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The Situation Room

Democrats Gear Up for Next Week's State of the Union Address; First Votes in on Samuel Alito; New Era for Canadian Politics

Aired January 24, 2006 - 16:00   ET

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


WOLF BLITZER, CNN ANCHOR: Thanks very much, Susan. And to our viewers, you're in THE SITUATION ROOM, where new pictures and information from around the world are arriving all the time.
Happening now, the State of the Union countdown and smackdown. It's 4:00 p.m. here in Washington, a week before the president's big speech. Democrats are trying to hit him early and often. One area of attack, Hurricane Katrina. Senators are blasting the administration for not acting at advanced warnings of massive flooding and death. We'll hear the criticism, we'll get the White House response.

And the first votes are in on Judge Samuel Alito. His Supreme Court nomination now is headed to the full Senate. This hour, how many Democrats took a stand against Alito, but will it matter in the end? I'm Wolf Blitzer, you're in THE SITUATION ROOM.

Up first this hour, the president is working up to one of his biggest speeches of the year, one week from today, and Democrats are trying to sharpen their criticism and trying to steal his thunder. Top senators are lashing out as Mr. Bush today over ethics and over Hurricane Katrina. They have some new ammunition after learning the administration got an early warning of how devastating the storm could be. Our White House correspondent Suzanne Malveaux standing by.

Let's go to the congressional correspondent Ed Henry first. Ed?

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Wolf, in recent years Democrats have done one big prebuttal to the State of the Union, usually a day or two before the big speech. But this time they've decided to go on the attack repeatedly on Thursday.

We're going to see Democrats Dick Durbin and Nancy Pelosi tee off on the president on the National Press Club. Today we saw Democrat governors coming to Washington and go on the attack already. And also today, Senate Democratic leader Harry Reid really decided to come out swinging, specifically jumping on this controversy about the White House refusing to release photos of the president with now disgraced lobbyist Jack Abramoff. Republicans insist these are standard grip- and-grin photos you can see with almost any politician and a campaign contributor, but that did not Reid, who went full speed ahead.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D-NV), MINORITY LEADER: In his 2000 campaign, George Bush promised to bring dignity to the White House. Well we've since found than he brought Jack Abramoff instead. President Bush needs to quit stonewalling about his White House connection to corruption and finally tell us how he's going to reform Washington. Honest leadership is not a partisan goal, it's the key to a stronger union.

(END VIDEO CLIP)

HENRY: This is a clear sign that this Democrat line about a so- called culture or corruption mostly aimed so far at Republican congressional leaders, is now expanding. They clearly have the White House in their sights as well, Wolf.

BLITZER: All right, Ed, stick around. I'm going to get back to you shortly on another story we're following. The president is getting heat today from members of both parties at the latest Senate hearing on the response on Hurricane Katrina.

The main focus today, the results of a hurricane preparedness exercise delivered to the Bush administration the day before Katrina hit. It warned a Category 3 storm would flood New Orleans and kill up to 60,000 people.

Senator Joe Lieberman says in light of that report, the administration was shockingly unprepared to deal with Katrina and the frequent Democratic ally of the president is now accusing the White House of blocking the investigation into what went wrong.

(BEGIN VIDEO CLIP)

SEN. JOE LIEBERMAN (D), CONNECTICUT: Problems begin at the White House, where there has been a near total lack of cooperation that has made it impossible, in my opinion, for us to do the thorough investigation we have a responsibility to do.

(END VIDEO CLIP)

BLITZER: Strong words from Joe Lieberman. Let's go to the White House for a reaction to these latest criticisms. Our correspondent Suzanne Malveaux is on the North Lawn. Suzanne, what are they saying?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Wolf, a lot of that criticism, of course, coming from the Homeland Security Department. An e-mail they sent to THE SITUATION ROOM just hours before the Hurricane Katrina made landfall essentially saying that the levees would break, the worst possible case scenario here.

And then President Bush's comments that he made in a televised interview just a couple day after it hit, saying they no idea that the levees would break. Today the White House is emphasizing the president clarified those comments just a couple weeks afterwards saying of course they had advance warning about this but they thought that since the storm had passed, perhaps they had dodged a bullet.

The White House also brought up the point that it was 36-to-24 hours before the hurricane made landfall, the president was warning residents to leave. He was also, of course, issuing declarations of emergency to offer assistance. Having said that, however, they are not giving details about where that specific memo went. What they are saying is that they've done their own internal investigation that is going to wrap up soon.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: All levels of government dropped the ball to an extent. The federal, state and local. The president accepts responsibility for the federal response efforts.

(END VIDEO CLIP)

MALVEAUX: And part of accepting that responsibility, Wolf, they say, of course, is his homeland security adviser Fran Townsend, who's been a part of looking at lessons learned, will be wrapping up her investigation and her results. We expect to get that in the months to come. Wolf?

BLITZER: What are they saying, Suzanne, at the White House on this latest charge from Harry Reid, the Democratic leader in the Senate on the Jack Abramoff scandal, that the White House has these five photos of the president and Jack Abramoff, but they're refusing to share them with the American public?

MALVEAUX: Essentially, Wolf, what they're saying is that really is irrelevant, that they are not going to try to basically feed the criticism or even the picture, if you will, to provide the Democrats a picture of the president and Abramoff shaking hands together at these functions.

They say that the president takes thousands and thousands of these photos with folks, that it doesn't mean there is any wrongdoing or connection between the White House and Abramoff. They are also, of course, dismissing the criticism about the State of the Union. They say for the first time a president is sitting down with his team, they are working on some very important issues that they're going to be unveiling in about a week or so.

(BEGIN VIDEO CLIP)

MCCLELLAN: This is more the kind of partisan attacks that we've seen in this city that only lower the discourse in this town. This president has worked from day one to elevate the tone and to elevate the discourse in this town, and that's what he will continue to do. And in terms of Mr. Abramoff, he's someone who has contributed to both Democrats and Republicans alike, whether it was directly or indirectly.

(END VIDEO CLIP)

MALVEAUX: So they are certainly hoping that Abramoff is not going to contribute to what the Democrats are calling this culture of corruption. The president focusing on the State of the Union address, expect to hear Iraq, state of the economy, as well as technology and Medicare, just a few of the issues that the president's going to focus on. BLITZER: Suzanne Malveaux, thanks very much.

The Bush White House is urging a swift up or down vote by the full Senate now that Samuel Alito's Supreme Court nomination has cleared the Judiciary Committee. The panel's vote today drives home the Democrats' dilemma. They oppose Alito but they don't think they can keep him off the court. Let's go back to Capitol Hill for Ed Henry with more on this. Ed. what's the latest?

HENRY: Wolf, this is believed to be the first time ever that a Supreme Court nominee has made it out of the Judiciary Committee along partisan lines. A sign of just how nasty this particular battle has become.

(BEGIN VIDEOTAPE)

HENRY (voice-over): Judge Alito was approved on a party line vote.

UNIDENTIFIED FEMALE: Mr. Brownback.

SEN. SAM BROWNBACK (R), KANSAS: Aye.

UNIDENTIFIED FEMALE: Mr. Leahy.

SEN. PATRICK LEAHY (D), VERMONT: No.

UNIDENTIFIED FEMALE: Mr. Kennedy.

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: No.

HENRY: With the Judiciary Committee bitterly divided, mostly over the hot-button issue of abortion.

SEN. DIANNE FEINSTEIN (D-CA), JUDICIARY COMMITTEE: I really believe that the majority of people in America believe that a woman should have certain rights of privacy, modified by the state, but certain rights of privacy. And if you know this person is not going to respect those rights, but holds to a different theory, then you have to stand up.

SEN. JON KYL (R-AZ), JUDICIARY COMMITTEE: I fear a very bad precedent is being set today. A precedent that a unanimous minority will oppose a nominee on political grounds, not because the nominee is in any way unqualified.

HENRY: Republicans again harped on the nominee's wife growing emotional at the contentious confirmation hearing.

SEN. JOHN CORNYN (R-TX), JUDICIARY COMMITTEE: Perhaps the most enduring image of this hearing is this picture of Mrs. Alito on the front of "National Journal," enough to make you cry.

HENRY: Democrats defended their aggressive questioning and charged Judge Alito was evasive. SEN. RICHARD DURBIN (D-IL), JUDICIARY COMMITTEE: After we saw Harriet Miers, the president's counsel in the White House go through the process of being removed because she couldn't meet the litmus test, after we understood the gravity and seriousness of this nomination, and after we saw the writings of Judge Alito, is it any wonder that we had questions that we wanted answered?

(END VIDEOTAPE)

HENRY: The debate heads to the Senate floor tomorrow with a vote as soon as the end of the week. We're expecting it to be a party-line vote there as well, with only maybe a couple of Democrats supporting Judge Alito on the Senate floor, a far cry from last year where 22 Senate Democrats supported Chief Justice John Roberts.

BLITZER: Ed, had the Democrats said no filibuster, they've given up on that tactic?

HENRY: Publicly they're still keeping all options open. But privately, they're admitting this is over, Wolf.

BLITZER: All right, Ed Henry reporting for us from Capitol Hill. Stay with us here in THE SITUATION ROOM for the balance of this week, we'll get to the vote, of course as soon as it happens.

Let's go New York right now, Jack Cafferty is standing by with "The Cafferty File." Congress moves swiftly in these kinds of matters, Jack.

JACK CAFFERTY, CNN ANCHOR: Yes, they do, as long as the opposition has been quelled and it appears that it has. The biggest response we ever got to "The Cafferty File" was about three days after Hurricane Katrina hit when I went on this program and said, "Now where the hell is the federal government and why isn't anybody doing anything to help these people who were in the Superdome in New Orleans?"

In the following 24 hours we got over 20,000 e-mails. Well, now it turns out things might have been even worse that I thought at that time. I want to read you something here. This is a quote. "I don't think anybody anticipated the breach of the levees. They did anticipate a serious storm but these levees got breached. As a result, much of New Orleans is flooded and now we're having to deal with it and will." Unquote.

That was President Bush being interviewed on ABC's "Good Morning America" several days after Hurricane Katrina destroyed the city of New Orleans. Now it turns out the White House might have had a pretty good idea the levees wouldn't hold and New Orleans would be under water before the storm got there.

New documents show Homeland Security sent a report with those warnings to the White House hours before Katrina hit. Democratic Senator Joe Lieberman said today the White House has refused to answer questions about it's response to Katrina and has told other government agencies to stonewall investigators. Here's the question. If the White House was warned in advance about Katrina, what should have been done? You can e-mail us your thoughts at caffertyfile at CNN.com or you can go to cnn.com/caffertyfile.

I remember the White House making a big deal, Wolf, about, well, the president's going to cut short his vacation to come back to Washington to deal with this. He was out in California making a speech. Someone was giving him a guitar, palying a little golf, stopped in Arizona, met with John McCain and it was a big deal that he was going come back to Washington a couple days early off his vacation, but to or three days after Katrina hit.

This is mind-boggling. Apparently they were told before Katrina hit those levees aren't going to hold and this could be a full-blown, huge tragedy. And life goes on, I guess, in the White House.

BLITZER: Jack, thanks very much. Get ready for thousands of e- mails that are about to hit you pretty big time, I'm sure. Thanks very much, Jack.

Coming up two governor, a Republican and a Democrat, seeing the situation in Iraq up close today. They share their concerns about what's happening there, what it means for their constituents back home. I'll be speaking with them.

Also ahead -- the NSA spying controversy and the Bush administration's defense. Is a new P.R. campaign by the president and his allies actually working?

Later, a new political era in Canada. It's a big deal north of the border and here in Washington. We're going to explain why. All that coming up. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: The following shocking story in a Washington, D.C. suburb today involving a little boy, 8 years old, a little girl, 5 years old and there's some new developments happening on this story right now. Let's bring in Zain Verjee from the CNN Center with more on what's going on. Zain, update our viewers on this really, really sad incredible story.

ZAIN VERJEE, CNN ANCHOR: Wolf, it's every parent's nightmare, really. Today a 7-year-old girl was accidentally shot at her day-care center by her 8-year-old schoolmate. It happened in Maryland at a center called For Kids We Care.

Officials say that the boy had the gun in a backpack and was playing with it when the gun went off. The young girl was rushed to hospital. Now her injuries are not considered life threatening, and, Wolf, we've also just gotten word from authorities that the child's father's been arrested and the child is in police custody.

We're going to have a live report from the scene next hour here in THE SITUATION ROOM. Today President Bush welcomed Pakistan's prime minister Shaukat Aziz. The leaders discussed their countries' mutual interest in fighting terror. And the prime minister offered appreciation for U.S. relief efforts after last year's earthquake in Pakistan that killed 75,000 people and left four million homeless.

The prime minister did not mention the outrage over the recent CIA air strike in Pakistan that targeted al Qaeda's al Zawahiri that killed civilians.

One of Saddam Hussein's legal advisers calls the trial, quote, pure chaos. Former U.S. attorney general Ramsey Clark said the trials should be abandoned. THis after the trial was delayed until Sunday because witnesses just didn't show up. Officials the witnesses were away on the hajj, which was the holy Muslim pilgrimage to Mecca.

Also in Iraq, bright red flames amid black plumes of smoke after an accidental fire burned through a pipeline. Its Iraq's northern pipeline to Turkey. The fire shut down Iraq's oil exports.

Meanwhile, many are hoping that a new development could affect the fate of kidnapped journalist Jill Carroll. An Iraqi official says five female prisoners in U.S. custody are set for release in two days. Last week, Carroll's captors said that they would kill her unless all female prisoners in U.S. detention were freed.

The Iraqi official says the release of the female prisoners was started even before Carroll was taken hostage. Wolf.

BLITZER: Zain, thanks very much. Zain Verjee reporting.

Now we get an on-the-scene update on the situation in Iraq from two United States governors. Republican Mike Huckabee of ArKansas and Democrat Jim Doyle of Wisconsin, they are both in Baghdad right now.

I spoke with them just a short while ago.

(BEGIN VIDEOTAPE)

BLITZER: Governor Doyle, thanks very much for joing us. Governor Huckabee always good to have you on the program. This time both of you in Baghdad. Listen to what the president said yesterday in defining success in Iraq. Listen to this.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The definition of success, by the way, is for there to be a country where the terrorists and Saddamists can no longer threaten the democracy. And where Iraqi security forces can provide for the security of their own people, and where Iraq is not a safe haven from which the terrorists, al Qaeda and its affiliates, can plot attacks against America.

BLITZER: Governor Doyle, how close is the U.S. to achieving that success, based on what you've seen during your brief stay in Iraq?

GOV. JIM DOYLE (D) WISCONSIN: Well I don't pretend to be an expert on foreign policy, other than to say that I think that that definition is certainly a definition and a vision that's widely shared. I spent today with Wisconsin troops in both Kuwait and Baghdad, and I'll tell you that the troops are very, very high in morale and I think are very committed to the mission and I think would very much agree with that definition of success.

BLITZER: A few months back in November, Governor Huckabee, Senator John McCain, Republican of Arizona, had a different definition of success. He said this: "I'd like to be able to land at the airport of Baghdad and get into an automobile and drive to the green zone. That's what I'd like to be able to do. That would be a sign that we are achieving some success."

In other words, just doing routine things. Drivin around Baghdad, going to a movie, going to a dinner. Things that both of you can't do right now without an enormous amount of security surrounding you what do you think of his definition of success?

GOV. MIKE HUCKABEE, (R) ARKANSAS: After my experience here, I feel like we're going to get there. We're not going to get there this month. We might not get there this year, but we're going to get there. What's happening in Iraq is that it's become truly the Normandy of freedom and democracy in the Middle East. And it's as much a beachhead for changing the future of the world as Normandy was in changing the future of Europe.

We can't pull out. We can't simply stop what's being done. It would be not only a disservice to the brave men and women who have already served here, but it would be really the disservice to the future generations of not just Americans, but people around the world who need a stable Middle East in order to stop terrorism and to bring some sense of balance to the world.

PHILLIPS: Governor Doyle, Democratic Senator Russ Feingold from your state has spoken of a need to get a timetable for U.S. troop withdrawal. Are you on board with him on that?

DOYLE: I don't know whether that's advisable. I do know this. I know that everybody in Wisconsin prays for the safe and speedy return of our sons and daughters and mothers and fathers. And whether that's best achieved by a timetable or not I guess remains to be seen. I do know this -- from just -- from the time I have -- that I've been here, I think there is a real sense of optimism that the mission will be accomplished. Very high morale among the troops.

BLITZER: Both of you have significant numbers of National Guard personnel, troops from Wisconsin deployed in what they call the theater right now.

Last July, Governor Huckabee, you said this. You said, "If we had a major natural disaster, we would be stretched thin. I think all governors right now are worried about the long-term impact of long deployment and frequent deployment on recruiting and retention. It is a major topic of concern." How concerned are you right now that your troops from Arkansas are being stretched way too thin?

HUCKABEE: Well, they apparently don't think they're being stretched too thin. I have that concern, but our retention rates and recruitment rates are at an all-time high. So it's indicative of the fact that these people volunteered for it. The ones that I speak to feel like they're doing a mission that's important.

And you know, when people talk about a timeline, one thing I think we forget -- we've been at this democracy thing here in America for 240 years. We haven't quite gotten right, either. And the people for Iraq were able to get the vote for women as well as for minorities in a much shorter order than happened right here in the United States under our own constitution that was established back in the 1780s.

BLITZER: If you were faced with a major disaster, Governor Doyle, would you be able to deploy enough National Guard personnel in Wisconsin, given the deployment you have in the region right now?

DOYLE: We would be, although it's not to say it wouldn't be a real challenge. There's no doubt our National Guard, like I think every state, has been really challenged over these last few years. However, we have just over 2,000 who are actively serving now in Iraq -- Kuwait and Iraq. And we have 10,000 members of the National Guard.

So I'm quite confident that we could. We could meet any challenge that we have in Wisconsin. But that's not to say that this doesn't put an enormous strain on us. But that's what it is. I mean, it is what it is. I'm very proud of the leadership of our National Guard that has managed this very difficult time very, very effectively.

BLITZER: We're almost out of time, Governor Huckabee, but a quick political question to you. You've written an excellent book on the 100 pounds you lost, you inspired a lot us with your diet and I see you've kept the weight off. You're running a lot. But the political question is this -- are you running? And I'm referring to 2008.

HUCKABEE: The honest answer is, I don't know. The only thing I know I'm running right now is the Little Rock Marathon March the 5th. And that I'm certain about.

BLITZER: When are you going to decide about 2008?

HUCKABEE: I think it will probably happen at the end of the year if I decide at all. And plenty of time to really make that decision. And right now I've got tight do in my final year at governor and certainly I'm looking at the future and what it might hold. It might be in the prospects, but it's too early to lay it out at this point.

BLITZER: Governor Huckabee, Governor Doyle, thanks to both of you for joining us here in THE SITUATION ROOM. Good luck over there. Be careful. We'll see you back here soon.

DOYLE: All right, thank you.

HUCKABEE: Thanks, Wolf.

(END VIDEOTAPE) BLITZER: And we're just getting this word into THE SITUATION ROOM of a big deal between two giants. Susan Lisovicz standing by in New York with details. What's going on, Susan?

SUSAN LISOVICZ, CNN CORRESPONDENT: Wolf, well it was something that had been suspected, certainly desired, by the two parties and now it is official coming out of Burbank, California. The Walt Disney Company is acquiring Pixar Animation Studios in an all stock deal worth $7.4 billion.

It represents a major coup for Robert Iger, the new CEO of Disney. One, because Disney very much wanted to return to its glory days. It wrote the book on animation. And, of course, Pixar is unprecedented in terms of its hits. It has put everything from "Toy Story" to "Finding Nemo" to "The Incredibles" to "Monsters." It's just an unprecedented string of hits.

The relationship between Disney and Pixar ran into trouble the last couple of years when Michael Eisner was running Disney. He apparently didn't see eye-to-eye with Steve Jobs. Steve Jobs is the head of Pixar. He's also the head of Apple Computer. And he will become Disney's largest individual shareholder.

When Robert Iger took office late last year, it was a priority for him to one, fix the animation studios and get some sort of deal going with Pixar, because that long-running deal ended this spring. And so the news is that the Walt Disney Company is acquiring Pixar for $7.4 billion -- Wolf?

BLITZER: All right, Susan, thank you very much. Susan Lisovicz reporting for us.

Up next, getting ready for a crucial vote. How will tomorrow's Palestinian election affect you? We'll have a report from the West Bank. That's coming up.

Plus a major change in Canada. Will Washington now have a friendlier face north of the border? Stay with us.

(COMMERCIAL BREAK)

BLITZER: The Bush White House says it's looking forward to strengthening its relationship with Canada now that conservatives there are taking power. The new prime minister-elect Stephen Harper is promising changes after 12 years of liberal rule.

Our senior political analyst Bill Schneider is keeping tabs on what's going on in politics, Canadian-style. What's going on, Bill?

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Bush, the -- Wolf -- the Bush administration may have just gotten a new friend in the world. And these days, that's news.

(BEGIN VIDEOTAPE)

SCHNEIDER: In recent years, as the United States has turned right, the rest of the hemisphere has been trending left. Venezuela and now Bolivia have elected governments unfriendly toward the U.S. Brazil, Argentina and now Chile have elected moderately left wing governments.

This week, one government defied the trend. On Monday, Canadians threw out Paul Martin's liberal government and put Stephen Harper's conservative party in power. A liberal ad warned Canadians what would happen if Harper won.

FEMALE ANNOUNCER: A Harper victory will put a smile on George W. Bush's face. Well, at least someone will be happy, eh?

BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Question, did Harper win because or in spite of the fact that he is pro-American and friendly to Bush?

DAN DUNSKY, CANADIAN POLITICAL ANALYST: I think it was definitely in spite of that.

SCHNEIDER: For reasons.

DUNSKY: Harper did not run on an explicitly pro-United States platform. SCHNEIDER: And second, it was mostly an anti-incumbent vote.

DUNSKY: The reason for the Conservative victory had as much to do with Liberal corruption and Liberal scandals as it did with the Conservative Party and their specifics and their platform.

SCHNEIDER: The winner acknowledged as much.

STEPHEN HARPER, CANADIAN PRIME MINISTER-ELECT: Our great country has voted for change. And Canadians have asked our party to take the lead in delivering the change.

SCHNEIDER: But not too much change. The conservatives will be a minority government. Don't look for radical changes in the U.S.- Canadian relationship.

DUNSKY: There will not be as much need for this government to play to that anti-Americanism (ph) that so often seemed to feature in the last government.

(END VIDEOTAPE)

SCHNEIDER: Here's something else that may have contributed to Mr. Harper's victory. He's writing a book about the history of hockey. On his campaign plane, Reuters reports, he won a hockey trivia quiz, scoring 14 out of 15 correct answers. Mr. Harper is challenging the answer to number 15 -- Wolf?

WOLF BLITZER, CNN ANCHOR: All right. Thanks very much. Bill Schneider reporting for us. Canadian elections. Thanks very much. Up next, a full-court press on the White House over the NSA surveillance controversy. Is their strategy working? Donna Brazile, Torie Clarke standing by. And later, would you vote for Hillary Clinton if she runs for president? We have new poll numbers that may, may surprise you. Stick around. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Today in our strategy session, the Bush administration continues its full-court press to defend domestic spying by the National Security Agency. Have they made their case, or will critics be able to prove they took their power too far?

Plus, Samuel Alito one step closer to becoming a United States Supreme Court justice. Will Democrats continue to fire away at him on the Senate floor? Joining us now are CNN political analyst Democratic strategist Donna Brazile, Torie Clarke, a former Pentagon spokeswoman.

Here's how Alberto Gonzales summed up the domestic spying by the NSA, the warrantless spying, earlier today at Georgetown University Law School. Listen to this.

(BEGIN VIDEO CLIP)

ALBERTO GONZALES, U.S. ATTORNEY GENERAL: This program to surveil Al Qaeda is a necessary weapon as we fight to detect and prevent another attack before it happens. I feel confident that is what the majority of the American people expect, and it's what the terrorist surveillance program provides.

(END VIDEO CLIP)

BLITZER: All right, Donna. It's no longer domestic spying, warrantless surveillance. Its official new name is the terrorist surveillance program. Pretty smart strategy. Who could oppose a terrorist surveillance program?

DONNA BRAZILE, CNN POLITICAL ANALYST: Well, first of all, you know, the administration is changing the name of the program, but it's still the same program they should have went to Congress to get the authorization. Once again, this is a campaign to deceive people, to distort, and then to divide the country, using the so-called national security card.

I think the administration needs to get one story and whether they believe the authorization came from the parent president's inherent powers or some authorization soon after 9/11. Once again, they're distorting and then they are trying to change the subject. And that will not fly this time.

BLITZER: Is it certainly a strategy of trying to change the name to convince the public that this is OK?

TORIE CLARKE, FORMER PENTAGON SPOKESWOMAN: Oh, I don't think the name is that relevant. What is important is, they're out there, somewhat ironically, putting a very big spotlight on this program. And the more you know about this program, you more you realize its important, its objectives are very, very sound. The war on terror is fought in this country every single day.

BLITZER: So the president -- they think this is a winning issue for them?

CLARKE: It's not about issues. It's about what's good for the country, and it's about what's keeping the country safe. That is what it's about. What is interesting is a program which should be quite sensitive and secrets closely held, they're putting the big spotlight on, saying, "This is what it's about. Here's how we're doing." And no shock. The overwhelming majority of the America are comfortable with that.

Now going forward, there's going to be a lot more scrutiny, congressional hearings, investigations, all handled very responsibly, I hope, given the sensitivity of this program. And at the end of the day, most people are going to come down on the side that the president has the authority to do this, and the responsibility to do this.

BLITZER: The president's father, first President Bush, spoke with our Larry King last night on this issue. Let's listen to this little excerpt.

(BEGIN VIDEO CLIP)

GEORGE H. W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: We've gotten a little forgetful, Larry, about 9/11. And think if one phone call is intercepted that can guarantee against another such plot, or make another such plot fail, it's worth it.

(END VIDEO CLIP)

BLITZER: That's a strong statement.

BRAZILE: That's why Democrats are baffled, including some Republicans. Why didn't the president, knowing how important this program is to catching terrorists, which the Democrats also support, the president could have easily gotten Congress to pass some law to approve this program. Look, his approval rating back then was in the 80th percentile. He had some broad support.

BLITZER: Right after 9/11.

BRAZILE: Right after 9/11. So I don't understand why, all of a sudden, they're changing the story once again to deceive, distort and to divide the country.

BLITZER: You understand?

CLARKE: I think the story's been very consistent. Understand completely.

BLITZER: Let's talk about Samuel Alito. He's about to be confirmed by all accounts. You don't believe there's going to be a filibuster, do you?

BRAZILE: Well, I don't think it's been ruled out. Right now, the Democrats are looking at all of the options, and who knows. There are six Republican pro-choice senators, and they may decide at some point to abandon Mr. Alito. We know Mr. Specter will support him, but we haven't heard from which Mr. Chafeee, Ms. Snow, or Ms. Collins. So at this point, I think, all bets is that many Democrats will oppose him and some Republicans are still making up their minds.

BLITZER: Torie, we did hear from Patrick Leahy, who supported John Roberts' nomination to the Supreme Court to become chief justice. Here's what he said earlier. Listen to this.

(BEGIN VIDEO CLIP)

SEN. PATRICK LEAHY (D), VERMONT: This is a nomination that I fear threatens the fundamental rights and liberties of all Americans, now and in generations to come. The president is in the midst of a radical re-alignment of the powers of the government and its intrusiveness, it's intrusiveness, into the private lives of Americans. And I believe this nomination is part of that plan.

(END VIDEO CLIP)

BLITZER: You think it's a done deal, though?

CLARKE: I think it's a done deal. And I think it's, again, another sign of -- this has not been the Democrats' finest hour. And Democratic governor Ed Rendell of Pennsylvania said the same thing, talking about Alito and...

BLITZER: The former chairman of the Democratic Party.

CLARKE: Right. And talking about this confirmation process and how the Democrats have not handled it well.

BLITZER: He doesn't have a vote, though.

CLARKE: He does not have a vote, but I think he's in better touch with the American people. Clearly, Alito is in the mainstream. Clearly, the Democrats didn't have a strategy, didn't have a consensus, about how they want to oppose this nomination.

So instead, they threw everything including the kitchen sink at him in a very personal way, and it didn't work. I think more interesting, quite honestly, about whether Alito gets confirmed, because he will, is what does this mean for where the Democratic Party is right now? Not in good shape, is my answer.

BLITZER: Very quickly.

BRAZILE: Just because the lawyers did a lousy job in presenting the evidence doesn't mean the jury shouldn't look at all the evidence. And the evidence is very clear. Look at his evidence in the Reagan years, look at his evidence on 15 years on the bench. He did not demonstrate any independence from the executive branch and, therefore, Democrats will oppose him. BLITZER: Donna, Torie, thanks very much.

CLARKE: Thank you, sir. BLITZER: Coming up, the battle for Congress. Will Republicans try for a repeat performance of their 2002 and 2004 election victories? We're going to take a closer look at their strategy and whether it will work. All that coming up.

Plus, are you happy with the new Medicare prescription drug program? We have some new poll numbers on what you think. Stick around. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: On our political radar this Tuesday, new declarations of support in the three-way contest to be House majority leader. Congressman John Shadegg today won the backing of a fellow Arizona Republican, Jeff Flake and a GOP moderate from New England, Charles Bass. They echo Shadegg's claim that he's more of a reformer than his rivals, the acting majority leader Roy Blunt and Congressman John Boehner.

New reinforcement today for critics of the new Medicare prescription drug program. Our new CNN-"USA Today"-Gallup poll shows more than half of all American, 54 percent, say the program is not working. More than half of all senior citizens feel the same way. That's what they say.

And look at these new numbers on Senator Hillary Clinton. Our new poll finds 16 percent of Americans would definitely vote for her for president in 2008 if she were to run. Thirty-two percent say they would consider voting for her. Fifty-one percent say they'd definitely would vote against the Democrat from New York state.

On the Republican side, check this out. Secretary of State Condoleezza Rice also has clear support and opposition. Fourteen percent of those surveyed say they'd definitely vote for Rice for president, 38 percent say they'd consider voting for her. Forty-six percent say they'd definitely vote against her. Rice has said she has no plans to run for the White House. She's gone further. She says she doesn't want to run for the White House, and won't. We'll see.

What are the odds the Republicans will maintain control of the White House? How likely is Hillary Clinton to win the Democratic nomination in 2008? The online community is already taking some bets. Let's check in with our Internet reporter Abbi Tatton -- Abbi?

ABBI TATTON, CNN INTERNET REPORTER: Wolf, they've been taking back since before 2004 election was even over at sites like this, Intray (ph), this is U.K -based site where you can speculate on your predictions for 2008. In fact, right now at this site, even though you can speculate on a variety of topics, this is the 2008 election, who's going to be the nominee for each side, this leading the pack. Let's look.

For the Democrats, we've got leading clearly ahead in almost 45 percent chance of winning, we have New York Senator Hillary Clinton there. If you look at her trading chart here, you can see that she's been holding pretty steady in the last few months. For the Republicans, we have Arizona Senator John McCain leading, five places ahead of Secretary of State Condoleezza Rice. You can trade up anything from this site from bird flu outbreaks to the Oscars, but it's politics that's leading right now -- Wolf?

BLITZER: All right, Abbi, thank you very much.

And of course, before the '08 presidential race, Republicans and Democrats have the 2006 congressional elections to contend with. Both sides are talking about the advice that presidential adviser Karl Rove is dishing out to the GOP. Let's bring in our national correspondent Bruce Morton -- Bruce?

BRUCE MORTON, CNN NATIONAL CORRESPONDENT: Wolf, Republican political guru Karl Rove indeed has a formula for GOP success in this year's elections. It worked in '02, it worked in '04, and it's basically talking about terror. We understand this war. The squishy Democrats don't.

(BEGIN VIDEOTAPE)

KARL ROVE, DEPUTY WHITE HOUSE CHIEF OF STAFF: Republicans have a post-9/11 view of the world, and Democrats have a pre-9/11 view of the world. That doesn't make them unpatriotic, not at all. But it does make them wrong. Wrong deeply and profoundly and consistently.

MORTON: In the latest CNN-"USA Today"-Gallup poll, American do approve of how Mr. Bush is dealing with terrorism. But they give him negative marks on just about everything else. His overall job performance, handling of Iraq, of the economy, and so on. He won't be on the ballot this fall, of course, but will Republicans running for the House or the Senate want to run as Bush's people?

AMY WALTER, COOK POLITICAL REPORT: I just don't think that this is the kind of election where Republicans who are up in 2006 want to try and nationalize the debate. I think you're going look for Republicans up in 2006 who are going to try to insulate themselves, in fact, as much as possible from the national political environment.

MORTON: And the government eavesdropping on Americans without a warrant? Some argue that's trading too much liberty for security.

KEATING HOLLAND, CNN POLLING DIRECTOR: There's all sorts of other arguments that come in, and the Bush administration has been making them. That these are terrorist phone calls into the United States. Well, most Americans know that they don't get phone calls from terrorists, so this doesn't necessarily affect them all that much.

(END VIDEOTAPE)

MORTON: We'll see how all that plays out. My own guess, and we're all guessing, the election nine months off, is that Amy Walter has a point, that Republicans candidates will be saying, "Sure, I support the war on terror. But, hey, let me talk to you about some local stuff" -- Wolf? BLITZER: All right, Bruce, thank you very much. Bruce Morton reporting. Up next, those early warnings about a powerful storm like Katrina. If the Bush administration had listened, would its response have been different? And later, what's wrong with this picture? The Saddam Hussein trial gets even farther behind schedule. And now even judges are at odds.

(COMMERCIAL BREAK)

BLITZER: Let's go back to Jack Cafferty in New York with "The Cafferty File" -- Jack?

JACK CAFFERTY, CNN ANCHOR: Thank you, Wolf. Remember this?

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I don't think anybody anticipated the breach of the levees. They did anticipate a serious storm. These levees got breached, and as a result, much of New Orleans is flooded. And now we're having to deal with it, and will.

(END VIDEO CLIP)

CAFFERTY: That was President Bush several days after Hurricane Katrina destroyed New Orleans. Mr. Bush clarified that statement later, saying, quote, "When that storm came by, a lot of people said we dodged a bullet," unquote. Meanwhile, though, new documents show that Homeland Security sent a report to the White House hours before Katrina hit, a report that says the levees wouldn't hold and the city would be underwater. The question, then, is if the White House was warned in advance about Katrina, what should have been done? Lots of email.

Ken in Columbia, South Carolina: "Cut the president some slack. How is it that he's at fault because the residents of New Orleans didn't evacuate when they were told to? It amazes me how he gets hammered when the local, city and state, failed to take care of business."

Linda in New York writes, "They should have made sure that any disaster planning, incomplete as it was, was put in effect. They should have been cooperative with the governor. The president's folks sat by and did nothing for days. And then the president, so out of touch, tells Brownie, the head of FEMA at the time, that he was doing a heck of a job. They let New Orleans drown because of incompetence, and to spite governor who's a Democrat."

Alan in San Angelo, Texas, writes, "President Bush should have cancelled his Crawford vacation and been in D.C. as the storm made landfall. We should have mobilized all resources at his command. It was predictable that there would be many people stranded along the Gulf Coast in need of assistance. Pushing in food, water, medicine security and medical personnel ASAP should have been priority one for the White House."

Mark in Tucson writes, "Your blatant partisanship negates your credibility of a journalist. I know it's your opinion, but really."

And finally, Shirley in Atlanta, Georgia: "FEMA should have had all the necessary supplies on the outskirts of New Orleans long before they did. There should have been more vehicles sent to evacuate residents. They had to have known that the Louisiana government could not handle such a massive evacuation" -- Wolf?

BLITZER: You got a lot of email?

CAFFERTY: A lot of e-mail.

BLITZER: All right, Jack. I knew you would. Thanks very much. We'll check back shortly with Jack.

Still to come, tomorrow's Palestinian elections. Crucial to the region, but what does it mean for the United States?

And coming up in our 7:00 p.m. Eastern hour, Kobe Bryant's makeover. Last year at this time, he dominated the headlines for a scandalous rape charge. This year, he's dominating the headlines for fascinating feats on the court. We'll explain. That's coming up in our 7:00 p.m. Eastern hour here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: A new mission statement today by Israel's acting prime minister, Ehud Olmert, says his country will have to give up more occupied land in order to draw a permanent border with the Palestinians. In his first policy speech since taking over for the ailing prime minister Ariel Sharon, Olmert echoed Sharon's blueprint for two states, one Jewish, one Palestinian.

Meantime, the West Bank city of Nablus. People took to the streets to protest pre-election violence. On the eve of the Palestinians' first parliamentary vote in some ten years, gunmen shot and killed a man trying to prevent them from removing campaign posters. The Palestinian vote is seen as a referendum on whether to pursue peace or confrontation with Israel. We have more from CNN's John Vause in Ramallah -- John?

JOHN VAUSE, CNN CORRESPONDENT: Wolf, this is downtown Ramallah, one of the largest Palestinian cities in the west bank. And as you can tell, thousands of election posters have been put up here over the last couple of weeks. This is democracy in action.

Now, all of the opinion polls show that Hamas could end up with one-third of the seats in the Palestinian parliament, possibly more, making the Islamic militant group a major player in Palestinian politics. No one really knows what that will mean for the Palestinians, for the Israelis, or for the peace process.

The best-case scenario being put forward by the Palestinian authority president Mahmoud Abbas is that Hamas in government will be tamed, forced to disarm, forced to deal with Israel. The worst-case scenario being argued by many Israelis is that Hamas will become emboldened by power, that every aspect of government, schools, the security forces, will become an offshoot of the militant group dedicated to the destruction of Israel.

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