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The Situation Room

Rumsfeld Hints at Temporary Increase in U.S. Troop Level; Judge Rules Government Can Continue to Seek Death Penalty for Moussaoui; Dam Bursts on Island of Kauai

Aired March 14, 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: To our viewers, you're 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 tonight's top stories.

Happening now, it's 3:00 a.m. in Baghdad. There's growing carnage in the Iraqi capital right now and growing fears of a civil war. Is that leading the United States to put yet more troops on the ground in Iraq?

It's 7:00 p.m. in Pennsylvania, where we're with chicken farmers on the front lines of the war against bird flu. Can they keep the deadly virus from gaining a foothold right here in this country?

And the Christian broadcaster Pat Robertson once again goes on the attack. This time against Islam. He says he's criticizing fanatics, but is he fanning the flames of religious hatred?

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

We begin with a new development in the war in Iraq. For weeks, we've been hearing about a possible drawdown of U.S. troops in Iraq. Now with sectarian slaughter in the streets of Baghdad, we're hearing about a possible increase in U.S. troop levels in Iraq.

Let's go straight to our senior Pentagon correspondent, Jamie McIntyre -- Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Wolf, Pentagon officials are still talking about possible draw-downs later this year, but they say in the short term, small numbers of additional troops will be sent to Iraq to provide extra security for pilgrims who are celebrating an Islamic religious holiday, not, they insist, because Iraq is on the brink of civil war.

(BEGIN VIDEOTAPE)

MCINTYRE (voice over): Defense Secretary Donald Rumsfeld steadfastly disputes that the current spike in sectarian violence is putting Iraq on a path to civil war, even as his top advisers say the conditions are there. DONALD RUMSFELD, SECRETARY OF DEFENSE: Is it true that people are -- in the intelligence community are thinking about this and analyzing it and doing red team -- A team, B team-type looks at it? Sure they are, and they should be. That's what people do.

Do I think we're in a civil war at the present time? No.

GEN. PETER PACE, CHAIRMAN, JOINT CHIEFS OF STAFF: The path to civil war is available to the Iraqi people, and the path toward freedom and representative government is available to them. And they are standing at the crossroads right now and they're looking down both paths.

MCINTYRE: General Pace says Iraq is on the right path. And the top U.S. commander for the region testifying on Capitol Hill agreed. General John Abizaid argued Iraq was, in his words, "a long way from civil war," but warned that could change.

UNIDENTIFIED MALE: The next big hurdle for Iraq, not unlike the elections, is the formation of a government of national unity. We should not underestimate how important that is.

MCINTYRE: To some outside experts, the Sunni versus Shia attacks and counterattacks already smack of a low-level civil war.

COL. DOUG MACGREGOR (RET.), AUTHOR, "TRANSFORMATION UNDER FIRE": We lost the initiative in this country a couple of years ago. People have been pointing to the elections as evidence for liberal democracy. There is no liberal democracy in Iraq. The elections have produced factionocracy (ph).

(END VIDEOTAPE)

MCINTYRE: And Wolf, you may recall that part of the way the U.S. was able to reduce troop levels in Iraq after the first of the year was by taking one of the brigades that was supposed to go in and stopping it in Kuwait. And now we're told that the additional troops, a small number of additional troops, probably several hundred, would come from that -- from one of the battalions there in Kuwait that's been on standby in case it's needed.

And again, the Pentagon insists that this plus-up will be a short-term thing that they do from time to time when they think the security situation warrants it. And they still are relying on Iraqi troops to take on the insurgency and the sectarian violence in the months to come.

BLITZER: Jamie, thanks very much.

Jamie McIntyre is at the Pentagon.

Meanwhile, there's a bloodbath happening in the streets of Baghdad right now. Iraqi police say at least 86 bodies have turned up since early Monday. Dozens were discovered today. One group strangled, others found bound and shot execution style.

Our senior international correspondent, Nic Robertson, is in the Iraqi capital -- Nic.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Well, Wolf, the death toll mounted through the day. The police discovered 15 bodies early in the morning. All of them, they say, have been strangled.

They were discovered in the back of a pickup truck in the western side of Baghdad. Police say they had all been strangled. But then the death toll mounted through the rest of the day.

The police discovered a shallow grave on the eastern side of Baghdad, a Shia neighborhood. Police say they were directed to it because local residents pointed out a trail of blood.

Now, initially, earlier in the day, the police said they discovered seven bodies in that shallow grave. Then as the investigation went on, they said 14 bodies discovered there. Later on, they said 21 bodies discovered in that shallow grave.

By the end of the day, police say 29 bodies total discovered in that shallow grave on the eastern side of Baghdad. Eighty-six bodies turning up over the last two days in Baghdad.

It appears to be, although police cannot confirm this -- they say they're investigating these deaths. They don't know exactly who some of the -- who some of the dead are or exactly who killed them or why. But the impression that's being created in Baghdad is that this -- these are -- these deaths are results of sectarian attacks, the results of an ongoing, increased wave of sectarian violence here -- Wolf.

BLITZER: Nic Robertson, in Baghdad.

Thanks very much.

There's a CNN "Security Watch" we want to bring you right now. A series of significant developments in the trial of a confessed al Qaeda conspirator, Zacarias Moussaoui.

After concerns over witness coaching, the federal government is once again cleared to seek the death penalty, but -- and it's an important "but" -- the case may be seriously hampered right now.

Our homeland security correspondent, Jeanne Meserve, is outside the courthouse in Alexandria with all the latest dramatic developments -- Jeanne.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Wolf, you're absolutely right. The judge has kept the death penalty on the table, but her ruling today will make it much more difficult to persuade a jury to reach that verdict.

(BEGIN VIDEOTAPE)

MESERVE (voice over): It is a body blow to the prosecution case against Zacarias Moussaoui. The judge is excluding aviation evidence and testimony from aviation officials.

ANDREW MCBRIDE, FMR. FEDERAL PROSECUTOR: These seven witnesses are the key to the government showing that had Moussaoui told the truth in August, they would have been able to stop at least one of those planes in September and saved lives.

UNIDENTIFIED MALE: Ma'am, why did you do it?

MESERVE: Transportation Security Administration lawyer Carla Martin triggered the ruling by violating a court order prohibiting the coaching of witnesses, sending e-mails, including trial transcripts. Six of the seven witnesses told the court they did not think their testimony had been affected, but Judge Leonie Brinkema concluded, "... whether these witnesses have actually been tainted or not is almost impossible to tell," and excluded them.

STEPHEN SALTZBURG, GEORGE WASHINGTON UNIVERSITY: It is inexcusable. I mean, even a rookie lawyer ought to know about the rule on sequestration, which is that it means witnesses can't hear other witnesses.

MESERVE: Brinkema also accused Martin of tolling a boldfaced lie after it was revealed that three witnesses knew nothing about a government letter based on information from Martin saying they would not talk to the defense. Two of the witnesses said, in fact, they would have.

Brinkema said, "I don't think in the annals of criminal law there has ever been a case with this many significant problems."

Some 9/11 family members were distraught that a government lawyer had weakened the case against Moussaoui.

ROSEMARY DILLARD, 9/11 FAMILY MEMBER: I felt like my heart had been ripped out. I felt like my husband had been killed again. I felt like the government has let me down one more time.

(END VIDEOTAPE)

MESERVE: The trial is in recess until Monday while the government contemplates its next move. An appeal is widely expected -- Wolf.

BLITZER: Jeanne Meserve at the courthouse.

Thanks very much.

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

Zain Verjee is joining us from the CNN Center in Atlanta with more news making headlines right now.

Hi, Zain.

ZAIN VERJEE, CNN ANCHOR: Hi, Wolf. This just coming into CNN. An explosion that killed 12 workers at the Sago Mine in West Virginia was likely caused by a massive lightning strike. This according to the mine's owner. CEO Ben Hatfield broke the news to the workers' families in private meetings today.

First lady Laura Bush says the United States is ready for a woman president, and she says she hopes that it's a Republican. Mrs. Bush may have someone in mind. She's expressed support for Secretary of State Condoleezza Rice, but Dr. Rice has repeatedly said that she doesn't plan to run for the White House.

The man who assassinated Robert F. Kennedy is eligible for parole this week. Sirhan Sirhan fatally shot RFK in June of 1968 minutes after the New York senator claimed victory in California's presidential primary.

Sirhan's parole hearing is tomorrow. If the parole board recommends his release, which is unlikely, California Governor Arnold Schwarzenegger would then have to give the final OK. Schwarzenegger's wife, Maria Shriver, is Robert F. Kennedy's niece -- Wolf.

BLITZER: Zain, thanks very much.

Let's go up to New York. Jack Cafferty is standing by with "The Cafferty File" -- Jack.

JACK CAFFERTY, CNN ANCHOR: Al-Jazeera's new English language channel is having a tough time getting started here in the United States. The "New York Sun" reports so far there are no cable or satellite distribution deals for the channel.

Al-Jazeera International is a sister network of the Arabic language one. It was supposed to launch this month, but the debut now has been pushed back to May. Critics worry the channel could become a mouthpiece for terrorists.

The network has already hired some high-profile journalists like the BBC's David Frost and longtime correspondent for NBC's "Nightline," David Marash. Both men say that Al-Jazeera International will be editorially independent of the existing channel.

So here's the question. Would you watch Al-Jazeera if it was available?

You can e-mail us at CaffertyFile@CNN.com or go to CNN.com/caffertyfile.

And don't you know, Wolf, we already heard from a guy out in Lafayette, Colorado. James wrote in. He said, sure, he'd watch it. "It's probably more accurate than FOX News."

BLITZER: Thanks, Jack, for that.

CAFFERTY: You're welcome. BLITZER: All right. Coming up, the world's richest man. That would be Bill Gates here in THE SITUATION ROOM. A rare one-on-one interview. Bill Gates sounds off on his next biggest project. And guess what? It's not Microsoft.

He spoke with our Ali Velshi today. You're going to want to see this.

Also, a developing story. A tragedy in tropical paradise. A dam breaks without warning, millions of gallons of water pouring through, and now people are missing.

We're going to go there and give you the latest.

Plus, bird flu coming to America. We'll take you inside a chicken farm that's bracing for an outbreak of the virus. Find out what they're doing right now to protect our food supply.

And Pat Robertson calls Islam satanic, then pulls the comment from his Web site. We have the tapes and the story.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: A developing story we're watching right now out of Hawaii, where an earthen dam has burst on the island of Kauai, unleashing a raging torrent of water 150 yards wide. The flood has swept away houses and several people.

One person already reported dead. The U.S. Coast Guard is now searching for seven other people who are missing.

Joining us on the phone from the U.S. Coast Guard, Lieutenant Commander DesaRae Janszen.

Commander, what do we know about what has happened?

LT. COMMANDER DESARAE JANSZEN, COAST GUARD: Good afternoon, Wolf.

Yes, this morning at 9:45, the Kauai Fire Department called the Coast Guard to report that the Kilauea Stream Dam had broke. The Coast Guard's part of this multi-agency response, we've got local, state and federal agencies responding with as many assets as we can.

BLITZER: Did it break? Did it breach? Or was the water -- the water topped over this dam?

JANSZEN: At this point, all I can tell you about that, Wolf, is that there's been some severe flooding, flood watches and flood warnings in the area of Kauai for the past several weeks.

BLITZER: This area where this dam is, are there a lot of houses, a lot of people in this area, or is it relatively remote?

JANSZEN: Wolf, it's relatively remote. But we have -- we do have people that live in that area.

BLITZER: We're hearing that people are stuck in hotels right now in the vicinity. What, if anything, can you tell us about that?

JANSZEN: I can't tell you about people stuck in the hotels, but I can tell that we are responding with many assets. We have 110-foot Cutter on its way from Oahu, we have C-130 aircraft from Air Station Barbers Point, two helicopters from Air Station Barbers Point, an auxiliary vessel responding fast, as many Coast Guard assets as possible.

BLITZER: We're watching this story. Lieutenant Commander Janszen, thanks very much for joining us. We're going to check back with you when we get some more information.

Nasty weather is moving through Hawaii right now and may, may be to blame for this dam break. Our meteorologist, Jacqui Jeras, is joining us with this part of the story.

(WEATHER REPORT)

BLITZER: Still to come here in THE SITUATION ROOM, bird flu coming to America. We'll take you inside a chicken farm that's bracing for an outbreak of the virus and find out what they're doing to try to protect the food supply.

Plus, an autistic basketball player, he captured America's heart, brought tears to a lot of our eyes, including tears to the president of the United States. You'll want to stick around and see what happened today when the president met this young man.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Bird flu could arrive in the United States in a matter of months, that's the alarming warning from the U.S. Health and Human Services secretary, Mike Leavitt. And U.S. poultry farmers are bracing for the virus right now. Some of them have even been through it before.

CNN's Mary Snow visited the front lines in this battle against bird flu. She's joining us now live from New York -- Mary.

MARY SNOW, CNN CORRESPONDENT: Wolf, two decades ago, farmers in Pennsylvania felt the impact of one of the biggest outbreaks of a form of avian flu in recent U.S. history. They say this time they're determined not to get caught off guard.

(BEGIN VIDEOTAPE)

SNOW (voice over): Behind the serene scene at this the Pennsylvania farm restricted vehicles have to be disinfected, protective suits have to be worn. All before entering a chicken house holding 30,000 birds.

Scott Sechler says he's policing his business to prevent an outbreak of bird flu.

SCOTT SECHLER, OWNER, BELL AND EVANS: After the avian influenza episode we had back in the early '80s, biosecurity is very, very important. And so we don't want to drag anything in the building.

SNOW: In 1983 and '84, a strain of avian flu, not the strain of H5N1 that we're seeing today, spread through poultry in Pennsylvania. Seventeen million birds had to be destroyed, costing the economy tens of millions of dollars.

At the time, Sechler's business was just starting out. It's now worth about $170 million. He says migrating birds made bird flu's return inevitable. Health officials agree, predicting that wild birds could bring the deadly H5N1 strain into the U.S. in months.

SECHLER: We have to treat this serious. This is our -- our livelihood, and, you know, this is what we've been feeding our customers for years and years and years.

SNOW: While the threat to humans is low, the chicken industry is bracing for the day when bird flu shows up on a U.S. farm.

RICHARD LOBB, NATIONAL CHICKEN COUNCIL: All the chickens on that farm will be destroyed. None of them will go to market, none of them will enter the food supply in any way.

SNOW: Pennsylvania veterinarian Sherrill Davison is using tracking systems to impose quarantines on farms.

DR. SHERRILL DAVISON, UNIVERSITY OF PENNSYLVANIA: If we have an outbreak, we can very quickly identify a farm.

SNOW: Despite the assurances, Sechler still worries. Not about bird flu, but about consumers shying away from chicken.

SECHLER: If five or 10 percent of the people quit eating chicken, we've got a problem.

(END VIDEOTAPE)

SNOW: Even without any traces of the deadly strain of bird flu, U.S. farmers have seen a drop in exports because consumers overseas are shying away from eating chicken -- Wolf.

BLITZER: Mary, thanks very much.

Other news we're watching, the religious broadcaster Pat Robertson stirring up fresh controversy with comments he made on his show calling radical Muslims -- and I'm quoting now -- "Satanic."

CNN's Brian Todd is joining us now with details of this latest development -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, one Muslim leader says this is part of a pattern from Robertson, but he is also concerned about how it reflects what he calls a rising tide of Islamaphobia in the U.S.

(BEGIN VIDEOTAPE)

TODD (voice over): These images, Muslim protesters in Europe furious over cartoons of the Prophet Mohammed, apparently give religious broadcaster Pat Robertson ammunition to take another shot at Islam. On his show, "The 700 Club," Robertson makes this comment after a report on the protests.

PAT ROBERTSON, "THE 700 CLUB": These people are crazed fanatics. And I want to say it now. I believe it's motivated by demonic power, it is satanic, and it's time we recognize what we're dealing with.

TODD: Later, Robertson's Christian Broadcasting Network deletes those comments from a version of the show posted on its Web site. Network representatives say they don't want the remarks viewed out of context.

CNN obtained these clips from Media Matters, a web-based nonprofit watchdog group that describes itself as progressive. In a statement, Robertson says his remark about crazed fanatics "refers specifically to the radicals and terrorists who want to bomb innocent people." He does not clarify these comments made seconds later...

ROBERTSON: And the goal of Islam, ladies and gentlemen, whether you like it or not, is world domination. And by the way, Islam is not a religion of peace.

IBRAHIM HOOPER, AMERICAN-ISLAMIC RELATIONS COUNCIL: Unfortunately, Pat Robertson has made these kinds of attacks on Islam repeatedly, and it's of great concern to us.

TODD: Ibrahim Hooper, from the Council on American-Islamic Relations, points to a virtual hit parade from Robertson of anti- Muslim rhetoric.

November, 2002, Robertson says Muslims are "worse than the Nazis"

Earlier that year, Robertson describes the Prophet Mohammed as "an absolute wild-eyed fanatic, a robber and a brigand... a killer."

(END VIDEOTAPE)

TODD: Neither Robertson nor his representatives would respond to one watchdog group which calls him intolerant and bigoted. When asked if he would apologize, the representative said Robertson's comments speak for themselves, but they do point to other remarks he's made that many who follow Islam are moderates who he says are peaceful -- Wolf.

BLITZER: Brian, thank you very much.

Just ahead here in THE SITUATION ROOM, Iraq on the brink of a civil war. What should the White House be doing next? Generals now talking about increasing U.S. troops in Iraq.

Torie Clarke, Donna Brazile standing by in our "Strategy Session."

Plus, Bill Gates, the richest man in the world. First it was Microsoft. You're about to find out where he's putting his money right now.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Right now, the Bush White House is in the midst of yet another campaign to try to bolster sinking support for the mission in Iraq. Our top story, U.S. military commanders now openly speaking about the possibility of increasing the number of ground forces in Iraq, at least in the short term.

It's a politically charged milestone, potentially, three years, three full years since the U.S. invasion.

(BEGIN VIDEOTAPE)

BLITZER: Joining us, our CNN political analysts, Democratic strategist Donna Brazile and former Pentagon spokeswoman, Torie Clarke.

Torie, I know you were over at the Pentagon today. Defense Secretary Donald Rumsfeld had a news conference with the chairman of the Joint Chiefs of Staff.

Listen to this little excerpt of what Rumsfeld said.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, SECRETARY OF DEFENSE: A free and stable Iraq will not go to war against its neighbors. It will not use chemical weapons against its own people. It will not harbor or support terrorists. It will not pay rewards to the families of suicide bombers. And will not seek to kill Americans.

(END VIDEO CLIP)

BLITZER: What's his strategy right now on this, the third anniversary of the U.S.-led invasion of Iraq?

TORIE CLARKE, FMR. PENTAGON SPOKESWOMAN: Well, there was a lot more to that briefing than that particular sound bit, but what he was trying to do there was remind people of the objectives, because people say, oh, there's no exit strategy -- oh, we don't know what we're trying to accomplish. He was restating once again some very, very important principles about what we're seeking in Iraq. And great difficulties, of course, but some progress as well.

BLITZER: William Buckley wrote in "The National Review," one of the preeminent conservative thinkers in the country, "One can't doubt that the American objective in Iraq has failed... different plans have to be made. And the kernel here is the acknowledgement of defeat."

That's from a good conservative, not from a Russ Feingold or a good liberal Democrat.

DONNA BRAZILE, DEMOCRATIC STRATEGIST: And it's not from Jack Murtha. Look, at some point, the administration must concede that in the run-up to war, they mishandled the situation. They mishandled just about everything as it relates to the number of troops needed to win the war, the type of equipment needed to defeat the insurgency.

So I think the president last year started to acknowledge some of these mistakes, but clearly right now, we've got to make sure that our troops can get out of harm's way, bring them home. But we need to make sure the Iraqis are ready to stand up. There's a political vacuum taking place. And I don't know what's -- why the administration needs to send in James Baker, or somebody to try to get the Iraqi people to sit down and come together. We need somebody to go in there and get it.

CLARKE: Oh, I'll tell you, if you and Bill Buckley, god bless you both, were around in 1777, you would have thrown in the towel. That's one of the problems with the debate about anything to do with Iraq is, all people focus on is the negative.

I fully acknowledge some bad things have happened and there are great difficulties. But you have to also acknowledge some positive things have happened. If we were standing here three years ago and we would have said the Iraqis would have had elections or they would have had an important referendum.

And the Sunnis who said they weren't going to be part of the political process are now part of the political process. A smart guy like Wolf Blitzer who's covered the Middle East probably would have said, "Oh, you're nuts, that can't happen." It's happened. Some important things are going on, it will take great, great efforts and determination going forward. But we can't be throwing in the towel.

BRAZILE: Nobody's throwing in the towel. But I'm not about closing my eyes and saying, "OK, let's look at all of the rosy things."

CLARKE: No, it should be the good, the bad.

BRAZILE: And here it is, three months later, no government. Let's talk about the reality.

CLARKE: It should be the good, the bad, and the in between.

BLITZER: Tom Friedman recommended in his column the other day, send Dick Cheney in and let him shake things up, Mr. Tough Guy.

Speaking of Dick Cheney, he reacted to Russ Feingold's recommendation, his resolution to censure the president for what he called the illegal wiretaps without the warrants that the president has authorized. I want you to listen to what the vice president said yesterday. (BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: This outrageous proposition that we ought to protect our enemy's ability to communicate as it plots against America, poses a key test for our Democratic leaders. Do they support the extreme and counterproductive antics of a few or do they support a lawful program vital to the security of this nation?

(END VIDEO CLIP)

BLITZER: Donna, you wrote a piece in the "Roll Call," the newspaper up on the Hill today in which you said that Russ Feingold is doing the right thing.

BRAZILE: Look, at some point the Democratic Party and the leadership must grow a backbone. Russ Feingold is trying to tell the party and the country that we stand for the rule of law and the Constitution of the United States.

And it's time that Congress provide oversight hearings and accountability to this president and not let him get away with breaking the law. That's what this resolution, in my judgment is trying to say to the American people.

BLITZER: Because you know, a lot of Democrats are nervous about this resolution.

BRAZILE: Well they're nervous, when Jack Murtha spoke out about a timetable, they're nervous. Now the president's almost embracing it. So just hold your horses, get behind Russ Feingold. Things will be OK in the morning.

BLITZER: What do you think?

CLARKE: From a national security standpoint it's a distraction. And for politically opportunistic reasons, he's taken these shots at this program, Feingold is. So it's not good from a national security standpoint.

From a political standpoint, bring it on, because what it does is reinforce doubts right or wrong, it reinforces doubts that Democrats are sincere enough and serious enough and tough enough on national security.

Plenty of my Democratic friends are horrified at what Feingold is doing. Harry Reid practically ran away from him, said "Oh, I've got to read things and think about this." That was the weakest vote of confidence you had from the Democrats going. So politically it's better for Republicans.

BRAZILE: We can question Russ Feingold's motive and he's an independent Democrat, but we shouldn't question his patriotism and his resolve to fight terrorism.

CLARKE: Who has? BRAZILE: Well that's what every time Democrats bring up something on national security. If the Republicans in the Congress would provide oversight on national security on intelligence, perhaps Democrats wouldn't have to resort to these tactics of introducing censure resolution. But I back Russ Feingold.

BLITZER: Donna Brazile and Torie Clarke, an excellent discussion today.

BRAZILE: Thank you, Wolf.

BLITZER: Thanks to both of you. With the Bush White House suffering from one political headache after another, there's been renewed speculation about possible senior staff changes.

Our White House correspondent Dana Bash has some new information on that. What are you hearing down there?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well Wolf, CNN has learned that some White House allies, some party elders if you will, are trying to convince this president that perhaps it is time to at least bring in an experienced hand, as one source put it, somebody who is a veteran, somebody who can pick up the phone and talk to congressional leaders, but also do some trouble shooting and be inside to give some advice, perhaps be an extra ear, an extra set of eyes so forth.

Now, in talking to senior officials tonight, Wolf, there does not appear to be any indication that the president is going to accept this, to take this advice. But certainly the pressure is on. It is coming from the outside, but Wolf, what's different about this is that we've heard a lot of this talk before.

But this is coming from friends of the president, friends of senior staff here, that really say that what they want to do is see changes in this White House, see this president do much better and that this perhaps is the answer.

BLITZER: We'll be watching with you, Dana, thank you very much -- Dana Bash at the White House. And to our viewers, you're in THE SITUATION ROOM, where political news is always arriving, all the time -- CNN, America's campaign headquarters.

Up next here in THE SITUATION ROOM, our Ali Velshi goes one-on- one with the world's richest man, that would be Bill Gates. We're going to show you why the Microsoft founder is also focusing in on a new project right now. We're going to tell you what it means.

Plus, journalist Mike Wallace takes on a new role over at "60 minutes." Details of his surprise announcement, that's coming up, as well.

(COMMERCIAL BREAK)

BLITZER: He's the world's richest man, the king of the Microsoft empire. But Bill Gates is now focusing his attention on something brand new, something called digital images. He sat down for a rare one-on-one interview with our Ali Velshi earlier today. Ali's joining us now from New York with the "Bottom Line." Ali?

ALI VELSHI, CNN ANCHOR: Thank you, Wolf. For 16 years, Bill Gates has owned a company called Corbis, it's a money-losing online digital image broker. For 16 years, Corbis has plodded along trying to make money from the online distribution, sale and licensing of photographs.

(BEGIN VIDEOTAPE)

VELSHI (voice-over): He's the world's richest man. He started Microsoft from his garage and he revolutionized the way we work and live. Some people think Bill Gates can see into the future. And he thinks the future is in digital pictures, that electronic images will permeate our world.

BILL GATES, CORBIS FOUNDER: When you get directions, it won't just be a map. You'll be able to see what that is. If you're thinking about buying something, you can see the store and go in and, see what that's like.

VELSHI: I sat down with Gates for a rare interview. He wanted to talk about Corbis, the company he founded more than 15 years ago. While most of us were still loading film into our cameras, his company was buying the digital rights to tens of millions of pictures.

Need to use a picture of a celebrity on your Web site? Corbis can broker a deal between the photographer and the celebrity on one side and the buyer who wants to use it on the other. Corbis has a library of more than 80 million downloadable images, like Botticelli's Venus, or this classic Campbell's soup can. Even this forest photo, ideal for a spring wedding invitation, has an owner who will want to be paid if you use it.

Who said the best things in life were free?

GATES: Well, certainly there will be images that are free. And so if somebody doesn't want to pay, they should be careful to use just those images.

VELSHI: What if you decide to use the picture anyway?

GATES: There are ways of embedding information in images, and this industry is adopting some standards around that so that understanding if somebody's being careless and not recognizing the rights, it's easier to track that down.

(END VIDEOTAPE)

VELSHI: Now, Wolf, Corbis isn't the only company in the business. It's not even the biggest. Getty Images is, and unlike Corbis, Getty is making money in that business -- Wolf.

BLITZER: Ali, you also had a chance to talk with Bill Gates about some other issues he's pretty passionate about. VELSHI: Yes, Wolf, it starts from this paying for the right to use someone else's work is a problem that the United States and Microsoft and Corbis is facing in China. China hasn't managed to stem video, software or other forms of piracy. So I started by asking Bill Gates about that.

(BEGIN VIDEOTAPE)

GATES: The great thing about China is there's a lot of creativity within the country, whether it's inventing technology, or doing imagery, or content, and so that is going to lead to a greater understanding of enforcing the intellectual property.

We have seen progress. There's a lot more to be done.

VELSHI: Just recently in the State of the Union address, President Bush talked about fostering competitiveness. In a world where we see so many of our industries going away, because -- because those jobs can be done for less money in other countries, how do you, how does America foster competition?

GATES: Well, the United States is in a strong leadership position. The universities we have here have been a great source of advances in computer technology. Medical advances, the U.S. is by far the leader in that.

We've done some things right. The government's funded R&D There have been intellectual property protections. There's been capital that startups have been able to get. And as companies are successful, it's considered a very positive thing.

And so, if you would have guessed, say, 10 years ago, you would have said, what's going to happen with consumer electronics? Will that all go to Japan or China? Well, I'd say the two most innovative consumer electronics products right now are, people would say, the Apple iPod or the Microsoft XBox 360.

VELSHI: Those three companies you talked about -- Microsoft, Apple and Corbis -- what reason would there be for anything you invest in to be in the United States? Those are good ideas and they're good sentiments. But why do you need Corbis to be an American company?

GATES: We've chosen to have the bulk of those people here in the United States. And that's a business decision we made. And you know, we hope that the U.S. education system keeps renewing itself, turning out good people. We hope the country's attitude towards free trade, global trade stays strong, which has been a great thing for this country.

But you know, the bet's been made. The people are here, and that's not going to change in any significant way.

VELSHI: What needs to happen to keep educating the very people who can innovate for the businesses that you invest in?

GATES: Well, virtually all the jobs in the future will require college-type education. And so, the whole shift in the economy means it's not just the Microsofts and the Corbis. It's every job in this economy will require that.

Education is a complex topic. It's one of the two focuses my foundation has. It's something I'm very passionate about. The president did mention in that same speech, that the U.S. has got to renew its commitment to math and science education and the excellence of that. A lot of the testing has shown that we're not doing for these kids what they deserve, and now that bad news is kind of a hot potato. People say, well, who is going to fix it? Well, at least we know now that the incentives haven't been there, the quality hasn't been there. So we need to look at some new models.

So something that I'll be quite involved in through the foundation, and I'm optimistic, but we've got to change.

VELSHI: Thank you very much.

(END VIDEOTAPE)

VELSHI: Wolf, one of the things that Bill Gates says that he would be happy if the people in India and China were as prosperous as the people in the United States; that way, everybody would be able to buy everything that everybody else makes, and we shouldn't be too worried about that. We should enjoy the fact that everybody's getting a little richer -- Wolf.

BLITZER: Ali, when Bill Gates speaks, we should all listen. Thanks for bringing us that interview. Ali Velshi with "The Bottom Line."

A federal judge will now require Google to hand over some records that show how its customers use the search engine. The government says it needs the information to help protect minors online. Let's get some more from our Abbi Tatton -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, what this now means is that four of the biggest search engines online -- that's Google, MSN, Yahoo and AOL, a Time Warner company like CNN -- will all be handing over at least some records from their online search engines.

Google has been fighting this all along. They slammed the government last month for their request, saying it was so uninformed as to be nonsensical, essentially arguing that what the government was asking for wasn't even relevant to help them craft this law regarding minors and online pornography.

It now looks like they will be handing over some information to the government.

Google for their part saying today that this is actually a partial victory; the government initially asking for millions and millions of records. Now, they're going to be turning over more like 50,000 Web addresses -- Wolf.

BLITZER: Abbi, thank you very much. Up ahead, a surprise announcement from "60 Minutes" legend Mike Wallace. We're going to tell you what he said.

Plus, President Bush teaming up with an inspirational teenager who left many Americans in tears, including the commander in chief, and me, too. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Tonight, a legendary newsman is set to retire. Mike Wallace once said he wouldn't leave "60 Minutes" until his toes turned up. Now he's joking they're beginning to curl.

Nearing his 88th birthday, Wallace announced today he'll retire from the groundbreaking news program this spring, but he'll stay affiliated with CBS News as a correspondent emeritus.

CNN's Jeanne Moos turns back the clock on Mike Wallace's career.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): "60 Minutes" is just the last leg of a more than 60-year career. Mike Wallace puffed his way through interview after interview.

MIKE WALLACE, CBS NEWS: May I offer you one?

FRANK LLOYD WRIGHT, ARCHITECT: No, thank you.

MOOS: He did ads for everything from lipstick to shortening.

WALLACE: Get Golden Fluffo. And that's some apple pie.

MOOS: As American as apple pie were Wallace's tough interviews.

UNIDENTIFIED MALE: Be careful because I'm going to call my lawyer right now.

UNIDENTIFIED MALE: Because you're contemptible.

UNIDENTIFIED MALE: Now let's stop it.

UNIDENTIFIED MALE: I'm ready any time you want to repeat the stupid question.

MOOS: No such thing.

WALLACE: Imam, President Sadat of Egypt calls you a lunatic.

UNIDENTIFIED MALE: I want you to get it right, don't want to look like an ass because my kids are watching this.

MOOS: But the only way could you lick Mike Wallace was when he ended up on a stamp issued by a Caribbean nation. Even when he asked indelicate questions, you could hear the smile. WALLACE: You really believe in extra terrestrials? Do they come visit you on the porch? Now you're being unpleasant Wallace is what you're saying.

SHIRLEY MACLAINE, ACTRESS: Yes, this is what I was a little afraid of.

UNIDENTIFIED FEMALE: You've got a nice smile and I'll fight for you now, boy.

MOOS: If anyone doubts Wallace's sense of humor, remember the meat loaf affair. Here's how we covered it.

Mike Wallace goes to pick up takeout meat loaf while waiting outside his driver is nabbed for double parking. But Mike is the one who ends up in handcuffs.

WALLACE: I'm Mike Wallace.

MOSS: And I'm Jeanne Moos, the Mike Wallace busted over meat loaf story and more.

A traffic cop handcuffed Wallace, claiming he lunged at officers.

WALLACE: I find it difficult to lunge into bed.

MOOS: Now he's lunging toward retirement. Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

BLITZER: And we wish him a very, very happy retirement. An unlikely sports hero has scored again tonight by going one-on-one with the president of the United States. Mr. Bush met with J-Mac, as he's known, in an airport in upstate New York.

You probably remember the 17-year-old whose big shots on the basketball court left Americans cheering and weeping, including the president.

(BEGIN VIDEOTAPE)

(voice-over): Jason McElwain's smile said it all. His airport encounter with President Bush was icing on the cake for a high school senior whose hoop dreams came true.

BUSH: Jason, mind if I call you J-Mac?

I call him J-Mac. You call me George W.

BLITZER: J-Mac's story never fails to choke most of us up, even if we've heard it and seen it over and over again. Jason is autistic. For three years, he was the hard-working manager of his school's basketball team in a suburb of Rochester, New York. He had never been allowed to dress with the team. Let alone play in a game.

Then, last month, during the final home game of the season, the coach told him to suit up.

JASON MCELWAIN, HOOPS HERO: He says this is your senior -- this is your last chance to ever get on the floor as an actual basketball player for that night.

BLITZER: J-Mac took the ball and ran with it. He scored an amazing 20 points in the four minutes left in the game. Six three point shots and one two-pointer.

MCELWAIN: I was on fire, I was hotter than the pistol.

BUSH: The story of a young man who found his touch on the basketball court, which in turn touched the hearts of citizens all across the country. I saw it on TV. Saw it on TV and I wept. Just like a lot of other people did. Let me have that there, coach. Thank you. There you go. Kind of looks like you.

BLITZER: It was difficult to tell who enjoyed this meeting more, Jason and his parents, who got to spend some quality time with the commander in chief, or was it Mr. Bush? He took a detour from a routine Medicare speech and from his mounting political problems to enjoy the company of a young man who has been an inspiration to us all.

(END VIDEOTAPE)

And what could J-Mac possibly do for an encore?

He says he plans to enroll at Monroe Community College this fall and major in business management. We will certainly be rooting for him. Good work, J-Mac. Let's find out what's coming up at the top of the hour. Paula Zahn is standing by. What a story.

PAULA ZAHN, CNN ANCHOR: Isn't it? Every time, even this president said we hear about this young man, we're all very moved. Thanks. Coming at you six minutes from now, we are going to continue to follow up on a story that we've been asking questions about for many months now.

Was a Florida boy's death after his first day at a boot camp for troubled teens really the result of natural causes? Well, a new autopsy reveals some startling findings.

Also, a woman's doctor says she needed more treatment for anorexia. But her insurance company said she had been in the hospital long enough. What happened when they discharged her? We're going to tell you at the top of the hour and unfortunately, Wolf, this is something a lot of patients find themselves in the middle of an awful lot.

BLITZER: Thank you very much. "PAULA ZAHN" now coming up. Still ahead, al Jazeera in the United States of America. May be coming to a cable provider near you. Will you be watching? Do you want it to be on your cable providers? Jack Cafferty has your e-mail.

(COMMERCIAL BREAK) BLITZER: There he is, Jack Cafferty. Let's go to New York. Hi, Jack.

CAFFERTY: That even scares me when I see a closeup that close.

BLITZER: I love that shot.

CAFFERTY: Frightening. Al Jazeera's new English language channel is having a tough time getting started here in the U.S. The New York Sun reported today that so far there are no cable or satellite distribution deals for the channel. The question is, would you watch al Jazeera if it was available? And we got a lot of responses. I'm going to read a few right now.

Phyllis in San Antonio writes, "Yes, I would. We in the U.S. are in a bubble, and sometimes we need to step out and look at ourselves the way others see us.

Don in Grand Island, Nebraska, writes, "Would I watch al Jazeera if it were available? It is; the New York Times is sold everywhere."

Ray writes, "Absolutely not. Al Jazeera has spread terror propaganda for far too long now, showing attacks, explosions and even beheadings. Al Jazeera is nothing more than a major tool for terrorist groups."

Randell in Longmont, Colorado, says, "Yes, I would watch it. We have so little international news and input on American TV, this would be an excellent chance to experience the Arabic world's views of the current events occurring throughout the world."

Paola in West Islip, New York writes, "Jack, I would volunteer to have my eyes plucked from my head by the beak of a bird infected with bird flu before I would watch anything put on the air by al Jazeera."

Ed in Ft. Meyers, Florida. "Only if it wasn't on at four, five or seven eastern time."

And David in Tucson, Arizona, writes, "I would definitely watch al Jazeera if it was available. After all, I suspect they have a fascinating viewpoint on the whole Natalee Holloway story."

BLITZER: They might you never know. Dave Marash, he's a pretty good journalist.

CAFFERTY: I used to work against Dave Marash when he was a local anchor man at Channel Two here in New York City. I met Dave Marash in 1977, 78. I've known him for a long, long time.

BLITZER: He's a good guy. Liked him on "Nightline." We'll see how he does at al Jazeera. We got to go. Paula standing by in New York. Paula, taking over. Hi, Paula.

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