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House of Representatives Rejects Timetable To Bring Troops Home; Bush Tries To Help Republicans In Tough Reelection Fights; Jefferson Targeted in Federal Corruption Probe; John Murtha Interview; Bush Works To Improve America's Image Overseas

Aired June 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, CNN ANCHOR: Thanks, Ali.
And to our viewers, you are 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, members of Congress and the American people take a stand on Iraq. It's 4:00 p.m. here in Washington, where the House rejects a timetable for a pullout. Do voters agree? We are just seconds away from rolling out some brand new CNN poll numbers.

Also this hour, President Bush on a political rescue mission. It's 1:00 p.m. in Washington state, where Mr. Bush is trying to help vulnerable members of Congress, but we have new evidence that his plan could potentially backfire.

And the full House takes action against a Democratic congressman accused of corruption. Is William Jefferson's home state still behind him? It's 3:00 p.m. in New Orleans, where Jefferson is expected to land soon. We will have a live report.

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

Up first this hour, a new uptick in the president's approval rating. We are unveiling new CNN poll numbers right now, 37 percent of Americans now say they now approve of the way Mr. Bush is handling his job. That's up one point from mid-May.

Fifty-three percent of Americans disapprove of the job Mr. Bush us doing. The president's approval rating has been slowly inching up since late April when it hit a record low, in our poll, of 32 percent.

Now, look at this. The public is split dead even over whether the U.S. should set a timetable to withdraw troop from Iraq within a year. The House of Representatives has had its say on Iraq. Members voted 256 to 153 today for a resolution that rejects a quote, "arbitrary timetable" for bringing troops home.

Our congressional correspondent Andrea Koppel is standing by with more from Capitol Hill. Let's go to Bill Schneider first. He's got a review of all these latest CNN poll numbers -- Bill.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, the House of Representatives has voted, but how representative were they?

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): Here's how the House of Representatives voted on Iraq: 37 percent voted in favor of setting a timetable for the withdrawal of U.S. forces, 63 percent voted against it. Was that vote representative of public opinion on the war?

No, it wasn't. Fifty-three percent of the public favor setting a timetable for U.S. withdrawal, 41 percent are opposed. Most Democrats voted with their leader.

REP. NANCY PELOSI (D-CA), MINORITY LEADER: It's time for us to come home and meet the needs of the American people.

SCHNEIDER: The vote among House Democrats, 78 percent for a timetable, 22 percent against. How well did they represent the views of Democratic voters? Pretty well, actually.

Among Democrats nationwide, 73 percent support a timetable for withdrawal. Twenty-three percent are opposed. The Republican vote in the House was nearly unanimous in favor of the leadership and White House position.

REP. DENNIS HASTERT (R-IL), HOUSE SPEAKER: We must renew our resolve that the actions of evil-doers will not dictate American policy.

SCHNEIDER: Ninety-nine percent of House Republicans voted against setting a timetable. Only three lonely Republicans voted for a timetable, including John Duncan of Tennessee who pointed out that he's been rated the sixth most conservative House member.

REP. JOHN DUNCAN JR. (R), TENNESSEE: And yet I am steadfastly opposed to this war, and I have been since the beginning. Mr. Speaker, we need to start putting our own people first, once again and bring our troops home.

SCHNEIDER: But Duncan's position is not so lonely. Nearly a third of Republicans nationwide favor a timetable for withdrawal.

(END VIDEOTAPE)

SCHNEIDER: This is our first poll taken since President Bush went to Baghdad. Did the trip help the president politically? Just a little. President Bush's job rating is now 37 percent. That's not much change.

The president's approval rating on Iraq did go up five points since last month to 39, but most Americans continue to disapprove of the way he's handling Iraq. But opinion of the war itself has hardly changed. Fifty-four percent continue to call Iraq a mistake -- Wolf.

BLITZER: So how would you describe over these past few weeks this modest uptick in the president's job approval rating, going from a low of -- what -- 32 percent or 33 percent, now to 37 percent? SCHNEIDER: Exactly your word, modest. It's been a slight improvement that Americans are impressed to see the president go to Baghdad and show solidarity with U.S. troops.

But there's been no indication they are much more optimistic about what's going on on the ground in Iraq. It hasn't turned the situation around politically for the president or the Republicans, but it's helped him a little bit.

BLITZER: Bill Schneider reporting. Thank you very much.

Let's get some more now on the House vote on Iraq. The White House is welcoming the show of support for the mission, and the rejection of a timetable for withdrawal. Let's get some more now on the vote, the politics behind it. We will go to Capitol Hill.

Our congressional correspondent Andrea Koppel is standing by -- Andrea.

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Wolf, anger and acrimony right up until the end, a war of words, a partisan divide. On one side, the Democrats refusing to support the resolution, saying they don't want to endorse President Bush's policy on Iraq. On the other, Republicans continuing took link the war on terror to the war in Iraq.

(BEGIN VIDEOTAPE)

REP. JOHN BOEHNER (R-OH), MAJORITY LEADER: They've called Operation Iraqi Freedom a war of choice, that it isn't part of the real war on terror. Someone should tell that to al Qaeda.

PELOSI: The war in Iraq has been a mistake, I say a grotesque mistake. It must be our resolve to end the war as soon as possible and to resolve to not make similar mistakes in the future.

KOPPEL (voice-over): The main focus for lawmakers in their immediate political future -- how this debate on Iraq could play out in midterm elections, now less than five months away.

Democrats are within 15 seats of winning back the house. Some Republicans, like Pennsylvania Congressman Jim Gerlach in tight races, faced a tough choice on whether to support the resolution. In the end, he did, but warned voters' patience is running out.

REP. JIM GERLACH (R), PENNSYLVANIA: The American people are looking to us to answer their questions on how much progress is being made, what are the Iraqis themselves willing to do to fight for their freedom, and when will our men and women come home.

KOPPEL: Forty-two Democrats crossed party lines to support the resolution. Among them, Vietnam veteran Leonard Boswell from Iowa in a competitive race to win a sixth term. Boswell said U.S. troops needed to stay in Iraq to ensure the new government succeeds.

REP. LEONARD BOSWELL (D), IOWA: Regardless of how we decided to make the decision -- we can debate that if you wanted to, but I don't want to do that. I supported the resolution.

(END VIDEOTAPE)

KOPPEL: And within hours of that vote today, Wolf, Democrats' fears were realized, Republican Senatorial committees sending out at least two press released slamming Democrat Sherrod Brown of Ohio, and Democrat Harold Brown -- Sherrod Brown or Ohio and -- excuse me -- Harold Ford Tennessee, saying they were "soft on terrorism." Wolf, it is exactly what Democrats were concerned about how their votes would be portrayed -- Wolf.

BLITZER: Andrea, thanks very much. Andrea Koppel, reporting from Capitol Hill.

And heading into the congressional elections, our new poll shows Democrats still hold an advantage. Forty-five percent of registered voters say they choose a Democrat if the election were held today. Thirty-eight percent say they would vote for a Republican.

Right now President Bush is hoping to boost his party's chances of victory. He's traveling to Washington state and New Mexico today, trying to help congressional Republicans in some tough reelection fights. But will he actually be a help?

Our White House correspondent Ed Henry already on the scene in Albuquerque with more. What's the latest there, Ed?

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, good afternoon, Wolf. With Congress and control of Congress up for grabs, Republicans certainly feel like having the fundraiser in chief come to town will help them keep their grip on Congress, especially given the fact that the president seems to have a head of steam coming out of the good news in Iraq, as well as word that Karl Rove will not be facing criminal charges in the CIA leak case.

So the president today hit the road, starting the day in Seattle. He just left there. He was raising money for freshman Republican Congressman Dave Reichert. Now he's heading here to New Mexico to raise money for Republican Congresswoman Heather Wilson. She's facing a stiff challenge from a Democrat, Patricia Madrid, already the state attorney general here in New Mexico, elected statewide, a very, very tight race.

But this new CNN poll out today that you've been mentioning has some suggestions that perhaps this could backfire on Republican candidates. Asked whether or not if President Bush supported a candidate in your area, would you be more or less likely to support that candidate, only 27 percent of registered voters said they would be more likely to support the candidate.

Forty-seven percent said they would be less likely to support the Bush candidate. Twenty percent said it would not make a difference either way. That's not stopping Republicans. This is now the 39th fundraiser -- the one tonight in New Mexico -- 39th fundraiser for the president in this midterm election year. That's ahead of the pace he set in the last midterms in 2002. You can bet if the president continues to inch up in those polls, he will get even more requests from Republicans. But Democrats note the president still has baggage. If you take a look, these events are closed-door fundraisers, not public events where the president would get out there, put his arm around these candidates in the public arena, Wolf.

BLITZER: So they're not letting any media into these events? Is that right?

HENRY: Well, the one this morning was closed. There will -- we will have cameras in the event in New Mexico, but the president is not out there in sort of these public campaign events, walking around with the candidates. It's really closed door with the high profile donors in the Republican party -- Wolf.

BLITZER: How's illegal immigration, that issue, playing in New Mexico, where you are right now, given that the -- the fact the president is about to land?

HENRY: Well, since this is a border state, a lot of people are looking at whether or not the Republican in this case, Heather Wilson, would be breaking with the president on immigration reform. In fact, she supports his general comprehensive approach, which is border security, plus that guest worker program.

But it's interesting. This CNN poll shows right now that the president's approval rating down to 33 percent. It's only a three point drop since the last time we took this poll in May, but a drop nonetheless. And that's going to be the next big test for this president. As he gets a head of steam from this good news in Iraq, if his political standing picks up on Capitol Hill, can he use that political capital to get immigration reform through Capitol Hill? Right now, it's stalled -- Wolf.

BLITZER: Ed Henry on the scene in Albuquerque. Thanks, Ed, for that. Ed Henry, Andrea Koppel, Bill Schneider. As you all know, they are part of the best political team on television. CNN, America's campaign headquarters.

Now we turn to one House Democrat embroiled in a bribery investigation and in deeper political hot water today. Congressman William Jefferson is heading home to New Orleans today after the full House voted to boot him from the powerful House Ways and Means Committee. The vote came after Jefferson's fellow Democrats agreed to strip him of his committee post and make a strong statement about corruption in Congress. Jefferson denies any wrongdoing and says the punishment is unnecessary.

The investigation of Jefferson boiled over last month. The FBI raided his congressional office and his home and allegedly found $90,000 stashed in his freezer. Today, a judge hears arguments on Jefferson's request to get back documents seized from his congressional office. And in a separate action last month, President Bush ordered those documents sealed for 45 days. Now to Congressman Jefferson's home base of New Orleans. He's expected back there this hour. CNN's Susan Roesgen, our correspondent on the scene, is already there.

What's the mood among his constituents, Susan, based on what you've been able to pick up?

SUSAN ROESGEN, CNN GULF COAST CORRESPONDENT: Well, you know, Wolf, politicians under investigation in Louisiana are nothing new, but most people believe this comes at a terrible time when we're still trying to keep the focus on Hurricane Katrina recovery.

Congressman Jefferson, a very popular politician and a powerful ally for this state on the House Ways and Means Committee. Now the state legislative black caucus is furious at the Democratic National Party. They believe that Jefferson has been sacrificed in order to make the party look better in the upcoming elections.

(BEGIN VIDEO CLIP)

CEDRIC RICHMOND (D), LOUISIANA STATE HOUSE: To do it for midterm elections, I have a big question about voting, one, Democrat, but two, why do I want to belong to a party if it's a relationship of convenience? And I think singling out a member when there are other members in Congress that are under investigation that sit on Appropriations and other committees, I think it was just really unfair to do that to the congressman that represents my area.

(END VIDEO CLIP)

ROESGEN: And that is the real fear here, Wolf, that Congressman Jefferson was a champion for Louisiana. And, again, this is a terrible time to lose him when he guided the federal recovery to Hurricane Katrina.

BLITZER: It certainly is. A member of the Ways and Means Committee, he has a lot of influence. But no longer. Susan, thanks for that. Susan Roesgen in New Orleans for us.

Jack Cafferty is off today. He's going to be back here in THE SITUATION ROOM on Monday. Coming up, much more in our top story, the war of words over the war in Iraq. I'll speak with Congressman John Murtha, one of the most outspoken lawmakers in this very heated debate.

Iran's president speaks out on the showdown over his country's nuclear ambitions. Is there reason to be encouraged?

And later, the president on the campaign trail, but does Mr. Bush help or hurt his fellow Republicans up for reelection? Paul Begala and J.C. Watts joining us in today's "Strategy Session."

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK) BLITZER: Welcome back. Zain Verjee is joining us from the CNN Global Headquarters in Atlanta with a closer look at some other important stories making news. Hi, Zain.

ZAIN VERJEE, CNN ANCHOR: Hi, Wolf.

If disaster strikes, most of us still aren't ready. That's the word today from the Department of Homeland Security in a 160-page report to Congress. The document concludes that ten months after Hurricane Katrina and almost five years after 9/11, most U.S. cities still have holes in their emergency plans. The report says readiness seems better in 18 states along the Gulf and Atlantic coasts, but evacuation plans still fall short. We're going to bring you a full report on the preparedness findings in our next hour.

Encouraging words today from Iran's president about nuclear standoff with the U.S. President Mahmoud Ahmadinejad calls a Western incentive package a step forward. Mr. Ahmadinejad's remarks in Beijing are the highest level signal that Iran may be preparing to negotiate over the U.S.-endorsed proposal. It calls for talks with the U.S., as well as giving other incentives if Iran agrees to freeze its uranium enrichment program, Secretary of State Condoleezza Rice has indicated that these signs are encouraging.

Just today, the U.S. military announces completion of an investigation into allegations that marine killed as many as 24 unarmed civilians in Haditha, Iraq. Major General Eldon Bargewell led the examination of how the killings were reported and whether or not there was a subsequent cover-up. His findings were not released. A top commander must now review the report and offer his take on what should happen next.

Another attack today on a northwestern Baghdad Shia mosque that was the target of a string of deadly suicide bombings about two months ago. Police say this time 11 people died when a bomber detonated an explosives belt during Friday prayers. Another 25 people were wounded. The bombings believed to be one more attack in the ongoing sectarian violence in the Iraqi capital -- Wolf.

BLITZER: Thank you very much, Zain, for that.

It's been another week of major developments in the political battle over the war. It began with the president's surprise trip to Baghdad and it's ending with today's House vote supporting the mission and rejecting a specific timetable for withdrawal.

Our senior national correspondent John Roberts has been following all of it. You've been falling all of it since the U.S. started the invasion more than three years ago.

JOHN ROBERTS, CNN SR. NATIONAL CORRESPONDENT: I was actually there at the beginning.

BLITZER: I remember.

ROBERTS: Embedded with the marines. BLITZER: So you've got good historic perspective. Put this week a little bit of historic context, because as you know and all of our viewers know, there have been highs and lows.

ROBERTS: Yes, I mean, it's kind of like weeks of being in Iraq where it's a little bit of everything. There's some good tempered by some bad. I think that the President's Day on Tuesday, when he went to Iraq, was a good move for him. Certainly seems to have resonated with the American public based on our new poll results.

But then at the same time, it's like, you know, the snake-bit White House. Two days after the president goes to Iraq, they announce the 2,500 service member death in Iraq. So it's been a kind of a good news/bad news sort of thing, but even while the president's numbers are beginning to tick up another point in our CNN poll. Still, when you look at the overall mood of the American public toward the war, it's still majority pessimistic. The majority of Americans think it was a mistake, they oppose the war. They think it's going badly.

The thing that Republicans may have going for them, even though 52 percent of the American public think there should be some sort of time table for withdrawal, nearly two-thirds of Americans, exactly two-thirds of Americans, say it shouldn't be within the next six months. So in this debate in Congress, they seem to be on pretty solid ground.

BLITZER: Did the Republicans cleverly outmaneuver the Democrats on the hill in the Senate yesterday and in the House today?

ROBERTS: It looks to me, Wolf, like they did exactly what they did six months ago. Remember when John Murtha first of all made his call to pull troops out. He said six months, and then the Republican immediately went into the House and the Senate and they said immediately, you know, they twisted around what Murtha said.

They got that resolution on the floor late on a Friday night and boom, they slammed the door on the Democrats. And it looks like they are doing that this time around and the fact that 42 Democrats voted for this resolution shows the splits in the party and those are splits that Republicans are definitely going to try to exploit in this election year.

BLITZER: You are going to anchor a SPECIAL REPORT this weekend.

ROBERTS: As you did last weekend.

BLITZER: That's right. On the week in Iraq, a week at war, give our viewers a preview of what you have coming up.

ROBERTS: As you said it's been an incredible week of developments in Iraq. Here's a quick look at some of what we are going to cover tomorrow and Sunday.

(BEGIN VIDEOTAPE)

ROBERTS (voice-over): Monday, Tuesday, Wednesday. UNIDENTIFIED MALE: Hey, I got some good news and I got some bad news.

UNIDENTIFIED MALE: Operation Mountain Thrust has been hitting the Taliban hard.

UNIDENTIFIED MALE: If some people continue to preach cut and run from this war.

UNIDENTIFIED MALE: The gentleman up there was talking about the war on terrorism. I am talking about Iraq.

UNIDENTIFIED FEMALE: Everyone that got to know Kevin, they would say he was like my brother, like my best friend.

(END VIDEOTAPE)

ROBERTS: So we will be looking at not only Iraq but also as you saw, with Brent Sadler's report, what's going on in Afghanistan, the overall war on terror. One specific thing that you should watch for is that young fellow on the cell phone.

He made a return trip to the Baghdad ER, the ER that we have covered so many times on CNN, finally got his ticket home. But it's interesting to see the way they deal with injuries and the way the people that are running the Baghdad ER are deal with so much pain and tragedy. It's almost like being in M.A.S.H.

BLITZER: I mean, these guys are so courageous, these are real heroes. John, thanks very much. And to our viewers, important programming not, John is going to take a close look at this week at the war, our "CNN SPECIAL REPORT" airs Saturday 7:00 p.m. Eastern, 4:00 p.m. Pacific. It's replayed Sunday 1:00 p.. Eastern right after "LATE EDITION." That's this Saturday and this Sunday.

Up next, you may have seen a lot of John Murtha this week, for good reason, he has a lot to say about the war in Iraq. The Democratic Congressman joins me next right here in THE SITUATION ROOM.

And later, the battle for Congress, the winner of a crucial contest wins one of our honors as well. We'll tell you what it is. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM, I'm Wolf Blitzer in Washington. The House vote today on Iraq provided a new showcase for anger and finger-pointing over the war. The Republican-led chamber rejected a timetable for withdrawing troops but many Democrats are sticking to their guns, pushing hard for U.S. forces to start coming home. That includes the House Democrat who made an early and important push for a pullout.

And joining us now is Congressman John Murtha, Democrat of Pennsylvania. You lead the fight Congressman against this resolution, it passed 256 to 153, is this a vote of confidence for the president's policy and strategy in Iraq by the House of Representatives?

REP. JOHN MURTHA (D), PENNSYLVANIA: Well, I think it's a vote confirming that the people that voted for it are for this so-called strategy. But I think more and more, you will see that the strategy, not the strategy has changed, but the votes change. A number of people came to me afterwards, listening to what I had to say, and a number of Republicans voted with us. So we are making progress.

But the thing that disturbs me and worries me about this whole thing, we can't get them to change direction. And I said over and over in debate, if you listen to any of it. In Beirut President Reagan changed direction, in Somalia, President Clinton changed direction, and yet here with the troops out there every day, suffering from these explosive devices, and looked at as occupiers. Eighty percent of the people want us out of there, and yet they continue to say we're fighting this thing.

We are not fighting this, the troops are fighting this. That's who is doing the fighting. This one guy in the White House said cut and run. I don't know what the hell he knows about cutting and running. But, we've been there three years longer than World War I, we've been longer than the Korean War and almost as long as the war in Europe. Cutting and running is ridiculous. I mean, we're talking policy here, and they use sound bytes and rhetoric in order to answer sound, reasonable suggestions about what ought to be done.

BLITZER: The newest CNN poll out today, we asked this question, should the U.S. set a time table to eventually withdraw troops from Iraq? Fifty there percent said, yes, and 41 percent said, no. When we got more specific, we asked this question, should the U.S. set a time table to withdraw troops from Iraq within six months? Only 28 percent said, yes, 66 percent said, no. The American public is not where you are right now.

MURTHA: Well, the American public, I think, at least what I see, is coming around to the position that we can't win this militarily. What I've been saying over and over again, we can't win it militarily. What I am saying is we should withdraw and redeploy as soon as practicable. But I think the logistics tail, the fact that the mission is not understandable.

I just today got a call from a young fellow, a Staff Sergeant, he's retiring. He has 24 years in the special forces. He said, you are speaking for us, we have lost our mission. When I first went over there, and I think it's his third deployment, I knew what I was doing, now, I don't know what I'm doing, I don't know what my mission is. That's an apocryphal story, but the point is the troops themselves, 42 percent of them want out of there, almost all of them want out in a year.

I don't know what the right timetable is, but I know one thing, we have to change direction. That's what the American public are saying. Most people want to leave it up to the military, but we can't win this militarily. The military leaders have told me that. I say it over and over, again.

BLITZER: Here's what Congressman Patrick McHenry, Republican from North Carolina, said earlier in this debate. Listen to this.

(BEGIN VIDEO CLIP)

REP. PATRICK MCHENRY (R), NORTH CAROLINA: But we are fighting a war, fighting a war against Islamic extremists that hate the very fiber of our being as Americans.

(END VIDEO CLIP)

BLITZER: Well, what do you say to this congressman?

MURTHA: Well, he said we are fighting a war. He's standing in an air conditioned office in Washington, DC and he says we're fighting a war. We are not fighting a war. Our troops, one percent of our population are fighting this war, they are wearing 70 pounds of equipment, body armor, they have got helmets on, they got radios, they are in humvees that are armored with no air-conditioning. They are the ones fighting the war. We are not fighting in Washington. We are arguing about policy and it would be treasonous for me not to speak out when I disagree with the president's policy.

BLITZER: A couple unrelated questions, sort of related. The Haditha investigation, allegations that U.S. marines were involved in killing 24 civilians, their lawyers, at least a couple of the lawyers of the military forces, the marines who were there say they engaged in the rules of engagement, they acknowledged there was so-called collateral damage, innocent civilians were killed but they were going by the books, do you have reason to revise your earlier statements on what happened there?

MURTHA: I only know what they told me. And the stories that they told me have been verified or at least expanded on by "Newsweek" and ""Time Magazine"." So everything the marines told me in the first place here they went well beyond the rules of engagement.

BLITZER: What about your decision, now reversed, to become the House majority leader if the Democrats became the majority? Who put pressure on you to change your mind?

MURTHA: I didn't change my mind. I'm still in the race. I just decided it was too early but I wanted a place holder out there. I decided if I didn't get out there in front, in this business people go around asking for support and all at once you have half the people committed.

So I wanted to make sure I had a placeholder and I told the people I am not withdrawing, I am just suspending my race. And some of my supporters are still working but I am not actively going to work until after the election. And of course my major reason is to try to win the House back and unify the Democrats.

BLITZER: So if in fact the Democrats become the majority, you will challenge Steny Hoyer for the majority leadership.

MURTHA: I will be a candidate and he will challenge me.

BLITZER: Congressman Murtha, thanks very much for joining us.

MURTHA: OK. Nice talking to you, Wolf.

BLITZER: And up next Congress passes a measure standing behind U.S. troops fighting the war in Iraq. But who is winning the political battle over this issue? That's coming up in our "Strategy Session" and I will ask Paul Begala and J.C. Watts about Mr. Bush on the campaign trail. Will Mr. Bush's presence on the stump help or hurt Republican candidates. Stay with us. You are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back. In our "Strategy Session" today, the Republican-lead House votes to support the Iraq mission and in turn members the president whose sagging political fortunes seem to be looking up at least modestly, we are joined by our political analysts, Democratic strategist Paul Begala and former Republican congressman J.C. Watts. A modest little up tick, what do you think.

PAUL BEGALA, DEMOCRATIC STRATEGIST: Not even modest. It's one point and this is the best week the president has had in a year and a half, right? We, the American military killed Zarqawi. The president went to Baghdad. His top aide was not indicted which is always a good day, I suppose in this White House and probably most significantly. The government in Iraq finally was finished out, these are all good news and he gets one point for that.

BLITZER: Let me show you, specifically on how is the president handling Iraq he got a nice model 34 percent to 39 percent up tick from May to now, and the other question, if you approve of the way he's handling his job as president, in May he was at 36 percent, now at 37 percent.

But a few weeks before that he was down to 32 percent.

BEGALA: But Mr. Bush has not been above 50 his entire second term. Bill Clinton was never below 50 percent his entire second term. When you have all of these good news things all happen together and you get one-point bump in your job approval and five in your approval of how you are handling the war, it means they are through with you. It means this is a failed presidency. The American people have decided.

If he can't move based on this, and I have to say I think we in the media have done a disservice to our viewers in suggesting that he's getting anything good on the of this, because the American people are telling us clearly they don't support this war and they don't support this president even during week when good news comes their way.

BLITZER: What do you think?

J.C. WATTS, FORMER REPUBLICAN CONGRESSMAN: Well, Wolf the one- point bump in the approval rating for the president himself, I think that says that the president has bottomed out. And I think we all have agreed on that over the last two or three weeks.

BLITZER: In other words, can't get any worse.

WATTS: Can't get any worse. So we see those numbers improving. One points, or five points, I think some polls have shown a four or five points bump in the president's personal approval rating but I think the number that's important if you are going to look at these polls is that five-point bump in how people view the war. That was a five point pump.

BLITZER: Of how they approve his handling the war.

WATTS: Of his handling the war. That's right. I think that bump is more important, because everybody is saying how will it impact candidates running in November if the president supports them. Well the president is not on the ballot. I think people will be paying attention to the war and I do think that bump was significant.

BLITZER: Do you think the president is going to help or hurt Republican candidates. He's out today in Washington State and New Mexico clearly raising a lot of money for Republican candidates.

BEGALA: I think it's going to hurt them. I guess the American people are already paying his bills to make these are trips as they should, I'm not one of these Democrats ...

BLITZER: Bill Clinton used to do that, too.

BEGALA: Absolutely. He's the president, wherever he goes he should always have Air Force One and all that security, but even if we weren't paying as citizens I think the Democrat Party would want to pay. Because he's desperately unpopular.

And here's the problem. The president is not on the ballot technically, but these Republican, they vote with this president 90, 95, some 98 percent of the time. And like grandma used to say if two people agree 98 percent on have the time one of them is not necessary.

BLITZER: Here's the polls. Let me show the polls and I want you to respond, J.C. If Bush supported a candidate in your area, would you be more likely to vote for him? Twenty seven percent said, yes. Less likely to vote for him? Forty seven percent said, yes. No difference, 20 percent. Clearly a majority, not a majority, plurality, 47 percent say it would hurt if the president went out and campaigned for a candidate in their congressional district.

WATTS: Wolf in 1998, and Paul you remember this well, 19898 Republicans tried to run against Bill Clinton and they failed.

BLITZER: This was during impeachment and Monica Lewinsky.

WATTS: And they failed. Bill Clinton was not on the ballot in 1998, George Bush is not on the ballot in November of 2006. So I think that's an insignificant number and Democrats will make a huge mistake if they are out there trying to run against George Bush. You hugs probably should learn from the mistake we made in 1998 trying to run against Bill Clinton.

BLITZER: When you were impeaching Clinton you put him at 68. Bush is at 38. There's a difference, I don't want to run against somebody with 68. I want to run against somebody who is at 38.

Republicans have this lemming strategy, they are going to follow George W. Bush right off the cliff and God bless them, but this is a bad strategy J.C., they need to run away from Bush.

WATTS: Wolf, the point is this. George Bush is not on the ballot in November. Bill Clinton was not on the ballot in 1998. George Bush, that is a crazy strategy trying to run against George Bush. I do think those numbers, again, those how he's handling the war, that bump in those numbers, I think is a very significant number.

BLITZER: Let me just -- I remember Bill Clinton getting up to 58 percent, was he at 68 percent job approval?

BEGALA: In '98? I never saw him go below 60, the whole Lewinsky thing. And I was living and breathing that. I was his chief political adviser through the impeachment and I don't believe he ever got below 60 that whole year of 1998.

WATTS: Subject to check.

BEGALA: I checked today. But I could be wrong.

BLITZER: Our pollster expert is going to check this right now and we will update our viewers how high he got. Maybe he got in the 60s. I remember in our CNN Gallup polls, he was very often at the worst moments, when it looked as bleak as possible for him, he was at least at 55 or 56 or 57 percent, job approval.

BEGALA: In '98 he was way up.

BLITZER: Your memory might be better than mine. It probably is.

BEGALA: That was my whole life man.

BLITZER: Paul Begala and J.C. Watts. Thanks to both of you. They are part of the best political team on television, CNN, America's campaign headquarters. Coming up - let's go to our Jamie McIntyre our senior Pentagon correspondent, there's a development we are watching. What's going on, Jamie?

MCINTYRE: Wolf, another of the daily attacks in Iraq today but this one is a little bit different. U.S. forces at a checkpoint in a town called Yusufiya came under small arms fire and attacked. A quick reaction force responded. One U.S. soldier was killed but two are missing. Officially that's called duty status, and whereabouts unknown is the military phrase.

It basically means they were not able to locate them afterwards. We don't know if they've simply -- if they were killed and their bodies haven't been found, if they are simply some place else or whether could have been captured by insurgents. Again, two soldiers missing, one killed at a checkpoint at Yusufiya in Iraq today, Wolf?

BLITZER: And clearly the Pentagon is not going to release any names pending notification of next of kin.

MCINTYRE: They don't do that in any case for at least 24 houses.

BLITZER: We'll watch this story and hope for the best. Jamie, stay on top of it. We will get back to you. Thank you very much.

And coming up, remaking America's image. The woman who once had President Bush's ear, now takes on a public relations job for the U.S. She's trying to change the global view of the world's most powerful nation. That would be Karen Hughes.

Then later, Senator Hillary Clinton delivers what was billed as a major policy address on privacy. Stay with us. You are in THE SITUATION ROOM.

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BLITZER: Long before Americans began turning against the war in Iraq in greater numbers, many people overseas were outraged and they still are, but the Bush administration is working to improve America's image around the world in ways big and small. Let's bring in our senior political correspondent Candy Crowley. Candy?

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Wolf, how do you go about changing world opinion about the U.S.? Over at the State Department there's an effort to begin at the beginning.

(BEGIN VIDEOTAPE)

CROWLEY (voice-over): Kid's soccer may not come to mind when you think about repairing U.S. image abroad, but it is what came to Karen Hughes. Undersecretary of state for public affairs, one time soccer mom.

KAREN HUGHES, UNDERSECRETARY OF STATE FOR PUBLIC AFFAIRS: When my son went to school, all the kids started paying soccer. So it's growing in our country. So I thought it was a nice way to approach the world. It's a way to reach out to young people across the world and a way that cuts through all the political differences, or differences of culture or faith.

CROWLEY: It came to this -- a State Department soccer program bringing kids from 30 nations to the U.S. to scrimmage. A tough match against an unpopular war. The prison scandal of Abu Ghraib, suicides at Guantanamo Bay, and the possibility of massacre at Haditha.

MARTIN INDYK, BROOKINGS INSTITUTION: Even traditional allies of us, they tend to view the United States these days as a negative force, as a force that creates instability and problems.

CROWLEY: A recent Pew poll found over the last year favorable opinions of the United States dropped in more than half of the 15 countries surveyed. And while big majorities in most countries don't want Iran to acquire nuclear weapons, 12 of 15 think the war in Iraq is more dangerous to world peace.

HUGHES: When you are in the news in a negative way it takes a toll.

CROWLEY: But some State Department careerists complain Hughes, still a close adviser to the president is out of her league, spending time of micro-feel good programs, failing to leverage her clout to shape the U.S. message. Outside diplomatic circles, some suggest the complaints may be missing the obvious.

INDYK: If the policies are unacceptable to the rest of the world, public diplomacy is not going to sell them effectively.

CROWLEY: And Hughes says public diplomacy is not a one-year gig.

HUGHES: In the short term I don't think people are going to change their minds but public diplomacy is really a long-term project just as during the Cold War.

CROWLEY: The Pew poll also shows many countries have a more positive view of Americans than of the U.S. as a whole.

(on camera): Do you think you will go back thinking better of Americans?

UNIDENTIFIED MALE: Yes.

(END VIDEOTAPE)

CROWLEY: Wolf, call it sports diplomacy. Hughes does.

BLITZER: Candy Crowley, thank you very much. I want to update our viewers now, that little discussion we had with Paul Begala on former President Bill Clinton's job approval ratings during the height of impeachment. We did some checking, Paul Begala, as usual was right.

During the 1998 period, during this impeachment, the Monica Lewinsky investigation, Bill Clinton's job approval numbers were consistently in the 60s, in fact, after December of '98, after the president was formally impeached by the House of Representatives, his job approval number, get this, went up to 73 percent, it later went back down to the 60s, Bill Clinton's numbers, we wanted to update you on that.

On our political radar this Friday the top House and Senate Democrats today promoted what they called a new direction for America. It's their version for the contract for America that help Republicans win back the House in 1994, their message was essentially this -- Democrats stand with the people while Republicans favor big business.

Senator Hillary Clinton is on the new campaign trail today, she is calling for a privacy bill of rights amid continuing questions about the president's domestic surveillance program. The New York Democrat says her proposal would set out clear rules and limits for the government and it would make sure Americans know their privacy rights. Senator Clinton campaigning for her privacy bill of rights.

And here's something we thought you would want to see. The white house chief of staff Josh Bolten very entertaining at last night's congressional picnic over at the White House. He played bass guitar along with his group, the Compassionates. There he is, Josh Bolten, playing bass guitar.

(MUSIC)

BLITZER: He also drives a Harley Davidson motorcycle, very cool guy. Up next, our senior political analyst Bill Schneider is going to come back. He is going to join us to award his political play of the week. And when you are president you get pretty good presents, later we will take a peek at President Bush's gift list. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: It's Friday. That means time for our political play of the week. That means time, once again for our senior political analyst, Bill Schneider -- Bill.

SCHNEIDER: Wolf sinners are welcome in church but they don't usually get to sing in the choir. James Webb is a sinner to many Virginia Democrats. He was a Republican who worked in the Reagan administration, he supported Bush for president. And George Allen for Senate in 2000, but Webb, a Vietnam broke with the Republican Party over Iraq.

This week, Virginia Democrats invited him to sing in the choir. They nominated Webb as their candidate to oppose George Allen for the Senate. Now Democrats are looking for Webb to give Allen, a possible Republican presidential candidate a tough race.

Webb got the blessing of such prominent Democrats as Harry Reid and Charles Schumer and John Kerry. Democrats are saying to anti-war former Republicans like Webb you don't have to be lonely, come here and stay with us, a generous gesture and the political play of the week. Wolf?

BLITZER: Bill Schneider, thank you for that.

Coming up next, what do you give the most powerful leader in the free world? We will have the president's gift list. That's coming up. And later if disaster strikes or a bomb falls, will we be ready to respond? A new report has the not so encouraging answer. That's coming up in our next hour. Stay with us. We will be right back.

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BLITZER: Here's a look at some of the "Hot Shots" coming in from our friends over at the Associated Press, pictures likely to be in your hometown newspapers tomorrow. Mogadishu in Somalia, a militiamen keeps an eye on a crowd protesting a proposed peacekeeping mission.

Fort Bragg, North Carolina fire crews put out a fire at the site of a mock airplane crash, it's part of an anti-terror drill.

Baghdad, Iraqi boys play soccer at dusk they are able to play in the street because of the afternoon city wide vehicle van.

And in Nicaragua a white-faced monkey plays around with another monkey in a zoo, some of today's "Hot Shots", a picture is often worth 1,000 words.

A black wood machete, a 10-pounds of Tunisian dates, a 10-foot braided leather whip, just a few of the gifts given to the president of the United States by world leaders in 2004. Today the State Department has published the complete collection on-line, what does one bring the leader of the free world? Our Internet reporter Jacki Schechner knows. Jacki?

JACKI SCHECHNER, CNN CORRESPONDENT: How about the "Worst Case Scenario Survival Handbook," it tells you how to get out of quicksand and jump from a moving car, this was one of the gifts given to President Bush by the sultan of Brunei. A couple of other things he gave him. A couple of DVDs, "To Kill a Mockingbird" and a copy of "Singing in the Rain."

There are some other gifts. I will show you one from the president (sic) of Jordan that came to visit the president bush at the Oval Office, they'll pull out and show him there. He gave him 12 bottles of wine. Now of course, President Bush doesn't drink but if he did, he could keep the gift because it was valued about $140, anything under $305 the official gets to keep anything over that has to be turned over to the archives.

For example, President Jacques Chirac gave President Bush two copies of de Tocqueville's "Democracy in America." They were editions from 1850, they were valued at 1,500. Those obviously had to be handed over.

The King of Jordan visited President Bush and gave him some pistols and revolves. Those were valued at about $10,000, or $12,000 rather, and then he got a sniper rifle that was individually valued at $10,000.

The full list is online at the federal register. It's also online at CNN.com/situationreport. It's also got vice presidential gifts in there. He got a copy of "The Art of War" from the V.P. of China and I love this gift, Wolf. The king and queen of Jordan gave Donald Rumsfeld an aromatherapy kit. But that, of course, is valued at $380 and he had to turn that over.

BLITZER: Thank you very much. Fascinating material. Nice gifts, too. Thank you, Jacki.

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