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The Situation Room

Worries Are Growing About Civil War In Iraq; Congress Hears Port Security Controversy; President Bush Travels To India, Away From Troubles At Home; Judge Says U.S. Acted Unreasonably When Dealing With Cubans Who Crossed Bridge; Former Taliban Member At Yale University; Governor Of South Dakota Set To Sign Abortion Ban; Anna Nicole Smith Goes To Supreme Court; CBS Suing Howard Stern; Possible Pilot Strike At Northwest Airlines; Mardi Gras Celebrations Nearing Climax In New Orleans

Aired February 28, 2006 - 19:00   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, Lou. And to our viewers, you're now in THE SITUATION ROOM, where new pictures and information are arriving all the time. Standing by, CNN reporters across the United States and around the world to bring you the day's top stories.
Happening now, new blood in the streets of Iraq. It's 3:00 a.m., Wednesday, in Baghdad, a time bomb of tension and violence that could explode in a minute. Right now, new warnings of just how bad it could get.

Also this hour, the former front man for the Taliban finds a new haven right in the United States at 7:00 p.m. on the campus of Yale, where students and teachers are stunned about the man in their midst. And you may be as well.

And Howard Stern sued by CBS. Did he leave the network in the financial lurch by fleeing to satellite radio? Or is he the target of a personal vendetta? I'm Wolf Blitzer. You're in THE SITUATION ROOM.

We're following developing news in Iraq, where fresh sectarian violence is rising, raising higher than ever concerns about an all-out civil way. At least 55 people have been killed today alone in attacks across the country. In Baghdad, there were two car bombings that killed at least ten people, and a suicide bombing that killed at least 20. Some 130 people injured in those attacks.

In Tikrit, Saddam Hussein's home down, a sign of a sectarian nature of the violence. A Sunni mosque named after Saddam Hussein's father was attacked. There was an attack on a Shiite mosque last week that sparked this latest round of violence which has now killed almost 400 people.

And Near the city of Baquba, a grim discovery. Nine bodies, including a tribal leader and two of his nephews, all of them shot dead. Top U.S. intelligence officials briefed the Senate Armed Services Committee on the situation in Iraq, with one of them making a dire prediction, that the violence could spread beyond Iraq's border. Our Pentagon correspondent Barbara Starr is standing by. She has the latest details -- Barbara. BARBARA STARR, CNN PENTAGON CORRESPONDENT: Wolf, the official word from the Bush administration is that Iraq is not in civil war. But as you say, top officials, growing concern, Iraqis now dying in the hundreds.

(BEGIN VIDEOTAPE)

STARR: On Capitol Hill, an unusually frank assessment from two of the nation's top officers amid growing congressional concerns about the prospect for civil war in Iraq.

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: If there was a civil war that broke out in Iraq that the other regional powers would get involved. Certainly, Shia with Shia, and Sunni with Sunni, that might lead to a larger conflict in the Middle East.

JOHN NEGROPONTE, NATIONAL INTELLIGENCE DIRECTOR: I think depending on the course of events, I think that might well be a temptation. You might see some kind of eruption of conflict between the Sunni and the Shia worlds, for example.

Behind the scenes, U.S. military intelligence is trying to identify militia and insurgent leaders who are sparking the unrest. But publicly, there are worries whether Iraq can overcome a divided society.

LT. GENERAL MICHAEL MAPES, DEFENSE INTELLIGENCE AGENCY: I do believe that this last week has been a very significant week in Iraq. The level of sectarian violence increased significantly on the ground based on the bombings of the mosque. And we saw exactly the deep divides that exist between the Shia and the Sunni in Iraq.

STARR: President Bush still saying U.S. troops will stay until Iraqis can defend their country.

(END VIDEOTAPE)

STARR: And Wolf, for now, U.S. troops certainly staying on the sidelines. They are increasing their patrols with Iraqis in some places like Baghdad but trying not to get involved in what they hope will not become a civil war -- Wolf.

BLITZER: What do military commanders, Barbara, say that would be the signs a civil war is now in effect?

STARR: Well, you know, they have what they call benchmarks. That's the word we're starting to hear around here. What they would be looking for and what they would be looking at is really a disintegration of society. The Iraqi army no longer really fighting as a unified force. The political environment really disintegrating. Now new national unity government elected.

And basically, the central government that does exist in Iraq now also disintegrating with militias essentially taking over as the sole security organization in the country. Now, they say things are far from that. But the underlying concern, Wolf, perhaps, is while it may be far from what could be formally defined as civil war, is what we are seeing now, the new Iraq. A big concern, Wolf.

BLITZER: Barbara Starr reporting from the Pentagon. Thanks, Barbara.

The Armed Services Committee chairman Senator John Warner joined us earlier here in THE SITUATION ROOM. I asked him how concerned he is that U.S. troops could find themselves in the middle of a civil war.

(BEGIN VIDEO CLIP)

SEN. JOHN WARNER (D), VIRGINIA: We have to look at that possibility. Prudent planning I'm certain is going on, and I've discussed this with the Pentagon. They've got their orders as to what to do. Number one, we should not subject the American soldiers, sailors, airman and marines in that civil war.

The Iraqi troops that we've trained -- there's a hundred battalions now. Over half of them are able to go into a fight and lead in that fight with some continuing support from that. But take the lead, take the brunt.

And the true test -- and I put that very question to General Maples this morning -- if there is a situation that's tantamount to the civil war, will they fight? And the general, who's been there and understand it, says they will fight. And they will fight to protect their country and try and keep this newly elected government in power.

(END VIDEO CLIP)

BLITZER: There are new numbers on U.S. casualties in Iraq. The Pentagon now reports that as of today, 2,294 American servicemen and woman have been killed since the start of the war nearly three years ago.

In our CNN security watch tonight, members of the Congress are weighing the latest lines of defense in the controversy over port security. A top executive with the Dubai firm behind the port deal says much of the uproar is based on what he calls myths. Our congressional correspondent Ed Henry is following the latest developments, and he's joining us now live -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Wolf, a high level meeting just broke up moments ago among House Republican leaders. And I'm told inside that room, there was a lot of concern about this deal.

And there was a feeling, a sentiment, among the top House Republican leaders that, in fact, they feel if the White House does not turn public opinion around over the course of this 45-day review, that at this point, House Republican leaders do not see this deal going through. There's great concern. And that is coming at a time when the White House is really trying to crank up their push back here on Capitol Hill.

And we saw it, a full-court press throughout the day. We saw various Bush officials, as well as various officials from the company involved here, DP World, really fanning out across the Hill, insisting this is a good deal, insisting that they do not have concerns about security despite that Coast Guard document that surfaced yesterday raising questions about so-called intelligence gaps.

And what we're really seeing is a split among Republicans up here. There's one camp, people like Senate Majority Leader Bill Frist in that camp, saying that while he was originally skeptical of this deal, he's now coming around because of this pushback from the White House.

On the other side, we see Republicans like Olympia Snowe, moderate Republicans like her, joining other moderates like Susan Collins and saying they have deep concerns about this deal.

And also today, a development at a Senate Commerce Committee hearing, where despite the fact that the administration over the last 24 hours has really discounted the significance of that Coast Guard document from December, in fact, under questioning by Republican Senator Ted Stevens, a top homeland security official, the number two official, Michael Jackson, admitted and testified to the Hill that he actually did not see this Coast Guard document before OKing the deal. Listen to this exchange.

(BEGIN VIDEO CLIP)

SEN. TED STEVENS (R), ALASKA: We're told the Coast Guard had -- a classified document was going through the Department of Homeland Security concerning DP World. Were you aware of that?

MICHAEL JACKSON, DEPARTMENT OF HOMELAND SECURITY: The Coast Guard did an internal assessment of this transaction. The document that they created was for their internal review so that they could render a judgment.

STEVENS: That's not the question I asked. Were you aware of it?

JACKSON: At the time it was written, I was not. No, sir.

STEVENS: Were you aware of the time you passed on the approval of DP World?

JACKSON: No, sir, I was not.

STEVENS: Do you think you should have been?

JACKSON: In this transaction, in retrospect, I wish I had learned more.

(END VIDEO CLIP)

HENRY: Also another development today, Democratic Senator Chuck Schumer alleging that he had anonymous sources telling him that, in fact, private red flags were raised by officials at the Customs and Border Protection Agency in addition to these Coast Guard concerns that were not listened to by the Department of Homeland Security. That allegation coming from Democrat Schumer. Officials at the agency, though, telling CNN they are not aware of any memo at the border agency, any officials at that agency who made those claims. So that is still disputed at this point, Wolf.

BLITZER: Ed Henry, thanks very much. Ed Henry reporting.

And later this hour, I'll speak with the Coast Guard admiral in charge of port security, and I'll ask him whether he is absolutely, positively able to assure the American people there is no serious security risk as a result of this Dubai deal. And to our viewers, stay tuned to CNN day and night for the most reliable news about your security.

Right now, President Bush is on his way to India and away from the political troubles he faces here at home. That includes the port deal debate and the lowest job approval rating of his presidency. Our White House correspondent Dana Bash is joining us now live -- Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, who would have thought a trip to India and Pakistan to talk about delicate issues like their nuclear program and also the fruitless hunt for Osama bin Laden would be a welcome diversion for this president.

(BEGIN VIDEOTAPE)

BASH: Before setting out for five days overseas, one more abrace (ph) of the deal to let an Arab company to run terminals at six U.S. ports.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If there was any doubt in my mind or people in my administration's mind that our ports would be in danger and the American people in danger, this deal wouldn't get forward.

BASH: But for Mr. Bush, the ports debate is hardly the only pressing challenge. Bloody sectarian violence in Iraq has many worried about civil war.

BUSH: The people of Iraq and their leaders must make a choice. The choice is chaos or unity.

BASH: Another tough stretch for a Bush team that had vowed progress in 2006 after a rocky 2005 marked by a botched Katrina response, a top aide indicted, and a Supreme Court debacle.

A new CBS poll shows the president's public approval taking another nosedive, now at 34 percent, down from January's already anemic 42 percent. Iraq is by far the biggest public worry, and aides admit the biggest drag on Mr. Bush. A stunning 65 percent of Americans disapprove of how the president is handling it.

BUSH: America is addicted to oil.

BASH: Lost, it seems, State of the Union priorities like energy reform. Instead, public friction between Mr. Bush's staff and the vice president over his hunting accident, and tension between already frustrated GOP lawmakers and president over the ports controversy.

BRUCE REED, DEMOCRATIC LEADERSHIP COUNCIL: The White House is running out of options because they burned most of their bridges.

BASH: White House allies see second term fatigue. In this op-ed three months ago, former Reagan chief of staff Ken Duberstein called for, quote, "new blood" and was ignored.

TORIE CLARKE, FORMER PENTAGON SPOKESWOMAN: They are grueling, grueling jobs. And they take a big emotional and physical toll. So that may be part of it.

BASH: Much of the senior staff has been there since day one. Privately, some admit, they're tired.

(END VIDEOTAPE)

BASH: And as for the president, back in December when all of the issues like Katrina and Scooter Libby's indictment were mounting, we understand that the president was very angry, lashing out at some of his tops aides. Now, even though he's not necessarily in a great place politically, we are told that he's behind the scenes in a good mood.

And even tonight in an interview with ABC News, he insists that he still does have ample political capital. And, Wolf, he called being up and down in the policies part of life in the modern era -- Wolf.

BLITZER: Dana Bash reporting for us. Dana, thanks very much.

Let's get to a developing story unfolding right now. A federal judge ruled just a short time ago that the U.S. government acted unreasonably when it sent home 15 Cubans including some children who had made it to an abandoned bridge in the Florida Keys. CNN's John Zarrella, who's covered the story, is joining us on the phone now with more.

John, what's going on?

JOHN ZARRELLA, CNN CORRESPONDENT: Well, Wolf, the judge has ordered the United States government to do whatever it can now, whatever is in its powers, to get those 15 Cuban refugees back to the United States. Many of them -- well, they're all home in Cuba now, living in Matanzas in Cuba.

What happened was, back on January 4th, these 15 Cubans made it to the old seven-mile bridge in the Florida keys. They were found by the United States Coast Guard. They thought they had made it to the U.S., but the Coast Guard returned them.

What happened was that the Coast Guard determined that the old seven-mile bridge, because it is not connected to land on either end, is not part of U.S. soil. That's the old wet foot, dry foot policy. The Cubans were determined to be wet foot and were returned to Cuba. So now, the U.S. government has been ordered by this judge to do whatever it can to bring them back -- Wolf.

BLITZER: John, how would that happen? How would they get these Cubans to come back? I assume -- and correct me if I'm wrong -- the Cuban government is not happy they tried to come to the United States.

ZARRELLA: That's absolutely correct, Wolf. And that's the difficult part. We talked to these Cubans exclusively, three of them last week, who told us and showed us that their home had been taken by them, they said by the Castro government, could not live there anymore.

What will have to happen is, the United States government will have to get the Cuban government to issue them visas to now come to the United States. But the bottom line, Wolf, it's all up to the Castro government whether they will allow these Cubans to leave -- Wolf.

BLITZER: John Zarrella reporting. John, thanks very much.

Let's check in CNN's Zain Verjee at the CNN Center for a closer look at other stories making news right now -- Zain.

ZAIN VERJEE, CNN ANCHOR: Wolf, a Rhode Island judge says that the state cannot seek punitive damages against three companies that made lead paint before it was banned in 1978. Today's judgment doesn't overturn an earlier ruling holding the companies responsible for cleanup that could cost billions of dollars. That paint has been found to cause brain damage and other health problems in children.

Dramatic footage, now. Take a look at this. It's of a man being rescued after being caught by a rapidly rising river in suburban Los Angeles. Many parts of California are under flood warnings right now. Rain and snow storms are working their way across much of the west coast. Forecasters are saying that some areas have already received as much as ten inches of rain.

And, Wolf, she's a piano prodigy. And she advocates a strong, muscular foreign policy for America. Now, the country's top diplomat is sharing her own personal exercise routine with the world beginning tomorrow morning. The local NBC affiliate in Washington, D.C., is going to be airing a three-part segment on Secretary of State Condoleezza Rice's daily workout regimen.

Wolf, you know, I'm not really into working out. My philosophy tends to be no pain, no pain. Do you work out?

BLITZER: I do. Every morning. And it's very important, especially, Zain -- you're still young. When you get to my age...

VERJEE: What about Jack?

BLITZER: I'm sure he works out every single day as well. Right, Jack?

JACK CAFFERTY, CNN ANCHOR: I work out here every night.

VERJEE: Does it help?

CAFFERTY: No.

President Bush's approval rating is going from bad to worse. The latest CBS News poll shows that Mr. Bush's overall approval rating is now at an all-time low of 34 percent, down another eight point just since January. Seventy percent of Americans polled are opposed to the American's ports deal, 70 percent -- 62 percent think things are going badly in Iraq. The rest of the people must not be paying attention.

Get this, Congress comes off looking even worse. Only 28 percent of the public approves of the job Congress is doing, 61 percent disapprove. That's quite a testament to the quality of our government in this country. This is the lowest approval rating for Congress in almost a decade.

There is a bright side, though. Both Congress and the president still rate higher than Vice President Cheney. After shooting the guy in the face with a shotgun, only 18 percent of those polled say they have a favorable view of Cheney. That'll happen.

Here's the question. How would you rate the job Congress is doing compared to the job President Bush is doing? Email us at caffertyfile@CNN.com, or go to CNN.com/caffertyfile. And keep the profanity to a minimum.

BLITZER: We'll be anxiously awaiting the email. Jack, thanks very much.

Coming up, much more on the port controversy. I'm going to speak with the Coast Guard admiral who overseas port security and ask about the concerns the Coast Guard raised during the review process.

Also, the former Taliban spokesman is now a student -- get this -- at Yale University in New Haven, Connecticut. How did he get a green card into the United States while others are sitting at the U.S. naval base prison at Guantanamo Bay? We're on the trail.

And CBS versus Howard Stern. Find out why they just filed a multi-million dollar lawsuit against Howard Stern. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Is a former member of the Taliban trying to find a new haven -- literally a New Haven -- in Connecticut, that would be. That's where Yale University is, and that's where a man who once worked for the Taliban is now a student. CNN's Mary Snow is joining us. She spent some time in New Haven.

What's going on, Mary?

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, he was the face of Taliban right before and after the September 11th attacks. With the fall of the Taliban, he left Afghanistan and later cleared his name. Now the question is, what is this man who even met with Osama bin Laden at one point in his spokesman career doing at one of America's prestigious universities.

(BEGIN VIDEOTAPE)

SNOW (voice-over): At Yale, nearly everyone agrees they had no idea a fellow student was once the Taliban spokesman, not even Douglas Woodwell (ph), who taught Rahmatullah Hashemi in his class, "Terrorism, Past, Present, and Future." Woodwell did a double take after reading "The New York Times."

DOUGLAS WOODWELL, YALE UNIVERSITY PROFESSOR: I was surprised, to say the least. Certainly, I recognized a lot of things they said about it. I said, "Oh, that was him."

SNOW: Woodwell new recalls Hashemi's trip to the U.S. in March 2001 and a testy exchange featured in Michael Moore's "Fahrenheit 911."

UNIDENTIFIED FEMALE: You have imprisoned the women. It's a horror, let me tell you.

RAHMATULLAH HASHEMI, FORMER TALIBAN SPOKESMAN: I'm really sorry for your husband. He must have a very difficult time with you.

The "Times" quotes Hashemi regretting having said that, and other statements. It also quotes him as saying, "I some ways, I'm the luckiest person in the world. I could have ended up at Guantanamo Bay. Instead, I ended up at Yale."

UNIDENTIFIED MALE: There are a number of people that have been swept up and gone to Guantanamo or other U.S. detention facilities who weren't as close as he was to the center power of Taliban. So certainly, he is a very lucky man.

SNOW: CNN terrorism analyst Peter Bergen says Hashemi did not set Taliban policy. The State Department says he's here on a legal visa with all appropriate background checks. Student reaction is mixed.

ANDREW OLSON, YALE STUDENT: My initial reaction was that this seems like a really bad mistake. And the thing is, I think it actually -- in a timely way, it can be compared to this deal with the ports.

RACHEL HOMER, YALE STUDENT: And I think it's important that the university is going through this debate as to where we're going to draw the line.

SNOW: And at a Jewish center where Hashemi eats dinner, his presence may be bridging gaps.

AMY AALAND, EXECUTIVE DIRECTOR, SLIFKA CENTER: You have to start somewhere. You have to start with a dialogue. You have to start at a table. You have to have a meal together.

(END VIDEOTAPE) SNOW: Hashemi, through a representative, would not speak with us at this time. Yale has no official comments, saying Hashemi is applying for full-time status, and that the university doesn't comment on applicants. Currently, Hashemi is a non-degree student and is planning on applying for regular classes -- Wolf.

BLITZER: I assume he eats at that Jewish center because he doesn't eat pork, and that center would be kosher. Is that right?

SNOW: Absolutely. That's right. And he found that center and is starting to go there regularly.

BLITZER: I misspoke earlier when I said he has a green card. He doesn't have a green card. He just has a legal visa to stay in the United States.

SNOW: Correct. He has a legal visa to stay in the United States.

BLITZER: Mary Snow, good reporting. Thanks very much.

Still to come here in THE SITUATION ROOM, Coast Guard concerns over the deal to put an Arab company in charge of some U.S. ports. Are they being taken out of context? I'll ask the admiral in charge of port security.

Plus, what's the former Playboy model Anna Nicole Smith doing before the nation's top justices? Details of her day in court. That would be the Supreme Court. That's coming up here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Let's check back with Zain once again for some other stories making headlines around the world -- Zain.

VERJEE: Wolf, details are just coming in of a tragic incident in the Gulf of Aden. Smugglers carrying mostly Somalian refugees reportedly forced 137 people, including women and children, into deep water off the coast of Yemen. Yemeni authorities say nearly half of them are believed to have died. Thousands of Somalis fleeing violence in their own homeland arrive in Yemen every year.

German authorities are urging pet owners to keep their cats indoors to help fight the spread of bird flu. A cat living on an island in the Baltic Sea is believed to have come down with the disease. More than 100 infected birds have been found on the island. The cat would be the first animal other than the bird to contract the disease in Central Europe.

And in Mexico City, a dispute's escalating over a U.S.-owned hotel that expelled a delegation of Cuban businessmen under pressure from Washington. City officials are moving to close the Sheraton's Hotel Maria Isabelle (ph), saying that it essentially defied the building codes. But the hotel is defying orders to close. It says that it's operating normally. The U.S. Treasury Department says that the hotel was required to expel the Cubans under U.S. law. Many Americans consider the U.S. pressure a violation of Mexican sovereignty -- Wolf.

BLITZER: Zain, thanks very much.

More now on that controversial deal putting a company owned by the United Arab Emirates in charge of six major United States ports. Critics are citing a U.S. Coast Guard report which they say raises new flags. I talked about it earlier with Coast Guard Rear Admiral Craig Bone. He's the Coast Guard's director of port security.

(BEGIN VIDEOTAPE)

BLITZER: Admiral, thanks very much for joining us. Let's just be precise with what the concern that was expressed in this interagency review by the Coast Guard. "There are many intelligence gaps," your report said, "concerning the potential for Dubai Ports World or P&O, the British company, assets to support terrorist operations that preclude an overall threat assessment of the potential merger. The breath of intelligence gaps also infer potential unknown threats against a large number of potential vulnerabilities." What are you talking with these intelligence gaps?

REAR. ADM. CRAIG BONE, U.S. COAST GUARD: Right. Again, I think what you have to do is put this in the context. This report was developed months ago...

BLITZER: This was in December.

BONE: Right. Well, actually, the early analysis even began before that timeframe.

BLITZER: But this one was, what, December 12th?

BONE: When you are talking about the report coming out, but the analysis is an ongoing analysis.

BLITZER: So when you talk about intelligence gaps, Admiral, what are you talking about?

BONE: Right. When we're talking about here is -- we're looking at the both the operations itself and who is involved in the operations which, again, that we've gotten the assurances now from the company that we can look at those personnel and the operations, we have got visibility of the cargo as it moves through the system, unlike we have anywhere else, through those assurances.

And the other thing that we didn't have at the time was the other intelligence -- the other intelligence community assessment that you just heard earlier. Although this came out ...

(CROSSTALK)

BLITZER: Ambassador Negroponte, he says that the intelligence assessment they had was done before these concerns were expressed by the Coast Guard.

BONE: Again, I think he's referring to the fact that they were put out into the press here in this last timeframe, in the last couple of days. And I think though, that what you're going to find is we're satisfied. .

As we concluded in the report and as we've stated in the report, actually, at that time, that we did not believe, at that time -- we continue to not believe that this DPW venture, with P&O, poses any significant threat to the national security of our ports.

BLITZER: The Coast Guard will still remain in charge of security at these six ports. But listen to what Clark Kent Ervin, a former homeland security inspector general, CNN analyst right now, wrote in the "New York Times," a few days ago.

He said "the Coast Guard merely sets standards that ports are to follow and reviews their security plans. Meeting those standards each day is the job of the port operators, they are responsible for hiring security officers, guarding the cargo and overseeing its unloading. Is he right?

BONE: Not completely. In most ports, in quite a few ports, you actually have a port authority who has responsibility for security. Now, these individuals quite often do handle the cargo, and they are involved quite often with gate guards in the internal portions of the port operation.

But I can tell you that we, of the 3,200 port facilities -- and first off, we're talking about facilities, not the entire port itself but the facilities themselves. Within those facilities, we've had over 700 violations that we have issued as a result of that, 44 of which we've shut down operations at the facility, or shut down cargo operations as a result of those violations.

So, the idea that they are independently operating with no one monitoring their activity and these people are left to their own devices is a false sense. The other thing is ...

BLITZER: Well, let me interrupt you on that point, Admiral. So Dubai Ports World -- I assume they're going to hire and fire individuals who will work at these six ports in the United States. Does the Coast Guard get involved in helping them hire these individuals, making sure that they are not terrorists?

BONE: No, we don't -- well, making sure they're not terrorists, yes.

BLITZER: How do you do that?

BONE: Because we're going to have visibility of the individuals themselves. The individuals ...

BLITZER: Will you do background checks on these people they hire?

BONE: Well, first off, they have to come in with a visa.

BLITZER: Well, they can hire people here too.

BONE: Well, and if the people are here, they have to be U.S. citizens. And, yes, background checks will be conducted and can be conducted on those individuals.

BLITZER: By the Coast Guard?

BONE: Well, by the intelligence community as a whole. I wouldn't say necessarily by the Coast Guard alone.

BLITZER: Because specifically will reviews the backgrounds of individuals hired by this United Arab Emirates firm?

BONE: I would say Department of Homeland Security will carry out that function in cooperation with the intelligence community.

BLITZER: Can you tell the American people right now, Admiral, that you, as a representative of the United States Coast Guard, in charge of security at these ports -- that you are absolutely, positively convinced that this deal represents absolutely no security threat to the American public?

BONE: OK, I think there's always a security threat. Threat is someone with intent or capability. And that could come from overseas, that could come from inside the United States. And so we have measures basically to address threat every day. There's no such thing as no threat.

BLITZER: But let's -- let me rephrase it. Can you assure the American public that the threat level will not increase as a result of this Dubai firm taking over the British firm's operations?

BONE: Yes, I can tell you that the measures that why put into place will assure that.

BLITZER: Admiral, thanks very much for joining us, and good luck. I hope you're right.

BONE: Thank you.

(END VIDEOTAPE)

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

Just ahead, the governor of South Dakota, calls it, quote, "the broadest attack on Roe versus Wade that we've seen to date." He's set to sign a bill banning nearly all abortions in South Dakota. We're going to go there live.

And the Tiffany Network sues the shock jock. CBS says Howard Stern breached his contract. We're going to have details. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Tonight a woman's rights group is calling for a boycott of South Dakota tourism if a bill banning nearly all abortion in the state becomes law. That bill is sitting on the governor's desk right now, threatening to unleash a direct legal challenge to Roe versus Wade.

Our senior political correspondent Candy Crowley is in South Dakota right now. She's joining us with more -- Candy.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Wolf, there are a lot of people who wonder and think that it's sort of curious that South Dakota would be at the center of this newly reconstituted abortion debate, but all those people don't live here.

(BEGIN VIDEOTAPE)

CROWLEY (voice-over): The bill stops here, and the anti-abortion governor of South Dakota understands the implications of signing it.

GOV. MIKE ROUNDS (R), SOUTH DAKOTA: In doing so, we'll be the broadest direct attack on Roe versus Wade that we've seen to date.

CROWLEY: The measure bans abortions except when the mother's life is at risk. It passed South Dakota's legislature by wide margins, a clarion call from the heartland.

ROGER HUNT (R), SOUTH DAKOTA STATE HOUSE: My underlying premise is, those unborn children have no advocate. South Dakota has become their advocate.

CROWLEY: South Dakota is a "live-and-let-live" sort of place with wide-open spaces and spots of quiet as far as the ear can hear; not the sort of place that goes looking to stir up a national fuss. But that it has.

NANCY KEENAN, NARAL PRO-CHOICE AMERICA: Been a bit of a wakeup call, and we are finding that people are very outraged.

CROWLEY: The troops for and against abortion rights are on high alert around the country. E-mails are pouring into the state capital.

J.P. DUNIPHAN (R) SOUTH DAKOTA SENATE: I just am concerned we are doing this in South Dakota, where they're talking about -- some are talking about a boycott of us in relationship to some of this.

CROWLEY: Though anti-abortion, Duniphan, the only female Republican in the South Dakota Senate, voted no on the ban because there are no exceptions for rape or incest. The state has a long history of anti-abortion legislation. It has not changed much over the years since Roe, but the Supreme Court has.

ROUNDS: It will be challenged and it will be struck down as unconstitutional at each and every appellate court level up to the point that the Supreme Court would be the only court left to consider hearing it. (END VIDEOTAPE)

CROWLEY: While they agree with the goal of this bill, there are some in the anti-abortion community who believe it may be too much and too soon. They point out that the Supreme Court is not yet firmly in the side of overturning Roe v. Wade completely. These anti- abortionists think that it would be much better to go at Roe v. Wade taking it apart piece by piece, by adding more and more restrictions -- Wolf.

BLITZER: When do we think the governor is going to sign this bill into law?

CROWLEY: Well, you know, sooner rather than later. He basically has two weeks to do it. And the governor has said to us, I'm going to do this pretty quickly. Here's his dilemma right now. He wants to give this bill a straight shot up to the Supreme Court, which is to say he doesn't want any sort of legal technicalities to be the basis on which a court turns it back.

So he says that he wants to have a number of lawyers look at the bill to make sure that there are no legal technicalities that could be the basis for overturning it, so that those who believe this is the way to go, that is try to get Supreme Court to overturn Roe v. Wade, will have a clear shot at it. So couple of days.

BLITZER: Candy Crowley reporting for us. Candy, thanks very much.

Up ahead, CBS versus Howard Stern. Find out why they just filed a multi-million dollar lawsuit against the shock jock. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Happening now, a billion dollar battle in one corner, a famous former stripper and "Playboy" pinup in the other, the family of the Texas oil tycoon. And the legal referees? That would be the United States Supreme Court. CNN's Brian Todd is joining us live from the court now with details -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, this court has seldom seen the likes of a the case with this much family intrigue or a case where one of the claimants brings the paparazzi to these steps.

(BEGIN VIDEOTAPE)

TODD (voice-over): She usually greets reporters with a flourish, but, outside the Supreme Court, Anna Nicole Smith looked flustered.

UNIDENTIFIED MALE: Anna!

TODD: Inside, nine justices, who may not have kept tabs on her tabloid past, seemed to know every detail of her legal problems.

JONATHAN TURLEY, PROFESSOR OF CONSTITUTIONAL LAW, GEORGE WASHINGTON UNIVERSITY: This is not a case of the justices celebrity- shopping. This is a serious case. And Anna Nicole Smith is going to change the face of the law in this area.

TODD: Not bad for a stripper-turned-"Playboy"-model-turned- reality-TV-star.

Smith, who for this case is going by her legal name, Vickie Lynn Marshall, has been fighting for a decade to claim part of the fortune of her late husband, Texas oil tycoon J. Howard Marshall. She was 26 when they married. He was 89.

ANNA NICOLE SMITH, WIDOW OF J. HOWARD MARSHALL: He wanted me to have it. And I will fight until the end.

TODD: The Supreme Court will determine which court has final say, a Texas state court that ruled Marshall's son, Pierce, was the sole heir, or a bankruptcy court, which sided with Smith.

The justices seemed sympathetic to Smith and her lawyers' argument that Marshall's son tampered with documents to block Smith from the money.

KENT RICHLAND, ATTORNEY FOR ANNA NICOLE SMITH: There was an effort to make a gift to Ms. Marshall. And it was that gift that was interfered with.

TODD: Pierce Marshall denies wrongdoing, and counters, his dad meant the inheritance for him long before the old man met Smith in a strip club.

ERIC BRUNSTAD, ATTORNEY FOR E. PIERCE MARSHALL: She says she just wants the money. The problem is that the money, again, under the estate plan, was designated to go to persons other than her.

TODD: Still, it's not clear how any of these arguments will bear on the court's ruling over who has jurisdiction.

(END VIDEOTAPE)

TODD: And the court should make that ruling by late June. Where is the money in the meantime? Well, neither side has it. It's tied up in escrow while the lawyers fight it out -- Wolf.

BLITZER: All right, thanks very much, Brian Todd at the Supreme Court.

Bad blood also brewing between Howard Stern and CBS. It's reaching the next level. That would be a lawsuit. Our Ali Velshi joining us from New York with the "Bottom Line" -- Ali.

ALI VELSHI, CNN ANCHOR: Wolf, shock jock Howard Stern isn't all that shocked that his former bosses at CBS Radio have decided to sue him. He says it's all part of a sustained campaign.

(BEGIN VIDEO CLIP)

HOWARD STERN, RADIO TALK SHOW HOST: For the last couple of months, I have been bullied, threatened, by CBS, my former employer. (END VIDEO CLIP)

VELSHI: The suit that I've got here, filed against Stern, his company, his new employer, Sirius Satellite radio -- I was sifting through this 43-page complaint. One allegation stands outs. CBS says that Stern has "fraudulently concealed his interest in hundreds of millions of dollars of Sirius stock while promoting it on the air."

Well, Stern announced that he was moving to satellite radio some 15 months before the end of his CBS Radio contract. CBS alleges that he used that time to pump Sirius up on CBS' air and CBS' dime. CBS alleges that all of that free promotion resulted in more than a million new subscribers of Sirius, and that triggered an early payout or $34 million Sirius shares to Stern and his agent.

CBS Radio is claiming the value of those shares and the airtime that it says Stern misappropriated from CBS for his own use. It's also claiming all the money that Sirius got from signing up those new listeners, but Stern says this lawsuit isn't about business.

(BEGIN VIDEO CLIP)

STERN: This lawsuit is a personal vendetta against me to distract me and to distract you. The radio division is in shambles.

(END VIDEO CLIP)

VELSHI: Stern says that he talked up his move to Sirius because it was a big news story. He says everybody was talking about it, and through his attorney, Wolf, Howard Stern has told CNN tonight, in our evaluation, these claims have no merit whatsoever.

BLITZER: I never understood why CBS didn't fire him as soon as he signed up with Sirius. Nobody forced CBS to keep him on the payroll.

VELSHI: That's what he says, yes.

BLITZER: Thanks very much, Ali, for that.

Up ahead, Fat Tuesday in the Big Easy. We're going to go to New Orleans, see what's going on on this Mardi Gras.

Also Jack Cafferty is standing by with your e-mail.

(COMMERCIAL BREAK)

BLITZER: Jack's back with "The Cafferty File." He's joining us from New York -- Jack.

CAFFERTY: Wolf, the latest CBS News poll, great commentary about our country here. President Bush's overall approval rating is now at an all-time low of 34 percent. When it comes to Congress, just 28 percent of the public approves of the job they're doing. It's not pretty.

The question is, how would you rate the job Congress is doing compared to President Bush?

James in Kamiah, Idaho: "Congress is impotent and irrelevant, when you consider they were all cowed by the president's threat of veto on any legislation that would seek to block the ports deal. They haven't done their job since 2000. And the president? Don't get me started."

Bill in Buford, South Carolina: "Mr. Cafferty, Congress and the president, some of the best minds of the 13th century. As we can't afford to run for office, we have these despots instead."

Adam in Denver: "Congress gets an F. They should have already held hearings and investigations on illegal wiretaps, the war in Iraq, and a host of other missteps the Bush administration has put this country through."

Glen in Haymarket, Virginia: "For the first time, I am actually considering giving serious money to the opponents of the many incumbents in my area."

A couple more. Tony, Myrtle Beach, South Carolina -- "How can you rate the job done by the puppets when the puppeteer drops the ropes? They all stink together."

And Curtis in Portland, Maine, on a similar vein. "Jack, this question is like comparing horse manure to cow manure. They both stink." Wolf.

BLITZER: Jack, I'll see you tomorrow here in THE SITUATION ROOM. Thanks very much.

Let's find out what's coming up right at the top of the hour. Paula standing by in New York. Hi, Paula.

PAULA ZAHN, CNN ANCHOR: Hi, Wolf. We are covering a broad array of stories tonight. We start off talking about the president's lowest poll numbers ever during this presidency. We're also going to take a look at crimes in progress and what Las Vegas is doing to stop them.

Will a potential criminal think twice if they know they're on a camera like you see in the right hand side of your screen? Not so candid camera, after all. So some people calling it a sport, but it has some animal rights activists absolutely outraged. When it comes to dogs and rabbits, what's wrong with letting nature take its course? Those stories and a whole lot more at the top of the hour, Wolf.

BLITZER: We'll see you then. Thanks very much, Paula Zahn.

Still ahead, Fat Tuesday in the Big Easy. We're taking you there live. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Just getting word of a potential strike in the airline industry. Ali Velshi watching the story. What are we getting, Ali? VELSHI: Just getting this word in now, confirmation that the pilots union at Northwest Airlines has voted by a 93 percent margin to OK a strike if they cannot come to an agreement with the airline's management. Tomorrow morning, this matter goes before a judge who will decide whether or not the airline can impose cuts that it wants to on the pilots.

They say if the cuts are impose imposed, they'll walk off the job. The airline pilots have said if those cuts are imposed upon them, they will walk off the job. Northwest Airlines has said that if the pilots walk off the job, that's going to be a big problem for them. So right now we have the pilots voting by a 93 percent margin to walk off the job if Northwest Airlines unilaterally cuts their packages of benefits and pay, Wolf.

BLITZER: All right, Ali, we'll watch that. Lots of people could be affected if there is a strike.

Mardi Gras celebrations are nearing a climax in New Orleans. CNN's Chris Lawrence is there. He's got the story -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Wolf, it's a pretty raucous scene here on Bourbon Street. A lot of people out drinking, getting beads. Last few hours, the Mardi Gras wounding down. Outside on the parade route, a lot of people said they shouldn't have had Mardi Gras. We spoke to people who said, hey, it's part of New Orleans, and they're happy they had it. Back to you.

BLITZER: They're having fun in New Orleans, and they should.

Today, South Carolina posted online the names, addresses and amounts owed by more than 100 delinquent taxpayers. It's known as tax shaming, a tactic used by many states aimed at quilting residents into paying up.

Are you on the list? Our Internet reporter Abbi Tatton has more -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, these Web sites have names like Cybershame and CaughtInTheWeb. South Carolina's is called DebtersCorner. One hundred and thirty-one new names added there today of taxpayers who owe big time.

Other sites are joining this list. Wisconsin passed a law last year which resulted in this Web site. Everyone who owes more than $25,000 is on this list here, name and address.

I talked to someone there in Wisconsin who told me it's really working. The mere threat of being on this site resulted in almost 1,000 people paying up immediately.

Now, we counted about two dozen states that have sites similar to this. If you're -- you can see if your state is one them, or if indeed you know someone on one of these lists, by going to cnn.com/situationreport -- Wolf.

BLITZER: Abbi, thank you very much. Abbi Tatton is our Internet reporter.

And that's going to be it. Remember, we're here in THE SITUATION ROOM weekdays 4:00 to 6:00 p.m. Eastern, as well as 7:00 to 8:00 p.m. Eastern.

Behind me, you see a live picture of the Empire State Building in New York, purple and green and colors specifically in relation to Mardi Gras, the festival carnival that's still going on in New Orleans right now.

I'm Wolf Blitzer in THE SITUATION ROOM. Let's send it up to New York; Paula Zahn taking over -- Paula.

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