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Lou Dobbs Tonight
Iraqi Lawmakers Stymied on Constitution; Worst Iraq Violence in Sunni Stronghold; Iranian President Cleared of Hostage Crisis; Tapes of 9/11 Emergency Workers Released; New Details Revealed about Pre- 9/11 Intelligence; Severe Weather Sustained in U.S.; California Town Hall Meeting on Immigration Draws Protests; Schwarzenegger vs. Teachers; Chinese Trade Practices
Aired August 12, 2005 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KITTY PILGRIM, CNN ANCHOR: Hi, Wolf. Thanks. Good evening, everybody.
Tonight, the growing insurgency in Iraq and political uncertainty in Baghdad. New questions about U.S. strategy.
Plus, chaos and courage. Reliving the horror of 9/11. Disturbing tapes and transcripts of what happened in New York on September 11.
And one governor declares a state of emergency to deal with rising immigration and border security. Governor Bill Richardson of New Mexico is my guest.
We begin with Iraq, a critical moment for U.S. strategy in Iraq tonight. Iraqi politicians still cannot agree on a new constitution. They must reach agreement by Monday. If the politicians fail to make a deal, some fear a civil war could break out.
Aneesh Raman reports from Baghdad.
(BEGIN VIDEOTAPE)
ANEESH RAMAN, CNN CORRESPONDENT: Three days left until that deadline, and no compromise seems in sight. This as Iraq's political leaders meet again in marathon talks to try and hash out any number of lingering issues and meet that deadline on Monday.
It comes a day after Shia leaders in the south called for them to have an autonomous region there, similar to what the Kurds had in the north. The immediate objection coming from the Sunni minority, as well, as from Shiites within the government, including the prime minister, who see this as a role (ph) that would weaken the overall Iraq identity and raises questions on revenue. The oil in this country is predominantly in the north and in the south.
Now, it comes on a day of sustained violence against U.S. troops in Iraq. Two U.S. soldiers wounded near the town of Kirkuk after their Apache helicopter crashed. They are being treated now in the hospital. The crash itself under investigation. And then, near the town of Tikrit, in the Sunni Triangle, a U.S. Task Force Liberty soldier killed after a roadside bomb detonated. It was a sign of how much is needed out of this political process to try and bring stability to this country.
Aneesh Raman, CNN, Baghdad.
(END VIDEOTAPE)
PILGRIM: The biggest threat to our troops in Iraq is roadside bombs. The military calls them improvised explosive devices, or IEDs. Now, those bombs are becoming more sophisticated and more deadly.
Barbara Starr reports from the Pentagon.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN CORRESPONDENT: Just days before a draft of the new Iraqi constitution is due, the attacks continue. There are now 30 roadside bombings every week.
U.S. commanders say they are still capturing or killing dozens of foreign fighters every week.
Nearly 50 U.S. troops have died in Iraq this month alone. The Bush administration says troops will stay on the job until Iraqi forces can take over, whenever that might be. There are more than 170,000 Iraqi forces on the job, but commanders acknowledge only a small portion can operate independently.
Still, Defense Secretary Donald Rumsfeld is irritated with the critics.
DONALD RUMSFELD, DEFENSE SECRETARY: The reality is that a large number of them are doing exactly what it is they were organized, trained and quipped to do.
STARR: But if U.S. troops are ever going to come home, what does it mean for Iraqis to be ready?
GEN. RICHARD MYERS, CHAIRMAN OF THE JOINT CHIEFS: One of the first steps in the process of transitioning areas to Iraqi security force control involves them providing for their own fuel and food.
STARR: U.S. commanders say they are getting a better understanding of just what it takes to get the Iraqis ready.
BRIG. GEN. YVES FONTAINE, U.S. ARMY: It took about six months to get trained, proficient in transportation operation, to the point where they are using their own command and control, their own radios, their own security.
STARR: Commanders believe the worst of the violence remains in the Sunni stronghold west of Baghdad.
MAJ. GEN. RICK LYNCH, U.S. ARMY: If you track closely the indicators of violence, you'll understand that of the 18 provinces in Iraq, only four of those have significant acts of violence.
(END VIDEOTAPE) STARR: And Kitty, those significant acts of violence now include more lethal weapons, some from Iran -- Kitty.
PILGRIM: Thanks very much, Barbara Starr. Thanks, Barbara.
Well, more reservists and National Guardsmen have been killed in Iraq this month than in any month in the entire war. Thirty-three reservists and guardsman have been killed in combat so far in August, and that compares with six guard and reserve combat deaths in the whole of August last year.
Turning now to another major national security issue, the CIA has concluded that the new Iranian president probably did not take Americans hostage in Tehran 26 years ago. The United States had threatened to deny the Iranian president a visa to attend the annual September U.N. meeting in New York.
Andrea Koppel reports from the State Department.
(BEGIN VIDEOTAPE)
ANDREA KOPPEL, CNN CORRESPONDENT (voice-over): According to several U.S. government officials, the CIA report has determined with -- quote - "relative certainty," that Iran's new president, Mahmood Ahmadinejad, was not involved in the taking of U.S. hostages in 1979.
A senior State Department official said initial assessments show Ahmadinejad did not participate in the planning, execution or conduct of the hostage taking. But the official also stressed that the report was based on tentative conclusions and said the analysis is not yet final.
Allegations had been swirling around the Iranian president, an ultra conservative and follower of Iran's Supreme Lleader Ayatollah Khamenei, since his surprise victory in June, when a handful of former American hostages took to the airways after they saw his picture.
DAN SHARER, FORMER EMBASSY HOSTAGE: It was a recent picture, but he still looked like a man, take 20 years off of him, he was there.
WILLIAM DAUGHERTY, FORMER HOSTAGE: I remember seeing him acting in a supervisory or leadership capacity.
KOPPEL: CNN contacted Sharer and Daugherty Friday. Both men said they stand by what they told us in June.
President Ahmadinejad has denied these allegations, although he readily admits he was a member of the student group that held the 52 Americans hostage for 444 days.
The controversy surrounding Ahmadinejad's past threatened to impact his future plans to attend the United Nations General Assembly next month. Under U.S. law, President Bush could refuse to issue a visa to a world leader if he or she posed a security risk. But on Thursday, Mr. Bush signaled that wasn't likely to happen with Iran's president. GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We have an agreement with the United Nations to allow people to come to meet, and I suspect he will be here to meet at the United Nations.
(END VIDEOTAPE)
KOPPEL: The State Department says a final decision on whether to issue President Ahmadinejad a visa has not yet been made, but without solid evidence linking him to the 1979 hostage taking, and with a growing standoff between Iran and the West over its nuclear program, a growing concern, the Bush administration doesn't want to provoke Iran unnecessarily, Kitty.
PILGRIM: Thanks very much, Andrea Koppel.
Well, rising oil prices are a major concern tonight. Crude prices rose by more than $1 a barrel today to close at a fifth straight record high. Crude settled at $6.86 a barrel.
Now the AAA says the average price of a regular gallon of gasoline in the United States now averages more than $2.40. A new Associated Press/AOL poll says 64 percent of Americans believe gas prices will cause them financial hardship over the next six months.
Still to come, chaos and courage on 9/11. Never before heard audiotapes on September 11.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The World Trade Center Tower Number One is on fire.
(END VIDEO CLIP)
PILGRIM: We'll have a special report.
Plus fires, drought and heat. Many regions of this country are suffering from extreme weather.
And the governor of New Mexico declares a state of emergency to deal with the escalating illegal immigration crisis. Governor Bill Richardson is our guest.
(COMMERCIAL BREAK)
PILGRIM: Harrowing audiotapes that take us back to the chaos and the courage of September 11, 2001. The tapes, giving a minute-by- minute account of the emergency response to the Twin Tower attacks, and the struggle to communicate and save lives.
Jason Carroll reports
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: A plane has crashed into an upper floor of the World Trade Center. Transmit a second alarm and start relocating companies into the area.
JASON CARROLL, CNN CORRESPONDENT (voice-over): The earliest calls came in seconds after 8:46 a.m. A plane had just struck the World Trade Center's north tower.
UNIDENTIFIED MALE: It looks like it was intentional. All units. This could be a terrorist attack.
UNIDENTIFIED MALE: Roll every available ambulance you got to this position.
CARROLL: It is now clear there were communication problems following the first attack -- too many emergency responders trying to talk on the same radio frequency.
UNIDENTIFIED MALE: Have the borough tell the units don't come up on the radio.
UNIDENTIFIED FEMALE: Ten-4, I just informed everybody of that. Just informed everybody of that.
CARROLL: Seconds after that transmission, a second plane strikes the south tower at 9:03 a.m. Word of many trapped people flooded radio transmissions.
UNIDENTIFIED MALE: Number One, World Trade Center, the 103 floor, southwest corner and northwest corner, reported to be 100 people overcome at that location.
CARROLL: The 103rd floor was occupied by Cantor Fitzgerald. Six hundred fifty-eight of their employees were killed.
Nine fifty-nine a.m., the south tower collapsed. A frantic call from a man identified as Chief Browne.
DEPUTY CHIEF ROBERT BROWNE, TRAPPED IN WORLD TRADE CENTER: Chief Browne, mayday, I am trapped in rubble. Trapped in rubble. I got gas. I can't breathe. Mayday, mayday, mayday.
CARROLL: Deputy Chief Robert Browne survived and is still in the EMS.
Shortly after the first collapse came warnings the north tower was about to go as well.
UNIDENTIFIED MALE: All units be advised, the north tower is leaning. Move your operations north of the tower.
CARROLL: Ten twenty-eight a.m., the second tower collapsed, a desperate call from a trapped man.
UNIDENTIFIED MALE: Can anybody hear me? I'm a civilian. I'm trapped inside one of your fire trucks underneath the collapse that just happened.
UNIDENTIFIED MALE: Stand by. There's people close to you. UNIDENTIFIED MALE: I can't breathe much longer, save me. I'm in the cab of your truck.
UNIDENTIFIED MALE: Transmitting the mayday. Where are you?
UNIDENTIFIED MALE: I just told you, if you look at the World Trade Center, there's the north pedestrian bridge. I think it collapsed when that partial building just collapsed. I was on the street. I don't have much air, please help me.
UNIDENTIFIED MALE: I copy that. I'm going to go look for him.
CARROLL: It is unclear who this was or if he survived.
The radio problems continued for emergency responders.
UNIDENTIFIED MALE: They're not answering. I just want to know where is the nearest triage. We got an ambulance full of people, and we're being bombarded with so many we can't handle.
(END VIDEOTAPE)
CARROLL: Even after all this time, still -- still very powerful.
A fire department spokeswoman told me they have made significant improvements to their communications system since 9/11, including improving their radio repeater system and giving firefighters more handheld radios. However, critics, Kitty, still say more needs to be done.
PILGRIM: It must be very instructive to look at these tapes but very difficult. And emotionally that must be tough for you.
Jason, a quick one, though: do we know more about the civilian who you mentioned in your piece?
CARROLL: Absolutely. Obviously, some heartfelt -- in hearing that type of emotion coming from him in terms of being trapped. When we did speak to the fire department, while they did not tell us who that person was, they did say they believed that that person did, in fact, get out OK.
PILGRIM: That's good to hear. Thanks very much, Jason Carroll.
Well, as we remember the horrors of 9/11, new questions are being raised about whether the attacks could have been presented. Earlier today, I talked with Congressman Curt Weldon of Pennsylvania, who's pushing for a new 9/11 probe.
He says officials identified 9/11 leader Mohammad Atta as a potential threat at least a year before the attacks. I asked him why that information was ignored.
(BEGIN VIDEOTAPE)
REP. CURT WELDON (R), PENNSYLVANIA: There were two reasons given to the military intelligence officials who I'm talking to and working with. The first was they were told that, because Mohammad Atta and the others were here either with green cards or visas, that they could not, in fact, look at them. In fact, the lawyers went so far as to put these yellow stickies over the faces of Mohammad Atta in September of 2000.
The second reason was that the lawyers in the administration of the time were concerned about the political fallout that had occurred after Special Forces command had been involved with the FBI in the Branch Davidian situation in Waco.
And neither of those reasons is acceptable to me. Certainly, the second is outrageous, that we put a political effort as more important than our national security.
The first reason I don't buy, because the bulk of the information that was being used by the military intelligence unit, Able Danger, was open source information. It wasn't classified material. The whole purpose of this innovative approach, which I had been supporting as the chairman of the Defense Research Subcommittee with additional funding, was to do massive data mining of open source information.
So why, three times, that information was resisted and prevented from being provided to the FBI is really a puzzle to me. I don't understand it.
PILGRIM: What would you like done now?
WELDON: There's much more troubling information that's yet to come out. And I met with the speaker's staff yesterday. I think there's going to have to be a broader look. It's going to go beyond any committee of the House, probably involve both the House and the Senate or perhaps even beyond that. But that's a decision that I'll work on with both the leadership and, eventually, with legal counsel.
PILGRIM: So you're looking for a full investigation of past events. But what would you like to see going forward? Because certainly, this rationale, that people are here legally, therefore they're above suspicion, seems to be a little bit moot in the context of 9/11 and also the London bombings and in other countries. You see governments amending their laws and reinterpreting their laws to adapt to the new situation.
WELDON: Well, that's the ultimate question, and I supported the Patriot Act here. In fact, a week-and-a-half ago, I took a delegation to London, and we met with Tony Blair at Downing Street. And he was about ready to do the same thing in Britain.
But the important message here, beyond the facts that we have to get to the bottom of, is that we need a massive data mining capability of open source information against these emerging transnational terrorist threats. But there still is not the capability of this massive data mining that was what Able Danger was all about.
I have a new initiative that's been brought to me by the same intelligence officials to establish something called Able Providence. And that would give us a cutting edge technology capability that I think would put us on the leading edge of understanding terrorists, these cells, where they're operating and, most importantly, where the threats are to the security of the American people.
PILGRIM: Are you comfortable with the way that the intelligence community has been restructured in recent months?
WELDON: I strongly support Porter Goss at CIA. And I've met and strongly support John Negroponte, the president's choice to head this. But it's not enough to have good people there. You're dealing with 15 different agencies, overseeing 33 classified systems.
If John Negroponte's going to succeed, then we've got to give him the mandate from the American people and the Congress to shake up these bureaucracies and these agencies. There is still stove-piping going on at the NCTC. There's still resistance on the part of those at the upper level of the CIA bureaucracy to share their intelligence. We've got to tear that down. And the only way John Negroponte can do that is if we create the mandate among the American people and among the Congress, in both parties, to make that happen.
PILGRIM: Thank you very much for being with us this evening.
WELDON: My pleasure.
PILGRIM: Congressman Curt Weldon, thank you.
(END VIDEOTAPE)
PILGRIM: We want to know what you think about the changes within the intelligence community and the efforts to crack down on terrorists. Here's the question. Do you think the United States is doing enough to identify, hunt down and prosecute terror cells operating in this country? Yes or no? Cast your vote at LOUDOBBS.com. We'll bring you the results later in the broadcast.
Coming up, the illegal alien debate nearing a boiling point in Southern California. A tense face-off over one of the most divisive issues in our country today.
Plus, Governor Bill Richardson of New Mexico says his state is under assault from illegal aliens. He has just declared a state of emergency. Governor Richardson will be my guest.
And our nation's summer of wild, dangerous weather, sweltering heat, dangerous drought, massive wildfires, a special report coming up.
(COMMERCIAL BREAK)
PILGRIM: There seems to be no letup to our nation's summer of dangerous heat and punishing drought. Once again much of the United States sweltered in oppressive 90-degree heat today. In the Pacific Northwest, the situation has turned dire as wildfires intensify.
Bill Tucker reports. (BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): It was so hot in the Northeast that golf began to look like a serious sport in New Jersey.
UNIDENTIFIED MALE: I've got to give it to the gallery here, by the way. It is 4,000 degrees out there, and there are people all over the place watching this.
TUCKER: The heat index near 100 across the Mid-Atlantic, Southeast and parts of the Southwest.
In the West, forest fires raged. According to the National Interagency Fire Center, there are 32 fires burning on some 275,000 acres. That includes acreage in Alaska, where typically, cooler weather helps dampen the fire season in August. But the rains have not yet arrived.
The governor of Washington declaring a state of emergency.
GOV. CHRISTINE GREGOIRE (D), WASHINGTON: We're facing a siege of wildfires across our state. Now we currently have six major wildfires burning in eight different counties. Overall, we have had a total of eight. There is a significant potential for us to continue to have large fires erupting on both sides of the state.
TUCKER: Complicating the firefighting is the drought which continues to plague the Northwest. The extreme drought conditions in parts of the Corn Belt took a bite out of its crops, the government cutting its estimates for corn and soybeans by 12 and 11 percent nationally.
(END VIDEOTAPE)
TUCKER: Now, there could be some relief in the form of -- from the heat on the Eastern seaboard coming in the form of a hurricane, which many might see as a mixed blessing. Tropical Storm Irene is expected to become a hurricane soon, but at the moment, Kitty, nobody is sure where she might hit.
PILGRIM: What a mess. Thanks very much, Bill Tucker.
Well, scientists in Norway discovered polar bears can swim enormous distances. One female bear -- polar bear, tagged with a satellite tracking devices, swam 46 miles in just one day. Now, previously, scientists thought polar bears traveled long distances through a combination of walking, swimming and also catching rides on icebergs. Unfortunately, this amazing discovery comes at a time when the Arctic Ocean is warming faster than the rest of the globe, threatening species such as polar bears.
Coming up, a tense clash in California over our nation's broken borders. We'll have that special report.
And then a border emergency in New Mexico. Governor Bill Richardson tries to do the job the federal government won't do. He is my guest.
And educators in California are demanding money they say the governor owes them. We'll have that story when we continue.
(COMMERCIAL BREAK)
PILGRIM: Tonight, Southern California finds itself increasingly divided over its illegal alien crisis. Now, those fighting for strict enforcement of our broken southern border faced off with opponents at a tense town meeting. It took a massive police presence to keep them apart.
Casey Wian reports.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: USA! USA!
CASEY WIAN, CNN CORRESPONDENT (voice-over): More than 150 law enforcement officers in riot gear were needed to keep the peace at a Southern California town hall meeting on border security. Inside, 400 people heard speakers, including Colorado Congressman Tom Tancredo and Minuteman Project co-founder Jim Gilchrist.
JIM GILCHRIST, FOUNDER, MINUTEMAN PROJECT: My weapon of choice? The First Amendment. We're going to win.
WIAN: Outside, protestors held signs calling participants, including the congressman, racists.
UNIDENTIFIED MALE: Go ahead. Go support the Ku Klux Klan, why don't you?
GILCHRIST: There were even death threats against the speakers.
CAPT. GLENN REVELL, SAN DIEGO SHERIFF'S DEPARTMENT: Those threats are taken seriously. The necessary staff are on hand to preclude anyone being injured. It may seem like overkill to some folks. We would rather be faulted for having too many people here than too few.
WIAN: California State Senator Bill Morrow organized the event.
BILL MORROW, CALIFORNIA STATE SENATE: The people that are calling us and the Minutemen and Minutewomen racists, it's a strategy to silence us on an issue. What they really want, they're advocating for open borders and pro-illegal immigration. That's what it comes down to.
UNIDENTIFIED MALE: They want to claim racism because there's nothing else they can say. I mean, they have a special agenda. It's not an agenda that's in the interests of America or American citizens.
WIAN: Advocates for illegal aliens, open borders and returning the American Southwest to Mexico have recently extended their charge of racism to LOU DOBBS TONIGHT. Yet, here's a clearly racist posting on a Web site used by the protestors: "'Expletive' gringos, they have no culture and they live in darkness. We shall stop them before it gets to (sic) late."
Border security activists say they will not be stopped.
(END VIDEOTAPE)
WIAN: In fact, a local official canceled the town hall meeting at one point because he feared violence. Organizers sued on First Amendment grounds. Only then did the official allow the meeting to go ahead as planned -- Kitty.
PILGRIM: Unbelievable. Thanks very much, Casey Wian. Thanks, Casey.
Well, Governor Bill Richardson of New Mexico declared a state of emergency today as the illegal alien crisis on other broken southern border spirals out of control. And Governor Richardson is my guest tonight from Santa Fe.
And thanks very much for joining us, sir.
GOV. BILL RICHARDSON (D), NEW MEXICO: Thank you, Kitty.
PILGRIM: Declaring a state of emergency. Is it to make a political point or does it have practical benefits?
RICHARDSON: Well, it has practical benefits. We have a 180-mile border with Chihuahua, Mexico, New Mexico does, and the situation is out of hand.
I declared a state of emergency basically to free up close to $1.5 million that will be used for law enforcement, overtime pay, equipment -- mainly because the federal government and the Congress are doing nothing.
And in New Mexico we've got border smuggling of people. We have smuggling of drugs. We've got kidnappings, murders. We have got cattle destruction. And there's very little response from the Border Patrol. They are doing a good job, but they don't have the resources.
And so as a governor, it's reached a point where in a little narrow strip, Columbus, New Mexico, 54 miles, there is literally a chaotic situation of excessive drugs moving in, illegal smuggling of people, staging areas. I have also asked the Mexican government to basically bulldoze an abandoned town right south of our border that has been used as a staging area for these illegal alien smuggling, and illegal drug smuggling.
So my people on my side asked me to take this step -- handle (ph) law enforcement. And I have done so. I have done so reluctantly.
And let me say that the government of Mexico has been helpful. The state of Chihuahua has been helpful. But they don't have the resources. And as a governor, I have to protect the people I represent.
PILGRIM: Now, you met with Mexican governors also, your counterparts. What did you accomplish in that meeting?
RICHARDSON: Well, that meeting was some several weeks ago. And what we accomplished was to emphasize border security -- that we're going to focus on legal migration and take the steps that are needed against illegal immigration.
I toured the area by helicopter today, Kitty. And I saw the trails where these illegal routes take place. I saw a number of open areas, a fence that's supposed to keep aliens and drug smugglers out. And it isn't doing it. The fence is literally nonexistent.
And we asked the Homeland Security Department for help. They are well intentioned. The Border Patrol, they've got great people there, but they're not enough. They don't have the equipment. The rotations of more Border Patrol are going to take forever.
So I put in these funds, so local sheriffs can hire adequate law enforcement to patrol the border. It's not just illegal aliens. It's drugs, it's murders, it's kidnappings, it's desecration of cattle. It's a chaotic situation.
And I just felt I had to take the step. And I'm the nation's only Hispanic governor. And we are a state that has been very good to illegal migrants, New Mexico is. So, this action, I believe had to be taken.
PILGRIM: Immigration, of course, grabs the headlines. But what about other issues, such as cattle and livestock?
RICHARDSON: Well, that's the problem. In my state, Border Patrol estimates that illegal smuggling of drugs is just as bad on the New Mexico side of the border as illegal smuggling of illegal aliens.
Plus, you have cattle -- it's a very large ranching area -- is being killed. It's being contaminated. It's being stolen. And you literally can see this little town on the Mexican side that is abandoned that is a staging area where they just stage illegal drugs and illegal aliens, and wait for the evening or when there doesn't seem to be any patrols, and they smuggle them in.
And this is causing great concern in my border towns of Deming, and Los Cruces, and Luna County in New Mexico, Columbus, New Mexico. And we have a small part of the border. Other states have a worse part. But I took this action to avert potential disasters like other border areas that have happened.
PILGRIM: Well, it certainly does sound like a state of emergency. Thanks very much for explaining your position to us. Governor Bill Richardson, thank you.
RICHARDSON: Thank you.
PILGRIM: A New Hampshire judge has dismissed trespassing charges against a group of illegal aliens. Now the aliens, most of whom were from Mexico, were arrested by two local police chiefs. They were frustrated with the lack of enforcement of federal immigration laws. Lawyers for the illegal aliens argued only federal authorities have the power to regulate immigration. The illegal aliens pleaded innocent and were issued a citation. It is the equivalent of a parking ticket.
A reminder now to vote in tonight's poll. Do you think the United States is doing enough to identify, hunt down and prosecute terrorist cells operating in this country? Yes or no. Cast your vote at LOUDOBBS.com. We will bring you the results later in the show.
Still ahead, why teachers in California are suing Governor Arnold Schwarzenegger. We will have a special report.
And "Heroes," an Army medic trained to save others nearly loses his own life in Iraq. His story coming up.
(COMMERCIAL BREAK)
PILGRIM: The staggering trade deficit with China continues to grow. The monthly gap now stands at more than $17 billion. Now, the record deficit is sure to be a point of contention at next week's textile trade meeting between the United States and China.
Christine Romans has our report.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): Hopes are high for meaningful Chinese trade reform. So is skepticism. The U.S. trade representative promises talks with China next week in San Francisco, hoping for a long-term trade deal with China on textiles. A tug of war is expected between textile manufactures in this country and the retailers and importers of cheap Chinese apparel.
JIM SCHOLLAERT, AMERICAN MFG. TRADE ACTION COALITION: U.S. importers and retailers will be in China's corner during these talks, just like they have been all along. They're joined at the hip. They both want maximum penetration of the U.S. market.
ROMANS: 390,000 jobs lost in the past four years, 37 percent of American textile jobs. American importers say they want predictability for their supplies.
JULIE HUGHES, U.S. ACCOC. IMPORTERS TEXTILES & APPAREL: We are looking for something that doesn't unnecessarily harm business, because there are orders in place that can't be changed. I think that's what happened in the EU instance.
ROMANS: In the EU instance, to avoid a trade war, China forged a deal with the European Union -- a deal, critics say, China broke only a month later. And there is some fear the talks next week are nothing more than a formality to appease textile state congressmen who helped pass CAFTA. In a statement, one of those, Congressman Robin Hayes, lauded the upcoming trade meetings, and defended his flip-flop on CAFTA -- quote -- "not until the administration said they would work with the industry on the issue of exploding imports from China was I able to support CAFTA."
It remains to be seen whether the White House can fulfill that promise of textile trade reform.
(END VIDEOTAPE)
ROMANS: And then there is the difficulty in dealing with trade issues with China. China is notoriously difficult at the negotiating table. And there's already talk that China's hint of piracy is sort of an unspoken bargaining chip on China's behalf.
PILGRIM: That's unbelievable. Thanks very much, Christine Romans.
Well, Governor Schwarzenegger of California has found himself in the middle of a good old-fashioned case of he said, she said. The state's biggest teachers' union is suing the governor. And the union says he's broken his promise to give more money to the state's public schools.
Bill Schneider reports.
(BEGIN VIDEOTAPE)
WILLIAM SCHNEIDER, CNN POLITICAL ANALYST (voice-over): Can school teachers bring down the California Governator? Maybe. The California Teachers Association ran ads saying Governor Arnold Schwarzenneger broke his word to them.
TRESSA MURAI, FOURTH GRADE PARENT: But then he borrowed $2 billion from the education budget.
RENEE STEWART, SECOND GRADE PARENT: And now refuses to pay it back.
SCHNEIDER: Now, the fight has escalated. The teachers say Schwarzenegger didn't just break his word, they say he broke the law. They're suing him. They claim the governor now owes the schools an additional $3.1 billion.
UNIDENTIFIED FEMALE: They believe that within the law of Prop 98, they are owed this money.
SCHNEIDER: Now, hold on, Republicans say.
ALLAN HOFFENBLUM, REPUBLICAN POLITICAL CONSULTANT: If they really were sincere, not only would they have sued the governor, but they would have sued, you know, the state legislature, which is overwhelmingly controlled by Democrats.
SCHNEIDER: How about that?
KAUFMAN: They believe that the governor is the primary executor of this agreement, and that's why they went after him.
SCHNEIDER: What's really going on here is -- are you ready for this? -- politics. Governor Schwarzenegger has called a special election in California this fall. On the ballot, several measures the teachers' union finds threatening. HOFFENBLUM: This lawsuit is just part of that overall grandstanding that's going on, to attempt, in my opinion, to defeat ballot measures that the governor is sponsoring.
SCHNEIDER: Now, here's the surprise. So far, Governor Schwarzenegger is losing. His popularity has been dropping, because Californians see him doing too much politicking and not enough governing.
When the governor's popularity slides, what happens? He gets sued!
(END VIDEOTAPE)
SCHNEIDER: Polls show Californians don't want a special election. Imagine, the governor goes to the people, and what do the people say? Don't come to us.
PILGRIM: Bill, what has Governor Schwarzenegger done wrong here?
SCHNEIDER: Kitty, he's picked fights. Now, when Californians voted for him, they voted for a leader who would be above politics, and would bring people together. Instead, he says it's me and the people against the special interests. But the people don't seem to be with him. In fact, the Terminator is not just getting sued, he's getting beaten up. But you know what? I wouldn't count him out just yet.
PILGRIM: All right, I think we won't. Thanks very much, Bill Schneider.
Well, wealthy donors will be partying with Governor Schwarzenegger at the Rolling Stones concert in Boston later this month. The price for tickets is a cool $100,000. Now, the sponsor of the Stones world tour, Ameriquest, is giving Governor Schwarzenegger prime seats to raise money for his special election. $100,000 donors get to watch the Stones inside the luxury sky box with the governor, and other donors will get front-row tickets.
Ameriquest, by the way, is a longtime supporter of Arnold Schwarzenegger.
Well, this Sunday marks the 70th anniversary of Social Security. President Franklin Delano Roosevelt signed the act into law in 1935, and today his grandson shared his thoughts about the program. So our quote of the day comes from him, and here it is: "Social Security has been and continues to be, and if we don't mess it up, will continue to be such a huge success for the American people."
Well, when asked what his grandfather would say about privatizing Social Security, FDR's grandson said, he would take that proposal off the table and make small changes instead.
Coming up, three leading political journalists join me for a roundup of this week's major news. Plus, the amazing story of a medic in the 1st Infantry Division and his wife, both of whom showed bravery and heroism in Iraq, and also a remarkable commitment to each other.
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PILGRIM: Joining me now to discuss this week's major headlines and three leading political journalists -- Ron Brownstein of the "Los Angeles Times," Karen Tumulty of "Time" magazine, and Roger Simon of "U.S. News and World Report."
And thanks for joining us on a very sweltery August Friday.
Let's start with the peace mom. She certainly has to be in her uncomfortable position in the heat down in Crawford, Texas, dominating the headlines this week. Not a good thing for President Bush to have this in the news day after day after day.
Let's start with you, Karen. What's your assessment of the damage on this?
KAREN TUMULTY, "TIME" MAGAZINE: Well, you are absolutely right. I mean, this has clearly got the White House rattled to have, you know, juxtaposed against the president on what's essentially a five-week vacation, having this mom of a slain soldier camping out outside his ranch.
I do think, though, that what you are likely to hear over the next few days is more of slain soldiers' families who feel differently about the war coming out. And I do think that this situation is rapidly moving into the political realm from the personal.
PILGRIM: Ron, do you think this will intensify politically?
RON BROWNSTEIN, "LOS ANGELES TIMES": Well, I think Iraq has to intensify politically overall. You know, I believe that this is not different from the news from Iraq in this sense -- ultimately, the president's standing on the war will be driven mostly by events on the ground, not the domestic debate about it, not what he says about it, not even what the Iraqi politicians say about it when they come here.
So in that sense, I think that ultimately, his numbers, and the public tolerance for the war really are going to be driven by the events in the war itself. And you know, on that front, Kitty, you know, this is coming at a bad time, because -- for the president -- in this sense. We have a vacuum here.
The public consistently is saying -- the majority of the public in Gallup/CNN poll this week -- that they think the war has not been worth the cost. And yet the political leadership has not followed with a clear alternative or sharp criticism. This is the sort of thing, I think, that is going to pressure the Democrats and others who are skeptical about the war to follow in her footsteps.
PILGRIM: It certainly seems like a major public relations skirmish. Certainly the great question is, will he cave, will he talk to her? And these seem to be, you know, dominating the discussion of this issue. What about you, Roger? ROGER SIMON, U.S. NEWS & WORLD REPORT: She's done two things. Primarily, she has shown the American public at large that there is an organized peace movement in this country. I think before this, few people knew that it existed. There have been peace marches and rallies around the United States. They get virtually no coverage whatsoever. And I think Mrs. Sheehan has shown people that there is an organized peace movement.
And secondly, she has created a no-win situation for the president on this particular issue of whether he meets with her or not. If he meets with her, then he's got to meet with all the relatives of those who have lost their lives in Iraq. If he doesn't meet with her, he looks callous and uncaring, which I don't think he is. But if you are holed up in your ranch for five weeks, and if you go out at night for $2 million fund-raisers, but don't meet with this poor woman, you look callous and uncaring.
BROWNSTEIN: You know, Kitty, this is a striking week on Iraq, not only in regard to her, but in regard to what the president himself did at his press conference yesterday. You know, usually you send the president out before the cameras with the dessert. He came out with the spinach yesterday.
You know, there have been all of these leaks and suggestions from the Pentagon that we might be in store for a significant withdrawal of American troops next year, we are on track toward that. And it was the president who came out to sort of slow down that train -- not to abandon the idea, but to make clear that he -- he still is intending to, you know, stay as long as it takes to get the job done.
That was a very different message and a very unusual position for the president to be in, I think.
PILGRIM: Yeah. Go ahead, Karen.
TUMULTY: Although the most striking thing was that the president referred to these reports that the troops might be withdrawing early next year as rumors. In fact, these rumors are coming from some of the top generals involved in Iraq.
So it was odd, too, because you have a situation where the Pentagon is putting out one message and the White House is putting out another. And for people who are looking for some kind of clarity or at least a sense that this administration has some kind of clarity as to where this war is going and it has some sort of plan from here on out, this was not...
SIMON: And that's what we'd like, we don't have a clear exit strategy from Iraq. Which is why don't know what to do about the troops. Do we put more troops in to protect those troops that are already there? Or do we bring them home? Because if we don't bring them home, why will the Iraqis ever defend themselves?
But the numbers are terrible. A story printed in the "Baltimore Sun" this week indicated there are only 1,500, to 2,000 Iraqi troops ready to fight U.S. -- without U.S. aid; 1,500 to 2,000 is a pathetically small number.
PILGRIM: You have a split out in reality too, because you have this increased number of casualties this month, a very difficult month in terms of casualties. And yet, you have the potential that political progress may be made.
We are facing a very tight deadline Monday in the political constitution building, moving forward. We may -- they may or may not make that deadline. What's your assessment of the political situation, Karen?
TUMULTY: Well, you know, at this point certainly the U.S. is putting a lot of pressure on them to make that deadline. And I think they want to make that deadline.
But in some ways, I think it would help the political situation in Iraq if they had, themselves, a clearer idea of just exactly how long the U.S. troops are going to be there.
BROWNSTEIN: You know, the assumption, the overwhelming assumption from the administration is that political progress in Iraq will eventually yield security progress by isolating the insurgents, reducing their support in the community.
That is a big bet. It's not necessarily clear that those two lines are related. It may be that whether or not the political process advances, the insurgency will have to be fought on a completely separate track. And in fact, it may be wishful thinking, even among the critics, the war critics, who argue that if the U.S. forces are removed that would diminish the incentive for the insurgents and the foreign fighters to fight this government. Is that really the case? Would they really lay down their arms against a government allied with the U.S. whether or not we are there?
So, this is kind of a difficult situation in which I don't think any side has a clear way forward. And that is one thing the president has going for him in public opinion, despite all the doubts about the war, you don't see the country yet willing to concede failure or surrender Iraq.
PILGRIM: Roger, last word?
SIMON: You don't see any clear connection between a Democratic Iraq and the end of the insurgency. Why would they stop fighting just because there is a general assembly elected freely in Iraq? And that's why our exit strategy is based on, perhaps, a series of false assumptions, that the insurgency will collapse when there is a democratic Iraq. It's going to collapse only when the Iraqis stand up and fight for their own country.
PILGRIM: Mm-hm. In the middle of August, we're still debating the Iraq situation. Thanks, very much Karen Tumulty, Ron Brownstein and Roger Simon. Thanks very much for joining us today.
TUMULTY: Thank you, Kitty.
PILGRIM: Well, still to come, the results of our poll, a look ahead at next week.
And "Heroes," the story of one soldier struggling to recover from his wounds after a devastating insurgent attack in Iraq.
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PILGRIM: Now in "Heroes," our salute to the men and women in uniform. Tonight the story of Army Sergeant Robert Bonner. Both he and his wife were serving in Iraq when insurgents attacked his Humvee.
Lisa Sylvester has his story.
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LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Robert Bonner is still getting used to his new legs.
UNIDENTIFIED MALE: Keep going. Keep going, man.
SYLVESTER: He's lost mobility, but gained new awareness, the importance of God and family.
SGT. ROBERT BONNER, U.S. ARMY (RET): I just feel like he had a purpose for me living. I don't take anything for granted. There's a reason why he allowed me to be here.
SYLVESTER: Sergeant Bonner was traveling in a stretch in Iraq called "RPG Alley" last July when an explosive device detonated. Bonner, a medic, immediately thought of his driver.
R. BONNER: You hear this loud boom, and I just felt a wetness on my face, because I was in the back seat behind the driver. And I looked up to see if he was all right. And I just looked down and noticed my legs. I had gotten hit.
SYLVESTER: The Army medic who was in the business of saving the lives of others, suddenly was on the verge of losing his own. Bonner's bride of five months was also in the Army, serving in Iraq. She flew to his bedside. At one point, she was told he may not make it through the night. She and their three sons were never far from him through his 18 surgeries.
STAFF SGT. DEVONA BONNER, U.S. ARMY: He said I'm so sorry. I told you I was coming back in one piece.
I don't care. I'm just glad you are back.
SYLVESTER: Devona Bonner is an Army grief counselor. The experience with her husband has pulled her own family closer and has made it easier for her to empathize with other military spouses.
Robert and Devona are still learning to adjust to their new life. Robert is taking up new sports. He wants to one day work with other wounded soldiers. But for now, he's focused on cherishing the time with his family.
Lisa Sylvester, CNN, Clinton, Maryland.
(END VIDEOTAPE)
PILGRIM: Devona and Robert are expecting their fourth son at the end of October. And we wish them the very best.
Well, finally tonight, the first leader of the famous Blue Angels Aerobatic Team has died. Lieutenant Commander Roy "Butch" Voris died this week at his home in Monterey, California. He was 86.
Now, Butch organized the Blue Angels team in 1946 and led them in their first public performance in Jacksonville, Florida. The Blue Angels continue to dazzle crowds today at air shows and exhibition around the country.
Now the results of tonight's poll: 95 percent of you said no, the United States is not doing enough to identify, hunt down and prosecute terrorist cells operating in this country.
Judith Miller, the Pulitzer Prize-winning "New York Times" reporter has now been in prison for 37 days. On Monday, Judith Miller's attorney Floyd Abrams will join us.
Thanks for being with us tonight. Good night from New York.
A special edition of ANDERSON COOPER 360 starts right now.
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