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The Situation Room

The Pentagon Releases Video of American Airlines Hitting the Pentagon on September 11. Conservative Republicans Express Unhappiness with President Bush's Proposals for Immigration Reform.

Aired May 16, 2006 - 16:00   ET

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


WOLF BLITZER, HOST: And to our viewers here 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 today's top stories.
Happening now, new perspective on the September 11 attacks. It's 4:00 P.M. here in Washington, where a long-sought video of that deadly day has just been released. We'll examine what it shows and why it's finally out.

Also this hour, the battle for hearts and minds in the immigration wars. Did the president's primetime address change the debate in Congress and across America? There are new developments on this day after the speech.

And an emotional debut. Tony Snow gives us his first briefing as the White House press secretary. We'll tell you why he choked up.

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

Right now, a watchdog group here in Washington says it's hoping some conspiracy theories about 9/11 will finally be put to rest. Just a short while ago, the federal government gave that group what it wanted, the release of video showing American Airlines flight 77 striking the Pentagon.

Let's bring in our senior Pentagon correspondent, Jamie McIntyre. He's been going through this video frame by frame by frame -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Wolf, the videotapes released today by the U.S. government had been held in evidence for the trial of Zacarias Moussaoui. In fact, they were shown at the trial. But once Moussaoui was sentenced, the government could no longer hold onto them. Under the Freedom of Information Act, they released them as a result of a lawsuit by the judicial watchdog group Judicial Watch.

The videos are essentially a more complete version of five still frames that CNN obtained back in 2002 from a Pentagon security camera that shows the only images seen so far of American Airlines flight 77 crashing into the side of the Pentagon. The problem with the original video was that it was only a single frame that showed the plane, and it was so indistinct that it helped fuel conspiracy theories on the Internet and around the world, questioning whether something else hit the Pentagon, like for instance, a cruise missile. Of course, Wolf, that's nonsense, given all the evidence we have about what really happened on September 11. But nevertheless, the fact that the government held onto these videotapes helped fuel the conspiracy theory.

Now two different versions have been released, both from the same Pentagon checkpoint but from two slightly different angles. In one, you can see what appears to be the nose of the plane just entering the frame. The other one, a little bit lower angle, shows what appears to be the fuselage whipping by just above the ground level and before it slams into the Pentagon. Again, both of these tapes now posted on the Pentagon's Web site and are part of the public domain, and they remain, at this point, the only images of American Airlines flight 77 crashing into the Pentagon -- Wolf.

BLITZER: The reason it was delayed all this time releasing this video is because they didn't want to interfere with the Zacarias Moussaoui trial, is that right?

MCINTYRE: Well, it had been confiscated by the Justice Department, held as evidence. And there were two arguments. One is that they might need it as evidence, the other that the release publicly could prejudice the jury in the trial. Of course, that question is moot now that the sentencing is complete.

BLITZER: All right. Jamie's going to be back in the next hour here in THE SITUATION ROOM with another report and more information. Jamie, thank you very much.

An immigration performance today from President Bush -- an encore performance, that is -- on immigration reform. Less than 24 hours after his nationally televised address, Mr. Bush renewed his call for Congress to pass comprehensive legislation. The Senate is now moving forward, casting its first votes on a comprehensive immigration bill.

Our congressional correspondent, Andrea Koppel, is standing by. But let's go to the White House first. Suzanne Malveaux has the latest from there -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Wolf, the White House really knew that this was going to be a tough sell for the president, and that is true today, only just 24 hours after that speech, of course, a lot of debate. The White House's main proposal here to deploy some 6,000 National Guards troops to try to help secure and enforce the border along the southern border there -- they are getting opposition and skepticism not only from the president's own party, but also from governors of those bordering states.

The measure was aimed, of course, at trying to reassure House Republicans in particular that he would come up with a plan to beef up border security. It is getting a lukewarm reception today, but Mr. Bush today continues to push the case and to try to address critics' fears that somehow this would be militarizing the border.

(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're going to have double the Border Patrol agents since 2001 by 2008. And what the Guard is doing, the Guard is providing an interim service until the Border Patrol agents get -- get -- get stood up. I made it clear to the country last night that we're not going to militarize our border. Mexico is a friend. But what we are going to do is use assets necessary to make sure that we can assure the American people that the border is -- is -- is secure.

(END VIDEO CLIP)

MALVEAUX: But Wolf, you're already hearing from governors of bordering states, who are complaining, saying they do not believe that this is the correct plan. We've heard from Governor Bill Richardson of New Mexico, as well as Governor Schwarzenegger of California, both of them saying that they do not believe this is an appropriate use of the National Guard.

(BEGIN VIDEO CLIP)

GOV. BILL RICHARDSON (D), NEW MEXICO: I wish they'd consulted with us because what I would have said is, I would have said accelerate the number of Border Patrol agents that you promised us. New Mexico was promised 265 new border agents from the last appropriations bill. Only a handful have arrived.

(END VIDEO CLIP)

MALVEAUX: And Wolf, they're also running into trouble when it comes to the second component of this plan -- that, of course, the temporary worker program that the president insists is important to enhance the border, to enforce the border, as well. Those conservative Republicans what he was trying to appease have been complaining that they believe this is still -- this path to citizenship, whether earned or not, is amnesty, and they're not satisfied with that, either. So of course, this is a tough sell for this White House, for this administration. The president will continue to talk about this in the days to come -- Wolf.

BLITZER: Suzanne, as you know, the president was also asked at that news conference about the report that The National Security agency has been tracking millions, if not billions, of phone calls since 9/11, the phone records. And he sought to reassure the American public that their privacy was being respected. Listen to what he said.

(END VIDEO CLIP)

BUSH: ... very clear about the principles and guidelines of any program that has been designed to protect the American people. I've also been clear about the fact that we do not listen to domestic phone calls without court approval and that this government will continue to guard the privacy of the American people. But if al Qaeda is calling into the United States, we want to know. And we want to know why.

(END VIDEO CLIP) BLITZER: The confirmation hearings for General Hayden to head the CIA begin on Thursday. This issue is by no means going away, Suzanne. What's the strategy over at the White House?

MALVEAUX: Well, you're absolutely right, Wolf. It is not going away, and the White House essentially is unapologetic about it. But it is really kind of a one-two-punch strategy. They believe the American people will be behind the president in this situation as long as they emphasize and frame the debate that this is one of protecting national security, that it is in their interest and that it is lawful. As long as Americans believe at those two points, this president is correct, they believe that they'll be able to carry that Hayden nomination through to confirmation.

BLITZER: Suzanne Malveaux at the White House. Suzanne, thanks very much. She's going to be coming back late this hour. She's going to be joining us with more, including more on Tony Snow's first day as the White House press secretary before the cameras. It was a rather emotional moment, as he had his briefing at the White House. Suzanne is going to be joining us and giving us the complete story on how Tony Snow did. That's coming up this hour.

Let's go to Capitol Hill right now, where it's clear that many Republicans still don't see eye to eye with the president on immigration, despite his appeal last night. Our congressional correspondent, Andrea Koppel, is here with the latest from the Hill -- Andrea.

ANDREA KOPPEL, CNN CORRESPONDENT: Wolf, the audience that President Bush most wanted to reach last night were members of his own party. And today, these Republicans had a message of their own for Mr. Bush.

(BEGIN VIDEOTAPE)

SEN. LARRY CRAIG (R), IDAHO: No matter how comprehensive our reform is, it won't work. It won't work unless this nation controls and secures its borders.

KOPPEL (voice-over): And so with the first of a series of amendments which critics call poison pills, some Senate Republicans sought unsuccessfully to pass a "border security first" approach.

SEN. SAXBY CHAMBLISS (R), GEORGIA: Disagreeing with this amendment sends the message to the American people that we are more eager to give illegal immigrants a path to citizenship than we are to secure our borders from further illegal immigration and the smuggling of illegal drugs and weapons. Mr. President, I know that is not the message my constituents in Georgia want to hear.

KOPPEL: Not only has this issue splintered the Republican Party, but if politics makes strange bedfellows, that was certainly true in today's debate.

SEN. EDWARD M. KENNEDY (D), MASSACHUSETTS: I have my differences with the president, but he's absolutely right. He understands history. He's a border state governor, and he knows you can't do this by itself only at the border.

KOPPEL: Democrats urged the president to put pressure on his own party in the Senate and in the House, which already passed a controversial enforcement-only bill last year.

SEN. HARRY REID (D-NE), MINORITY LEADER: The president, if he wants to help us in comprehensive immigration reform, needs to look first at his Republican leadership in the Senate and say something negative about this monstrous House bill.

BLITZER: But House Republicans weren't backing down.

REP. J.D. HAYWORTH (R), ARIZONA: The sad fact about the current so-called Senate breakthrough is it offers a perverse incentive. The longer and the more flagrantly you have broken our immigration laws, the easier it will be to get on this so-called path to citizenship. I don't believe the American people will appreciate that, and I think they reject it.

(END VIDEOTAPE)

KOPPEL: With some House Republicans and House leaders drawing a definite line in the sand, if and when an immigration reform bill is able to clear its way through the Senate, it will still have to be reconciled with that very tough border-enforcement-only House bill. Now, with a weakened president and with Congress looking towards its reelection in November, it is unclear, Wolf, just how much arm twisting Mr. Bush is going to be able to do. As one senior Democratic staffer told me, she said Bush is not assured of success, he can't just say what he wants these days and get it -- Wolf.

BLITZER: Andrea Koppel on the Hill. Thank you. And by the way, we have late word coming in from Capitol Hill that the Senate Armed Services Committee could hold a hearing as early as tomorrow on the president's plan to dispatch National Guard troops to the border. We'll watch that closely.

Immigration is just one of the issues now driving a wedge between the president and conservatives in his own Republican Party. Many of those divisions are making Republicans even more nervous about the fall battle for control of the House and the Senate. Our senior political correspondent, Candy Crowley, is watching this threat to the administration seemingly from the right, Candy.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Absolutely. We want to tell you about a group called the National Federation of Republican Assemblies. It's a grass roots organization designed to help put conservatives into state and federal offices. The group recently opened a Pennsylvania chapter.

(BEGIN VIDEOTAPE)

(voice-over): Inside a Holiday Inn meeting room just outside Pittsburgh, a revolt brews.

ANDY DLINN (R), PENNSYLVANIA ASSEMBLY: Ask yourself, why are you a Republican? Do you even know?

CROWLEY: They are emblematic to the biggest threat to Republican majority status on Capitol Hill, conservative Republicans, or as they sometimes call themselves, the Republican wing of the Republican Party.

PAT TOOMEY (R), FORMER U.S. CONGRESSMAN: Well, it's pretty clear that at some level, Republicans in Washington have lost their way.

CROWLEY: What's the problem here? Let them count the ways.

UNIDENTIFIED MALE: They're acting like Democrats.

CROWLEY: A prescription drug plan for seniors they see as a big -- read that "costly" -- entitlement program. And money.

HENRY JACKSON, REPUBLICAN VOTER: They just don't find anything in Washington not worth spending money on.

CROWLEY: And influx of illegal aliens -- also money.

RICHARD ENGLE, NATIONAL FED. OF REPUBLICAN ASSEMBLIES: We're spending more in every various social program. The very programs those Republicans voted against creating when they were in the minority, they're now spending more than the Democrats wanted to spend.

CROWLEY: Conservatives are churning out books and filling up magazines. April's "The American Spectator" offered a litany of woes, foreign policy and also money. "Don't be surprised," one article warned, "if Hillary Clinton wins the White House in 2008 running to the right of Republicans on fiscal responsibility."

RAY HORVATH, CONSERVATIVE ACTIVIST: The lesser of two evils is still evil. If the only way that the Republicans are going to learn is to lose, then they're going to have to lose. I'm hard-core.

CROWLEY: Conservatives are the most active of Republicans. They make calls.

UNIDENTIFIED FEMALE: This call is paid for by Bush-Cheney '04.

CROWLEY: Put up signs, lick envelopes, knock on doors.

JAMES GARTNER, REPUBLICAN VOTER: My excitement level heading into the elections at this time probably could best be described as low.

CROWLEY: Even if they can't imagine not voting, they can imagine not working. In this room are a lot of Pennsylvania Republicans who think Senator Rick Santorum hasn't supported conservatives and their goals.

GARTNER: When they pull the curtain, sure, they might vote for him, but the real question is whether or not they're going to lift a finger and they're going to work for him. (END VIDEOTAPE)

CROWLEY: Which is to say the biggest threat to Republicans this year is not angry Democrats showing up at the polls, but angry Republicans staying at home and sitting on their hands.

BLITZER: We heard yesterday from Karl Rove, the president's top political adviser. He for years has been the main liaison to a lot of these conservative groups. They clearly like him. They trust him. What's going on?

CROWLEY: Well, what's going on is that, you know, again, something could happen between now and the time elections come up. But conservatives really are deeply angry, largely on fiscal issues. And you're beginning to see that being addressed. You've seen the president now threaten to veto any spending bill that's above what he set. It'd be a first for him, vetoing any kind of spending bill. We know that in the Senate, they're going to bring up some of those social issues, gay marriage, things like that, which tend to get conservatives rallied.

They're counting on Karl Rove, obviously, to come up with something that will get these conservatives to the polls. Once to the polls, they don't think they're going to vote for Democrats, it's just getting them there.

BLITZER: Candy, thank you very much. Candy Crowley, Andrea Koppel, Suzanne Malveaux, part of the best political team on television, CNN, America's campaign headquarters.

Jack Cafferty, as I always say, part of that best political team on television, as well. He's standing by with "The Cafferty File."

JACK CAFFERTY, THE SITUATION ROOM: You're a nice man, Mr. Blitzer.

Karl Rove is pointing the finger when it comes to President Bush's low poll numbers. Rove said, quote -- this is part of a speech -- "The American people like this president. People like him. They respect him. He's somebody they feel a connection with, but they're just sour right now on the war."

Of course, if Karl is right, that would imply the president's done a great job with energy prices, Hurricane Katrina, the CIA leak scandal, spying on Americans without a court order. It's just that pesky old war. This is a little like trying to spin a concrete cinderblock.

Rove also said Republicans will fare just fine in the upcoming elections, dismissing all kinds of polls suggesting that Republicans are going to get killed.

Here's the question. Karl Rove says the Iraq war is to blame for President Bush's low poll numbers. Is it? E-mail your thoughts to caffertyfile@cnn.com or go to cnn.com/caffertyfile. One other note. Rove would not comment when asked about his own role in the ongoing CIA leak investigation. He said he wouldn't go beyond statements already made by his attorney. Nevertheless, rumors continue to swirl around that an indictment or Mr. Rove is imminent -- Wolf.

BLITZER: Lawyers to close to Karl Rove deny that, but that's another story. Jack, quickly, what did you think of the president's speech last night?

CAFFERTY: Well, I was kind of busy working on my own stuff here in THE SITUATION ROOM. I think he was -- you know, it was a nice effort to be a lot of things to a lot of people. But I agree. I think what the people have suggested, until we secure the borders, it's a little tough to do anything else with this issue. And I don't see that the way they're going to dispatch 6,000 National Guard troops to the Mexican boarder is going to accomplish getting the security job done.

You know, I think it was a nice try. It was a good speech. I think some of his ideas are right. But you got to start with number one, and that's to lock these borders down and get some control over who's coming and going.

BLITZER: Jack Cafferty, we'll get back to you soon. And to our viewers, if you want a sneak preview of Jack's questions, plus an early read on the day's political news, what's ahead in THE SITUATION ROOM, you can sign up for our daily e-mail alert. Simply go to cnn.com/situationroom.

And coming up: The indicted White House aide Scooter Libby back in court today. We'll go live to the federal court here in Washington for the latest developments on the CIA leak case. Our John King is there.

Plus, a very deadly day in Baghdad for both Iraqis and American troops. Zain Verjee joins us in just a moment with the story.

Plus: They're calling it the worst flooding in decades, but is relief in sight for New England? Massive flooding's forced thousands to flee. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: As you recall, telecom giants AT&T, Bellsouth and Verizon were all accused by "USA Today" of providing the NSA -- the National Security Agency -- with the phone call errors of tens of millions of customers. But all three companies aren't taking the allegations lightly, by any means.

Let's bring in our Internet reporter, Jacki Schechner. She has the very latest -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, all three companies reacted when the article came out, and they have continued to issue additional statements. Let's start with Bellsouth. In "USA Today," they said they don't provide confidential customer information to the NSA or any governmental agency without proper legal authority. Since then, they've added an additional statement to their Web site. You can go on line and read it. They said they did an investigation. They have no contract with the NSA. They have not provided bulk customer calling records to the NSA. And in addition to that, they told CNN that they haven't provided any customer information whatsoever to this agency.

Let's move on to AT&T. When the story broke, they told CNN if and when they are asked to help, they do so strictly within the law and under the most stringent conditions. Since then, they have augmented that statement, saying they don't give customer information without legal authorization and that they work within the law, if asked, to insist government agencies. They also say they won't comment on matters of national security.

Let's move on to Verizon. When the story hit, CNN reported that Verizon won't comment on national security but complies with the law and safeguards privacy. They have also put an official statement on line saying that they didn't provide the NSA, quote, "unfettered access to customer record," and they won't confirm or deny a relationship with the NSA.

I know this is a lot. Go to cnn.com/situationreport. We have all of the links and all of the details there -- Wolf.

BLITZER: I think a lot of our viewers are going to be interested in that. Thank you, Jacki.

Zain Verjee joining us once again from the CNN headquarters in Atlanta with a closer look at some other important stories making news. Hi, Zain.

ZAIN VERJEE, CNN ANCHOR: Hi, Wolf. Shootings, bombing and body dumpings in Baghdad. Insurgents are equal opportunity offenders as they target civilians, soldiers, even a college dean. Violence today killed 37 Iraqi civilians. Three bodies have been found, all of them shot in the head. And one U.S. soldier is dead after a car bombing. There are now 2,448 U.S. fatalities since the war began.

President Bush discussed the Iraq war with Australia's prime minister, John Howard, at the White House today. Australia has 1,300 troops in Iraq and the rest of the Middle East.

In New England, if high water isn't the worry, what's actually in the water is. Officials are worried about backed-up sewers spewing their contents into the streets, this after what could be the worst flooding there in almost 70 years. Heavy rains have fallen for days, causing evacuations, road damage and swelling some dams near to the breaking point. Forecasters say the rain could end today.

And he had sailed off for seven enchanted evenings, but a mysterious event has cast an ugly spell. Right now, rescue crews are searching for a 21-year-old man missing from a cruise ship. Officials think Daniel Depiero (ph) may have fallen off the side of the ship yesterday. He was on a Royal Caribbean ship traveling from Florida to the Bahamas -- Wolf.

BLITZER: Zain, thank you.

Coming up: He battled cancer, and now he's battling the White House press corps. Up next, the emotional moments from Tony Snow's first on-camera White House briefing earlier today.

Plus: Will he or won't he. Is Al Gore really interested in another run for the White House? The story in today's "Political Radar." Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer in Washington.

Today, the new White House press secretary, Tony Snow, brought something different to the briefing room in the West Wing of the White House. During his first televised go-round with reporters, Snow got unusually emotional talking about his very dramatic battle with cancer.

Let's bring back our White House correspondent, Suzanne Malveaux with more -- Suzanne.

MALVEAUX: Well, Wolf, as you know, of course, facing us sometimes has been compared, likened to feeding sharks or even turning yourself into a human pinata. But dare I say, today, his first on- camera briefing, Tony Snow did pretty well.

(BEGIN VIDEOTAPE)

TONY SNOW, WHITE HOUSE PRESS SECRETARY: I feel so loved.

MALVEAUX (voice-over): For the self-proclaimed new kid on the block, today was his first day of school.

HELEN THOMAS, COLUMNIST: Are all of these stories untrue that we've been reading for the last several days about millions of Americans have been wiretapped?

SNOW: OK, let's try to segregate the stories here.

MALVEAUX: In the standing-room only crowd, a chance to meet the class bully.

CARL CAMERON, FOX NEWS: You just a second ago said you guarantee it's going to go to conference. So you already know that the Senate's going to pass this?

DAVID GREGORY, NBC NEWS: But these aren't new issues, Tony.

UNIDENTIFIED MALE: Now, hasn't he attached all of the political capital to an issue that may very well be DOA?

MALVEAUX: And class clown. UNIDENTIFIED MALE: Is the president opposed to contraception or not?

MALVEAUX: On his first day under the hot lights and heated questions from the White House press corps, there were artful and blunt dodges.

SNOW: I can't confirm or deny it. The president was not confirming or denying.

UNIDENTIFIED MALE: Why won't you comment at all on the "USA Today" story, or at least talk in a limited way about how average Americans' phone records are handled by the National Security Agency?

SNOW: Because it's inappropriate.

MALVEAUX: Does the president agree with that? And what did he mean when he said today, We are not going to discriminate against people?

SNOW: Well, Suzanne, I think I will not try to improve on the president's words from today.

MALVEAUX: And refreshing candor.

SNOW: The United States -- let me just make it very general. The United States is aware of and supports the continuing efforts of the EU3 to work -- am I getting it wrong? OK. Well, OK. Thank you very much. You know what? Rather than have me fake it, I will get a precise number to you.

I overstepped and should not be making predictions about what the Senate will do, and we'll leave it to the senators themselves.

MALVEAUX: But the moment that defined Snow's first squaring-off with this normally cynical bunch, a rare show of emotion from the podium about surviving his battle with cancer.

SNOW: It's going to sound stupid. And I'll be personal here. But...

UNIDENTIFIED FEMALE: (INAUDIBLE)

SNOW: No, no, just -- having gone through this last year -- and I said this to Chris Wallace -- was the best thing that ever happened to me. You know what? It's one of these things where miracles -- whatever we may say about our health care system, the technologies that were available to me, that have me standing behind this podium today, with a doctor who said, You don't have to worry about getting cancer, just heartburn talking to these people

That's a wonderful thing. And I feel every day's a blessing.

(APPLAUSE)

MALVEAUX: (AUDIO GAP) minutes, he survived his first White House briefing, for now, eager to do battle another day.

UNIDENTIFIED MALE: Welcome.

SNOW: I love it. This is great. Thank you.

(END VIDEOTAPE)

MALVEAUX: Wolf, we will see how he feels next week.

BLITZER: Suzanne, you were there. You were in the briefing room. You have listened to a lot of White House press secretaries deliver these briefings. You think did he a -- a good job? And I was watching the whole thing on television.

He clearly brings a different style to the White House briefing room than his predecessor did.

MALVEAUX: Some are calling him the un-Scott.

But what I can say about him so far is that he really has brought obviously a sense of humility, a sense of humor, and really kind of a bluntness and a sense of honesty that is refreshing to many people in the room. He clearly, when doesn't know something, just flat out says so.

Obviously, he's going to get a tougher way to go in the weeks to come, when he comes up with that response. But it was very emotional to see him, several of us sharing in that emotion, when he teared up over his own story about surviving cancer.

BLITZER: We wish him only the best.

Thank you, Suzanne.

Tony Snow has got a tough job, indeed.

Tony Snow's predecessor, by the way, is in our "Political Radar." The former White House press secretary, Scott McClellan, will be answering some questions tonight. This time, though he may be going for a punchline, instead of a political line. He will be the guest on "The Tonight Show With Jay Leno" tonight.

A bipartisan group of senators is making a new push today for embryonic stem cell research. They announced the results of a new poll, showing three-quarters of Americans want the Senate to vote on federal funding for stem cell research. And they released a letter from the former first lady, Nancy Reagan, urging Senate leaders to schedule a vote on this issue.

And is Al Gore rethinking his presidential ambitions? The 2000 Democratic nominee has said he's not planning a run for the White House in 2008. But look what at he said to an Atlanta publication -- and I will quote specifically -- "I'm a recovering politician, but you always have to worry about a relapse" -- Al Gore speaking earlier.

President Bush goes prime time, but how did he do? Did Mr. Bush change minds? Our Bill Schneider grade the president's address.

And I will also speak live with the attorney general of the United States, Alberto Gonzales, about the battle over immigration. He joins us right here in THE SITUATION ROOM in the next hour.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Let's get back to the immigration wars and the impact of President Bush's nationally televised address from the Oval Office last night.

Let's bring in our senior political analyst, Bill Schneider -- Bill.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, the target audience for President Bush's immigration speech wasn't really the public. It was his conservative base.

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): How did President Bush do? It depends on the issue.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: First, the United States must secure its borders.

SCHNEIDER: On border security, the public and the president's conservative base are on the same page: tougher enforcement. More than two-thirds of the public favor a bill to increase border security and make it harder for illegal immigrants to find jobs.

The issue for conservatives is, did the president ask for enough?

Second issue: earned citizenship for illegal immigrants already here who pay a fine and back taxes and learn English.

BUSH: People who meet these conditions should be able to apply for citizenship.

SCHNEIDER: The public agrees. On that issue, the conservative base and the public part company.

REP. CLIFF STEARNS (R), FLORIDA: A path to citizenship like this is an egregious slap in the face to all threat immigrants who sacrificed to respect our laws and enter legally.

SCHNEIDER: Third issue:

BUSH: Therefore, I support a temporary worker program that would create a legal path for foreign workers to enter our country.

SCHNEIDER: The public and the base are both skeptical of a guest-worker plan. Americans are divided over whether it's a good idea. They are already aware of the problem researchers have found with temporary workers.

UNIDENTIFIED MALE: How does one get them to leave the country?

SCHNEIDER: The conservative base believes a guest worker plan will make the problem worse.

STEARNS: Two years ago, President Bush first announced his guest-worker program, and illegal immigrants numbers have risen steadily since.

(END VIDEOTAPE)

SCHNEIDER: Democrats who support the president's ideas on immigration are unlikely to fight for them, unless the president shows he can convince his base -- Wolf.

BLITZER: Bill Schneider, thanks for that -- Bill Schneider reporting.

More on those telecommunication companies and their cooperation, or lack of cooperation, perhaps, with the National Security Agency.

Jacki Schechner is watching what is going on.

What have we just learned, Jacki?

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, according to the Associated Press, in an e-mailed statement to the AP, Verizon Communications denies was asked by the National Security Agency to provide customer phone records or call data -- again, that information coming from the Associated Press, supposedly from Verizon Communications, in an e-mailed statement to the Associated Press.

We're going to continue to follow this and bring you the latest as soon as we get it -- Wolf.

BLITZER: Thank you very much for that, Jacki.

Zain Verjee is also watching a developing story coming out of Iraq.

What is going on, Zain?

VERJEE: Wolf, police say that a diplomat from the United Arab Emirates has been kidnapped this evening in an upscale Baghdad neighborhood.

His Sudanese bodyguard was apparently shot and wounded. And he relayed some of the details of what had happened. It's not clear exactly who is responsible for the kidnapping. This UAE diplomat was apparently visiting a cultural center that was run by the Emirates' embassy that was in the Mansour district, which I believe is in western Baghdad.

This is the second attack in about a month involving the United Arab Emirates' mission in Iraq. The last one happened on the 3rd of May, where two Iraqis who were actually working for the embassy was killed during an attack on their car. We're going to continue to follow this story and bring you developments as we learn them -- Wolf.

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

And coming up here in THE SITUATION ROOM we will get back to the battle over immigration. Paul Begala and Bay Buchanan probably don't see eye to eye on the issue. We will soon find out. They are standing by to join us in today's "Strategy Session."

Plus, never-before-seen video of the 9/11 attack at the Pentagon. What are family members who lost loved ones saying about this new tape? That story is coming up in our next hour.

(COMMERCIAL BREAK)

BLITZER: We're learning of some new developments today in the CIA leak trial of Lewis Scooter Libby. Lawyers for the former Cheney chief of staff are trying to get their hands on reporters' notebooks and other media documents.

Our chief national correspondent, John King, is just outside the federal courthouse.

You were inside for these proceedings. John, update our viewers. What happened?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Wolf, almost three hours, the hearing went on, Scooter Libby's lawyers, as you noted, fighting for access to documents, e-mails, reporters' notebooks from "The New York Times" and its reporter Judy Miller, from "TIME" magazine, its reporter Matt Cooper, as well as from NBC News, and trying to get some notes of one of its reporters, Andrea Mitchell.

The judge sounded quite skeptical that he would grant the sweeping request for a whole number of documents the Libby defense team wants. The judge did not rule today, but he sounded quite skeptical.

But we did hear a few new interesting things in the court. One of them had nothing to do with the actual reason we were in court today. At one point during the hearing, one of Mr. Libby's lawyers, William Jeffers (ph), was talking about the original Bob Novak column that, of course, outed Valerie Plame, the CIA operative. And this whole case was generated from that point forward.

Mr. Novak's column started it. We have learned subsequently in this investigation that Bob Woodward of "The Washington Post" also said that he had a conversation with somebody in the administration about Valerie Plame working for the CIA.

Well, one of Mr. Libby's lawyers, again, Mr. Jeffers (ph), said in court today that we know that the source for Novak and Bob Woodward -- quote -- "who wasn't even in the White House." So, he is saying that it was not a White House official who was the source for Bob Novak originally and for Bob Woodward as well. And he was saying -- he also said in court that that source, when he told Novak and Woodward, didn't think that Valerie Plame was covert. Why is this important? We're learning more and more about the defense strategy as it fights for evidence -- the trial not until January, the defense trying to get more documents to help build its case -- and, again, no ruling from the judge today.

But he did say that the news organizations needed to turn over to him a number of documents, an interview that "New York Times" reporters did with Judy Miller after she came out of jail and testified before the grand jury. The judge will look at that 14-page transcript, decide whether he should give it to the defense -- also, some e-mails and notes from Matt Cooper of "TIME" magazine. He wrote an article in which he said he had administration sources, later told the grand jury that Lewis Libby was one of those sources.

But Mr. Libby's defense team said in court today that his notes from that interview with Mr. Libby do not mention Valerie Plame -- again, she is Ambassador Joe Wilson's wife -- and that an e-mail to his editor after that conversation did not mention Valerie Plame either, and that a subsequent e-mail to his boss about the article he would write that week said he had one source, an administration source. The Libby defense team says that source was Karl Rove, not Scooter Libby.

Again, Wolf, it gets pretty confusing. But we're learning more and more about the Libby defense strategy, which is simply, in part, to say, some of these reporters were incorrect in what they told the grand jury, and the Libby defense team believes that its note will prove that they had faulty recollections and that Mr. Libby did not lie to the grand jury, at least not willingly, and, if he made any mistakes, they were simply faulty error, not any deliberate plot to lie to prosecutors or the grand jury -- Wolf.

BLITZER: As you were speaking, John, we saw live pictures of Scooter Libby and his attorney getting into that car -- Scooter Libby getting into the front seat. We also earlier saw some live pictures of the special prosecutor, Patrick Fitzgerald, leaving the courthouse.

I understand he was in this hearing as well, although I'm not exactly clear what his role was.

KING: Well, he had no official role in the hearing. He did stand up to speak to the judge at the very end, a couple of housekeeping matters for future hearings.

But he had no official role in this hearing. This was a fight between Mr. Libby's defense teams and these various news organizations. But Mr. Fitzgerald, of course, is the prosecutor in this case.

He came in just as the hearing was beginning. He actually sat just to my left in the courtroom. And he was furiously scribbling notes the entire time, because, again, as I was saying, it's a bit confusing to viewers, I'm sure, as I try to recount this, but, more and more, at these hearings, we're learning about the Libby defense strategy.

Mr. Fitzgerald, of course, has a very high interest in that defense strategy. So, it was quite interesting. He was sitting in the front row in the courtroom, the entire time scribbling notes, one of his assistants scribbling notes as well. I'm sure he's trying to learn whatever he can, as he prepares for the trial as well -- Wolf.

BLITZER: You did an excellent job, John, reporting a complicated story. We are going to have you back in the next hour or so. And we will continue to watch this story unfold -- our John King inside the courthouse for this three-hour hearing involving Scooter Libby and the news media.

Up next, the political fight over immigration -- Paul Begala and Bay Buchanan team up in today's "Strategy Session."

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

In our "Strategy Session" today, the president makes his case for immigration reform. Was he able to gain any support among the critics in his own party? Will this be the defining issue come November?

Joining us now are CNN political analysts and Democratic strategist Paul Begala and Bay Buchanan, the president of American Cause.

Paul, weigh in. How did he do last night?

PAUL BEGALA, CNN POLITICAL ANALYST: Well, poorly, politically, as a political matter.

The president's first job -- and we talked about this last week -- is to shore up his base, right? He needs Bay Buchanan singing his praises. He doesn't need me. He's never going to get me.

But I was struck. I watched our coverage last night. From the most liberal to the most conservative, everybody was disappointed in this. Why? Because the president didn't look like he was taking a stand on principle. That -- that is what he used to be able to do very well.

He lacks, in the eyes of the voters -- even in his own party -- credibility and competence. People think he's not telling the truth when he says he's going to secure the borders. And they think he's not capable of doing it, even if he were serious about it.

BLITZER: This instant poll we did after the president's speech showed that the opinion of the president on immigration policies after the speech went from 42 percent positive before the speech to 67 percent positive after the speech. Albeit, this is an instant poll...

(CROSSTALK) BLITZER: ... not necessarily the most thorough. But it -- it does indicate that maybe he scored some points.

BAY BUCHANAN, CNN CONTRIBUTOR: It does. And I understand perfectly why that was.

I think it was a well-constructed speech. I think he spoke sincerely and did a terrific delivery. He showed and he said those things that made Americans believe that he really is concerned about those things he's concerned -- that they're concerned about.

The problem that he's going to have, Wolf, is, it was packed full of misleading remarks. And, so, he's out there, and he says, we have to secure our border. We have not done it. We have to do it.

Then he sets a proposal that is already being ridiculed. And what happens in six weeks? And that border is not secure.

BLITZER: You're talking about the 6,000 National Guardsmen?

BUCHANAN: The 6,000 National Guard, who is going to be sent down there for two-week intervals, unarmed -- unarmed.

Now, nobody in their right mind -- they are going to be serving coffee to the Border Patrol. This is not a way you seriously secure the border.

BLITZER: Well, what they are going to be doing, they are going to watching high-tech surveillance. They are going to, you know, supposedly backing up the Border Patrol, to make sure that they have the -- the technology they need.

BEGALA: But the Congress last year, with strong Democratic approval, passed funding for 2,000 new Border Patrol positions, over a year ago. The president has filled 210.

So, nine-tenths of what Congress asked for last -- ordered, required last year, the president still hasn't done. The president hasn't secured the borders, because he doesn't want to.

BUCHANAN: Correct.

BEGALA: My God, he invaded Iraq because he wanted to.

If he wanted to secure those borders, they would be secure. And, on this one, he -- he has lost his base and he's lost the Democrats.

(CROSSTALK)

BLITZER: He hasn't lost the Democrats, because Ted Kennedy was on this program yesterday. And he was effusive in his praise.

BUCHANAN: Of course he...

(CROSSTALK)

BLITZER: In fact, he issued a statement afterwards.

He said: "I commend the president for his courage in calling the nation's attention to the urgent need for comprehensive immigration reform that includes providing a path to citizenship for those who are here. We are at a critical moment in this debate. And his leadership is essential, as we fight for fix our broken system once and for all."

I suppose Ted Kennedy's endorsement of the president's stance is not necessarily going to please a lot of conservatives.

(CROSSTALK)

(LAUGHTER)

BUCHANAN: Ted Kennedy doesn't want the border security. He could care less. He could care less about employer sanctions at all. What he cares about is amnesty and guest worker. That's what he cares about. That's what the president cares about. And that's what the Americans do not want.

Wolf, I have just traveled...

BLITZER: You don't think the president is sincere about beefing up security at the borders?

BUCHANAN: No. He hasn't done it. He has had six years to do it. He has talked about it. He has talked about securing the border. Time and again, he's made these new initiative type talk. And he has never done it.

And this proves once again he's not serious. Wolf, I'm telling you, I have just traveled this country for three months. I go everywhere around. I have town hall meetings. I have never seen such unified anger toward the president and Congress in my entire life, Vietnam War included. They -- it's so...

(CROSSTALK)

BLITZER: By conservatives, you mean?

BUCHANAN: No. Well, by everyone.

And I talk to liberal Democrats. The people that come to the town hall are Democrats, Republicans.

BLITZER: Paul, all right...

BUCHANAN: Ninety-two percent want their border secure.

BLITZER: Will there -- I assume you believe there will be a Senate bill that passes in the next few weeks. There will be an effort to reconcile that with the House. When all is said and done, will there be immigration reform legislation on the president's desk any time soon?

BEGALA: My best guess is no. And here's why. It's a family feud. Certainly, the Democrats have their own fissures on this issue. But, within the Republican Party, there's an enormous fight going on, a civil war between the president's economic base, businesses who, frankly, want to hire illegal aliens in order to depress wages, so they don't have to pay a living wage, and that they can exploit these guys and gals, and social conservatives, who, frankly, don't want them here, often for cultural reasons, as much or more than economic reasons.

And, so, you have these two very powerful factions in the president's constituencies fighting amongst each other. And I think that will produce stalemate in the Republican Congress.

BLITZER: Ten seconds -- 10 seconds.

(CROSSTALK)

BLITZER: Will there be legislation?

BUCHANAN: No. I think they might not even get any legislation out of the Senate. And I think the House will hold its own, because they would like to survive November.

BLITZER: Bay Buchanan and Paul Begala, thanks very much.

And thanks to both of them, because, among other things, they are part of the best political team on television -- CNN, America's campaign headquarters.

Coming up: Karl Rove says the Iraq war is to blame for President Bush's low poll numbers. Is it? Jack Cafferty standing by with your answers to his e-mail question.

(COMMERCIAL BREAK)

BLITZER: Let's check back with Jack. He's got "The Cafferty File" -- Jack.

JACK CAFFERTY, CNN ANCHOR: The top political adviser in the White House -- that would be Karl Rove, Wolf -- says the president's low approval ratings are -- quote -- "the result of the war in Iraq." He said American people like this president. They are just sour on the war. That's our question. Is that the reason?

Allen in Mountain Home, Idaho: "That's one of the reasons. His inability to tell the truth, his record on the environment, his lack of diplomacy with other countries, his spying on us, the corruption in his administration, his reluctance to share power with Congress, and his disdain for the court system are just a few of the others."

Carl in Cookeville, Tennessee: "His low numbers have very little to do with the Iraq war. It doesn't take a rocket scientist to see the reason for his low numbers is the liberal press. The mainstream media, and, yes, CNN, MSNBC, the "New York" and "L.A." "Times" and other liberals, have done their very best to crucify President Bush. Now let's see if you have the guts to put this on the air." Just did, Carl.

Ed in Oracle, Arizona: "Karl is on the money, literally. A loss in popularity is a small price to have your way with the world. Others are paying a whole lot more. Let George finish his term and take his place in history with Richard Nixon."

Allan writes: "It's about how we got into the war, not the war itself. It's about Katrina, and Abramoff, and border security, and secret prisons, and Terri Schiavo, and NSA wiretapping, and gas prices. Come November, the Republicans will lose control of the Congress. It's a slam-dunk."

And A. in Archer, Florida: "Karl Rove should look in the mirror. Then he would see George W. Bush's biggest problem" -- Wolf.

BLITZER: Jack, thank you.

And, to our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time. Standing by, CNN

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