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The Situation Room

Has Raid on Congress Weakened Division of Power; New Developments in CIA Leak Probe; Interview With Congressman Duncan Hunter; Interview With Dan Barlett; Details Emerging of Haditha Killings; Palestinian Tensions Rise Between Factions; Is Taliban Gathering Strength in Afghanistan?; Amazing Video of Underwater Volcano; Michael Hayden's Confirmation Ends Troubled Goss Tenure

Aired May 26, 2006 - 16:00   ET

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


JOHN KING, 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 today's top stories.

Happening now, crisis management. It's 5:00 p.m. here in Washington, where the leader of the Senate asks the attorney general to explain an FBI raid of a congressman's office. But can the legislative and executive branches reach agreement on constitutional concerns?

Meanwhile, another constitutional battle. This one involving the First Amendment and journalists in the CIA leak case. They say the Constitution protects them from handing over their notes, but Lewis Libby's defense team wants a look. Now a judge rules.

And Congress's two chambers are a house divided. How can the Senate and the House steer clear of a collision course amid their differences, big differences, over immigration reform?

Wolf Blitzer is off today. I'm John King. You're in THE SITUATION ROOM.

It involves an unprecedented raid on a member of Congress' office, the legislative branch, approved by the judicial branch and executed by the executive branch. Right now, many want to make sure the nation's division of powers has not been weakened. Today the Republican leader of the Senate summoned the attorney general of the United States to his office to explain.

CNN Justice Correspondent Kelli Arena has the details on these dramatic developments -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: John, the attorney general met today with Senate Majority Leader Bill Frist. And they were discussing the confrontation over last weekend's search of a lawmaker's office. As he was heading out of the Capitol, Attorney General Alberto Gonzales would only say that it was a good meeting.

Yesterday, as you know, President Bush ordered the documents that the FBI took from Congressman William Jefferson's office as part of an investigation be sealed for 45 days. That to give both sides some time to come up with a compromise.

Transfer of those documents was expected to take place today. Now, government officials had said that they went to court for a search warrant only after they exhausted every other avenue.

Jefferson is under investigation for allegedly taking bribes. In an affidavit, the FBI says that it has video of the congressman allegedly accepting bribe money from an FBI informant. Now, Jefferson has not been charged and he does deny any wrongdoing. Member of Congress complained, saying that the search was an abuse of executive powers.

Now, beyond deciding how to move forward with this particular situation, lawmakers will also discuss ground rules that may be put in place if this ever happens again. And John, that's a very real possibility as the FBI's focus on public corruption cases has increased and several major investigations, as you know, are very much under way.

KING: Kelli, interesting, the perspective of your sources. The president called essentially a time-out in this controversy yesterday...

ARENA: That's right.

KING: ... ordering all the documents, materials seized, be sealed for 45 days, put under seal. Nobody could see them until they try to work all this out. Any rumblings in the Justice Department on that decision? Do they think by any means the president might have been undermining what they're doing?

ARENA: Well, I can tell you there were not a lot of happy people that I spoke with yesterday and reported on. I mean, both from government and law enforcement.

They really felt that they were on solid legal ground here, John. And they felt that they had issued a subpoena, they got no cooperation. They had tried all of the usual moves, they say, that they have done before and gotten some results, and got nothing.

And they said, look, we went to a court. We got a judicially, you know, approved search warrant. We went in, and we took the materials, only things that had to do with this particular investigation.

And, you know, look, the affidavit speaks for itself. But, you know, right now, everybody is saying nice things.

KING: Everyone's saying nice things.

Kelli Arena, this story part of a fascinating legal and political drama.

And our justice correspondent, Kelli Arena, part of the best political team on television.

CNN, of course, America's campaign headquarters.

Our Zain Verjee, another member of that team, joins us now with a look at other stories making news.

Hi, Zain.

ZAIN VERJEE, CNN ANCHOR: Hi, John.

Another wave of bombings in Iraq today. The worst in central Baghdad at an outdoor market. The explosion killed at least eight people and wounded dozens more. More than 20 civilians were hurt in three roadside bombings elsewhere around the Iraqi capital.

In Kirkuk -- that's north of Baghdad -- another roadside bomb killed a police officer and injured four other people.

The Pentagon says today that several hundred more troops will indeed be deployed from Kuwait to Baghdad over the next few days. The Pentagon's statement confirms President Bush's assertion during last night's news conference that more troops were on the way. Defense officials had planned to announce the deployment after the small new force was in place, but changed their minds after President Bush's disclosure.

In just the past hour and a half, the all-clear has been sounded on Capitol Hill. But there were several tense hours after a report of shots fired in the Rayburn House Office Building garage. Capitol Hill Police sprang into action, placing the Capitol complex into lockdown at mid-morning. It's believed that the report stemmed from noise made by an elevator work crew -- John.

KING: Zain Verjee, thank you very much. Back to you a bit later.

There are new developments though in the CIA leak probe, with major implications for news organizations.

CNN's Brian Todd is following that story for us and joins us now.

Hey, Brian.

BRIAN TODD, CNN CORRESPONDENT: Hi, John.

The key ruling here, "Time" magazine and its reporter, Matt Cooper, have one week to turn some drafts of an article he wrote over to the attorneys for former White House aide Lewis "Scooter" Libby. This has been an ongoing battle over documents between Libby's attorneys, the courts, and several media organizations.

The news outlets have tried to convince Judge Reggie Walton that their notes, e-mails, and drafts were protected by the First Amendment and that they weren't relevant to Libby's case. But the judge ruled that at least in this case, the court won't recognize First Amendment privilege, and he said Cooper's drafts may hold some inconsistencies about when he spoke to Scooter Libby about outed CIA operative Valerie Plame. We just spoke a minute ago to Matt Cooper's attorney, Richard Salver (ph). He said it's unlikely that Cooper will challenge the judge's ruling.

One attorney involved in the case tells CNN these so-called inconsistencies in Cooper's drafts are "trivial," but they could still be key to Libby's defense. Libby is charged, as you know, with lying to a grand jury and investigators about how he learned Plame's classified identity and what he told reporters about her. He denies wrongdoing, and his attorneys have argued that Libby does not remember key details of those exchanges.

His trial is set for January -- John.

KING: Brian Todd, tracking this very complicated legal case for us.

Thank you very much, Brian.

Any other news organizations affected by this ruling before I let you go?

TODD: Yes. The documents say that "The New York Times" and NBC News might -- might have to turn over some of their notes or other documents related to this particular case, but certainly not immediately.

Matt Cooper got has until next Friday, one week from today, to get his documents there. The door is open for those other news organizations.

KING: Thank you very much, Brian. Thank you.

TODD: Sure.

KING: Think maybe the they'll all just be able to get along? New developments today in the immigration war between the House and the Senate.

Today a top House Republican makes a comment that you might call the political equivalent, "If it walks like a duck, it is a duck." Congressman James Sensenbrenner of Wisconsin said despite claims by senators that their immigration bill doesn't include amnesty, in his view, it does include amnesty. And Sensenbrenner said voters should not now be able to weigh in.

(BEGIN VIDEO CLIP)

REP. JAMES SENSENBRENNER (R), WISCONSIN: I think the American public is entitled to have a vote on the compromise before the elections so that the voters can go to the polls assessing how their representatives and senators have done on this issue before they decide who to send back.

(END VIDEO CLIP)

KING: A short while ago, I spoke with another key Republican congressman who echoes some of those same thoughts.

(BEGIN VIDEOTAPE)

KING: Joining us now is Congressman Duncan Hunter. He's the chairman of the House Armed Services Committee, also the man who represents California's 52nd Congressional District in San Diego, ground zero, if you will, in the immigration debate in this country right now.

Congressman, as you well know, the Senate has passed its immigration bill. It includes a guest worker program that would allow illegal immigrants to get on a path to citizenship in this country. Everyone is now calling -- in the Republican Party -- calling on the House to see if it can compromise with the president.

Can you accept an immigration bill that has a guest worker program that gives citizenship ultimately to those who enter this country illegally?

REP. DUNCAN HUNTER (R), CALIFORNIA: Well, I don't think it's a matter of us accepting provisions like that. I think it's a matter of whether or not the Border Patrol can accept a provision like that, because the border right now is wide open. Except for the fence that we built in San Diego, you have a non-enforceable border across that 2,000 miles between here and Brownsville, Texas.

And that means that any perceived benefits of the -- what is called an amnesty in disguise, or the five-year amnesty or the two- year amnesty that comes out of the Senate, if that is advertised to the world, you will have another wave of 10 million or 12 million people coming across that border illegally who think they're going to come across and catch the third amnesty. The 10 or 12 million people who are here illegally right now came across after 1986, when we gave amnesty to three million and then we wrote in the fine print, rest of the world, don't enter the United States illegally. And we didn't even slow them down in packing their suitcases.

So they were -- they figured they'd come across and catch the second amnesty. And if the Senate gets its way, they will. So you have to have an enforceable border before you can have any policy change.

KING: Among the critics, sir, of the House legislation is the former president of the United States, Jimmy Carter, who said this, this past week, "Competing legislation from the House of Representatives has strong racist overtones."

What do you think of that.

HUNTER: Well, I think that's absolutely wrong. In fact, the people who are coming across right now this summer -- this is the start of the hot season in the Southwest. Without a fence across that border, especially across the Arizona border, by a historic record, about 400 of the people who come in this year will die of thirst in the desert. That's because the smugglers will take these people in Mexico, they'll tell them that the road is only about a mile or two to the north of the border -- in some cases it's 20 miles -- and we will have about 400 people who die of sun stroke or dehydration out there in the desert.

I don't think that's what a nice guy like Jimmy Carter should want. Now, if you had 400 high school students a year who were drowning in a canal, you would immediately fence the canal.

So you have -- if we put this border fence in -- and on the House side we have a humanitarian provision. We said you're supposed to get this fence in before the next hot season, before the sun gets to be 115 degrees out there in the Arizona desert. So Jimmy Carter is a nice guy, hasn't looked at this one too close, and is fairly naive on this, as he's been on a lot of things.

KING: I want to change the subject to Iraq. The president of the United States, the prime minister of Great Britain had a news conference last night in which they were trying to make their case that they believe in time Iraq will be a stable democracy, will be a stabilizing force in the Middle East. But the president acknowledged in his statements last night the sour political mood in this country because of the Iraq war.

I want you to listen briefly to the president.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: No question that the Iraq war has, you know, created a sense of consternation here in America. I mean, when you turn on your TV screen and see innocent people die day in and day out, it affects the mentality of our country.

KING: Your thoughts, sir, on the political impact here in the United States of the Iraq war, and also on the idea that they want to talk about eventual troop reductions, but this new government, for all the praise it is getting from the president and the prime minister, still does not have a defense minister. So you can't even begin to have those conversations.

HUNTER: Well, the key here is to stand up the Iraqi military. And that means they have to have a chain of command, have officers who are responsive to the civilian government that's going into place. And also, in turn, command obedience down through the ranks and basically have the ability to stand and fight.

Now, the last time I was in Iraq, in Falluja, for example, in the same place where the Iraqi soldiers ran when we tried to get them to help the Marines in Falluja, according to the Marines on the ground there, right down to the corporals who engage in the firefights at close range, the Iraqis now are standing and fighting. So the military is standing up. And it's maturing well.

And I think that we're going to be able to start moving American troops out of there sooner than lots of people think. But I agree with the president that you don't want to have a timetable. I also agree that this is tough political sledding.

It's never easy when you have a -- when you have a conflict that goes on and Americans watch casualties on television. And we're the people who have been used to wars that lasted one week, one month. This is a long, tough -- tough run in Iraq.

On the other hand, I think having a country in the Middle East that is a friend, not an enemy of the United States, that as a modicum of democracy, and that won't be a springboard for terrorism in the future will accrue to future generations. But it's not something you can but on a bumper strip, and it does produce a tough political road.

KING: Mr. Chairman, I want to ask you lastly in closing, you know about this constitutional dustup. The leadership in Congress saying the FBI should not have served a search warrant on a member of Congress' office, at least without checking in with the leadership first.

Do you share that view? Does law enforcement agencies in the process of what they say is a legitimate investigation, do they have to check in with the leadership before exercising a search warrant?

HUNTER: You know, I think that I have -- I have been doing all Iraq all the time, and I haven't had a chance to look at the details on this. But I think that Denny Hastert, who is a -- who is a great guy, who has a lot of integrity, the speaker of the House, I mean, he could have -- he could have let this one go because this was a Democrat, and this would have taken -- totally taken -- totally taken the focus or taken the play away from the Democrats who have been talking about Republican corruption. This would have totally cut the legs out from under them.

And instead of that, he did what was right, which was to say, wait a minute, this is a separation of powers question. And instead of reaping a political gain, Denny Hastert has said the integrity of the House is important.

Denny Hastert is not going to go down and investigate or have a raid on the White House. And as a separate but equal power, equal part of our Constitution -- of our government, as put together by the founding fathers, I think Denny Hastert is doing the right thing for the institution over the long term, and he sacrificed short-term political gain to do it.

The guy's got a lot of integrity. And that's why we call him "The Coach".

KING: Call him "The Coach". We need to end it there, Mr. Chairman.

Congressman Duncan Hunter of California, thank you very much for joining us today.

HUNTER: Good to be with you.

KING: Take care, sir.

(END VIDEOTAPE)

KING: And time now for what we call -- lovingly call "The Cafferty File". Our Jack Cafferty is in New York.

Hey, Jack.

JACK CAFFERTY, CNN ANCHOR: Very funny.

President Bush has ordered that the documents seized by the FBI in that raid on Congressman Jefferson's office be sealed for 45 days. Meanwhile, the House speaker, Dennis Hastert, who was one of the most vocal critics of last weekend's search, is now suddenly saying that that disagreement is "behind us now."

That didn't take long.

He's working with the Justice Department to try to set up guidelines for the FBI to review these materials and stuff from other searches from congressional offices as well. For now, though, the solicitor general has custody of all these documents.

The question is this: What should eventually happen to the materials that were taken from Congressman Jefferson's office by the FBI?

You can lovingly e-mail your thoughts to CaffertyFile@CNN.com or you can go to CNN.com/CaffertyFile -- Mr. King.

KING: Mr. Cafferty, maybe we'll put those documents in your possession until they work all this out.

CAFFERTY: I don't want anything to do with any documents. I have plenty of my own.

KING: I suspect you're going to get some traffic on that question, Jack. We'll see you in a little bit.

And up ahead, we'll take you to Afghanistan, where our Pentagon correspondent, Barbara Starr is with U.S. forces as they battle what some say is a Taliban resurgence.

Also, critical comings and goings at the CIA. The Senate votes on a controversial choice to take over while the last chief leaves after a troubled tenure.

Plus, White House counselor Dan Bartlett joins us right here in THE SITUATION ROOM to talk about immigration, the raid on Congress, and the president's relationship with his own Republican Party.

Stay right here.

(COMMERCIAL BREAK)

KING: We give you the White House perspective now on today's top story, the FBI raid on a congressman's office and the complex constitutional questions it raises. A short while ago I spoke with a key aide to President Bush, White House counselor Dan Bartlett.

(BEGIN VIDEOTAPE) KING: Counselor to the president, Dan Bartlett, thanks for joining us on THE SITUATION ROOM from the White House today.

I want to start with this dramatic constitutional showdown between the administration and the congressional leadership, of course, over the search, the FBI search of a Democratic congressman's office last weekend. The attorney general went to Capitol Hill today. He met with the Senate majority leader, trying to explain his side of this, and at least turn down the volume for a little bit.

Dan Bartlett, who does the president agree with here? He called a time out yesterday, ordered the documents sealed for 45 days.

Does the president agree with his attorney general at the Justice Department, or does he agree with the congressional leadership that the FBI overreached?

DAN BARTLETT, WHITE HOUSE COUNSELOR: Well, John, I think the good thing is that all parties recognize that it's critically important that this investigation continue, that any time that there's any allegation of public corruption of a public official, a congressman, that we do everything we can to fully investigate this. And what President Bush did yesterday was called a time-out, as you said, to give an opportunity for everybody to take a deep breath, look at the facts.

There's no question that this was an extraordinary measure that was taken. And the Justice Department believes it was a very necessary measure that was taken. But there are a lot of feelings and beliefs and principles that are held very strongly in the House of Representatives and the United States Congress in general. And what President Bush wanted to do is allow for both of the parties to sit down and work through some of these differences they have.

I don't' think...

KING: Dan, let me interrupt you. Did the president of the United States receive an advanced briefing on this?

BARTLETT: Received -- no, he did not. This was a strict law enforcement operation. He did not receive a briefing himself.

That is typically how these type of investigates take place. What is important over the next 45 days is for the two parties to work through some of the differences they have.

At the same time, to make sure that the integrity of this investigation remains intact. And that's the reason why the president called a time-out.

He sealed these documents with the solicitor general, who's not involved in this investigation. This will not hurt the investigation. The documents will not be accessed by anybody during this time period. And this will give an opportunity for the two parties to come together. We're very pleased to see the reaction of the leadership of the House, as well as in the leadership in the Justice Department. They're going to have to have a constructive dialogue as we go forward, and that's good for the American people.

KING: A constructive dialogue, as you put it, over the legal issues involved. There has been this giant political dustup, and to many in town, they see Dubai Ports, deja vu. That the White House was about to do something very controversial -- and let's set aside whether the decision was right or wrong -- but apparently just seemed tone deaf, if you will, to the politics, the political outrage this would cause.

Fair?

BARTLETT: Well, John, if you're talking about the actual search itself, I think the American people will be assured by the fact that from career law enforcement professionals, we're not taking politics into consideration. As you just noted and I just told you, the White House was not involved in this decision.

This is a strict law enforcement operation. It's one in that they obviously have to be mindful of the coequal branch of government. And that's what these conversations over the next 45 days will hash out.

KING: What is the state right now of the president and the administration's relationship with the speaker of the House? He's perhaps the most important ally you have on Capitol Hill. And yet, we know he gave the president a tongue-lashing, because he thought when his friend Porter Goss was removed as head of the CIA, that that was not done right. We know he spoke to the president about this search, and he was unhappy with that.

For this president to get anything done on Capitol Hill, he needs Denny Hastert on his side. Has that relationship deteriorated to a dangerous point?

BARTLETT: No, John. And the good thing is that they do have a good relationship. And the underpinnings of a good, strong relationship is one in which you can have a candid exchange of views and ideas.

But look at the track record. This speaker of the House and this president of the United States have done an enormous good for the American people. They have cut the taxes, they have created the Department of Homeland Security. They reformed the intelligence communities.

We have done things across the board that have been beneficial to this country which would not have been possible without the leadership of Speaker Hastert. Now, there are going to be times when there are differences of opinion. And the good thing about it is they have that type of relationship where they can have disagreements and then move forward. And we will continue -- this relationship will continue to grow. It will continue to have an open flow of ideas and exchange of candid views. And we'll to work to get things done on behalf of the American people.

KING: Well, let's move on to one of those issues you're trying to get done, immigration. The Senate passed its bill yesterday. A pretty lopsided vote, but a majority of the Republicans in the Senate voted against that legislation.

The point person in the House is the Judiciary chairman, Congressman James Sensenbrenner. And he said today, frankly, that he did not think the president understood this issue. He didn't think Karl Rove, who twice in the last week has gone to Capitol Hill, understood this issue. And he did not seem pressured at all by the argument that we need to pass something because the president is so far out on this.

I want you to listen briefly to Chairman Sensenbrenner.

SENSENBRENNER: This conference is going to be difficult. I would hope that the Senate would view the issue of coming up with an effective bill, not one necessarily that looks good on a bumper sticker.

KING: Chairman Sensenbrenner, Dan Bartlett, is saying, you're not going to get a guest worker program that gives illegal immigrants a path to citizenship. Can the president accept something less?

BARTLETT: Well, the chairman's right, this is going to be a difficult conference. There are a lot of very complex, thorny issues to hash out.

And the other thing we agree with the chairman on, you're right, there's not going to be a bumper sticker solution to this problem. And that's why the president articulated a five-point strategy, a comprehensive strategy, which is going to require all sides to give.

And President Bush recognizes that. I think members of the House and the Senate recognize that.

I think right now it's time for people to take a step back. Let's make an analysis of what actions the House has taken and what actions the Senate has taken. Let's start finding common ground, working on that common ground, start building some confidence in the relationship between the three parties who will be working on this, and then we'll go from there.

But the president believes very strongly -- and he's someone who does get this issue quite well. He was a governor of a border state that shared 2,000 miles -- almost 2,000 miles worth of border with the state of Mexico. He recognizes the importance of border security.

His proposal that he outlined to the American people does more for border security than both the Senate and the House did in their original bills. He has made border security and interior enforcement a critical aspect of comprehensive reform.

What the president has also argued is that, in order to rationally enforce our borders, we have to do something with those workers who are coming into this country. And we need to have a system that is above aboard, across the board, that deals with the realities of our economy and the realities of workers who are doing jobs that Americans won't do.

KING: Tell me personally how invested the president will get into these negotiations. You know the steep hill ahead of you. You heard Chairman Sensenbrenner. Congressman J.D. Hayworth, in the House, says the president's plan is amnesty, the White House can spin it any way they want, this plan is amnesty.

If you're going to get a majority of the Republicans on board, you have quite a bit of work to do. Is the president personally going to do that work?

BARTLETT: Well, of course. And the president has already personally done a lot of this work. He's been meeting with members of Congress in both the House and the Senate. He spoke to the nation from the Oval Office.

As we move into this conference period, he will work with both sides of the chambers, both the House and the Senate, and both sides of the aisle, both Republican and Democrat. And it is time for people to try to come together and see if we can forge some kind of consensus to once and for all address the issue from a comprehensive way.

KING: A lot more I'd like to talk about, but we're out of time for today. We'll do it another time.

Counselor to the president, Dan Bartlett.

Thank you for joining us today.

BARTLETT: Thanks, John.

KING: Thank you.

(END VIDEOTAPE)

KING: Coming up, new developments in the investigation of the killings of Iraqi civilians. Will U.S. Marines face charges?

Plus, in Afghanistan, our Pentagon correspondent, Barbara Starr, reports on her first day with U.S. forces trying to stop a Taliban comeback.

(COMMERCIAL BREAK)

KING: Senior Pentagon sources tell CNN that U.S. Marines could soon face charges of murder stemming from the deaths of 24 Iraqis in the town of Haditha. Our report has some images, we must warn you, that viewers may find disturbing.

Our senior Pentagon correspondent, Jamie McIntyre, has been following this story -- Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, John, at Camp Pendleton today, several Marines are waiting to find out if they're going to be court-martialed. And Pentagon sources say some of them may face murder charges.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): It's evidence like this provided to CNN by an Iraqi human rights group that Pentagon sources say is building a case against U.S. Marines suspected of killing as many as 24 civilians in a rampage in Haditha last November. This 12-year-old girl told the Hammurabi (ph) human rights organization she survived an attack that killed all eight members of her family by pretending to be dead.

UNIDENTIFIED FEMALE (through translator): First they knocked on the door. My father went to answer the door. When he reached the door, they sprayed the door with bullets. But when he opened the door, they shot him again. Then they entered the bathroom and they set off a grenade. We went into the kitchen and found my father already dead. Then we sat down. Then the Americans started shooting at us.

MCINTYRE: Pentagon sources say the investigation is now wrapping up and that the evidence is very incriminating. The Marines will not confirm any findings of the investigation so far. But congressional sources say the 24 victims included seven women and three children, some shot in their beds.

Five unarmed men were also allegedly shot when their taxi cab was stopped by Marines. One official told CNN the mass killing is far worst than the Abu Ghraib prison abuse scandal, which President Bush just identified as the biggest mistake in Iraq so far.

BUSH: We've been paying for that for a long period of time.

MCINTYRE: None of the abused prisoners at Abu Ghraib died, but if the allegations at Haditha are substantiated, the civilian deaths would qualify as a massacre, which could undermine support for the United States, both in Iraq and around the world.

(END VIDEOTAPE)

MCINTYRE: Meanwhile, in a second incident, Marines are, also at Camp Pendleton, accuses of killing an Iraqi civilian, one man, last month. And sources tell CNN that on the strength of the evidence against those Marines, some have been put in pretrial confinement, others confined to base, awaiting the outcome of a criminal investigation -- John.

KING: Jamie, help us understand. An investigation like this, the preliminary findings like this, what does it do to the mood as you walk the halls of the Pentagon?

MCINTYRE: Well, everyone is very somber about this one. There's nobody suggesting that the investigation is going to clear the Marines. But of course, they also want to be very careful, because no one has actually been charged.

There's a process where a commander will decide whether to refer these charges to a court martial, a preliminary hearing, and then the Uniform Code of Military Justice will be followed as they prosecute the cases, assuming again that there are charges filed.

KING: Jamie McIntyre, tracking a very difficult story. Thank you very much, Jamie.

And the Pentagon is reporting two more deaths in Iraq. The soldiers were killed by a roadside bomb in the southern part of Baghdad. That brings the number of American forces killed in Iraq to 2,462.

Coming up, lately in the Middle East, it's been Palestinian against Palestinian. They've been at each other's throats in the conflict over who will control the streets. Now reports of a change of heart. Ben Wedeman is our man on the scene.

And our Pentagon correspondent, Barbara Starr, is in Afghanistan for us. She's checking out reports the Taliban might be making a comeback. How do the Afghan people feel about that?

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

KING: Today, three Palestinians were killed and three were hurt in an explosion in northern Gaza. Palestinian sources say they were victims of shelling by the Israeli Defense Forces, while the IDF denies any shelling took place.

Meanwhile, there are other tensions among Palestinians. Our Ben Wedeman has more.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN CORRESPONDENT: John, Hamas militia men are off the streets of Gaza, now patrolled by regular Palestinian forces. Hamas has pulled back, if only for the moment, fears that Gaza was on the brink of a civil war. But the Hamas-led cabinet still insists that it must control the security forces, and Hamas wants its men integrated into those forces.

But Palestinian President Mahmoud Abbas will have none of it. He's currently in talks to settle inter-Palestinian differences and has issued an ultimatum. If those differences aren't resolved within 10 days, he wants to hold a referendum which will define Palestinian statehood and would implicitly recognize Israel, something that Hamas opposes.

Now Hamas hasn't rejected this proposal, but if it does, the group will be back on track for a collision with the Palestinian leader and forces loyal to him, and tensions will shoot up again. -- John.

(END VIDEOTAPE)

KING: Ben Wedeman for us in Gaza. And meanwhile right now in Afghanistan, escalating violence between U.S.-led coalition forces and suspected members of the Taliban is raising many worries, especially among many Afghan people who say they simply want peace.

Our Pentagon correspondent, Barbara Starr, is there and has more.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT: John, before 9/11, Osama bin Laden had training camps in this area which had long been a stronghold of al Qaeda. But here in Khost, this city is now prospering. Schools are open. As you can see, there's lots of activity, lots of people in the marketplace.

But U.S. military intelligence says both the Taliban and other insurgent groups are again moving through this area of eastern Afghanistan. There have been reports of Taliban crossing the border from Pakistan, which lies just to the east of here. U.S. troops are reporting that they are encountering IEDs on their patrols.

But the people of Khost have been telling us today that they want the Taliban and al Qaeda gone. That they want peace in their town. And they want prosperity in this part of Afghanistan.

So there will be great effort in the weeks and months ahead to conduct other operations in this area. The possibility of more U.S. military combat operations. Recently a major operation just finished here to try and root out there remnants of Taliban and other insurgents.

And there's also going to be a very significant effort to try and improve the presence of the new Afghan government in this region so that there can be further rebuilding, further reconstruction. That is what the people here in Khost say that they want -- John.

(END VIDEOTAPE)

KING: Barbara Starr for us in Afghanistan. Barbara, thank you very much.

And Lou Dobbs getting ready for his show right at the top of the hour about 21 minutes or so away. Lou, tell us what you're working on.

LOU DOBBS, HOST, "LOU DOBBS TONIGHT": Thank you, John.

Coming up at 6 Eastern here on CNN, we'll be reporting on what is turning out to be a confrontation between the House and the Senate over the Senate's bill to give amnesty to millions of illegal aliens. One of the most powerful House Republicans, Congressman James Sensenbrenner, today said the Senate bill is simply unacceptable. He had other strong words for it, as well. We'll have that special report. And among my guests tonight, Senator Kay Bailey Hutchinson, who is furious about the last minute amendment requiring U.S. government officials to first consult with the government of Mexico before doing anything about border security.

We'll have the latest, as well, on the legal and constitutional battle between Congress and the Justice Department after an FBI raid on a congressman's office in a bribery investigation. That makes those congressmen, apparently, pretty nervous. We'll be talking more about that.

Three of the country's top political analysts join me on the broadcast tonight. We'll be trying to figure out what's happening to this government.

We hope you'll be with us for that and a great deal more, coming up at the top of the hour. John, back to you.

KING: Lou, been poking around on this one today, and I don't sense the House conservatives feel any pressure at all to compromise with that Senate bill.

DOBBS: Well, the House of Representatives isn't under much pressure. When you look at this legislation passed in the Senate, John, it is passed by the Democrats and the Republican leadership in the Senate, overruling the majority of Republicans in the Senate. This is not only idiotic parliamentary legislation, it's idiotic parliamentary procedure and bad, bad politics.

KING: Lou Dobbs, we'll see you in a few more minutes. Thank you very much, Lou.

DOBBS: You got it.

KING: And still to come here in THE SITUATION ROOM, out with the old, in with the new. For now, the new man in charge at the CIA. We'll tell you about today's development.

And an awesome array of a volcano's fury. But it could only be seen underwater. Stay with us and we'll explain.

(COMMERCIAL BREAK)

KING: Our Zain Verjee joins us now with a look of other stories making news around the world.

Hi, Zain.

VERJEE: Hey, John.

A Lebanese army official tells CNN a senior official of Islamic Jihad was assassinated today in the southern port city of Sidon. A car bombing killed Mahmoud Majzoub, known as Abu Hamza, and his brother, Nidal. Another Islamic Jihad official told Reuters that Israel is to blame and vowed retaliation. An Israeli spokesman says they Jewish state had nothing to do with the attack. The only surviving suspect in a deadly hostage crisis at a school in Beslan, Russia two years ago has been convicted and sentenced to life in prison. Chechen carpenter Nur-Pashi Kulayev was found guilty of all charges, including murder and terrorism. The three-day siege in September of 2004 left more than 300 people dead, including 186 children.

Today in East Timor, Australian troops have secured the airport and they're patrolling the streets of the capital city of Dili. This in the wake of a wave of violence in one of the world's newest countries. The United Nations office in East Timor estimates that 40,000 people have been displaced since unrest escalated into violence in late April.

And also today, Iran's foreign minister says his country is reneging on acceptance of a U.S. invitation for direct talks concerning Iraq. He announced the decision after arriving in Baghdad for meetings with new government leaders there. Now this is only the second high level visit to Iraq by an Iranian official since the Iran- Iraq War began in 1980 -- John.

KING: Thank you, Zain.

And today, the Internet is giving us an extraordinary look at an active volcano 1,800 feet underwater, 16 miles north of Guam.

Jacki Schechner is standing by with the latest -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: John, this is an underwater or submarine volcano. And it was recorded on the 2006 Ring of Fire expedition, the third in a series of trips to the Mariana Arc in the Pacific.

Now scientists can get this close using underwater robotics. It's really incredible video. And they say this is really the best way to study volcanoes in general because it's not as dangerous. There's 1,800 feet of water. That holding some of the explosion down. They can also study the gases, find out how explosive they are, study some of the chemicals and pick up this video.

You want to go online and take a close look at this. There's two sections I want to show you on the web site, OceanExplorer.NOAA.com. You go on and look on the logs that say April 29. That's really the best of the explosions. And you want to take a look at the special audio. It's pretty extraordinary stuff -- John.

KING: Jacki Schechner, that is pretty extraordinary stuff. Thank you very much.

And a quick update on a story we've been tracking all day long here, the reports earlier today that led to a lockdown at the Rayburn House Office Building. There was a report of gunfire or someone who heard what they thought was gunfire, shots at the House Office Building.

We now know that initial call came from a member of Congress, Jim Saxton, a Republican of New Jersey. His office is now telling CNN and other news organizations the congressman heard what he thought to be gunfire. He asked an aide to call the Capitol police. That call came through at about 10:30 this morning.

Again, the Rayburn Office Building then locked down for several hours based on this report from Congressman Jim Saxton. In the end, police say they believe and they presume now that noise from construction created the noise that was mistaken to be gunfire.

Again, just into us here at CNN, initially, the initial call that launched the investigation throughout the day at the Rayburn House Office Building on Capitol Hill came because of a report from Congressman Jim Saxton of New Jersey. We'll continue to track that, as well.

And coming up on our 7 p.m. Eastern hour, the president's regrets. We'll look at his rare and candid confession about things he wished he'd done differently.

And still ahead this hour, comings and goings at the CIA and the end of a troubled tenure. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

KING: Air Force General Michael Hayden has the green light now to head the CIA. The Senate voted 78-15 today to confirm him as director of the nation's spy agency. That officially ends the troubled tenure of outgoing chief Porter Goss.

CNN national security correspondent David Ensor has more.

(BEGIN VIDEOTAPE)

REP. DENNIS HASTERT (D-IL), SPEAKER: On behalf of the United States House of Representatives...

DAVID ENSOR, CNN CORRESPONDENT (voice-over): At an awards ceremony on Capitol Hill earlier this month, Porter Goss, bruised after being driven out of his CIA post, drew strength from his old friends from years as a Republican congressman.

UNIDENTIFIED FEMALE: Some of your friends on the Hill feel like you got a raw deal. Do you agree?

PORTER GOSS, FORMER CIA DIRECTOR: Let me put it this way, I'm glad to have so many friends on the Hill.

ENSOR: It was a bittersweet end to a brief tenure that began with a promise.

UNIDENTIFIED MALE: Will you be a nonpartisan DCI?

GOSS: Yes, sir. You have my word on that, Mr. Chairman.

ENSOR: But early on, Goss, who told others that he, quote, "didn't do personnel," allowed aides brought from Capitol Hill to force out respected veterans with a collective 300 years of experience.

REP. JANE HARMAN (D-CA), INTELLIGENCE COMMITTEE: The direction set by this highly partisan, inexperienced management team which Porter Goss brought over with him to the CIA, may cause the wrong people to resign in protest and may hurt our efforts to win the war on terror.

ENSOR: They included Steve Kappas, a top CIA operations officer who Goss' successor has tapped to come back in as his deputy. Goss also lost the confidence of his boss, intelligence chief John Negroponte, whose aides complained the CIA was not adjusting well to its new status, reporting to Negroponte rather than running U.S. intelligence.

But under Goss, recruiting of new spies, new officers and analysts went up. As usual, most successes remain secret.

John McLaughlin, who was acting CIA director just before Goss, has some sympathy for him.

JOHN MCLAUGHLIN, CNN NATIONAL SECURITY ADVISOR: It's a tough, tough job in which you're forced to make decisions every day where the choices are not good. Porter Goss came in at a time when all of these risks were heightened.

ENSOR (on camera): And the president's choice to replace Goss, General Michael Hayden, knows that the CIA director's job is still a hot seat. Never hotter.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

KING: We want to turn back now to briefly to one of our top stories in the CIA leak investigation. The latest court ruling has been posted online.

Let's bring in our Internet reporter, Abbi Tatton. She has more on what all this means for Lewis "Scooter" Libby and for news organizations -- Abbi.

ABBI TATTON, CNN INTERNET CORRESPONDENT: John, Libby's defense team has asked for a broad range of reporters' documents to help their case, from Judith Miller, formerly of "The New York Times". This included original notebooks, calendars, telephone logs from back in the summer of 2003.

Judge Reggie Walton has reviewed all these documents. He found that these specific ones weren't relevant and he said that this was nothing more than a fishing expedition by the lawyers.

However, "TIME" magazine's had Matthew Cooper, some of his notes were found to be admissible. Specifically, drafts of this article written by Cooper in July 2005, "What I Told the Grand Jury".

Judge Walton reviewed those drafts. He found there was an alteration between two of the drafts there. He said that this could help the defense team.

In challenging and fighting these requests, journalists had invoked the First Amendment reporter's privilege. Judge Walton declined to recognize that privilege -- John.

KING: Abbi, thank you very much.

And up next, what should happen to those materials seized by the FBI from Congressman William Jefferson's office? Our Jack Cafferty is standing by with your e-mail.

(COMMERCIAL BREAK)

KING: Time now to check back in with Jack Cafferty. I'm interesting in the answers here, Jack.

CAFFERTY: Some of them are kind of fun. President Bush ordering the documents seized by the FBI in that raid of Congressman Jefferson's office sealed for 45 days.

Meanwhile, House Speaker Dennis Hastert is working with the Justice Department to try to set up guidelines with the FBI to review this. The question is what ought to happen to those things that were taken from Congressman Jefferson's office?

Kathy in Tucson, Arizona writes, "Jack, the FBI should put the materials in a special FBI freezer along with the $90,000 he allegedly took in bribes. That way, when his trial comes, the evidence will be well-preserved."

Very hot sun out there in Tucson, huh, Kathy?

Chris in Kearny, Nebraska: "First, if the papers show any wrong doing, the feds should keep the documents and he should be thrown into jail. What is the House worried about? Are they afraid that their names are in those papers?"

Patricia in California: "This is just another situation where this administration steps all over the separation of powers. They have little regard for the Congress or people's privacy rights. If this guy is a crook, they could have gotten to him another way."

Virg in Cape Coral, Florida: "Congressional leaders decried the invasion of their privacy when the FBI searched a congressman's office. But they were thrilled to see the Capitol police searching every inch of the Sam Rayburn Office Building when there was an alarm about shots possibly being fired. There is no limit to the resources they will spend to protect themselves from the elevator repairman."

And Shelly in Caddo, Oklahoma: "Give the stuff to Bob Novak. That way we'll all know the contents by morning" -- John.

KING: What's the maximum, Jack, in how much cash you'll keep in the Cafferty freezer?

CAFFERTY: I keep nothing but pork chops in my freezer, thank you.

KING: Fire up the grill. It's a holiday weekend.

CAFFERTY: You got it.

KING: Thank you, Jack. And remember, we're here every weekday afternoon from 4 to 6 Eastern. We're back on the air at 7 p.m., just one hour from now. Until then, I'm John King in THE SITUATION ROOM. Wolf Blitzer, of course, is off today.

"LOU DOBBS TONIGHT" starts right now. Lou is standing by -- Lou.

DOBBS: John, thank you very much.

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