three point -- was it four billion dollars for this grid, with all of its implications for national security, its importance to national security communications. It's remarkable.

ROMANS: To a person, national security experts and telecom experts in this country say in 20 years the United States government will likely regret this.

DOBBS: Well, we still have a few days in which the U.S. government could change what seems to be the direction of its decision making. Christine, thanks. Christine Romans.

That brings us to the subject of our poll tonight. The question is: do you think our economic and national security are at risk with the sale of the last piece of American built telecom infrastructure? Yes or no? Cast your vote at LouDobbs.com. We'll have the results coming up.

Turning now to another possible threat to our national security, an alarming new study finds most American high school students are spending little time, if any, on their school work.

The High School Survey of Student Engagement found 55 percent of students that they surveyed saying they spend three hours or less each week preparing for all of their classes. Twenty-three percent spend between four and six hours. Only 22 percent spending at least seven hours per week preparing for their classes.

That study also found American high school students generally devote more of their personal time to reading online than reading for their classes. This study surveyed more than 90,000 students and conducted by the Indiana University.

In Kansas, a group of college students is suing that state over a policy that grants instate college tuition to illegal aliens, a privilege that is denied many American students. This group of 24 U.S. citizens says the practice violates federal law, and they want it stopped.

Bill Tucker has the story.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Kristen Day is a student at Kansas State University. She's an out of state student and, as such, pays almost $8,000 more per year than an in-state student or an illegal alien. She is one of the plaintiffs challenging the tuition break given to illegal aliens.

KRISTEN DAY, STUDENT, KANSAS STATE UNIVERSITY: I don't see how it's fair at all. You know, I've lived in this country for almost 22 years. And people who have been here for, you know, I don't know how long, maybe just a few years and they're getting the better end of the stick than I am. I just don't see any way of how this is fair at all.

TUCKER: And apparently it's in violation of federal law. Section 505 of the Immigration Reform Act of 1996 clearly states that, quote, "an alien who is not lawfully present in the United States shall not be eligible on the basis of residence within a state for any post secondary education benefit unless a citizen or a national of the United States is eligible," end quote.

KRIS KOBACH, PLAINTIFF'S ATTORNEY: It's based on the principle, as articulated by members of Congress who passed it, the principle that a U.S. citizen ought not to be treated worse than an illegal alien when it comes to subsidized tuition.

TUCKER: Kobach is one of two attorneys representing the 24 students. There are three attorneys for the other side, including three attorneys arguing for the state plus attorneys from the American Civil Liberties Union, the National Immigration Law Center, the Organization for the Multicultural Education and Training Advocates.

State educators who favor the discount say the argument is simple.

PAT BOSCO, KANSAS STATE UNIVERSITY: These students, who graduated from Kansas high school, have been part of our state for a number of years, have no in-state residence status anywhere in America. Unlike other students, who are native born have the opportunity to pay in-state fees somewhere in the United States.

TUCKER: Currently, nine states offer in-state tuition rates to illegal aliens.

(END VIDEOTAPE)

TUCKER: Now among the lawyers supporting the state is Peter Ruse (ph), who argued successfully before the Supreme Court in 1982 that children of illegal aliens have a right to a K-12 public school education, which he won.

No ruling is expected tomorrow. Only arguments to be heard. Lou, the ruling is expected later in the month.

DOBBS: I love that reasoning, that because they don't have residence in other states, therefore they must be legal residents or at least can be looked at as legal residents.

What does Kansas do with those who have residences outside the United States? Do they also give them in-state tuition?

TUCKER: No, no, no. And the argument really comes down to, well, they're here and they have nowhere else to go, Lou. DOBBS: The reasoning that is taking place on this issue, our immigration crisis, our border security crisis, it's utterly, utterly mad. It will be interesting to see if rationality asserts itself in Kansas. Bill Tucker, thank you.

Coming up next, troubling signs that North Korea and Iran are moving closer toward building nuclear weapons. In the case of North Korea, they're there. The powerful chairman of the Senate Intelligence Committee is our special guest tonight.

And then, hundreds of Americans citizens, including many former law enforcement officials, are mobilizing to help protect our border with Mexico. The founder of the newest volunteer border watch project is our guest, coming up.

And the trouble with CAFTA, why even many free trade supporters say they're opposed to this latest so-called free trade deal. We'll have those reports, also your thoughts, a great deal more, still ahead here tonight. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Iran and North Korea are tonight escalating their nuclear challenges to the United States. Iran says it will resume work to enrich uranium within days. And North Korea may be planning soon a nuclear weapons test.

Joining me now, the highly respected chairman of the Senate Intelligence Committee, Senator Pat Roberts.

Senator, good to have you with us.

SEN. PAT ROBERTS (R-KS), CHAIRMAN, INTELLIGENCE COMMITTEE: Lou, it's always a pleasure, thank you.

DOBBS: You've said on this network in point of fact, you believe that North Korea is going to proceed with that test. What can the United States, China, or any other nation, group of nations, or the United Nations do to stop that?

ROBERTS: Well, with the six-party talks, the key, the absolute key nation is China. They are actually providing the oil and the food, and they worry about refugees in regards to North Korea. So they really hold most of the cards. And I do think that six-party talks are the best way to handle this. I don't think all this talk about a bilateral agreement with Kim Jong Il is going to produce anything that it has not in the past. He has promised in the past that he would cease his nuclear activities, and he went right ahead in a covert way. And this is where we are today.

I wouldn't be surprised to see him conduct a nuclear test. He always seems to do this when he's being ignored. And perhaps he feels he's being ignored.

DOBBS: Aside from Kim Jong Il's sensibilities and apparent strategy that is in perfect alignment, the fact is, a nuclear test, as Mohamed ElBaradei said, could have disastrous political repercussions for North Korea. Do you agree with that statement?

ROBERTS: Well, yes, I do. I think there's a big downside to that. It's his only card that he has to play on the world stage, Lou, because his country is in such desperate shape. This is a man who basically is messianic in regards to his rule. He has a theocracy, so he has total control over his people. And that country is a basket case. I was there five years ago during the famine. We tried to arrange a third-party grain sale and all we got was a bunch of rhetoric in return.

But if he does go ahead with a nuclear test, that really signals to Japan that they ought to start looking to the future for something similar. That obviously is not going to be in the best interest of China. So what we're trying to do is say to the region, this is not good for the region. Use the pressure point of China, if we possibly can to convince him not to go down that road.

DOBBS: Senator Dianne Feinstein says six-party talks in the past, Senator, have gone nowhere, have accomplished very little, calling for one-on-one talks with North Korea, as have others. There's a great deal of discussion here about format and structure for talks. But the fact is, even the suggestion that you just made, that as you put it, use China, quote/unquote, to work with North Korea. China, if it does not believe it's in its national interest, will do very little, and certainly has done very little so far.

Aside from structure, aside from hopes, condemnation from ElBaradei and the IAEA at the United Nations, what does the United States realistically think it can do to North Korea? It is already isolated. Its people are impoverished. It's, quote/unquote, a basket case, as you put it. What more can the United States realistically and practically do? What should do it?

ROBERTS: Well, I think you have to press on with a diplomatic solution as best you can and convince China -- not use China -- you don't ever use China in regards to their self-interest, as well. I know they are really focusing on Taiwan, and for that matter a lot of other things of their national interest.

But let me go back to this business of sitting down with Kim Jong Il. I mean, this is a man like Pol Pot, it's a man like Stalin, it's a man like Hitler. We've been down that road before. Been there, done that. I don't want to see the United States subject itself to nuclear blackmail. That would be a terrible precedent.

So I think it has to be a regional effort. You have to put a lot of pressure on him and let him know that the downside effect is not anything in his best interest. I don't care whether it's a pledge by the United States not to attack him, which is ludicrous, we're not going to do that, or any kind of special trade arrangements. We're not going to do that if in fact he does this.

DOBBS: We have, as you put it, been there and done that in terms of incentives with North Korea. As you know, the previous administration, the Clinton administration, did precisely that. It didn't work at all. So we have a lot of issues to contend with; experience not a particularly good governor of what future policy should be with North Korea.

In the case of Iran, Senator, what do you think should be the proper response of the United States and other nations to Iran's obvious statement that they are going to begin processing enriched uranium here in the next few days?

ROBERTS: Well, the best, I think the best answer I could give to both countries, whether it be North Korea or Iran, is better intelligence. I will just tell you, we do not have the best assessment that we would like to have in both countries.

Now, the IAEA has a foothold. They do have access to the country to some degree. But basically these countries say, hey, wait a minute, we're going to be part of the nuclear family. If Pakistan can do it, vis-a-vis say India, it's a power play, and they indicate they are going to use it for energy. But when you have a country like that that wants to go in that direction, what you really need is a lot better intelligence, and we really need to focus on that with a new DNI.

DOBBS: Senator, as you can well understand, our viewers of this broadcast have not received great comfort from what the chairman of the Senate Intelligence Committee has just said. When you were talking about such critical issues as nuclear blackmail in the case of North Korea, a nuclear challenge certainly from Iran, both nations, and to have the chairman of that committee say we don't have intelligence that satisfies you, that's disturbing indeed.

ROBERTS: Well, basically, if we had the intelligence that would satisfy me and all the policy makers, we would have very specific intelligence. We have the best intelligence available that we have today. But the role of the Senate committee and the House committee, for that matter, is to take a look at our capabilities. Do we have the capability in collection and also to analyze that collection of intelligence to inform the policy maker exactly where this guy is?

Now, we have estimates. And we pretty much know he has capability. I can't be any more specific than that. So we are aware of the problem. It's just that we need better intelligence.

DOBBS: Senator Roberts, chairman of the Senate Intelligence Committee, reminding us that intelligence estimates are exactly that. And, of course, that starkly clear as we are dealing with these two challenges, one from North Korea and the other from Iran. Mr. Chairman, thanks for being with us.

ROBERTS: Always a pleasure, Lou. Thank you.

DOBBS: Thank you.

Next, why my guest says Governor Arnold Schwarzenegger is using the issue of illegal immigration as a distraction. The leader of California's Democratic Party is our guest here next.

And still ahead -- how success on the Arizona border is prompting more volunteers in California to do the job the federal government won't. The founders of the Friends of the Border Patrol our guest here next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: My guest tonight is accusing California's Governor Arnold Schwarzenegger of raising the issue of illegal immigration only to divert attention from his problems as governor. Art Torres is the chairman of California's Democratic Party. He was referring to Governor Schwarzenegger's comments about the Minuteman Project. Schwarzenegger said he would welcome the Minutemen in California, because our government, our federal government seemingly will not secure our borders. To that Torres replied we don't need an Austrian Minuteman.

Joining me from San Francisco now is Art Torres. Good to have you with us.

ART TORRES, CHMN, CALIF. DEMOCRATIC PARTY: Good to be here, Lou,

DOBBS: Tough words for the governor. What did you mean by that?

TORRES: I meant that the issue that he's on is absolutely correct, but the way to deal with it should be much more responsible. Ambassador Diego Ascencio (ph), who headed up a commission almost 17 years ago of which I was a member, submitted a report to the Congress with 42 substantive recommendations. And none of that report was read, and I'm going to send that report to you, so you can take a look at it. It was a lot of thought, good thought that went into the discussions, and it just wasn't listened to. We have a problem, no question about it. But to do...

DOBBS: All right, let me ask you this...

TORRES: ... a movie script approach is not the approach.

DOBBS: You and Governor Schwarzenegger just aren't getting along, are you?

TORRES: We're getting along on the premise as you are that there's a severe problem, and we need to deal wit. We need to deal with the fact we have too many people here illegal. The Kansas story you cited earlier is abhorrent and a tragedy especially compared to those student whose work hard and should be receiving those credits. And the fact of the matter is, as the Congress debating today a national I.D. card may very well be the right move so that we can make sure that employers have a place to check. And to know that that check will provide valid information.

DOBBS: Absolutely. By the way, I may say, Art Torres, that is the simplest solution in all of this is to provide that number. And as you know, it's been a pilot project for years. It works brilliantly. The fact is it works so well no one wants those employers who are through various means pushing open borders and illegal immigration, as you well know.

TORRES: Right.

DOBBS: You also said 42 recommendations.

TORRES: Yes.

DOBBS: As you know, the laws of this country are perfectly adequate right now to deal with this issue. There's a refusal on the part of this administration and previous administrations, and absolute desire not to enforce the law. What could be done about that?

TORRES: Well, first of all, I support Senator Feinstein and her efforts to increase the border patrol. Because it's a federal issue and ought to be resolved as such. Congressman Howard Berman and Senator Kennedy on the Senate side are also putting forward a (INAUDIBLE) bill with the support of Senator Boxer to trying to deal with undocumented workers coming into the state. And California is the most unique of that. And that's why those of us who have suffered through the history of this state, with the Irish, with the Chinese, with the Wobblies, with the Henry Fonda's and "Grapes of Wrath," and we're always part of the vigilante targets. We don't feel that the vigilante approach is the right way to go. So, therefore...

DOBBS: Oh, Art, come on. Come on. Art, vigilante. You know, we heard Vicente Fox use this expression. We heard President Bush use it. The fact is that citizens groups, volunteer citizens groups -- and I just can't let you say that -- I saw and I met with a lot of these people. They are doing what they think is right.

TORRES: I'm sure they're God-fearing, gun-toting, wonderful people. But the fact of the matter is...

DOBBS: Well, just because you tote a gun -- come on.

TORRES: Well, but wait a minute, they're not trained. This is a federal issue and ought to be resolved as such. And they ought to press the members of Congress in their districts to do something about it.

DOBBS: Until we see a political will. You as smart as you are have an opportunity to work with Governor Schwarzenegger on the issue of illegal immigration. Instead you two...

TORRES: I offered to do that.

DOBBS: ... join in a partisan battle. Why not come together and deal with the issue.

TORRES: I've offered to do that, as I have with the Republican chairman of California. I spent 25 years on this issue. I'm as frustrated as anybody else, because we haven't resolved it. And to continue to look at ways that business can be improved by putting businesses on the border is a mistake. You have to deal with internal development within central Mexico. You have to deal with stricter border enforcement which is a federal issue. And most importantly of all, you've got to figure out who's paying taxes and who is not, to fair it out -- the reality and the numbers.

DOBBS: And that's a very good start. I think that I'm going to be able to broker something right here, maybe not tonight, between you and Governor Schwarzenegger.

TORRES: If you can do that...

DOBBS: Come back soon and we'll try.

TORRES: If you can do that, I applaud you. Because I'm willing to work on this issue, because it's an issue that effects all of us. And I'm tired of always being the scapegoat of people who are down in the polls, because this is the first we've heard this issue raised by the governor. And I want to work with him as well as the president. And to put Mexico -- Mexico's government feet to the fire because they have not been a responsible party here.

DOBBS: Art Torres, as always, it's good talking with you. Talk long, we often do, but it's always -- a pleasure to have you here. Come back soon.

TORRES: Well, thank you for being involved in the issue, Lou.

DOBBS: Thank you, Art, take care. Art Torres the chairman of the California Democratic Party.

Why one California lawmaker is trying to give illegal aliens privileges not even afforded to many American citizens. That story is next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: In California tonight, there's a rising backlash against a law maker who has made it his mission to give illegal aliens the right to drive. Senator Gil Cedillo is now trying to exempt illegal aliens from driving penalties, penalties that apply to every other legal resident of this country. Casey Wian reports from Los Angeles.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): If you're caught driving in California without a valid driver's license, police are required to impound your car for 30 days -- the penalties are steep. Getting your car out of an official police garage in Los Angeles, for example, costs nearly a thousand dollars in towing, storage and other fees. Now one California lawmakers say illegal aliens should be above that law.

Los Angeles Democrat Gil Cedillo has introduced a government law that would require local governments to exempt a person from the vehicle impound law if they don't have a drivers license, because they're an illegal alien.

GIL CEDILLO, CALIF. STATE SENATE: In some cities of Southern California, a quarter of the vehicles of the city were towed and taken away. Makes it difficult, but not just for them and their families, but it makes it difficult for their employer. And it's disruptive to the stability of the work force. People who are here legally can drive with a license, and so it doesn't affect them.

WIAN: Mike Spence heads a group of volunteers fighting Cedillo's efforts.

MIKE SPENCE, SAVE OUR LICENSE: Well, actually, it elevates illegal aliens to a higher status that citizens and legal residents who drive without licenses, because, you know, their car would be impounded for 30 days. But if you are illegal then we'll give you your car keys back. You know, you break one law, you come here illegally. And if you drive illegally, you're off the hook. It's amnesty for driving without a license.

WIAN: Cedillo has been searching for a way to give illegal aliens the right to drive in California for seven years. A law signed recalled former Governor Gray Davis was immediately repealed by his replacement, current Governor Arnold Schwarzenegger then vetoed another Cedillo back illegal alien driver license bill in September. Cedillo's vehicle impound amnesty bill is on hold until the federal Real I.D. Act is resolved. Real I.D. would allow states to issue licenses valid only for drives, not for federal identification. So Cedillo plans to introduce a new version of his California illegal alien driver's license bill as soon as the president signs the federal law.

(END VIDEOTAPE)

WIAN (on camera): Though the Real I.D. Act would make it more difficult for terrorists to board an airplane, enter a federal building or open a bank account, it could clear the way for more than two million illegal aliens to receive driving-only licenses in California. Lou?

DOBBS: Casey, thanks very much. Casey Wian.

Well, as Casey just reported, the Real I.D. Act would allow states to set up so-called two-tiered drivers' license programs for residents and illegal aliens. Two states already allow illegal aliens to obtain driving certificates that are not permitted to be used as identification. Those states are Tennessee and Utah.

The invasion of illegal aliens into this country and the successful Minuteman Project along the Arizona border inspired my next guest to organize another border watch program. The Friends of the Border Patrol will begin monitoring the California border with Mexico in August. So far, the project has attracted hundreds of volunteers including former law enforcement and military officials. Andy Ramirez is the founder of Friends of the Border Patrol, and joins us tonight from Los Angeles.

You have to take some heart with Governor Schwarzenegger at least commending the -- another volunteer group, the Minuteman Project. Will you be working with any of the state officials in your project, Andy?

ANDY RAMIREZ, FRIENDS OF THE BORDER PATROL: Well, we absolutely would like to do that. If anything, I'd welcome the governor to both meet with me and my senior staff, as well as to come down to the border and participate. Not have one of these sanitized tour by Customs and Border Patrol's public information officers, but a real tour from perhaps either off-duty or recently resigned or retired border patrol agents.

DOBBS: What about the concern -- you just heard Art Torres, a man well-respected, he has significant experience in immigration. But even Art Torres, the chairman of the Democratic party in California, referred to the Minuteman Project as vigilantes. How do you react to that? And, you know that that charge is going to be coming at you and your group, as well.

RAMIREZ: Right, and it actually has been from both ACLU, Customs and Border Patrol. The former senator, he's clearly wrong on this issue because, of course, he's going on with how -- training, and we're not going to be trained. Well, we're not going to allow our volunteers to participate in interdiction, apprehension or any type of interaction with the illegal aliens. The only people that need that specific training are those that go through the 19 weeks at Artesia (ph), and that's the agents of the U.S. border patrol.

DOBBS: And the idea that the ACLU is concerned about human rights violations, the suggestion that there's potential, as they put it, for racism and for violence, how do you react to the ACLU?

RAMIREZ: Well, the ACLU, if they are really concerned about racism, violence, well, then, I think they should take a look at the number of recent e-mails I've gotten from people that are also of Mexican ancestry that have called me a coconut, as an example. If they are really concerned about human rights, then they should be stationed at the border...

DOBBS: What is heck is a coconut?

RAMIREZ: Brown on the outside, white in the middle. I had to look that up myself. Pretty ridiculous, isn't it, Lou?

DOBBS: Well, so much of this discussion on immigration and border security borders on the preposterous, usually because of the assertions that are made and the fact that the government is unwilling to enforce our border and to enforce our immigration laws.

RAMIREZ: Can I get into that, Lou?

DOBBS: I'm sorry?

RAMIREZ: Could I get into that? Because, there was a member issued last November 16 by CBP Commissioner Robert Bonner, as well as Assistant Secretary Michael Garcia, and it was in a memorandum of understanding in which, on page 13, paragraph C, that it was outlined the border patrol cannot patrol beyond the interior, that it was specifically left for the I.C.E. However, that really is a de facto amnesty.

DOBBS: Well, we'll get into that more. We're out of time. Andy Ramirez, come back. We'll be talking about this as you move toward implementing the Friends of the Border Patrol. We wish you well. Thank you.

RAMIREZ: Thank you. Thank you, Lou. I'm very appreciative. DOBBS: Still ahead here, the results of tonight's poll and why CAFTA is losing the support of many who had previously backed so- called free trade agreements. Stay with us.

(COMMERCIAL BREAK)

DOBBS: The Bush administration is hoping for a vote on CAFTA by the end of this month, but a fierce battle over that so-called free trade deal is dividing even traditional so-called free traders.

Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT: Protesters greeted the Central American presidents in Miami during their first stop on their CAFTA sales tour. To pass Congress, the trade agreement needs 20 to 25 Democratic votes, but last week the new Democrat coalition, a group of House moderates who have supported trade deals in the past, came out against CAFTA.

REP. ARTUR DAVIS (D), ALABAMA: What you will provide is one more incentive for American companies who rely on low-wage workers to move into the Central American market, and that could be a death knell to the textile industry and some other low-wage industries in my state.

SYLVESTER: More key Republicans are also expressing reservations. Senator Saxby Chambliss, chairman of the Senate Agriculture Committee, recently wrote in an op-ed, "We must make sure that we have not written off those who are negatively impacted and economically dislocated as a result."

Lawmakers whose districts have been battered by job losses under NAFTA say CAFTA will only make things worse.

REP. WALTER JONES (R), NORTH CAROLINA: A lot of the problems come down to one word which is greed. I think this country's greatness has been that we cared about each other, but now it seems like if you have a manufacturing job, that the companies just say we'll move across the sea, whether it be China or Honduras.

SYLVESTER: Also not backing the agreement, the Hispanic Caucus. Congressman Xavier Becerra says CAFTA will push down labor and environmental standards in the United States and Central America.

REP. XAVIER BECERRA (D), CALIFORNIA: There is just no way that this agreement can be good for anyone, in the long run, except those that wish to exploit, that race to the bottom. Only those that are willing to exploit win. But I guarantee you...

(END VIDEOTAPE)

SYLVESTER (on camera): CAFTA is facing a broad base of opposition -- labor union, small businesses, human right groups -- but what may ultimately kill the agreement is the fierce opposition from the sugar lobby. Lou? DOBBS: Lisa, thank you very much. Powerful words, "only those willing to exploit will win." That is a remarkable quote. Thank you, Lisa. Lisa Sylvester, reporting from Washington.

Tonight's "Quote of the Day" comes from the only Hispanic Democrat to announce his support for CAFTA. Congressman Henry Cuellar of Texas says CAFTA shouldn't be a Hispanic issue, quote, "but as Hispanics," he goes on to say, "we should be looking at how this will benefit our brothers and sisters in Central America."

Actually, Congressman, as Americans, in my opinion, we should be looking at how CAFTA will devastate all our brothers and sisters, particularly those right here in the U.S. of A.

Now, the results of tonight's poll: 96 percent of you say our economic and national security are at risk with the sale of the last piece of American-built telecom infrastructure.

Thanks for being with us tonight. Join us here, please, tomorrow. I'll be talking with a middle school principal whose students have achieved truly remarkable results with limited resources, defying a national trend in education. We hope you'll be with us. For all of us here, good night from New York. "ANDERSON COOPER 360" starts right now.

END

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Aired May 9, 2005 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, HOST: Thank you, Wolf. Have a great evening.
Tonight, nuclear challenge. Iran is defying the world and moving closer to building nuclear weapons. My guest is the chairman of the Senate Intelligence Committee, Senator Pat Roberts.

ANNOUNCER: Also ahead on LOU DOBBS TONIGHT, judicial battle. The Senate fight over judicial filibusters intensifies.

Selling out our national security. New concerns tonight about the sale of a critical part of the world's communications grid to India.

And rising opposition in Congress to a so-called free trade agreement with Central America.

This is Lou Dobbs, for news, debate and opinion, tonight.

DOBBS: Good evening.

Iran today sharply escalated its nuclear challenge to the United States. The Iranian government declared that it will resume work to enrich uranium. That process is a critically step toward the construction of nuclear weapons. And Iran says it will do so within a matter of days.

Kitty Pilgrim reports.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Iran Monday said it was going to resume its uranium enrichment activities at Isfahan within days. The U.S. State Department is reacting.

TOM CASEY, STATE DEPARTMENT SPOKESMAN: They have a choice before them. They know what the international community's requiring about them. They understand what they need to do to comply with it. And the choice is up to them.

PILGRIM: Britain, Germany and France have been trying to negotiate with Iran to give up its enrichment program. And Iran agreed to freeze the program last year.

The United States fears the civilian enrichment program could be easily converted to military use.

Meanwhile, Chinese president Hu Jintao and South Korean president Roh Moo-Hyun called on North Korea to go back to nuclear talks, which have been stalled for nearly a year. U.S. Secretary of State Condoleezza Rice today saying that is the only way North Korea can avoid its current isolation.

CONDOLEEZZA RICE, SECRETARY OF STATE: Their obligation is to dismantle their nuclear weapons programs as a means by which to enter the international community and to receive from the international community the benefits that would help them economically and the like.

PILGRIM: North Korea has recently set a pattern of aggressive behavior, declaring it had nuclear weapons, recently firing a missile over the Sea of Japan.

The head of U.N. nuclear watchdog agency IAEA increased alarm over the situation.

MOHAMED ELBARADEI, DIRECTOR GENERAL, IAEA: My concern is the longer we do not talk to each other the more dangerous the situation will become.

PILGRIM: Some experts believe satellite photos may show a nuclear test is being prepared in North Korea.

(END VIDEOTAPE)

PILGRIM: Both Iran and North Korea have long-established patterns of concealing their programs and breaking all past agreements with the international community.

Well, the good-faith efforts to call North Korea and Iran to account have thus far had little effect, and both countries are making increasingly aggressive statements, Lou, about their right to pursue a nuclear program. And they make these statements without apology.

DOBBS: They make it without apology and without, so far, accountability. The fact is that neither the United States or the world community has in any way intimated what would be the repercussions, should they proceed -- both of these members of the so- called axis of evil.

PILGRIM: Yes. The next step would be -- of course be the Security Council, but in the case of North Korea, they're hoping that the six-way talks will do the job. But we're coming up on the one- year deadline of stalled talks. So...

DOBBS: Kitty, thank you very much. Kitty Pilgrim.

Three American Marines have been killed in combat in western Iraq. They served with the 2nd Marine Division. The Marines were killed as U.S. troops launched a new offensive on al-Anbar province near the border with Syria. The U.S. military says troops killed 75 insurgents over the first 24 hours of that operation.

Ryan Chilcote has the report from Baghdad.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice-over): The Anbar province, the west of Iraq, has long been of interest to the U.S. military, but this operation, they're saying, is quite large, involving U.S. soldiers, U.S. Marines, and U.S. sailors.

They're saying that they got some very specific intelligence from local Iraqis in a desert portion of the Anbar province up in the northwest near the Syrian border that there were foreign fighters in the area. It has long been considered a transit route for foreign fighters, many of whom the U.S. military says are coming from Syria.

They started this operation about 24 hours ago. They say that so far they've already killed 75 suspected insurgents.

Meanwhile, however, no let-up in the insurgent violence in the Iraqi capital. Again today more car bombs. Three of them in all. Two are them targeting Iraqi security forces, very similar to what we've seen before. A total of six -- at least six Iraqis killed. At least more than a dozen wounded by those attacks.

And the U.S. military is now saying that this really looks like it's becoming the M.O. of the insurgents. They say that the number of car bombings has doubled, or doubled in the month of April in comparison with February, which was considered to be a less violent, if you will, month here in Iraq following the election.

All in all, in the last 10 days since the government was announced in this country, 300 Iraqis have been killed in the violence, many of them by those car bombs.

Ryan Chilcote, CNN, Baghdad.

(END VIDEOTAPE)

DOBBS: Two other U.S. Marines have been killed in combat in Afghanistan. The Marines were killed in a five-hour battle with radical Islamists near the eastern city of Jalalabad. The military said as many as 23 terrorists were killed in the engagement. U.S. officials say radical Islamists have suffered heavy casualties as a result of U.S. operations over recent weeks.

Thousands of U.S. Marines serving in combat have been issued body armor with life threatening flaws. An investigation by the "Marine Corps Times" finds that as many as 19,000 Interceptor vests are incapable of stopping pistol rounds and other bullets.

These vests are, of course, designed to save the lives of Marines in combat. And the Marines continued issuing the vests to troops, although those tests failed ballistic tests.

According to the "Marine Corps Times," the Marines have withdrawn now more than 5,000 of those vests from service. Another 10,000 are in storage. The Marines have not yet decided what to do with 4,000 other Interceptor vests that are still being used by our Marines.

The Army issues a different type of Interceptor vest to its troops. The army said it has never issued a waiver for ballistic performance.

President Bush is tonight making his first visit to the former Soviet Republic of Georgia. President Bush received a warm welcome from thousands of people. And tomorrow President Bush will deliver a speech on democracy and freedom. The president arrived in Georgia after attending ceremonies in Moscow for the 60th anniversary of the end of World War II.

Dana Bash has the report from Moscow.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CORRESPONDENT (voice-over): Cannons fired. The Soviet, now Russian, anthem plays. In Red Square, hundreds of soldiers march lock step carrying flags bearing the hammer and sickle. Flower holding veterans ride in vintage Soviet war vehicles.

And next to Lenin's tomb in the reviewing stand, the American president, among the dozens of heads of state here, paying tribute to the 27 million Soviets killed in World War II. An extraordinary gathering, sitting side by side the victors of 60 years ago and the adversaries they defeated -- leaders from Germany, Japan and Italy.

Open nostalgia for the Soviet war legacy, a seemingly awkward event for the president to attend, especially one hoping to make spreading democracy his legacy. But he's here to honor Russia's incredible sacrifice and show respect for his friend, Vladimir Putin. Taking a seat of honor, Mr. Bush temporarily put aside increasingly public concern the Russian leader's retreating from Democratic ideals.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There's a lot we can do together.

BUSH: At one on one meetings the night before, Bush aides say he did press his fear Mr. Putin's backsliding on freedoms for Russians and trying to intimidate his neighbors moving toward democracy.

But this was a day to put aside differences about the course of the future and instead honor the past and the unknown soldiers who never returned from what the Russians call the great patriotic victory.

(on camera) Despite the public nicety, Russia is clearly irritated Mr. Bush is also visiting former Soviet states on this trip, publicly challenging Mr. Putin on Democratic reform. The White House says the Russian leader is talking more about freedoms, but one top official admits he has yet to turn those words into deeds.

Dana Bash, CNN, Moscow.

(END VIDEOTAPE) DOBBS: Up next, President Bush steps into the midst of an escalating battle in the U.S. Senate over a vote on his judicial nominees and the future of the filibuster.

And selling out our national security. New concerns about the U.S. sale of a critical part of the world's telecommunications network to India. Those stories are next.

(COMMERCIAL BREAK)

DOBBS: President Bush today called upon the Senate to put an end to years of partisan politics and to hold a simple up or down vote on each of his judicial nominees.

Some of President Bush's nominees to serve on the federal courts have been on hold for four years. And during that time, President Bush said the blocking of judicial nominees in the Senate has escalating to an unprecedented level.

He added, quote, "I urge the Senate to put aside the partition practices of the past and work together to ensure that all nominees are treated fairly."

Joe Johns reports tonight from Capitol Hill.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT (voice-over): On the fourth anniversary of Priscilla Owen's first nomination to the federal bench, Attorney General Alberto Gonzales was trying to put to rest claims by Democrats that he once admonished Owen for judicial activism.

ALBERTO GONZALES, ATTORNEY GENERAL: Judges disagree from time to time on particular issues. That doesn't in any way detract from my view she would -- she would make a terrific judge on the Fifth Circuit. I've never accused her of being an activist judge.

JOHNS: It's important, because Judge Owen, who once served with Gonzales on the Texas Supreme Court, could be the first test case nominee when and if the Senate majority leader tries to get judicial filibusters ruled unconstitutional in a Senate floor vote.

The end of a week-long Senate recess renewed the sparring between the right and the left on and off Capitol Hill over whether Democrats should have the right to demand a 60-vote majority to put a federal judge on the bench.

SEN. JOHN CORNYN (R), TEXAS: Fundamentally, what we have is a partisan minority blocking a bipartisan majority from being able to act on the Senate floor. And this is something that we think needs to come to an end.

JOHNS: Meanwhile, attempts continue to try to find a way out of a full blown Senate confrontation. The Senate Democratic leader proposed moving forward with a vote on one nominee who is not among the most controversial judges. SEN. HARRY REID (D), MINORITY LEADER: We know the difference between opposing nominees and blocking nominees. And I believe this is the time to put all of this behind us.

JOHNS: There was also a setback in a behind the scenes negotiation to get six Republicans and six Democrats essentially to declare a truce. Senator Trent Lott, the chairman of the rules committee, put out a statement saying he'd been trying to find common ground but there is no deal.

(END VIDEOTAPE)

JOHNS: As for Senator Reid's offer of a vote of one judge, the Senate Republican leader issued a statement today, essentially saying this is not about one judge, it's about getting an up or down vote on all of the president's nominees -- Lou.

DOBBS: Joe, the Republicans obviously have the upper hand, the majority in the Senate. Do they have, in fact, the 51 votes necessary, the so-called nuclear option, the 51 necessary votes to eliminate the filibuster at the committee level.

JOHNS: That is, of course, the million dollar question on Capitol Hill, and quite frankly, Democrats say they don't. Republicans say they will have the votes when they finally actually bring this up, if they do. There has been some betting, of course, around the Capitol that Senator Frist will come to the floor with this pretty quickly if and when he does have all the votes he needs.

DOBBS: Joe, thank you very much. Joe Johns reporting from Capitol Hill.

In the latest collision of politics and religion in this country, a pastor in North Carolina now is denying that he ever asked members of his church to leave the church because of their political views.

Nine members of the East Waynesville Baptist Church say Reverend Chan Chandler asked them to leave the church because they did not support President Bush. The ousted church members, or allegedly ousted church members, who attended Jed's church services with their attorney, are calling for Reverend Chandler to resign.

The reverend now says it was all a great misunderstanding, his words. And he never, he says, asked anyone to leave because of their politics.

Coming up next, selling out our national security. New questions about the integrity of an India company that has made a critical promise to the United States. And new questions about just how thorough is our vetting of these important deals. Our special report is next.

Then, a new group of American citizens is mobilizing the help our nation's border patrol keep out illegal aliens. The group's founder is our guest, coming up next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Tonight, there are new questions and mounting concerns about a huge deal that critics say could threaten our national security. The last piece of an American built undersea telecommunications network will be turned over to an Indian company within days, an India company that is paying millions for a multi- billion dollar network. That deal is causing concern because of the buyer's close ties to India's military.

Christine Romans is here tonight and has the report -- Christine.

CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, this deal has barreled through the government review process with hardly any resistance. After cries that turning over this valuable communications system to a foreign company would leave no secure U.S. owned bandwidth, VSNL, the company, promised it will do nothing to hurt U.S. national security.

But tonight serious questions about how well this company keeps its promises.

(BEGIN VIDEOTAPE)

ROMANS (voice-over): VSNL stands accused of breach of contract in a billion and a half dollar lawsuit from rival telecom company Polargrid. Polargrid wants to build an Arctic network, and it dropped out of the bidding for Tyco's undersea cable system when VSNL said it would partner with Polargrid on that Arctic network. Then VSNL won the bidding for Tyco Global Network, and Polargrid says it broke its promise.

JIM HICKMAN, PRESIDENT AND CEO, POLARGRID: We would raise a serious question about how well they honor their promises. And certainly in the deal that is about to be completed, they've made very serious promises to the U.S. government about how they will act in the security area.

I believe that we need similar promises in the economic area. Even then, would he have to look seriously at whether or not they're a reliable partner and a trustworthy partner.

ROMANS: Yet the government has put this deal on the fast track. The Federal Communications Commission swiftly approved it. No resistance from the Treasury Department, defense, or homeland security.

Even though a group of U.S. senators, led by Senator Jon Kyl of Arizona, worried the sale to VSNL would give, quote, "the Indian government control over a significant portion of the world's submarine cable network" and said that VSNL has acted, quote, "in a fashion demonstrably hostile to U.S. military and commercial interests."

(END VIDEOTAPE)

ROMANS: Particular in the early 1990s, VSNL refused to allow another carrier access to a landing point at Diego Garcia, which houses a U.S. military base. Despite these concerns, the United States government believes that VSNL will not hurt American national security. VSNL has said it has no intention to monopolize that bandwidth. And in court filings, it denied Polargrid's breach of contract charges, Lou.

DOBBS: There is something on its face that is troubling. The United States government is resting the national interest on, quote unquote, "promises" from a foreign company that is paying literally less than $200 million for an investment of three point -- was it four billion dollars for this grid, with all of its implications for national security, its importance to national security communications. It's remarkable.

ROMANS: To a person, national security experts and telecom experts in this country say in 20 years the United States government will likely regret this.

DOBBS: Well, we still have a few days in which the U.S. government could change what seems to be the direction of its decision making. Christine, thanks. Christine Romans.

That brings us to the subject of our poll tonight. The question is: do you think our economic and national security are at risk with the sale of the last piece of American built telecom infrastructure? Yes or no? Cast your vote at LouDobbs.com. We'll have the results coming up.

Turning now to another possible threat to our national security, an alarming new study finds most American high school students are spending little time, if any, on their school work.

The High School Survey of Student Engagement found 55 percent of students that they surveyed saying they spend three hours or less each week preparing for all of their classes. Twenty-three percent spend between four and six hours. Only 22 percent spending at least seven hours per week preparing for their classes.

That study also found American high school students generally devote more of their personal time to reading online than reading for their classes. This study surveyed more than 90,000 students and conducted by the Indiana University.

In Kansas, a group of college students is suing that state over a policy that grants instate college tuition to illegal aliens, a privilege that is denied many American students. This group of 24 U.S. citizens says the practice violates federal law, and they want it stopped.

Bill Tucker has the story.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Kristen Day is a student at Kansas State University. She's an out of state student and, as such, pays almost $8,000 more per year than an in-state student or an illegal alien. She is one of the plaintiffs challenging the tuition break given to illegal aliens.

KRISTEN DAY, STUDENT, KANSAS STATE UNIVERSITY: I don't see how it's fair at all. You know, I've lived in this country for almost 22 years. And people who have been here for, you know, I don't know how long, maybe just a few years and they're getting the better end of the stick than I am. I just don't see any way of how this is fair at all.

TUCKER: And apparently it's in violation of federal law. Section 505 of the Immigration Reform Act of 1996 clearly states that, quote, "an alien who is not lawfully present in the United States shall not be eligible on the basis of residence within a state for any post secondary education benefit unless a citizen or a national of the United States is eligible," end quote.

KRIS KOBACH, PLAINTIFF'S ATTORNEY: It's based on the principle, as articulated by members of Congress who passed it, the principle that a U.S. citizen ought not to be treated worse than an illegal alien when it comes to subsidized tuition.

TUCKER: Kobach is one of two attorneys representing the 24 students. There are three attorneys for the other side, including three attorneys arguing for the state plus attorneys from the American Civil Liberties Union, the National Immigration Law Center, the Organization for the Multicultural Education and Training Advocates.

State educators who favor the discount say the argument is simple.

PAT BOSCO, KANSAS STATE UNIVERSITY: These students, who graduated from Kansas high school, have been part of our state for a number of years, have no in-state residence status anywhere in America. Unlike other students, who are native born have the opportunity to pay in-state fees somewhere in the United States.

TUCKER: Currently, nine states offer in-state tuition rates to illegal aliens.

(END VIDEOTAPE)

TUCKER: Now among the lawyers supporting the state is Peter Ruse (ph), who argued successfully before the Supreme Court in 1982 that children of illegal aliens have a right to a K-12 public school education, which he won.

No ruling is expected tomorrow. Only arguments to be heard. Lou, the ruling is expected later in the month.

DOBBS: I love that reasoning, that because they don't have residence in other states, therefore they must be legal residents or at least can be looked at as legal residents.

What does Kansas do with those who have residences outside the United States? Do they also give them in-state tuition?

TUCKER: No, no, no. And the argument really comes down to, well, they're here and they have nowhere else to go, Lou. DOBBS: The reasoning that is taking place on this issue, our immigration crisis, our border security crisis, it's utterly, utterly mad. It will be interesting to see if rationality asserts itself in Kansas. Bill Tucker, thank you.

Coming up next, troubling signs that North Korea and Iran are moving closer toward building nuclear weapons. In the case of North Korea, they're there. The powerful chairman of the Senate Intelligence Committee is our special guest tonight.

And then, hundreds of Americans citizens, including many former law enforcement officials, are mobilizing to help protect our border with Mexico. The founder of the newest volunteer border watch project is our guest, coming up.

And the trouble with CAFTA, why even many free trade supporters say they're opposed to this latest so-called free trade deal. We'll have those reports, also your thoughts, a great deal more, still ahead here tonight. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Iran and North Korea are tonight escalating their nuclear challenges to the United States. Iran says it will resume work to enrich uranium within days. And North Korea may be planning soon a nuclear weapons test.

Joining me now, the highly respected chairman of the Senate Intelligence Committee, Senator Pat Roberts.

Senator, good to have you with us.

SEN. PAT ROBERTS (R-KS), CHAIRMAN, INTELLIGENCE COMMITTEE: Lou, it's always a pleasure, thank you.

DOBBS: You've said on this network in point of fact, you believe that North Korea is going to proceed with that test. What can the United States, China, or any other nation, group of nations, or the United Nations do to stop that?

ROBERTS: Well, with the six-party talks, the key, the absolute key nation is China. They are actually providing the oil and the food, and they worry about refugees in regards to North Korea. So they really hold most of the cards. And I do think that six-party talks are the best way to handle this. I don't think all this talk about a bilateral agreement with Kim Jong Il is going to produce anything that it has not in the past. He has promised in the past that he would cease his nuclear activities, and he went right ahead in a covert way. And this is where we are today.

I wouldn't be surprised to see him conduct a nuclear test. He always seems to do this when he's being ignored. And perhaps he feels he's being ignored.

DOBBS: Aside from Kim Jong Il's sensibilities and apparent strategy that is in perfect alignment, the fact is, a nuclear test, as Mohamed ElBaradei said, could have disastrous political repercussions for North Korea. Do you agree with that statement?

ROBERTS: Well, yes, I do. I think there's a big downside to that. It's his only card that he has to play on the world stage, Lou, because his country is in such desperate shape. This is a man who basically is messianic in regards to his rule. He has a theocracy, so he has total control over his people. And that country is a basket case. I was there five years ago during the famine. We tried to arrange a third-party grain sale and all we got was a bunch of rhetoric in return.

But if he does go ahead with a nuclear test, that really signals to Japan that they ought to start looking to the future for something similar. That obviously is not going to be in the best interest of China. So what we're trying to do is say to the region, this is not good for the region. Use the pressure point of China, if we possibly can to convince him not to go down that road.

DOBBS: Senator Dianne Feinstein says six-party talks in the past, Senator, have gone nowhere, have accomplished very little, calling for one-on-one talks with North Korea, as have others. There's a great deal of discussion here about format and structure for talks. But the fact is, even the suggestion that you just made, that as you put it, use China, quote/unquote, to work with North Korea. China, if it does not believe it's in its national interest, will do very little, and certainly has done very little so far.

Aside from structure, aside from hopes, condemnation from ElBaradei and the IAEA at the United Nations, what does the United States realistically think it can do to North Korea? It is already isolated. Its people are impoverished. It's, quote/unquote, a basket case, as you put it. What more can the United States realistically and practically do? What should do it?

ROBERTS: Well, I think you have to press on with a diplomatic solution as best you can and convince China -- not use China -- you don't ever use China in regards to their self-interest, as well. I know they are really focusing on Taiwan, and for that matter a lot of other things of their national interest.

But let me go back to this business of sitting down with Kim Jong Il. I mean, this is a man like Pol Pot, it's a man like Stalin, it's a man like Hitler. We've been down that road before. Been there, done that. I don't want to see the United States subject itself to nuclear blackmail. That would be a terrible precedent.

So I think it has to be a regional effort. You have to put a lot of pressure on him and let him know that the downside effect is not anything in his best interest. I don't care whether it's a pledge by the United States not to attack him, which is ludicrous, we're not going to do that, or any kind of special trade arrangements. We're not going to do that if in fact he does this.

DOBBS: We have, as you put it, been there and done that in terms of incentives with North Korea. As you know, the previous administration, the Clinton administration, did precisely that. It didn't work at all. So we have a lot of issues to contend with; experience not a particularly good governor of what future policy should be with North Korea.

In the case of Iran, Senator, what do you think should be the proper response of the United States and other nations to Iran's obvious statement that they are going to begin processing enriched uranium here in the next few days?

ROBERTS: Well, the best, I think the best answer I could give to both countries, whether it be North Korea or Iran, is better intelligence. I will just tell you, we do not have the best assessment that we would like to have in both countries.

Now, the IAEA has a foothold. They do have access to the country to some degree. But basically these countries say, hey, wait a minute, we're going to be part of the nuclear family. If Pakistan can do it, vis-a-vis say India, it's a power play, and they indicate they are going to use it for energy. But when you have a country like that that wants to go in that direction, what you really need is a lot better intelligence, and we really need to focus on that with a new DNI.

DOBBS: Senator, as you can well understand, our viewers of this broadcast have not received great comfort from what the chairman of the Senate Intelligence Committee has just said. When you were talking about such critical issues as nuclear blackmail in the case of North Korea, a nuclear challenge certainly from Iran, both nations, and to have the chairman of that committee say we don't have intelligence that satisfies you, that's disturbing indeed.

ROBERTS: Well, basically, if we had the intelligence that would satisfy me and all the policy makers, we would have very specific intelligence. We have the best intelligence available that we have today. But the role of the Senate committee and the House committee, for that matter, is to take a look at our capabilities. Do we have the capability in collection and also to analyze that collection of intelligence to inform the policy maker exactly where this guy is?

Now, we have estimates. And we pretty much know he has capability. I can't be any more specific than that. So we are aware of the problem. It's just that we need better intelligence.

DOBBS: Senator Roberts, chairman of the Senate Intelligence Committee, reminding us that intelligence estimates are exactly that. And, of course, that starkly clear as we are dealing with these two challenges, one from North Korea and the other from Iran. Mr. Chairman, thanks for being with us.

ROBERTS: Always a pleasure, Lou. Thank you.

DOBBS: Thank you.

Next, why my guest says Governor Arnold Schwarzenegger is using the issue of illegal immigration as a distraction. The leader of California's Democratic Party is our guest here next.

And still ahead -- how success on the Arizona border is prompting more volunteers in California to do the job the federal government won't. The founders of the Friends of the Border Patrol our guest here next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: My guest tonight is accusing California's Governor Arnold Schwarzenegger of raising the issue of illegal immigration only to divert attention from his problems as governor. Art Torres is the chairman of California's Democratic Party. He was referring to Governor Schwarzenegger's comments about the Minuteman Project. Schwarzenegger said he would welcome the Minutemen in California, because our government, our federal government seemingly will not secure our borders. To that Torres replied we don't need an Austrian Minuteman.

Joining me from San Francisco now is Art Torres. Good to have you with us.

ART TORRES, CHMN, CALIF. DEMOCRATIC PARTY: Good to be here, Lou,

DOBBS: Tough words for the governor. What did you mean by that?

TORRES: I meant that the issue that he's on is absolutely correct, but the way to deal with it should be much more responsible. Ambassador Diego Ascencio (ph), who headed up a commission almost 17 years ago of which I was a member, submitted a report to the Congress with 42 substantive recommendations. And none of that report was read, and I'm going to send that report to you, so you can take a look at it. It was a lot of thought, good thought that went into the discussions, and it just wasn't listened to. We have a problem, no question about it. But to do...

DOBBS: All right, let me ask you this...

TORRES: ... a movie script approach is not the approach.

DOBBS: You and Governor Schwarzenegger just aren't getting along, are you?

TORRES: We're getting along on the premise as you are that there's a severe problem, and we need to deal wit. We need to deal with the fact we have too many people here illegal. The Kansas story you cited earlier is abhorrent and a tragedy especially compared to those student whose work hard and should be receiving those credits. And the fact of the matter is, as the Congress debating today a national I.D. card may very well be the right move so that we can make sure that employers have a place to check. And to know that that check will provide valid information.

DOBBS: Absolutely. By the way, I may say, Art Torres, that is the simplest solution in all of this is to provide that number. And as you know, it's been a pilot project for years. It works brilliantly. The fact is it works so well no one wants those employers who are through various means pushing open borders and illegal immigration, as you well know.

TORRES: Right.

DOBBS: You also said 42 recommendations.

TORRES: Yes.

DOBBS: As you know, the laws of this country are perfectly adequate right now to deal with this issue. There's a refusal on the part of this administration and previous administrations, and absolute desire not to enforce the law. What could be done about that?

TORRES: Well, first of all, I support Senator Feinstein and her efforts to increase the border patrol. Because it's a federal issue and ought to be resolved as such. Congressman Howard Berman and Senator Kennedy on the Senate side are also putting forward a (INAUDIBLE) bill with the support of Senator Boxer to trying to deal with undocumented workers coming into the state. And California is the most unique of that. And that's why those of us who have suffered through the history of this state, with the Irish, with the Chinese, with the Wobblies, with the Henry Fonda's and "Grapes of Wrath," and we're always part of the vigilante targets. We don't feel that the vigilante approach is the right way to go. So, therefore...

DOBBS: Oh, Art, come on. Come on. Art, vigilante. You know, we heard Vicente Fox use this expression. We heard President Bush use it. The fact is that citizens groups, volunteer citizens groups -- and I just can't let you say that -- I saw and I met with a lot of these people. They are doing what they think is right.

TORRES: I'm sure they're God-fearing, gun-toting, wonderful people. But the fact of the matter is...

DOBBS: Well, just because you tote a gun -- come on.

TORRES: Well, but wait a minute, they're not trained. This is a federal issue and ought to be resolved as such. And they ought to press the members of Congress in their districts to do something about it.

DOBBS: Until we see a political will. You as smart as you are have an opportunity to work with Governor Schwarzenegger on the issue of illegal immigration. Instead you two...

TORRES: I offered to do that.

DOBBS: ... join in a partisan battle. Why not come together and deal with the issue.

TORRES: I've offered to do that, as I have with the Republican chairman of California. I spent 25 years on this issue. I'm as frustrated as anybody else, because we haven't resolved it. And to continue to look at ways that business can be improved by putting businesses on the border is a mistake. You have to deal with internal development within central Mexico. You have to deal with stricter border enforcement which is a federal issue. And most importantly of all, you've got to figure out who's paying taxes and who is not, to fair it out -- the reality and the numbers.

DOBBS: And that's a very good start. I think that I'm going to be able to broker something right here, maybe not tonight, between you and Governor Schwarzenegger.

TORRES: If you can do that...

DOBBS: Come back soon and we'll try.

TORRES: If you can do that, I applaud you. Because I'm willing to work on this issue, because it's an issue that effects all of us. And I'm tired of always being the scapegoat of people who are down in the polls, because this is the first we've heard this issue raised by the governor. And I want to work with him as well as the president. And to put Mexico -- Mexico's government feet to the fire because they have not been a responsible party here.

DOBBS: Art Torres, as always, it's good talking with you. Talk long, we often do, but it's always -- a pleasure to have you here. Come back soon.

TORRES: Well, thank you for being involved in the issue, Lou.

DOBBS: Thank you, Art, take care. Art Torres the chairman of the California Democratic Party.

Why one California lawmaker is trying to give illegal aliens privileges not even afforded to many American citizens. That story is next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: In California tonight, there's a rising backlash against a law maker who has made it his mission to give illegal aliens the right to drive. Senator Gil Cedillo is now trying to exempt illegal aliens from driving penalties, penalties that apply to every other legal resident of this country. Casey Wian reports from Los Angeles.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): If you're caught driving in California without a valid driver's license, police are required to impound your car for 30 days -- the penalties are steep. Getting your car out of an official police garage in Los Angeles, for example, costs nearly a thousand dollars in towing, storage and other fees. Now one California lawmakers say illegal aliens should be above that law.

Los Angeles Democrat Gil Cedillo has introduced a government law that would require local governments to exempt a person from the vehicle impound law if they don't have a drivers license, because they're an illegal alien.

GIL CEDILLO, CALIF. STATE SENATE: In some cities of Southern California, a quarter of the vehicles of the city were towed and taken away. Makes it difficult, but not just for them and their families, but it makes it difficult for their employer. And it's disruptive to the stability of the work force. People who are here legally can drive with a license, and so it doesn't affect them.

WIAN: Mike Spence heads a group of volunteers fighting Cedillo's efforts.

MIKE SPENCE, SAVE OUR LICENSE: Well, actually, it elevates illegal aliens to a higher status that citizens and legal residents who drive without licenses, because, you know, their car would be impounded for 30 days. But if you are illegal then we'll give you your car keys back. You know, you break one law, you come here illegally. And if you drive illegally, you're off the hook. It's amnesty for driving without a license.

WIAN: Cedillo has been searching for a way to give illegal aliens the right to drive in California for seven years. A law signed recalled former Governor Gray Davis was immediately repealed by his replacement, current Governor Arnold Schwarzenegger then vetoed another Cedillo back illegal alien driver license bill in September. Cedillo's vehicle impound amnesty bill is on hold until the federal Real I.D. Act is resolved. Real I.D. would allow states to issue licenses valid only for drives, not for federal identification. So Cedillo plans to introduce a new version of his California illegal alien driver's license bill as soon as the president signs the federal law.

(END VIDEOTAPE)

WIAN (on camera): Though the Real I.D. Act would make it more difficult for terrorists to board an airplane, enter a federal building or open a bank account, it could clear the way for more than two million illegal aliens to receive driving-only licenses in California. Lou?

DOBBS: Casey, thanks very much. Casey Wian.

Well, as Casey just reported, the Real I.D. Act would allow states to set up so-called two-tiered drivers' license programs for residents and illegal aliens. Two states already allow illegal aliens to obtain driving certificates that are not permitted to be used as identification. Those states are Tennessee and Utah.

The invasion of illegal aliens into this country and the successful Minuteman Project along the Arizona border inspired my next guest to organize another border watch program. The Friends of the Border Patrol will begin monitoring the California border with Mexico in August. So far, the project has attracted hundreds of volunteers including former law enforcement and military officials. Andy Ramirez is the founder of Friends of the Border Patrol, and joins us tonight from Los Angeles.

You have to take some heart with Governor Schwarzenegger at least commending the -- another volunteer group, the Minuteman Project. Will you be working with any of the state officials in your project, Andy?

ANDY RAMIREZ, FRIENDS OF THE BORDER PATROL: Well, we absolutely would like to do that. If anything, I'd welcome the governor to both meet with me and my senior staff, as well as to come down to the border and participate. Not have one of these sanitized tour by Customs and Border Patrol's public information officers, but a real tour from perhaps either off-duty or recently resigned or retired border patrol agents.

DOBBS: What about the concern -- you just heard Art Torres, a man well-respected, he has significant experience in immigration. But even Art Torres, the chairman of the Democratic party in California, referred to the Minuteman Project as vigilantes. How do you react to that? And, you know that that charge is going to be coming at you and your group, as well.

RAMIREZ: Right, and it actually has been from both ACLU, Customs and Border Patrol. The former senator, he's clearly wrong on this issue because, of course, he's going on with how -- training, and we're not going to be trained. Well, we're not going to allow our volunteers to participate in interdiction, apprehension or any type of interaction with the illegal aliens. The only people that need that specific training are those that go through the 19 weeks at Artesia (ph), and that's the agents of the U.S. border patrol.

DOBBS: And the idea that the ACLU is concerned about human rights violations, the suggestion that there's potential, as they put it, for racism and for violence, how do you react to the ACLU?

RAMIREZ: Well, the ACLU, if they are really concerned about racism, violence, well, then, I think they should take a look at the number of recent e-mails I've gotten from people that are also of Mexican ancestry that have called me a coconut, as an example. If they are really concerned about human rights, then they should be stationed at the border...

DOBBS: What is heck is a coconut?

RAMIREZ: Brown on the outside, white in the middle. I had to look that up myself. Pretty ridiculous, isn't it, Lou?

DOBBS: Well, so much of this discussion on immigration and border security borders on the preposterous, usually because of the assertions that are made and the fact that the government is unwilling to enforce our border and to enforce our immigration laws.

RAMIREZ: Can I get into that, Lou?

DOBBS: I'm sorry?

RAMIREZ: Could I get into that? Because, there was a member issued last November 16 by CBP Commissioner Robert Bonner, as well as Assistant Secretary Michael Garcia, and it was in a memorandum of understanding in which, on page 13, paragraph C, that it was outlined the border patrol cannot patrol beyond the interior, that it was specifically left for the I.C.E. However, that really is a de facto amnesty.

DOBBS: Well, we'll get into that more. We're out of time. Andy Ramirez, come back. We'll be talking about this as you move toward implementing the Friends of the Border Patrol. We wish you well. Thank you.

RAMIREZ: Thank you. Thank you, Lou. I'm very appreciative. DOBBS: Still ahead here, the results of tonight's poll and why CAFTA is losing the support of many who had previously backed so- called free trade agreements. Stay with us.

(COMMERCIAL BREAK)

DOBBS: The Bush administration is hoping for a vote on CAFTA by the end of this month, but a fierce battle over that so-called free trade deal is dividing even traditional so-called free traders.

Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT: Protesters greeted the Central American presidents in Miami during their first stop on their CAFTA sales tour. To pass Congress, the trade agreement needs 20 to 25 Democratic votes, but last week the new Democrat coalition, a group of House moderates who have supported trade deals in the past, came out against CAFTA.

REP. ARTUR DAVIS (D), ALABAMA: What you will provide is one more incentive for American companies who rely on low-wage workers to move into the Central American market, and that could be a death knell to the textile industry and some other low-wage industries in my state.

SYLVESTER: More key Republicans are also expressing reservations. Senator Saxby Chambliss, chairman of the Senate Agriculture Committee, recently wrote in an op-ed, "We must make sure that we have not written off those who are negatively impacted and economically dislocated as a result."

Lawmakers whose districts have been battered by job losses under NAFTA say CAFTA will only make things worse.

REP. WALTER JONES (R), NORTH CAROLINA: A lot of the problems come down to one word which is greed. I think this country's greatness has been that we cared about each other, but now it seems like if you have a manufacturing job, that the companies just say we'll move across the sea, whether it be China or Honduras.

SYLVESTER: Also not backing the agreement, the Hispanic Caucus. Congressman Xavier Becerra says CAFTA will push down labor and environmental standards in the United States and Central America.

REP. XAVIER BECERRA (D), CALIFORNIA: There is just no way that this agreement can be good for anyone, in the long run, except those that wish to exploit, that race to the bottom. Only those that are willing to exploit win. But I guarantee you...

(END VIDEOTAPE)

SYLVESTER (on camera): CAFTA is facing a broad base of opposition -- labor union, small businesses, human right groups -- but what may ultimately kill the agreement is the fierce opposition from the sugar lobby. Lou? DOBBS: Lisa, thank you very much. Powerful words, "only those willing to exploit will win." That is a remarkable quote. Thank you, Lisa. Lisa Sylvester, reporting from Washington.

Tonight's "Quote of the Day" comes from the only Hispanic Democrat to announce his support for CAFTA. Congressman Henry Cuellar of Texas says CAFTA shouldn't be a Hispanic issue, quote, "but as Hispanics," he goes on to say, "we should be looking at how this will benefit our brothers and sisters in Central America."

Actually, Congressman, as Americans, in my opinion, we should be looking at how CAFTA will devastate all our brothers and sisters, particularly those right here in the U.S. of A.

Now, the results of tonight's poll: 96 percent of you say our economic and national security are at risk with the sale of the last piece of American-built telecom infrastructure.

Thanks for being with us tonight. Join us here, please, tomorrow. I'll be talking with a middle school principal whose students have achieved truly remarkable results with limited resources, defying a national trend in education. We hope you'll be with us. For all of us here, good night from New York. "ANDERSON COOPER 360" starts right now.

END

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