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Lou Dobbs Tonight

Terror in Jordan; Republicans Lose Big In Off Year Elections

Aired November 09, 2005 - 18:00   ET

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


LOU DOBBS, CNN ANCHOR: Good evening, everybody.
Radical Islamist terrorists today carried out a series of deadly bomb attacks against Americans and Westerners in the Jordanian capital of Amman. The suspected radical Islamist suicide bombers carried out an obviously carefully coordinated attack against three hotels. All of those hotels with American brands: the Hyatt, the Radisson and Days Inn in Amman.

Those explosions at the hotels were almost simultaneous. At this hour, we know that 67 people have been killed as a result, more than 150 wounded.

At 8:50 p.m. local time, the Grand Hyatt in downtown Amman was the first to be attacked. Shortly after, the nearby SAS Radisson hotel was also attacked. And just minutes later, the Days Inn hotel also under attack.

All of the targeted hotels are popular with Americans, Israelis and Europeans. Jordanian authorities say they are almost certain that the al Qaeda terror network is responsible for these attacks.

We go now to Jamie McIntyre at the -- at the Pentagon. Jamie?

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Lou, even as bodies were still being pulled from the hotels, suspicion began to center on Abu Musab al-Zarqawi as the possible mastermind behind the attacks. The pattern of attacks seems to fit the modus operandi of Zarqawi's network, similar to attacks in Iraq and other places around the world that were done by al Qaeda.

The Jordanian-born militant is still believed to be in Iraq, at least as far as U.S. intelligence knows. He tops the U.S. military's most-wanted list there with a $25 million price on his head. The same bounty is being offered for Osama bin Laden himself.

Repeated sweeps through western Iraq by the U.S. military, along with Iraqi forces, have failed to locate Zarqawi. In one case, it appears he may have come close to being captured but escaped.

The Pentagon says that they, though, are rolling up his lieutenants, and they claim his network is shrinking. Still, he's shown on repeated occasions that he can launch and claim responsibility for massive attacks. And he is the logical suspect, given his claim of responsibility, his responsibility for everything from brutal beheadings in Iraq to suicide attacks, and his stated desire to launch attacks outside Iraq, not to mention his arrest in 1992 in Jordan for trying to -- being behind a plot to overthrow the government there.

Lou.

DOBBS: Jamie, the fact is, with the focus now on prewar intelligence, a number of other issues on Capitol Hill, one of the greatest failures, obviously, of American intelligence is the failure to find Osama bin Laden and al-Zarqawi. Why is it that U.S. intelligence four years after 9/11 have no better idea where al- Zarqawi is than they apparently do?

MCINTYRE: Well, they claim to have an idea where he is. They also claim to have an idea where bin Laden is. But just tracking and finding a single person, particularly when they're receiving help from sympathizers on the ground in the areas, it's just an extremely difficult job.

DOBBS: Right.

MCINTYRE: They believe they've been close several times with Zarqawi, but they have not been able to get him. They also concede, by the way, that if and when they get Zarqawi, that is not going to shut down his network. His followers will continue on.

DOBBS: One wonders if that is simply a brand of rationalization for a failure to carry out a very important mission on the part of U.S. intelligence.

Jamie McIntyre from the Pentagon. Thank you.

The three hotels attacked today well-known American brands. The Grand Hyatt, of course, is owned and operated by an American firm. The SAS Radisson is owned by a Scandinavian airline system based in Stockholm, Sweden. And the Days Inn in Amman is a franchise that is independently owned and operated by Jordanian businessmen.

We go now to Hala Gorani in Amman, where the casualty list seemingly rising by the hour. Hala, give us the latest on the number of dead and wounded, if you will, Hala.

HALA GORANI, CNN CORRESPONDENT: Well, right now what we're hearing is at least 53 and up to 67. The Jordanian deputy prime minister, Marwan Muasher, initially came out with 53. Sixty-seven right now seems to be the latest toll.

Of course this is a toll that has been steadily climbing. It's a real scene of carnage here in those three hotels that you mentioned, the Radisson, where the bomb apparently went off at a wedding party. There was also a bomb that went off, and authorities are saying a suicide bomber, at the Grand Hyatt, and also at the Days Inn.

What's going on now in Amman is that around these key targets, these key targets associated with the West, these hotels, military and security and police are cordoning off whole areas. They have fanned out across the city, protecting key buildings such as government buildings as well, as they are fearful of further attacks.

Lou.

DOBBS: Hala, there is no secret service intelligence agency more respected than the Jordanian intelligence agency, and its military intelligence. What is -- how did these terrorists manage to succeed in destroying these -- getting to these targets?

GORANI: I can't answer how they managed to plan it. I can tell you how they might have managed to execute it.

There is not only a low level of security in some of these hotels, there is nonexistent security. In the hotel we were staying in, there wasn't even a metal detector. So, if the scenario is an individual strapped with some sort of explosive device on his body wanted to wander into one of these hotels and set off a backpack or some sort of device, it would have been rather easy to execute that plan.

Lou.

DOBBS: Hala, I do not recall a worse terrorist incident in Jordan. You can think of one?

GORANI: I can't think of one. All I can remember is that last year Jordanian officials, you might remember, said they were able to foil a massive car bomb attack that was planned.

And as I'm talking to you right now, I'm seeing police cars and security vehicles rush toward our live position. I'm not exactly sure what's going on. But as that is going on, I'm just going to continue talking to you.

DOBBS: Sure.

GORANI: Why Jordan, is the question some people are asking. And the answer, according to analysts and many people we've spoken to, is that Jordan is perceived as an ally of the United States and perceived as a country that has facilitated or helped in facilitating America's effort to wage war in Iraq. So that is one of the reasons why perhaps Jordan was a target, if you're a terrorist and you have a problem with America's foreign policy.

I'm afraid I'm going to have to let you go now, because there is some activity here, and we're not exactly sure what -- or maybe not, maybe not. Let's take a -- let's take a -- what's going on? What's going on here? What's going on?

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

DOBBS: Hala Gorani, what is -- what are they saying?

GORANI: OK. Come back to me.

What we're seeing now is a demonstration supporting (ph) the king. We're not exactly sure who organized it. What they're saying is, "With my soul and with my blood, we are supporting the king," is what they're saying. So this is apparently a demonstration that was formed after these attacks that, as you can imagine, whoever perpetrated them are destined to weaken and embarrass King Abdullah.

Lou.

DOBBS: Hala Gorani from Amman. Thank you very much.

The White House tonight says President Bush is closely following these latest developments in Jordan. No word yet on whether the president has spoken with King Abdullah.

Dana Bash reports now from the White House. Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Lou, the president has not yet spoken with King Abdullah, of course one of his closest allies in that region, especially when it comes to the policy in Iraq and when it comes to the Mid East peace process. But the president earlier today was informed, and he has been getting updates from his staff. He actually has been in the White House residence in several meetings, including with members of Congress.

Now, about an hour ago, the White House press secretary did issue a formal statement expressing condolences to the king and to the people of Jordan, and the statement reads in part, "The president condemns in the strongest possible terms the vicious terror attacks against innocent civilians in Amman, Jordan." And it goes on to say, "Jordan is a close friend of the United States, and we will offer every possible form of cooperation in investigating these attacks and assisting in efforts to bring these terrorists to justice."

Now, White House officials have been in touch with U.S. officials on the ground, at the embassy and elsewhere in and around Jordan, trying to ascertain the facts as they become available.

Now, in terms of who is responsible, of course no official word on that yet. But as you heard from Jamie McIntyre, and also as we're hearing from our own David Ensor, officials here say that what you're seeing is the triangulation, the coordination, the hallmark of al Qaeda, an al Qaeda attack. All signs, they say here, are pointing to Abu Musab al-Zarqawi, the Jordanian-born al Qaeda leader in Iraq. But they are cautioning here that it's too early to say that with any certainty.

Lou.

DOBBS: And Dana, if you will, the White House position in terms of there have been the late, dismissive of Osama bin Laden because of the failure of this country to find him over the course of what is approaching four and a half years. Al-Zarqawi remains high on their list of interest, if not wanted dead or alive?

BASH: Oh, absolutely. And no question. You know, he's -- he's the guy to get dead or alive, although the president has not used those words.

But in terms of Osama bin Laden, interestingly, in recent speeches, Lou, you'll recall the president has been talking about Osama bin Laden in a way that he hadn't over the past couple of years in linking, trying to link al Qaeda to Iraq, to the terrorist attacks that we have seen in Iraq. Linking Osama bin Laden and Abu Musab al- Zarqawi.

So that is something certainly that the White House has been playing up, talking up, if you will, as they have tried to explain what is going on in terms of the terrorist attacks in Iraq, and also trying to get U.S., the U.S. officials -- U.S. citizens, I should say, to have more patience in the mission in Iraq.

Lou.

DOBBS: Dana Bash. Thank you very much. Dana Bash reporting from the White House.

Joining me now with more on this developing story, two of the country's leading authorities on terrorism, former New York City police commissioner Bernard Kerik, and former FBI assistant director, Pat D'Amuro. Good to have you with us.

Pat, let me turn to you first. This strike against Amman, these three American brands, although only one of them can be directly tied to American interests, what's going on?

PAT D'AMURO, FMR. FBI ASSISTANT DIRECTOR: Well, you can go back to the millennium. In 1999, I deployed with some FBI agents and CIA agents over to Amman because they took down a crew that had a large cache of explosive material. Zarqawi's name actually came up in that investigation.

DOBBS: Bernie, Zarqawi, his name continues to surface, a leading figure in the insurgency within Iraq, now being credited or blamed for these attacks. Why can't this country find him?

BERNARD KERIK, FMR. NEW YORK CITY POLICE COMMISSIONER: Well, he's running around Iraq, for the most part, I'd say. This is probably definitely him. It has the hallmarks of his attacks, simultaneous attacks. The wedding thing, where they had one of the suicide bombers walk into the wedding chapel, this is something they're doing in Iraq on a daily basis.

He's a difficult guy to find, you know, because he's constantly on the move. But eventually over time they'll get him.

DOBBS: Eventually over time.

Pat, as you and Bernie and I have talked a number of times, the American people are spending a lot of money. The American people and our men and women in uniform are spending great blood. The idea that this country, a superpower, cannot muster an intelligence service with a potency to find these noted terrorists, that's disturbing and frustrating to everyone, and yet there does not seem to be great urgency on the part of the agencies charged with finding him.

D'AMURO: Well, Lou, there is. And they're working with a vast array of intelligence services. It's not just the United States intelligence services trying to locate Zarqawi. He's one of the most wanted men in the world right now.

DOBBS: OK. Pat D'Amuro and Bernie Kerik, gentlemen, if you will stay with us, we've got a lot more to discuss on this developing story. And we'll have much more on today's attacks against Americans and American interests in Jordan as well.

New details tonight in Able Danger. Congressman Curt Weldon will be here to tell you why he's calling this the most important investigation of our lifetime.

And then Election Day 2005, a bitter disappointment for Republicans. Is there, though, joy in the land of the Democrats?

And executives from the world's largest oil companies today grilled on Capitol Hill. But does today's hearing mean anything for you, the consumer? We'll find out in a special report coming right up.

(COMMERCIAL BREAK)

DOBBS: Al Qaeda has an extensive network of terrorists and supporters in Jordan, and, of course, throughout the Middle East. Officials now say al Qaeda's leader in Iraq, Abu Musab al-Zarqawi, helped organize today's suicide bombings in Amman.

David Ensor has the report. David?

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Well, Lou, it's early days yet, and the Jordanians have a lot of checking to do. But as you mentioned, already U.S. officials are saying at the top of their suspect list, at least, is Abu Musab al-Zarqawi for several reasons.

First, the method. Suicide bombing, done very much in the same sort of way as has been done so successfully by his group in Iraq in recent years.

Secondly, the history. This is a country -- it's his home country. He's attacked it before. He killed an American diplomat, Lawrence Foley, in 2002. Three months ago, there was an attack against an American warship in the port of Aqaba. Two people were killed in that. And that was attributed to Zarqawi's group.

Thirdly, in April of 2004, there was an attempt -- it failed, but an attempt against Jordanian intelligence, and that again was attributed to Zarqawi.

So there's the history.

Now there's the stated intent as well, Lou. These are the words of Zarqawi in April 2004: "We will have more fierce confrontations with the Jordanian government. The chapters of some of these confrontations have ended, but what is coming is more vicious and bitter, god willing."

And finally, there's the very bloody nature of attacking a wedding in Jordan. Mr. Zarqawi has been criticized even by the deputy leader of al Qaeda, Mr. Zawarhiri, in a letter that U.S. intelligence captured and says they believe is authentic. Zawahiri warning Zarqawi that if you keep attacking ordinary people, if you attack things like weddings, for example, you're going to lose the battle for hearts and minds in the Muslim world. But that's what they went ahead and did on this attack.

So suspicion high on Zarqawi, but it's early days yet.

Lou.

DOBBS: David Ensor. Thank you very much.

Still ahead here, we'll continue to be bringing you the latest on the terrorist attacks in Jordan.

And Election Day didn't bring good news for Republicans. What direction should the GOP go from here? Where are Democrats headed? I'll be talking with two of the country's leading political strategists next.

And then Able Danger. Why Congressman Curt Weldon says everyone in this nation should be paying attention. He'll be our guest here next.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: The FBI tonight is already preparing to send a team of its investigators Amman to help Jordanian investigators after the suicide bomb attacks.

Kelli Arena with the report. Kelli?

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Lou, right now, FBI Director Robert Mueller is getting very regular updates from the FBI's legal attache office in Amman and from other intelligence officials. The team has not been deployed, and that's because the FBI can only send a team if the Jordanian government officially asks for help in this investigation. Even though the attacks did involve U.S. interests, obviously Jordan is a sovereign nation. And agents do not have permission and have no authority, no jurisdiction to work on Jordanian soil, Lou.

So the full expectation is that this team will be sent. The FBI has an excellent working relationship with the Jordanian's law enforcement counterterrorism, but they haven't gone yet.

DOBBS: Thank you very much. Kelli Arena.

I'm joined now by a CNN producer who was at one of the hotels targeted by the suicide bombers in Amman, the Grand Hyatt, shortly after those attacks. Joining me now on the phone, Kristen Gillespie. Kristen, tell us what you saw.

KRISTEN GILLESPIE, CNN PRODUCER: Well, I got to the scene a few minutes after the explosion. There were ambulances, an abnormal amount of ambulance activity. We ran to the scene. And emergency services were removing injured and dead bodies from the lobby of the Grand Hyatt hotel.

DOBBS: Kristen, as we were speaking with our correspondent and colleague, Hala Gorani, sirens, a lot of emergency vehicle traffic in the background. Do we yet know what was happening?

GILLESPIE: What we're piecing together right now is that three suicide bombers attacked three different hotels in downtown Amman. Two of them, the Hyatt and the Radisson, were five-star hotels within about a quarter mile of each other. The other, the Days Inn, was in a different part of town.

The Radisson and the Hyatt bombings were within minutes of each other. They went off within minutes of each other. And what's being said is that they were suicide bombers.

Now, they weren't necessarily driving a vehicle. It appears that they detonated themselves.

DOBBS: Kristen Gillespie, thank you very much, from Amman.

Just ahead here tonight, our continuing coverage on the very latest on these hotel bombings in Jordan. We're live in Amman with the very latest for you.

And five top oil company CEOs feeling the heat on Capitol Hill. Will it make a difference in what you pay at the pump? We'll have a live report.

And another big battle shaping up on Capitol Hill. It is called Able Danger, and Congressman Curt Weldon says it could be bigger than Watergate. He's our guest here next.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Authorities in Jordan tonight are saying at least 67 people were killed in today's horrific hotel attacks in Amman, more than 150 people were wounded in those attacks.

We're returning now to Hala Gorani in Amman, who has the very latest for us. Hala?

GORANI: Lou, what we're hearing is at least 67 people dead. That is the official number so far. We're not able to confirm a higher death toll. But as we've mentioned throughout the hour, the death toll has steadily climbed as these three hotels so closely associated with Western targets, the Grand Hyatt, the Days Inn, as well as the Radisson hotel, apparently were the targets of suicide bombers who exploded themselves inside the building.

From the outside, you don't see much damage. But when you see the pictures inside, especially from the Radisson, where apparently the bomb went off during a wedding celebration, that's when you realize just how brutal the impact of these explosions were and the carnage that they left behind.

Now, what's happening in Amman is that the military has fanned out, it has positioned itself, and is protecting key targets, fearful of further attacks, as well as government buildings now being protected.

Lou.

DOBBS: In terms of the police presence and the military presence there, give us a sense of how -- how large and as to whether or not it is growing in these late -- in these early morning hours in Jordan.

GORANI: Well, it's now 1:25 a.m. here in Amman, Jordan. And when you drive through the streets, you either have these spontaneous demonstrations of support for the king, which we saw a few minutes ago, or an eerie silence, as many of the residents of Amman have either gone home because it is quite late here, or are at home watching the developments on their television stations.

And what you see in front of these hotels are military personnel stationed, very visible, acting as a deterrent to any further attacks. But it seems, and we can presume, that three and a half hours after the first explosion went off, it seems that these near-simultaneous explosions were planned for a few hours ago and that none have gone off since, and that we're not expecting reasonably any more to go off in the next few hours -- Lou.

DOBBS: We realize, Hala, that you have been reporting on these developments as they occurred over these last several hours. But is there any word whatsoever from Jordanian authorities as to whether or not there was any inkling, any suspicion that there were targets of interest for the al Qaeda, and that there would be any likelihood of an attempt like this?

GORANI: We certainly didn't notice it in the hotels and in the streets. In other Middle Eastern countries, you often see hotels setting up metal detectors, and that kind of thing, or you'll see a heavy military presence in front of a hotel door entrance where there are fears that perhaps militants or terrorists might attack.

In this case, in Amman, it certainly didn't appear as though officials or security agencies here were anticipating anything. So -- and it was quite surprising, the very low level of security in these hotels that in other Arab countries -- I mean, countries around the world -- have been the targets of terrorists.

DOBBS: Hala, thank you.

Just to restate, 67 people -- at least 67 people killed in today's attacks in Amman, 150 at least wounded. And we will continue to bring developments as they warrant from Amman.

Joining me now, two of the country's leading authorities on terrorism, former New York City Police Commissioner Bernard Kerik, former FBI Assistant Director Pat D'Amuro.

Let me turn to you, if I may. I understand you're going to be on your way back to Jordan soon, Bernie.

KERIK: Be back next week.

DOBBS: And Jordan has been spared large-scale terrorism so far in this global war on terror. What is the significance of these attacks, in your judgment, today?

KERIK: Somebody got through the cracks. They've been skilled because they foiled numerous attacks, numerous events not only in Amman, Jordan, but in Iraq, in some of the other Arab region countries and outside of that region. They have phenomenal intelligence, phenomenal investigative capabilities and they have a great working relationship with our FBI and CIA.

So basically somebody got through the cracks, and they'll pay for it. I promise you, they will find who's responsible.

DOBBS: That is a refreshing statement to hear that they will find who is responsible. It is not one, Pat D'Amuro, that we hear often in relationship to terrorists who succeed in carrying out an attack, whether an explosive, an IED on the roadside, or a suicide bomb attack.

Is it -- what is it about the Jordanians that make them so effective?

D'AMURO: Well, they've been living in a world of terrorism for many, many years now, and they are entrenched with human sources, with technical capabilities of collecting all types of intelligence. And they are one of the world's leading intelligence organizations.

DOBBS: And when I hear both and you Bernie talk about the quality of Jordanian intelligence, both on the part of across all of their agencies, especially their military, I think -- as Kelli Arena was reporting earlier, that we're preparing to send investigators to help the Jordanians -- that perhaps if they're that effective, we should be sending FBI agents there for training. Do we do that?

D'AMURO: Well, the FBI does train with international organizations, other law enforcement agencies, other intelligence organizations. And we've worked very closely with the Jordanian intelligence service over the years.

But, again, here's a situation where you have an outstanding intelligence service and you still had attacks take place. Intelligence services will not be right 100 percent of the time.

DOBBS: As has been unfortunately, tragically demonstrated over the course of the past just about four and a half years.

What do we at this point take from this attack by al-Zarqawi, if indeed he is responsible? Because one of the things that strikes me, gentlemen, is al-Zarqawi is blamed for just about every -- or credited with every success in Iraq on the part of the insurgency, blamed here, blamed across a wide area.

Now, I -- in one instance my reaction is that's very good intelligence to know that he's behind it. The second suggests -- the second impulse suggests to me, frankly, that if he is blamed for all of this, perhaps that's all we know and that, that is a warning sign for our intelligence agencies.

What do you think, Bernie?

KERIK: Well, I think for the most part he's the instigator. To minimize it, he's the instigator.

You know, if you took Zarqawi out of the picture, if you took bin Laden out of the picture, there's going to be more that step up to the plate. They're out there. So it's the ideology that we have to fight, it's the mentality we have to fight. Zarqawi is an issue, bin Laden is an issue, al Qaeda is an issue. But it's really to the mentality and the ideology that we have to combat and we have to combat it from its root.

DOBBS: And where are we in that fight, Pat?

D'AMURO: Well, as Bernie said, it doesn't stop with one or two individuals.

When you look at where Zarqawi comes from, Zarqa, the area of Jordan, there have been individuals that have gone from Zarqa into Iraq to fight jihad in Iraq and learn different training methods possibly with Zarqawi. That's why our intelligence tells us that he may be involved in this.

It's a battle that's going to continue for years to come.

DOBBS: Pat D'Amuro, Bernie Kerik, gentlemen, thank you very much. Appreciate it.

KERIK: Thanks, Lou.

DOBBS: As Amman was rocked by today's bombings, there was a new warning about possible terrorist attacks against hotels used by Americans in Asia. The American Embassy in Beijing issued the warning to American citizens in China. Chinese police say radical Islamist terrorists may strike luxury hotels in China over the next week. President Bush is scheduled to visit China on the 19th of November.

In London, British Prime Minister Tony Blair today lost a key Parliament vote on his government's plans to detain terror suspects for 90 days without charge. This, Blair's first defeat in Parliament since he became prime minister eight years ago.

Meanwhile, police in Australia today launched new raids in their hunt for more radical Islamist terrorists. In Sydney, prosecutors charged a seventeenth suspect with planning attacks. That suspect wounded in a gunfight with police as he was arrested.

A surprising reversal on Capitol Hill today one day after congressional Republicans launched an investigation into just who leaked classified information about secret CIA prisons overseas. Today, the chairman of the Senate Intelligence Committee, Senator Pat Roberts declared the investigation will not proceed after all. Senator Roberts said Republican leaders made that decision because the Justice Department is conducting its own investigation into the case.

We'd like to know what you think about our elected officials' ability to investigate intelligence failures. Do you believe Congress can investigate the leak of sensitive intelligence without leaking sensitive intelligence? Yes or no? Cast your vote at LOUDOBBS.com. We'll have the results later here.

The "New York Times" today announced that Pulitzer Prize-winning reporter Judith Miller has left the newspaper. As we reported here extensively, Miller spent 85 days in jail over the summer for refusing to testify about her conversations with a source whose confidentiality she pledged to protect. That source turned out to be Scooter Libby.

After Miller's release from jail, she was publicly criticized by the "Times" for her actions in the leak case and other reporting. The newspaper said it is grateful for Miller's significant personal sacrifice to defend an important journalistic principle, as are we.

Executives from the world's top five oil companies today testified before Congress about the obscene profits they're making while average consumers struggle to pay their energy bills. Senators today said they were reluctant to impose windfall taxes on oil companies that would ease the burden of cash-strapped Americans. These are the very same senators that have been awarding billions of dollars in tax breaks and subsidies to these global oil giants.

Lisa Sylvester has the story.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Numbers tell the story.

Oil companies' summer profits, $33 billion. Average oil company CEO salary, $8 million. The average price of gasoline a family had to pay at the pump, a record $3.07 a gallon.

The industry has not exactly been hurting, yet Congress gave oil and gas companies $6 billion in tax breaks and subsidies.

TYSON SLOCUM, PUBLIC CITIZEN: That's outrageous at a time when oil companies are enjoying record profits, the president of the United States signed an energy bill on August 8 that gives those same price- gouging oil companies huge new tax breaks. That's not energy policy; that's political payback.

SYLVESTER: Tucked in the 2005 energy bill, $2.5 billion in tax breaks and subsidies for oil exploration and deep water drilling, $1 billion for accelerated depreciation for owners of natural gas pipelines, a $400 million tax break to oil refinery owners, and $1 billion in royalty relief subsidies. The oil and gas industry says the breaks are necessary because a lot of up-front investment is needed, and ExxonMobil's president argues the profits are justified.

LEE RAYMOND, CEO, EXXONMOBIL CORPORATION: The petroleum industry's earnings are at historic highs today. But when you look at our earnings per dollar of revenue, a true apples to apples comparison, we are in line with the average of all U.S. industry.

SYLVESTER: But lawmakers want to know how oil companies that have been crying for help could turn around and have a 75 percent profit increase.

SEN. RON WYDEN (D), OREGON: Why shouldn't Congress take back the billions of dollars in brand new tax breaks, breaks that you just told me aren't needed, and use that money to help people that are hurting in our country?

SYLVESTER: Oil companies are still lobbying for more -- opening the Alaskan Wildlife Refuge to drilling, relaxing rules for refinery construction and dodging any new taxes.

(END VIDEOTAPE)

SYLVESTER: How is it that the industry was able to get Congress to pass such a lucrative energy bill in the first place? Well, there's another number that might explain it -- $54 million. That's the amount of money the oil and gas industry has given in campaign contributions since 2001.

Lou.

DOBBS: Although we would never suggest that there is any correlation between contributions and policy, would we?

SYLVESTER: Absolutely not, Lou.

DOBBS: But we are fascinated by coincidences, wherever we find them. Lisa Sylvester, thank you very much.

Just ahead here, Able Danger. Congressman Curt Weldon has some startling new information about which he says a cover-up of massive proportions is lurking. He's our guest.

And then, why Arnold Schwarzenegger's bitter disappointment should have Democrats jumping for joy. Are they? Two leading political strategists are my guests next.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: New charges tonight -- charges of a massive cover-up by members of our defense intelligence community. Congressman Curt Weldon today called for a criminal investigation into what he says is the most important story of our lifetime. Weldon says the Army's intelligence unit known as Able Danger, identified the ringleaders of the 9/11 attacks more than a year before September 11, but those warnings were ignored by the Pentagon.

Weldon says the Defense Intelligence Agency is now trying to smear the reputation of Able Danger member Lieutenant Colonel Anthony Shaffer, for speaking out about the scandal.

In addition to identifying the ringleaders of the 9/11 attacks, Congressman Weldon says Able Danger warned Defense officials about terrorist activity in the Port of Aden in Yemen, two weeks before that bombing of the U.S. the bombs of the U.S.S. Cole in 2000.

He also blasted the 9/11 Commission, calling them a disappointment and a failure for not including that information about Able Danger in its final report.

I talked with 9/11 Commission member and former Senator Slade Gorton three weeks ago. And I asked him why Able Danger was omitted from the commission's report.

(BEGIN VIDEO CLIP)

SLADE GORTON, FORMER 9/11 COMMISSIONER: Well, Able Danger worked out very interesting. It didn't identify Mohammed Atta a year beforehand. Unfortunately, no one identified Mohammed Atta beforehand. Able Danger was simply irrelevant to our report and still is.

(END VIDEO CLIP)

DOBBS: Congressman Weldon now joining me from Washington, in an exclusive interview. Congressman, it is good to see you. Simply irrelevant how Slade Gorton describes Able Danger. What's your reaction?

REP. CURT WELDON (R-PA), ARMED SERVICES COMMITTEE: Unbelievable. Slade Gorton has never talked to any principle involved with Able Danger. And how he can go off and profess to know something about something that he's never talked to anyone about, is beyond me.

Slade Gorton is into what the 9/11 Commission is doing, Lou. It's called C-Y-A -- cover their butts, pretend it didn't happen.

How can you say something is historically insignificant that Louis Freeh just two weeks ago on national TV said Able Danger information was the kind of intelligence that could have prevented the hijackings? That's Louis Freeh saying that two weeks ago.

Able Danger was briefed to the chairman of the Joint Chiefs of Staff in January of 2001. How could you call that historically insignificant?

Lou, this is a cover-up. It's not a third-rate political burglary. It's a cover-up of information on the largest attack in the history of the country. DOBBS: Congressman, you are calling for a criminal investigation. Obviously, you're not going to receive a great deal of cooperation from the leadership, the Republican leadership in the House or the Senate. You're a Republican. What kind of reaction are you getting as you go one on one with your fellow Congressman?

WELDON: Lou, the members of Congress want the facts to come out, both parties. I did a briefing this afternoon for members of Congress. We had dozens of their members and their staff show up. And just within two hours Lou, today, I got 100 signatures -- 100 signatures from Republicans and Democrats across the country. Liberals and conservatives to Secretary Rumsfeld demanding that we allow these Able Danger military officers to testify in an open hearing.

The American people need to know the facts. They need to know the truth. Three thousand people were killed, 17 sailors were killed in the U.S.S Cole. The 9/11 Commission did not do its job. It's time to get the facts out to the American people.

DOBBS: Let me quote Secretary of Defense Donald Rumsfeld, Congressman. When asked about Able Danger, Donald Rumsfeld said -- quote -- "it's such an interesting story. Of course, it's something that occurred well before this administration came in. Back in the '90s, as I understand it, and it's an interesting story".

What's your response?

WELDON: Well, Donald Rumsfeld would not have been given the detailed information about Able Danger because it ended at the end of 2000, before he came into office.

However, Lou, we have to understand, there were people within the Pentagon who stayed in place from the 1999/2000 period into 2001. In fact, they're still there today. They have a vested interest in not having the story be told because some of them are going to be embarrassed because the American people will see we failed them in 1999 and 2000.

We failed them in 2001. We had information we should have acted upon. It was denied from being transferred to the FBI, and as Louis Freeh said just two weeks ago, could have allowed us to stop the hijackings from having ever occurred.

DOBBS: Louis Freeh, the former FBI director. At this point, Congressman, where does the investigation go from here? The people that are most critical to establishing what the unit, Able Danger knew, and was capable of disseminating relevant to 9/11, have been gagged by the Pentagon and cannot speak. What do you do now?

WELDON: Well, we have a DOD, inspector general investigation that actually commenced today. I met for an hour and a half with four of their top leaders. They were requested by three separate members of Congress, one senator and two House members. They have commenced an internal investigation of the Defense Intelligence Agency.

In addition to that, I talked to the head of the General Accounting Office and I have asked him to look at a criminal investigation of what happened, and a deliberate attempt to cover-up information.

The person who debriefed Scott Philpott, Lou, was a guy named Dieter Snell. Dieter Snell worked for Jamie Gorelick. We have to know whether or not there was a deliberate attempt by Dieter Snell not to have the 9/11 Commission members know the full details of what Able Danger was doing. I can't answer that question. An investigation needs to take place.

DOBBS: And Scott Philpott, of course, one of those who has been gagged by the Pentagon in this case. Congressman Curt Weldon, we thank you very much.

WELDON: My pleasure, Lou.

DOBBS: When we continue here, we'll have the very latest for you on the terrorist attacks in Jordan.

And then, why the results of Election Day 2005 have left President Bush and the Republican Party with a difficult challenge.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: This just in to CNN, a federal grand jury has indicted two Southern California men -- indicted them on charges of conspiring to smuggle surface-to-air missiles into the United States. This is the first time a grand jury has used a new anti-terror statute to indict terror suspects.

The two men are suspected of trying to smuggle into this country shoulder-fired surface-to-air missiles designed to shoot down aircraft. They were arrested by FBI agents in an undercover sting known as Operation Smoking Dragon. Stay with us here as we get more developments on this breaking story.

Now the latest on the deadly suicide bomb attacks against three international hotels in the Jordanian capital of Amman. Jordanian officials say 67 people were killed, more than 150 wounded. Suicide bombers targeted the Grand Hyatt, the SAS Radisson and the Days Inn hotels. All three hotels are popular with Americans, Israelis, Europeans. And there are no reports of any U.S. casualties. Most of the victims, we are told are Jordanian.

Turning now to American politics and the Republicans' dismal showing during this year's elections -- off-year elections. California Governor Arnold Schwarzenegger tonight is pledging to find common ground with his opponents after his entire platform of state government initiatives was defeated. Voters rejected all four of his ballot initiatives.

Detroit Mayor Kwame Kilpatrick is a big winner. He came from behind to beat fellow Democrat Freman Hendricks despite a scandal- plagued first term. New York City Mayor Mike Bloomberg won a second term decisively, trouncing Democratic opponent Fernando Ferrer by a record 20 percent.

And other Republicans, big losers in yesterday's vote. Democratic U.S. Senator Jon Corzine beat Republican opponent Doug Forrester to become the next governor of the state of New Jersey.

In Virginia, Democrat Lieutenant Governor Tim Kaine soundly defeated Republican Jerry Kilgore, the recipient of a last-minute campaign push from President Bush.

An important footnote in this year's elections, billionaire candidates Forrester, Corzine and Bloomberg together spent, are you ready for this? A total of $135 million of their own money in their election bids this year. That's really putting your money where your mouth is.

Republican election defeats are being interpreted by some as a referendum on the Bush presidency. Democrats smell blood. They say they have a shot at taking Congress back in 2006.

Here now, former Reagan White House political director Ed Rollins, CNN political contributor Paul Begala, and closely associated to every success of the Clinton administration.

PAUL BEGALA, CNN POLITICAL ANALYST: And some of the failures as well.

DOBBS: I knew your modesty wouldn't compel you to acknowledge that. I don't know whether this is a referendum on President Bush or not. But whatever it is, Republicans look really bad.

ED ROLLINS, FRM. REAGAN WHITE HOUSE POLITICAL DIRECTOR: It's more bad news. We've had the six or seven week run of bad luck or whatever, or ineptitude, and his numbers are dropping. And I think this just continues that interpretation that they don't know what they're doing, and that's maybe not fair, but at the end of the day, it's the interpretation.

Republicans I think are dismayed today. And the critical thing is this a wake-up call? Are they going to go back and get prepared for elections and do something with the Congress? Or are they going to basically sit there and, you know, wait for the president's numbers to come back up which they don't control.

DOBBS: Your interpretation, Paul?

BEGALA: I think that's right. First, I have a fond spot in my heart for Ed, because the New Jersey governor's race is where he beat me like a bad piece of meat when he was working for Christie Whitman and I was working for Jim Florio.

DOBBS: Reunited once again.

BEGALA: Yeah.

DOBBS: We aim to please.

BEGALA: But this is a happier day for Democrats in New Jersey. But that's a little less interesting because it's such a Democratic state.

In Virginia, which President Bush won just a year ago by eight points, the Democrat trounces the Republican who followed the Bush playbook exactly. He campaigned with President Bush right before the election. He campaigned on an anti-tax, pro-death penalty campaign accusing his opponent of lacking in moral values. And he got crushed. So, there is something wrong now with the brand, the brand Bush.

The most interesting thing about the Democrats is the Democrat who lost. Randy Kelly, the mayor of St. Paul was beaten. No mayor in St. Paul had been beaten in 30 years. He was beaten on one issue only, he had endorsed President Bush for president. He got beat 70- 30. So, that's tough on Bush. He's damaged goods right now.

DOBBS: Howard Dean, the Democratic chairman said I believe national Republican politics really had an effect in Virginia and California. Voters don't like the abuse of power. They don't like the culture of corruption. They want the nation to go in a different way. Is that what we saw yesterday, Ed?

ROLLINS: No. You didn't see that. What you saw in California may be a governor who misunderstood his enemies and managed to put four referendums to unify them all in one of the most expensive campaigns ever. If you want to reorganize a state, you pick one issue. But he managed to have teachers and nurses and cops and correctional officers and everybody else in the world against him.

I think the Virginia race was the bellwether. It was the chance we really had an opportunity to win there. It wasn't a very good campaign on our part at the end of the day. But the critical thing here is there is a year, the president has to understand -- or the Congress has to understand that they got to get successes.

DOBBS: Yet the Republican Party is saying -- acknowledging right now, they're having trouble finding candidates to run for seats in Congress. So that raises even new issues. Paul, sum it up for us. Howard Dean, has he got it figured out?

BEGALA: He's about half right, candidly. I think Ed is right with California. It had nothing to do with President Bush. But the rest of these elections did, particularly in Virginia.

The question is, is this avian flu, where one guy dies a long way away, or is this a pandemic that goes across Republicans next year?

DOBBS: Of all the metaphors you could have used, Paul. Somehow apt in politics, I think, from time to time.

Paul Begala, Ed Rollins, thank you.

Still ahead, the results of our poll tonight. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Our poll results. Sixty percent of you say Congress cannot investigate the leak of sensitive intelligence without leaking sensitive intelligence.

Thanks for being with us tonight. Please join us here tomorrow. Good night from New York. THE SITUATION ROOM starts right now. Wolf Blitzer, take it away.

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