Return to Transcripts main page

The Situation Room

Israeli Settlers in Gaza Made to Leave; Venezuelan Plane Crash Investigation Begins; Abu Ghraib Prison Death a Suspected Homicide; More Spy Satellites or More Spies?; Former Israel Prime Minister Wary of Pull-Out; Simulating Iraq for Training

Aired August 16, 2005 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


WOLF BLITZER, HOST: I'm Wolf Blitzer, and you're in THE SITUATION ROOM, where news and information arrive at one place simultaneously. Standing by right now, CNN reporters across the United States and around the world to bring us the day's top stories.
Happening right now, it's 10:00 p.m. in Gaza. As a deadline looms for leaving voluntarily, some settlers making it violently clear where they stand. The former prime minister, Benjamin Netanyahu always makes it clear where he stands. He quit Israel's government over the pull- out. I'll have a one-on-one interview with him this hour.

It's 3:00 p.m. over at the Pentagon, where we'll get some exclusive access to a virtual reality machine. We'll put you on the streets of Baghdad, where it's very dangerous.

And in Japan, it's 4:00 a.m. Wednesday. An undersea earthquake shaking skyscrapers 200 miles away. Dozens of people are hurt. Many more are very lucky.

You're in THE SITUATION ROOM.

Israeli troops have entered the largest Jewish settlement in Gaza, warning residents to leave peacefully or be forcibly evicted. The settlers now have just two hours left to make up their minds and the tension clearly building.

CNN's Guy Raz is joining us now, live from Neve Dekalim. That's one of the settlements in Gaza. What's the latest, Guy?

GUY RAZ, CNN CORRESPONDENT: Wolf, one can't help but feel the tension here in the Gaza settlements this evening as the deadline approaches for the beginning of the period of forcible evacuation.

Now as we speak, thousands of Israeli soldiers have started to stream into these settlements. They're going house to house, door to door, in one final bid to persuade the remaining residents to leave on their own.

Quite extraordinary scenes this evening. We've seen people shutting their doors to the soldiers. We've seen others simply ignoring them and others shouting at them.

Now earlier in the day there were some quite fierce clashes between soldiers and protesters here in Neve Dekalim. At least 50 young demonstrators were arrested by police. At one point hundreds of demonstrators blocked the main road into this settlement, burning trash bins in an attempt to prevent moving vehicles and containers from entering the settlement.

But in the end police managed to clear all the roads and bring in those moving vehicles. In fact, some soldiers helped those preparing to leave to pack up and move.

Now, overnight the police tore down the main gate into this settlement. They came in. Yesterday, that gate was blocked off by hundreds of protesters, but as they left during the night, police managed to remove that fence and take control of this area.

Now, Wolf, what we expect to see here over the next 10 to 12 hours, isn't -- we don't expect to see soldiers beginning the forcible process -- the process of forcible evacuation in the next few hours. But we do expect to see that beginning sometime tomorrow morning. Wolf?

BLITZER: These settlers who don't leave, do they give up that $300,000 compensation package, a one-time deal the Israeli government is making? If they leave voluntarily they get the $300,000 to relocate. What happens if they don't leave? Do they forfeit that money?

RAZ: Well, Wolf, depending on the family, the compensation package can range from $250,000 to $500,000. Those who do not leave until after the deadline stand to lose up to a third of their compensation packages. Wolf?

BLITZER: All right, Guy Raz. We'll be checking back with you throughout this program. Lots of money at stake for those settlers who want to continue to protest.

There are also new details coming into THE SITUATION ROOM right now about the crash of a charter flight in Venezuela that killed everyone on board.

CNN's Karl Penhaul joining us now, live from Bogota with the latest. What is the latest, Karl?

KARL PENHAUL, CNN CORRESPONDENT: Venezuelan aviation authorities, Wolf, tell us that now more than 150 rescuers, including Venezuela's National Guard, the police and Venezuelan firefighters are in the area and combing where the forest, the mountain and forest where the wreckage is now strewn.

Now we do know from the aviation authorities that the last communication from this aircraft of West Caribbean Airways MD-82 was around 3 a.m. this morning. The pilot radioed from around 33,000 feet to say that it lost power in one of the aircraft's engines and that it developed problems in the second aircraft engine. After that no more was heard from the plane.

And what aviation authorities are saying is that all 160 people, passengers and crew, are dead, Wolf. BLITZER: All right, Karl Penhaul. We'll be checking back with you, as well. Karl is on the scene for us in Colombia.

A helicopter went down in western Afghanistan today, killing 17 Spanish soldiers. The crash was near Herat, where most Spanish troops in Afghanistan are based.

Spain's defense minister is not ruling out the possibility of hostile fire, but Afghan and U.S. officials say there's no indication the helicopter was shot down. A second Spanish helicopter made an emergency landing nearby, injuring five of those troops on board.

The U.S. military says a detainee in Iraq's Abu Ghraib prison has died in what's being called a suspected homicide. CNN's Aneesh Raman is joining us now live from Baghdad with more. Aneesh?

ANEESH RAMAN, CNN CORRESPONDENT: Wolf, an investigation under way right now by the military criminal division after a 20-year-old security detainee was found dead yesterday at Abu Ghraib prison. The result of, as you say, a -- quote -- "suspected homicide."

The detainee was found unconscious by other inmates. Right now, Wolf, they are conducting an autopsy. That is standard procedure in these cases to try and figure out exactly what happened at one of the U.S. military's largest prisons in Iraq. Wolf?

BLITZER: What about the latest on the delay in the constitution? Yesterday we learned it was going to be a one-week delay. How is it looking over there in terms of getting those final issues resolved?

RAMAN: Well, on the Iraqi street, a lot of disappointment among the average Iraqis. They hope perhaps a compromise can come. Many, though, suspect it cannot.

Among the politicians, Wolf, some divisive words. It seems the divisions may have gone deeper after yesterday's late night negotiations. People moving farther apart. Some, though, suggesting that they will be able to get this done. But now, no one is quite sure what Iraq will wake to a week from today, Wolf.

BLITZER: We'll have to wait and see. Thanks very much, Aneesh Raman. Lots at stake there in Iraq.

It's time for you to weigh in on the big stories we're covering. We do it every day. We call it the "Cafferty File". CNN's Jack Cafferty has a different question for all of us each hour. He's joining us live from New York.

Jack, welcome back.

JACK CAFFERTY, CNN ANCHOR: Thank you. You could have added, and fascinating inquiries they are, each hour.

BLITZER: They are. CAFFERTY: Guess who's paying a part of the bill for the withdrawal of Israelis from the Gaza Strip? You are...

BLITZER: Let me guess, the United States of America.

CAFFERTY: Yes. You are. And I am. And the people watching this program are.

The United States is expected to pay around $500 million, maybe more, of the total $2.2 billion relocation cost. A lot of that money will go to the settlers. The ones who agree to leave by midnight tonight, as reported a few minutes ago, will get up to $500,000 per family.

There's about 8,200 Israelis living in Gaza. That's a pretty fair relocation allowance. That's more money than CNN gave me to move here from New Jersey.

The price of the thing comes on top of the $2.8 billion that the United States gives to Israel in aid already. Supporters say that paying for peace in that part of the world is cheaper than paying for war, which is probably true. But opponents say why should the U.S. be paying the bill over there? We got a few unpaid bills of our own around here. Have you looked at some of the deficits we're running lately?

So the question this hour is this. Should U.S. taxpayers be paying the bill for the Israeli withdrawal from Gaza? You can weigh in on this by writing to CaffertyFile -- one word -- @CNN.com. We'll read some of the letters a little later.

BLITZER: All right. Just to be precise, Jack. The Israelis are seeking that money from the U.S. The vice prime minister, Shimon Peres, told me they want about $500 million. The president hasn't yet endorsed it, although he's expected to. Congress still has to appropriate those funds, as well.

CAFFERTY: There is no way it's not going to happen, in this humble reporter's opinion. I mean, we can't afford to not underwrite what is arguably one of the best chances for lasting peace in that part of the world to come along in a very long time. We'll pay whatever is necessary.

BLITZER: I will be anxious to get the e-mail, hear what our viewers think. Thanks very much, Jack Cafferty with the "Cafferty file."

Still to come here, spying in the new millennium. Should the U.S. be spending billions of dollars on satellites or on people? Human intelligence. We'll take you inside the debate involving national intelligence.

Also, one-on-one with the former prime minister, Benjamin Netanyahu. He's taking on the Israeli government over the Gaza pull- out. Is he on the wrong side of history? Is he on the right side of history? I'll ask him some of the tough questions. And a little bit later, backlash against that protest mom. Divorce papers filed. Locals up in arms -- some of them, at least. We'll take you live to Crawford.

Plus, the pop super star Madonna. She's spending her birthday in the hospital after a nasty fall off of a horse. Find out what went so terribly wrong.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: In our CNN "Security Watch," eyes in the sky or spies on the ground? Should the United States be spending more on electronic or human intelligence? Let's get some answers. Our national security correspondent, David Ensor, from our America bureau standing by in the newsroom with more. David?

DAVID ENSOR, CNN CORRESPONDENT: Wolf, that's the choice. And in the next few weeks it will be made, intelligence officials say, by the nation's new intelligence chief.

(BEGIN VIDEOTAPE)

ENSOR (voice-over): Spy satellites peering down on the Soviet Union were terrific assets for U.S. Intelligence during the Cold War. But they have proved much less useful against al Qaeda terrorists and Iraqi insurgents.

Now John Negroponte, the nation's director of national intelligence, must decide whether to endorse plans for about $40 billion worth of new surveillance satellites. Many intelligence professionals expect him to make cuts and spend more on unmanned aerial vehicles like the Global Hawk and on old fashioned human spies on the ground, now a top priority for the U.S. government.

LAWRENCE WILKERSON, FORMER STATE DEPT. CHIEF OF STAFF: What did satellites tell us about Iraq? Nothing that was true that I can see, and I've been there.

ENSOR: Lawrence Wilkerson was Colin Powell's right hand man when he was secretary of State.

WILKERSON: What happened in Afghanistan that was so effective? CIA people walking around with briefcases full of money. Well, $40 billion is a lot of money. Let's fill some briefcases. Let's go buy some people.

(END VIDEOTAPE)

ENSOR: The decision is a difficult one because the new satellites would give the nation extraordinary new capabilities, much better digital photographs of ever smaller objects on Earth. And another type of satellite would be so small and stealthy, experts say, that an adversary couldn't distinguish them from space junk. So they'd probably survive the outbreak of war with, for example, China.

Intelligence professionals are predicting that Negroponte will opt to cut some of the new satellites, though. That would save billions of dollars. It could also start a bureaucratic battle with the Pentagon, which wants all the spy satellites they can get.

BLITZER: All right. A good debate for the bureaucracy and for the leadership. Thanks very much, David. David will have much more at 10:00 p.m. Eastern on "NEWSNIGHT WITH AARON BROWN" tonight, a full report. Lots more on this very sensitive subject.

And please stay tuned to CNN day and night for the most reliable news about your security.

Ahead here in THE SITUATION ROOM, a rare look inside the Pentagon. Our Barbara Starr standing by to show us how U.S. troops are preparing for war zone situations like driving through the streets of Baghdad.

First, we're getting some new video coming into CNN. Let's bring in CNN's Zain Verjee. She's standing by at the CNN Center. What do you have, Zain?

ZAIN VERJEE, CNN ANCHOR: Wolf, we just want to show you these pictures. They're coming in from Richmond, Virginia.

And what's happened was there was a massive stampede. You can see people running here. There were about 5,000 people that waited for hours this morning to buy a bargain iBook, a laptop computer that cost about $50. It was -- it was really a bargain.

And there was an absolute stampede, as you can see. Things were thrown over. People were hurt -- many of them in tears. People pushed and shoved each other. A lot of bruised people.

Security, several authorities came in to -- as you can see in the picture there is to try and sort of gain some semblance of calm. But people were lining up from 7:00 a.m. in the morning. About 17 people were injured. One witness said that the mob scene was just terrifying. Wolf?

BLITZER: All right. What an amazing story. I mean, who would have thought that an iBook and a stampede, those words together. Zain, thanks very much for that.

Up next, we're following several other stories. Coretta Scott King hospitalized. We'll have the latest on her condition.

Plus Crawford backlash over that protest mom. Locals are fed up, and in arms, at least some of them. And her husband hits her with divorce papers. We'll take you live to Texas. Emotions running high on all sides.

And a little bit later, the secret life of Jimi Hendrix. Military and psychologist -- psychological records revealing for the first time what happened. We'll find out how the rock star talked his way out of serving in Vietnam.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Let's get a quick check of some of the other stories we're following this hour. CNN's Zain Verjee joining us from the CNN Center in Atlanta.

Hi, Zain.

VERJEE: Hi, Wolf.

The widow of slain civil rights leader Martin Luther King, Jr. is in the hospital here in Atlanta. Coretta Scott King is said to be resting after being admitted for an unspecified condition. A hospital spokeswoman says King was admitted today.

Singer Madonna is in the hospital with three cracked ribs, a broken collarbone and a broken hand from a horse riding accident. A publicist says it happened today, which is also Madonna's birthday, at the singer's country home outside of London. Madonna was on a new horse that she wasn't accustomed to riding when it fell.

In Texas, the camp is growing, so the neighbors are fuming. Crowds near President Bush's Crawford, Texas, ranch are protesting the war in Iraq. Now area residents have asked their county to prevent such large gatherings in the future, complaining of blocked roads and traffic jams. Protesters are joining Cindy Sheehan, a mother who wants to speak to President Bush about ending the war. We'll bring you a live report from Crawford, Texas, next hour.

And right now, nerves are still rattled hours after a major earthquake off northeast Japan. The tremor measured a magnitude 7.2, so powerful it shook skyscrapers 185 miles away in Tokyo. It was centered 50 miles offshore and 12 miles under the sea. Aerials of the aftermath show battered buildings, although few houses were actually destroyed. Sixty-two people were hurt and 17,000 homes lost power. Officials say some of the worst damage happened in Sendai where the roof of a swimming pool at a sports center collapsed. Earthquakes are quite common in Japan, because it sits over several Pacific Rim fault lines. Wolf.

BLITZER: All right, Zain. Thanks very much.

Our best wishes to all our friends in Japan, where this program is seen on CNN Japan.

Here in THE SITUATION ROOM we're plugged into everything that's happening in the Internet, including reaction to that powerful earthquake in Japan. Our Internet reporter, Abbi Tatton, standing by with the situation online. Abbi?

ABBI TATTON, CNN CORRESPONDENT: Yes. We looked at some of the bloggers in Japan for reaction to this earthquake, and we found some very quickly. First of all, pictures coming in from Sendai. Some of the destruction inside the house there. Those pictures from one person in Sendai, sent to a blogger in Ohio who has friends out there.

Also, another Australian traveling in the north of the country near to the epicenter was there when it happened. Just said people stood around in the streets waiting for it to go away because there was little else that they could do.

And as Zain reported, in Tokyo, almost 200 miles away, it was also felt. This one blogger was in his office building and said the shaking just went on and on, shaking for a long time, 30 seconds or more as was reported.

These are more common than they are here in the United States. This American blogger there quite shaken by what happened today, Wolf.

BLITZER: All right. We'll be getting back to you, Abbi. Thank you very much.

He quit Israel's government to protest the Gaza pull-out. What's the advice he's giving to settlers right now? I'll ask the former prime minister, Benjamin Netanyahu, in a special one-on-one interview. That's coming up.

A strike may be looming at a major U.S. airline. The company and its workers getting ready. We'll tell you what you need to know.

And coming up in the next hour, investigators trying to find out who leaked the name of a CIA operative. Are they getting any closer? Our Bob Franken has been looking into this story.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Back now to our top story, the Israeli pull-out from Gaza and the rising tensions as settlers face a deadline to either move or be moved. They have an hour and a half left before the Israeli army goes in and forcibly removes them.

At the start of the week, I spoke with the Israeli vice premier, Shimon Peres, who strongly favors this withdrawal. I also spoke with the Palestinian foreign minister, Nasser al-Kidwa, who also applauds it.

But today we get a third point of view. Benjamin Netanyahu, a former Israeli prime minister, resigned from the current government of Ariel Sharon in protest over the pull-out. He spoke with me just a short while ago from Tel Aviv.

(BEGIN VIDEOTAPE)

BLITZER: Mr. Prime Minister, thanks for joining us here in THE SITUATION ROOM on CNN. Let's get right to the issue at hand, the immediate issue. Do you want those Israeli settlers in Gaza to comply with the law, with what the government wants and to leave peacefully?

BENJAMIN NETANYAHU, FORMER ISRAELI PRIME MINISTER: They must. They must leave peacefully. They shouldn't have any violent resistance. They should simply walk out.

I think that's -- I share their concern. In fact, their -- you know my position. I think this withdrawal is badly conceived and badly executed, and will result in the inflow of terrorists and terrorist weapons into Gaza and will be a danger to Israel.

But nevertheless, this was in a democracy. The government makes a decision. It's ratified by the Knesset, our parliament, and that's binding. We cannot start making private law here. So these people, as disconcerted as they are, they simply have to walk out. They cannot resort to violence. They should not lift a finger against the security forces. They should just walk out. That's what they must do.

BLITZER: On Sunday I interviewed the Israeli vice premier, Shimon Peres, who suggested you were -- you had resigned from the cabinet and from the government for political reasons. Listen to what he said.

(BEGIN VIDEO CLIP)

SHIMON PERES, ISRAELI VICE PREMIER: First of all, he voted for it. I don't know why he changed his mind. And if there will remain 8,000 settlers, all the dangers will disappear. I mean, it sounds to me very strange: 8,000 Jewish settlers among a million-and-a-half Palestinian people. What can they do in order to stop this fantastic danger that Benjamin Netanyahu has described? I think it's sheer exaggeration.

(END VIDEO CLIP)

BLITZER: He says your concerns are exaggerated. What do you say?

NETANYAHU: Well, first, he said I voted for it. I didn't. I voted for postponement of the decision. Then, once the decision came to the cabinet three times to uproot the people there and just vacate without receiving anything in return, I voted against it.

Now, Shimon Peres happens to be a close personal friend of mine. But I disagreed with him over the years. My view on fighting terror was to fight it, not to give it prizes, not to reward it.

In fact, we had the same debate before the Oslo peace process began. It said it would bring an end to 100 years of terror. It gave us terror the likes of which we didn't see for 100 years and that no nation is safe. We lost over a thousand people in 250 suicide bombs just as I predicted would happen.

Unfortunately, we're repeating the mistake now even though the government certainly doesn't want this to happen. I think this will be the result because we're not getting -- this is not a deal. This is not like the evacuation of the Sinai which was done in the context of a peace treaty with Egypt. And as painful as the residents of Yamit, one of the towns that was vacated in the Sinai -- even though they -- they felt pain, that their lives were torn apart, that, you know, their homes were torn apart, that they were carted off and so on, they knew in the back of their minds that Menachem Begin and Anwar Sadat had signed a peace agreement, that this serves a larger purpose.

Here there is no peace agreement. And, in fact, the terrorists are saying terror got Israel out of Gaza, terror will get Israel out of the West Bank, and then terror will get Israel out of Palestine because the West Bank and Gaza aren't really Palestine. It's Tel Aviv, Jaffa, Haifa, Jerusalem -- that's what they're after.

BLITZER: The Palestinian Authority, though, says they want a two- state solution: Israel living alongside Palestine. Listen to what the Nasser al-Kidwa, the foreign minister of the Palestinian Authority, told me on Sunday.

(BEGIN VIDEO CLIP)

NASSER AL-KIDWA, PALESTINIAN FOREIGN MINISTER: We believe in coexistence between the two states and the two peoples. And I believe that the overwhelming majority of the Palestinian people believe in that, as well.

(END VIDEO CLIP)

BLITZER: Do you believe in a two-state solution, Israel living alongside Palestine in peace?

NETANYAHU: Yes. I think you could have such an arrangement if the Palestinian side had no powers to attack Israel. And this is precisely the point.

First of all, this is what Mr. al-Kidwa says, but this is not what they do. They haven't lifted a finger to stop the terrorists. They haven't disarmed the terrorists. The Palestinian Authority is an authority by name alone. It is really a collection of terrorist gangs -- Hamas, Islamic Jihad and others -- who are operating freely with weapons.

NETANYAHU: They, themselves, say, openly -- the Palestinian Authority -- that they have no goal whatsoever to disarm these gangs. And these gangs say they will continue the war of terror until the annihilation of Israel -- not a two-state solution, a one-state solution, without Israel, Israel in the sea.

Now, what we've done here, unfortunately, is give the terrorists, the extremists, the upper hand, and Hamas is getting stronger and stronger.

Why is it getting stronger? Because it's saying, look, we've driven the Jews out with terror. Who does the terror? Hamas. Who gets stronger? Hamas.

Paradoxically, this could actually threaten Abu Mazen's regime. BLITZER: But it's not just the Palestinian Authority. It's not just Nasser al-Kidwa or Shimon Peres or Ariel Sharon. It's the president of the United States, George W. Bush, who in Israel is widely seen as a great friend of Israel. He said this on Israel television only the other day. Listen to this.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The disengagement is, I think, a part of making Israel more secure and peaceful. And I agree with the prime minister.

(END VIDEO CLIP)

BLITZER: If you were prime minister, would you go to battle, would you go to war against the Bush administration on this issue?

NETANYAHU: The Bush administration did not force this withdrawal. This was entirely an internal Israeli initiative, and I don't think the president really wants to get involved in this internal debate.

I have to say that I admire President Bush...

BLITZER: He does say that this is an important step forward. He says this is an important step forward and he wholly supports what Israel is doing.

NETANYAHU: Yes, he's saying that. And I expect that's what the president of the United States would say when Israel undertakes such a risk itself. He's not going to be -- I think this is understandable in diplomatic terms.

The president has initiated a very powerful war on terror in which he gives terror no ground, literally and figuratively. I think he's to be commended for it. In many ways, I believe that this is the policy that we should be pursuing vis-a-vis the Palestinian terrorists as well.

Because what you'll see here -- now, remember, you know, I was not very popular, and I wasn't particularly correct -- politically correct, I should say, in 1993 and '94 and '95 when I warned against the consequences of the Oslo Accords. I said this would not lead to peace, it would lead to terror. I really wasn't politically correct, except I happened to be correct. And that's exactly what happened then.

And I think it's not politically fashionable right now to say what I'm saying, but you're going to have in Gaza an inviolable domain. Abu Mazen's government doesn't lift a finger. It doesn't and it won't. And what our security chiefs are telling us, including the intelligence chief today in the Knesset, is that this is going to become a base of terror. I say it will attract Hezbollah, al Qaeda, terrorists from Iraq, terrorists from Afghanistan and Pakistan. They will flow into Gaza as they had once flowed into Lebanon when there was no government there. And they will operate from there, not only against Israeli targets, but against U.S. targets and elsewhere. Now, they may not do it right away. They may take some time. But, unfortunately, it will happen. Nobody wanted this, but this may be the sorrowful result. There is a different way to get peace. This is not it.

BLITZER: We are almost out of time, but a very quick question and a quick answer, hopefully. Do you want to be Israel's next prime minister?

NETANYAHU: I don't think on this evening you're going to get that answer from me. There'll be a time for politics. If you'll invite me, I'll be happy to answer it.

Right now my concern is that my 20-year campaign against terrorism right now, and Israel's campaign against terrorism, is being set back because of good intentions badly played out.

BLITZER: The former prime minister of Israel, Benjamin Netanyahu. Thanks for joining us.

NETANYAHU: Thank you.

BLITZER: And as a reminder, we're less than an hour-and-a-half away from the deadline for all those Israeli settlers to be out of Gaza, the Israeli army standing by to go in and forcibly remove them -- 5:00 p.m. Eastern, midnight over there. That's the deadline. We're watching what is going on. We'll have updates throughout this program.

Up next, the question for American taxpayers -- should the United States help Israel foot the bill for the Gaza pull-out?

Virtual reality over at the Pentagon. We'll show you a simulated soldier's-eye view of Baghdad.

And could a top U.S. airline respond to a threatened strike by declaring bankruptcy? You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Here's a look at some of the hot shots coming in from the Associated Press, the still photos, some of the best pictures from around the world, likely to be in your hometown newspaper tomorrow.

It's like driving through the streets of Baghdad, where danger can strike at any turn. A special simulator giving U.S. troops a chance to prepare for those dangers, before they actually get to Iraq, and you'll only see it here in THE SITUATION ROOM. Let's bring in our Pentagon correspondent, Barbara Starr. Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Hello to you, Wolf. This is in fact not a video game. This is a training simulation for soldiers going over to Iraq. We want to assure everybody, the weapons we are about to fire are simulated. They are not real weapons.

But we are here today with Sergeant Tommy Rieman who is a remarkable young man. He is a recipient of the Silver Star. He is a veteran of very serious combat in Iraq. He's going to walk us through this simulation today, what it's like to be back on the streets of Baghdad. Sergeant Tommy Rieman, you're a guy who's been there, done it. You were very badly injured. Can you tell us about that?

SGT. TOMMY RIEMAN, SILVER STAR RECIPIENT: Yes, ma'am. I was in a three-RPG ambush. I was shot in the arm, the chest, and took some shrapnel to my legs, and I had a buddy who lost his right leg and another buddy that was shot in the butt.

STARR: So training like this can be useful.

Let's go to the training tape and show us what we're about to see. Let's go down the streets.

RIEMAN: OK. Right now we're in a convoy and we're keeping our head on a pivot for any enemy activity.

STARR: So we're going down a typical street in Iraq?

RIEMAN: Yes, ma'am. Just regular patrol. Whatever they'd have us be doing, whether it's supply route...

STARR: This is how the day starts?

RIEMAN: Yes, ma'am.

STARR: And then you can always run into difficulty, run into trouble at any point.

RIEMAN: That's right. You never know.

STARR: And what are we starting to see now, Sergeant?

RIEMAN: We got enemy fire to our front. We got a small enemy insurgent attack on us.

STARR: How realistic is this to you in terms of having enemies coming at you all at the same time?

RIEMAN: Besides the field, this is about as close as it's going to get. You can never replace the real thing, obviously.

STARR: What happened there?

RIEMAN: We just hit an IED. Now we had a small ambush. Now we're going to fight our way through the ambush.

We just got hit with two RPGs.

STARR: So this is something that can help soldiers before they get on the streets for real?

RIEMAN: Absolutely. It gets you well prepared in target acquisition, and as a leader you can see how your soldiers are reacting to what they are given on a combat situation. STARR: So we're not quite done going down the street yet, are we?

RIEMAN: No, ma'am.

STARR: And you would keep your eyes out at all times?

RIEMAN: Yes, ma'am.

STARR: Well, thank you. I think, Wolf, you can see that this is just another tool.

We want to thank our driver here, Sergeant Jeff Frye (ph), who took us down the streets.

These are simulated weapons. It is a simulated training game, if you will, but it is not a game to these soldiers. This is what they do to train to get ready before they really are on the streets of Iraq, Wolf.

BLITZER: Do you know or do we know how many troops will actually get into the simulation and actually practice where you are?

STARR: Well, they are here in the Pentagon today actually to show it to the generals. They want to show them what they have been able to do.

It's really interesting. This game was invented by an economics professor at West Point. He saw some of this software. He put it together. And they are just beginning to field it around the Army and try and give these soldiers a feel for what they are going to face once they get there, Wolf.

BLITZER: It's probably good training, but there's nothing like the real thing, I am sure.

Barbara, thanks for bringing that to our viewers. Appreciate it very much.

Coming up later here in THE SITUATION ROOM, hunting for roadside bombs.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You get used to, you know, the -- I guess when we first got here it was like, you know, paranoid -- where's the holes? Oh my God. And now it's just like if it's going to happen, it's going to happen.

(END VIDEO CLIP)

BLITZER: We're on patrol with U.S. Marines searching for those deadly improvised explosive devices.

And we're just an hour, a little bit more than an hour away from the evacuation deadline in Gaza. Coming up, money and withdrawal. U.S. taxpayer dollars specifically paying at least for some of that Israeli withdrawal. Our Jack Cafferty will be along with your thoughts.

And if you are an elderly patient, your already high costs for some prescription drugs have gotten higher, and the hikes are on the drugs you commonly use.

And some are calling it Camp Casey. Crowds led by the anti-war mom Cindy Sheehan, they are growing. And that has the locals, at least some of them, fuming. So how hot is it getting in Texas? We'll take you there live.

(COMMERCIAL BREAK)

BLITZER: We're just getting this video into CNN.

The secretary of State Condoleezza Rice over at the Embassy of Sri Lanka signing a condolence book just moments ago, a condolence book for the slain foreign minister of Sri Lanka. He was assassinated only the other day.

Condoleezza Rice going over to the Sri Lankan Embassy in Washington to pay her respects. The loss of the foreign minister of Sri Lanka assassinated only late last week.

Jack Cafferty has been going through all of your e-mail on the "Question of the Day." He's joining us once again from New York with the "Cafferty File."

Remind our viewers, Jack, what the question is.

CAFFERTY: I will.

Before we get to that, I kind of like old Condoleezza Rice there. She's kind of a class act. And a lot of people speculate that it might make an interesting match-up, Wolf, in 2008 if Condi ran against Hillary. What do you think?

BLITZER: Well, you know, you say old Condoleezza Rice. You know, she only turned 50 a few weeks ago. She's not very old.

CAFFERTY: You know, that's true. I'm old.

(LAUGHTER)

How old are you, Wolf?

BLITZER: I'm almost -- I'm older than Condoleezza Rice.

(LAUGHTER)

CAFFERTY: Are you older than I am?

BLITZER: I don't know how old you are.

CAFFERTY: I'm 62.

BLITZER: But from both of our perspectives -- I'm younger than you are, Jack. I can assure you I'm younger than you.

CAFFERTY: So you are between me and Condoleezza.

BLITZER: But Condoleezza Rice is a very young 50.

CAFFERTY: Well, if you say so, Mr. Blitzer. Never argue with the Wolfman.

(LAUGHTER)

The United States is expected to pay at least part of the bill for the Israeli withdrawal from Gaza. Shimon Peres told CNN on Sunday that Israel is going to ask the United States for probably $500 million in relocation costs.

The question this hour is, should U.S. taxpayers be paying the bill for the Israeli withdrawal from Gaza?

Most of you are saying no. Here is some representative letters, a few of them.

Paul in Mount Vernon, Ohio writes: "Sure, the U.S. should pay for withdrawing from Gaza. After all, we're paying to rebuild Iraq and giving other countries money to get back on their feet. I'm a 53-year- old man with cerebral palsy trying to live on disability, pay my bills and keep food in my stomach. So here, President Bush, take 50 bucks out of my disability check."

Shirley in Arizona writes: "No, I don't think the United States ought to pay to relocate Israel's citizens out of Gaza. You can't buy peace. Hamas has already said the attacks will continue. Let Saudi Arabia pay. The road map for peace was their idea." Rose in Levittown, New York writes: "Of course not. We're in the midst of a war and all money should be directed at this country's protection from terrorism. How do we always manage to foot the bill for every country's initiatives? We better keep our tax dollars in this country before we become a Third World country."

And finally, Hugo in New Mexico says this: "Yes, the United States should be sharing the burden that has been placed on the Israeli government, for we have worked for many years as the protagonist of peace. It would be an injustice to the Israeli government if the United States decided to stop helping."

The average relocation costs, we are told, for these families in Gaza -- they're about 8,200 Jewish settlers -- will range from 250 to $500,000 per family. And those who do not voluntarily vacate the premises by midnight tonight Gaza time stand to lose up to a third of that money. So that, I would think, Wolf, works as a pretty good incentive to pack up your stuff and hit the road.

BLITZER: You would think -- there's a lot of money at stake -- that they would say, you know what, they're going to be forcibly removed anyhow. They got four Israeli soldiers dedicated for each settler. They're going to lift them up physically and remove them. They might as well take the cash and make it peacefully. CAFFERTY: And avoid the trip to the emergency room to get you treated for the bruises.

BLITZER: This is an emotional issue, though, for a lot of the settlers.

CAFFERTY: Absolutely. No, no question about it. I mean, it's not easy to ask somebody to leave their home. But on the other hand, I mean, it happens all the time. It happens in this country when they want to build a highway or a set of train -- I mean, these things come up and at least there is -- well, it sounds like just compensation for the folks.

BLITZER: And now, if they want to build a shopping mall, folks could be removed, too, not just...

CAFFERTY: Can you believe that?

BLITZER: Not just a highway.

CAFFERTY: You know, I mean, that's the kind of stuff that lead to the Boston Tea Party. That idea that you can come along and, for private commercial development, take away somebody's house. I mean, that's nonsense. How do you think that will wind up -- it's got to go to the Supreme Court.

BLITZER: The Supreme Court ruled on it already, just a few weeks ago. Let's do that for a question one of these days. I'm sure our viewers have some pretty strongly held views on it as well.

CAFFERTY: I have a few myself. BLITZER: All right. Thanks very much, Jack. We'll check in within the next hour.

Coming up, an airline threatened. The bottom line on a make or break weekend for Northwest, and whether the company will end up on the skids. Plus -- many older Americans are getting sticker shock over at the pharmacy. We'll check up on the price of some lifesaving drugs.

And when we go "Inside Politics" the next hour, Michael Jackson's surprising cameo in the U.S. Supreme Court nomination battle. What did John Roberts have to say about Michael Jackson? You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Zain Verjee is standing by at the CNN Center in Atlanta with a look at some other stories we're following this hour. Zain?

VERJEE: Hi, Wolf. In Greece, the mystery deepens in the crash of a Cypriot jetliner that killed all 121 people on board. Officials say the cockpit voice recorder has been found, but its contents are missing, and investigators are still looking for them.

In Germany, some have called it a Catholic Woodstock. More than 400,000 young Catholics in Cologne for today's World Youth Day. The five-day festival features music from Christian rock bands, church masses and mass prayers. Young Catholics from around the world will look to strengthen their faith and, really, their own identity as Catholics. Pope Benedict XVI will preside over the events on Thursday.

And as we mentioned little bit earlier, in Virginia, a fight for a bargain turned into a really ugly scene. Now, look at this. These shoppers were dashing in to buy used laptops for $50. Thousands of people rushed through the gates of Richmond International Raceway, but several people were pushed or shoved. And the stampede even caused a child's stroller to get crushed. Seventeen people were hurt.

Wolf, I mean, you know, even an old man was knocked over and just walked over. And somebody actually even took their car and drove it through a crowd of people to buy a $50 used laptop. Ordinarily it costs a little over a $1,000, but still.

BLITZER: I mean, for an iBook, give me a break.

VERJEE: Yes.

BLITZER: You know, all right. Zain, thanks very much. We'll be getting back to you.

Trouble brewing, meanwhile, over at a major airline facing a potentially crippling strike that could affect thousands -- tens of thousands of travelers. CNN's Ali Velshi in New York to pick up that story, as well as the closing bell. We're getting closer to that. Ali? ALI VELSHI, CNN ANCHOR: Yes. And when that news, Wolf, comes in, that will be interesting. The markets are not doing very well right now on some worries about inflation. Those inflation worries were prompted by some reports, including by Wal-Mart, that the price of gas and oil is hurting people. Well, that's obviously one of the reasons that the airlines continue to cite for the problems they're having.

Now, Wolf, I don't know what's stranger, the fact that these airlines can't get it together, or the fact that Delta and Northwest -- both teetering on the brink of bankruptcy -- both of those stocks are up phenomenally today.

Here's the deal with Northwest. We've talked about this before. The mechanics' union is in a legal position to strike come Saturday. And they have said they're going to strike. Right now, there's a conference call underway where Northwest is reiterating that nothing's going to happen to them. They are going to be safe. Those planes are going to fly no matter what happens. They hired 1,200 replacement workers, even though there are more than 5,000 people in this union that's prepared to strike. They've got 300 managers ready to step in. They've got flight attendants ready to step in. And they say nothing is going to change.

Now, if you're accustomed to not getting fantastic service on airlines, I guess nothing is going to change. But Northwest has had a year-and-a-half to work this out. I understand that it may not make sense, and the demands may not make sense, but business is about working things out. So right now, we're waiting to see what happens. By Saturday night, these guys could walk off the job. Wolf?

BLITZER: Well, what about the Bush administration? What are they saying about this, if anything?

VELSHI: Well, the White House hasn't said anything, but the government has said that they've evaluated the situation and if there were a strike or a lockout, which could happen at Northwest, it won't -- it won't have a particularly detrimental effect on interstate commerce. And that's what they have to determine.

In the past, when the government has said that it is going to have one of those, they set up an emergency board, an that board decides whether or not that strike's going to happen or lockout's going to happen, and whether they'll legislate. They've said it's not going to happen this time. The president is staying out of it. Wolf?

BLITZER: All right. We have a minute 'til the market closes. There's another story you're following, prescription drugs for the elderly. What's going on?

VELSHI: Now, this is where the president should get involved. As we know, prescription drugs are the bane of most elderly people's existence in this country. And a report out by the AARP says that from the end of the year, from December to March, there has been a rate of inflation in drugs of 3.3 percent. They've actually listed some of the drugs that are some of the biggest. Some of the most popular drugs that we know of are on that list. We'll take a look. Fosamax, Lipitor, Pravachol for cholesterol. Toprol, blood thinner, and Levaquin for hypertension. They're all up more than 4 percent, some as high as 6 percent. Wolf?

BLITZER: Well, that's serious business. Serious business for our viewers. Let's talk about the market. We're only about 15 seconds away from the formal close.

VELSHI: Let's take a look. We are probably going to see a picture right now of the closing bell at the Dow and the NASDAQ. Dow's on your left. You can see that. We're looking at 121 point drop on the Dow. That is more than 1 percent.

On the NASDAQ, a 29 point -- 30 point drop now. That is 1 -- almost 1.4 percent. Heavy day, heavy volume, markets not have -- not enjoying it today, even though oil has pulled back to $66.08.

That's your business right now, Wolf.

BLITZER: All right, Ali. Thanks very much for that. We'll be checking back with you in the next hour.

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