Return to Transcripts main page

The Situation Room

Is Israel Preparing to Send More Troops Into Lebanon?; Zawahiri Releases New Tape

Aired July 27, 2006 - 19:00   ET

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


WOLF BLITZER, CNN ANCHOR: Thanks very much, Lou. And to our viewers, you're in THE SITUATION ROOM where new pictures and information are arriving all the time. Standing by CNN reporters across the United States and around the world to bring you tonight's top stories.
Happening now, is Israel preparing to send more troops into battle? It's 2:00 a.m. Friday here in Israel where top officials have made some key decisions about the future of the fight against Hezbollah. Tonight, both sides are trading fire and the death toll is rising.

Also this hour, al Qaeda's number two terrorist uses the Middle East crisis as a rallying cry. We're going to show you what the latest statements from Ayman al-Zawahiri are. And we'll take a closer look at the connections between al Qaeda and Hezbollah.

And northern Israel from the air a now desolate landscape, the target of Hezbollah attacks. Join me and a top Israeli general on a chopper ride across the danger zone.

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

Here in Israel another night of rocket attacks near the Lebanese border. One of them striking a warehouse and igniting a major fire. Israel says more than 1,500 Hezbollah missiles have hit northern Israel since the conflict started now more than two weeks ago. Israel, meanwhile, is calling up thousands of reserve soldiers in case its fight against Hezbollah intensifies in southern Lebanon, but the Israeli government decided today not to expand the offensive, at least not now.

Lebanon's health minister now estimates the civilian death toll in his country is as high as 600. Israel puts its death toll at 50. The United Nations Security Council has weighed in on the killing of those four U.N. military observers in an air strike in southern Lebanon this week. The statement approved today expresses shock, but does not directly condemn Israel.

And the Secretary of State Condoleezza Rice planning to return to the Middle East this weekend and likely to visit both Israel and Lebanon once again. She's at an Asian summit in Malaysia right now but expect her back in the Middle East very soon.

And a surprising new development tonight al Qaeda is trying to stake out a role in this Middle East conflict. Our senior national correspondent John Roberts is standing by along the war zone in northern Israel, but let's go to our senior international correspondent Nic Robertson. He's joining us with the latest from Beirut -- Nic.

NIC ROBERTSON, CNN SR. INT'L CORRESPONDENT: Well Wolf, the violence has been continuing, particularly in the south of Lebanon today, and into that al Qaeda seems to be trying to exploit the current crisis.

(BEGIN VIDEOTAPE)

ROBERTSON (voice-over): On the 16th day of war, new images of suffering in south Lebanon. Death at the side of the road, families forced from their homes, taking shelter in a government hospital.

UNIDENTIFIED FEMALE: (SPEAKING FOREIGN LANGUAGE)

ROBERTSON: I come from Bint Jbeil, she says. The Israelis leveled our house. We came out from the rubble and walked. Into this chaos, al Qaeda's leadership is threatening to intervene.

UNIDENTIFIED MALE (through translator): We will not stand by watching these explosions pouring down on our brothers in Gaza and Lebanon.

ROBERTSON: But among Hezbollah supporters, this is not a welcome message.

UNIDENTIFIED MALE: But we don't support them at all. We don't think their statements support us also. Here Hezbollah is fighting just for Lebanon and for -- just for Lebanese people and our freedom.

ROBERTSON: Hezbollah characterizes its battle as a war of resistance against Israel. In the past its leader, Hassan Nasrallah, has condemned the methods and operations of al Qaeda and its leader Osama bin Laden.

UNIDENTIFIED MALE: (INAUDIBLE)

ROBERTSON: But as the war continues, anti-American sentiment is growing, the accusation that the United States and Israel are in the fight together against Lebanon.

UNIDENTIFIED MALE (through translator): It's the U.S. and the beheading of Israel's right to self-defense who provided the political cover for the Israeli attack on Lebanon.

ROBERTSON: A scenario that al Qaeda appears to be exploiting.

UNIDENTIFIED MALE (through translator): The dangerous events going on in Gaza and Lebanon are proof to any sane person that the crusader-Zionist war is targeting us.

ROBERTSON: Zawahiri's message is not al Qaeda's first attempt to build alliances here. In the early 1990's, Hezbollah gave al Qaeda operatives weapons and explosives training.

(on camera): More recently in the past few years, an unpublished official security report handed to CNN concluded that there is a clearly recognizable effort by al Qaeda to recruit groups in Lebanon, particularly in the south where it's lawless, specifically in the Palestinian refugee camps.

(voice-over): A radical Islamist CNN interviewed near Beirut this week predicts al Qaeda's anti-American message will resonate here as it has in Iraq, drawing in Islamic extremists from outside.

SHEIK OMAR BAKRI, AL MARJHAROUN LEADER: This could be (INAUDIBLE) where people fight against Israeli forces and anybody who aligns with them, so it is the scenario could happen.

ROBERTSON: A suggestion that scares many here, including this Hezbollah sympathizer.

UNIDENTIFIED FEMALE: It's a little scary because it says that this matter is taken much further than it should and the hope for people for the war to cease very quickly.

ROBERTSON: No indication that's about to happen in a conflict that in recent days has only become more intense...

(SOUNDS)

ROBERTSON: ... and more dangerous.

(SOUNDS)

(END VIDEOTAPE)

ROBERTSON: Well in Beirut today, there were no bombs falling so far as we have had reported to us and in the north of the country relatively quiet, but again the south seems to where all the fighting is, Wolf.

BLITZER: Nic thank you very much. We will have you back shortly here in THE SITUATION ROOM for more. Let's go to northern Israel, though, in the meantime, in the line of fire as fighting rages along the border once again.

Our senior national correspondent John Roberts is in the danger zone once a gain for us once again. Update our viewers, John, on how this day went.

JOHN ROBERTS, CNN SR. NAT'L CORRESPONDENT: Wolf, in just the last couple of minutes we hear artilleries, Israeli artillery, you can hear the explosion there launching a barrage of artillery fire into southern Lebanon. We are up in Mattula, which is right at the very tip of the Galilee Peninsula.

This is an area very close to where that U.N. post was bombed out. And now they have opened up with artillery again, an indication that they may be trying to soften up Hezbollah positions in preparation for a ground advance here. There is an emerging split in Israel as to exactly how far that ground campaign should go.

Hard liners are looking for a full-scale invasion to push Hezbollah all the way back to the Litani River. That would be about 14 miles from the Israeli border, but politicians so far have decided against that. But they say that's only for now. We did get our first pictures of Israeli forces over the border in Lebanon in the town of Maroun Al-Ras, which was the first town that they went through on their way to Bint Jbeil.

It was a combat engineering unit that took a bull hammer (ph) out with it, some nighttime operations, as well as some daytime operations. The streets in Maroun Al-Ras were described as completely broken up. No signs of life there. None of the heavy fighting though that they saw in Bint Jbeil the last couple of days.

Now don't forget yesterday one Israeli soldier was killed in that area of Maroun Al-Ras. The troops there keeping vigilance, making sure that no Hezbollah fighters pop up their heads, making sure that they take no more casualties, Wolf, because yesterday was such a bad day for the Israeli army.

And even though they claim to have had success in degrading Hezbollah's infrastructure and their command and control, katyusha rockets continue to fall for the very first time. We're in the town of Mattula. A number of rockets fell just outside the town, Wolf, so Hezbollah is still proving itself to be very dangerous.

BLITZER: John, Israeli military commanders I've been speaking to suggest this could go on for weeks. What about where you are on the front lines? What are you hearing?

ROBERTS: I just talked a little while ago, a couple of hours ago to General Shuki Shachar, who you know is one of top commanders of the Northern Command. He told me that there's a couple of plans.

First of all, if they go with the plan to push Hezbollah all the way back to the Litani River, that's an operation that's going to take a lot more troops than they have now and it's something that could last the entire summer.

However, if they stick with the more modest plan, which is the direction that Israeli officials look like they're going in at this point, it looks like that could take perhaps another week or two. He's wondering if there is the political will to go for the larger scale ground invasion. At the moment, though, Wolf, it looks like there isn't.

BLITZER: John Roberts is going to be back with us this hour. As well John thanks very much. Let's go to New York right now. Jack Cafferty is standing by with the "Cafferty File" -- Jack.

JACK CAFFERTY, CNN ANCHOR: Thank you, Wolf. Another day, another tape from al Qaeda, so what? What exactly is the world supposed to do because some al Qaeda dirt bag releases a tape saying he's going to support Hezbollah? Should we all get under the bed now? The fact is these morons have been sending out tapes for years and threatening all kinds of dire things. But as far as we know, the leadership of what's left of this organization is still scurrying around from cave to cave in Afghanistan trying to keep their cooking fires lit so they can roast their goats.

It's far more likely that they're starved for attention. Between the war in Iraq, the war in Gaza, the war in Lebanon, the crazies in North Korea and Iran, the world doesn't have time to pay attention to these worms anymore. So like spoiled little brats who throw a fit in a department store because their mother is busy shopping and not paying attention to them, these idiots rush out another videotape so they can get their name in the paper. Here's the question.

Do the media overreact every time al Qaeda releases another tape? E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Good question, Jack, anxious to hear what our viewers think. Thank you.

Coming up, from right here in the Middle East, the war from above. I'm going to take you on a Black Hawk helicopter ride of the war zone with one of Israel's top generals.

Plus, we're going to appeal to moderates everywhere as an outspoken Lebanese political analyst that makes that appeal for a cease-fire. And Condoleezza Rice coming back right here to the Middle East, could be in Jerusalem in the coming days. Will she be able to make a deal to stop the fighting?

And blown from the headlines, there's another war going on in the region, a war that's even more brutal and deadly. We're going to take you back to Iraq where thousands of U.S. troops are being ordered to stay longer than planned.

Live from Jerusalem. You're in The Situation Room.

(COMMERCIAL BREAK)

BLITZER: Welcome back. I'm Wolf Blitzer reporting tonight from Jerusalem. Civilians say they're getting caught in the crossfire in the southern Lebanese port city of Tyre. There were more Israeli air strikes today, one day after an Israeli bomb leveled a 10-story apartment complex downtown.

CNN's Karl Penhaul is joining us now with more on why that building was hit -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Wolf, in the course of a day, we've been trying to find out a little bit more about that Israeli air strike on a 10-story apartment building in downtown Tyre Wednesday evening. Red Cross officials have told us that at least 12 people were wounded in that attack. Israeli defense force officials have told us their intended target was a Hezbollah militia leader (INAUDIBLE) south Lebanon. (BEGIN VIDEOTAPE)

PENHAUL (voice-over): The ruins are still smoldering the morning after an Israeli air strike. Firefighters scour the wreckage.

UNIDENTIFIED MALE: (INAUDIBLE)

UNIDENTIFIED MALE: (INAUDIBLE)

UNIDENTIFIED MALE: No checking.

(SOUNDS)

PENHAUL: Hours earlier it was chaos here.

(SOUNDS)

PENHAUL: Now the only sound you can hear is an Israeli reconnaissance drone buzzing overhead.

(SOUNDS)

PENHAUL: And water gushing from broken pipes. Just yards from the bombsite...

(SOUNDS)

PENHAUL: Jihad al-Husseini tries to clean up the office of his driving school.

JIHAD AL-HUSSEINI, DRIVING INSTRUCTOR: A good army when you -- when you make war with another army. Not with people and children. Why?

PENHAUL: This was a 10-story apartment building and residents say civilians lived here. The Israeli defense forces say the target was Hezbollah leadership. This war has shattered homes, yet some reminders of more peaceful times survive, mementoes of happy families who have now fled the battlefield. Since the conflict exploded, there has been a steady exodus. Now as I drive around Tyre after Wednesday's attack in downtown, I see the streets are emptying faster than ever.

UNIDENTIFIED MALE: Everyone here doesn't -- isn't confident about anything because he's expecting any time, anywhere a bomb.

PENHAUL: Yesterday more than 40 people were bunkered down in the basement of this apartment block in Tyre. But yesterday's attack convinced most of them they were no longer safe. Now only fisherman Ali Atieh and his family are left.

ALI ATIEH, RESIDENT: I am afraid to leave because from the bomb (INAUDIBLE).

PENHAUL: His son Hussein has seen the news on the TV that diplomat efforts to broker a cease-fire have failed. HUSSEIN ATIEH, ALI ATIEH'S SON: We have no chance to be -- to stop the war.

PENHAUL: Amid the ruins of bombed out buildings, hope is hard to find.

(END VIDEOTAPE)

PENHAUL: Again, Thursday in the area around Tyre, we saw bombardments by Israeli warplanes, artillery and even on occasion Israeli navy ships joined the fray -- Wolf.

BLITZER: Karl Penhaul in Tyre, thanks very much.

We're getting this just coming in on this other front that Israel has in its war that's ongoing, this one from Gaza. CNN has now confirmed from Palestinian security sources that Israeli tanks in Gaza are right now pulling out after a two-day sweep. A statement coming in from the Israel defense forces say the forces have indeed -- the faces -- the forces are indeed withdrawing, insisting that the troops that went in and tanks that went in between Tuesday and today completed their mission and as a result they're leaving.

Residents in the area also tell The Associated Press that they can see Israeli tanks and troops withdrawing. This, the other front that Israel has in the southern part of the country in Gaza as opposed to the northern front with Hezbollah in southern Lebanon. We're going to follow that story in Gaza and get more information for you.

Meanwhile, that fierce fighting between Israel and Hezbollah is now here in the Middle East in its 16th day. Israel as you know is a very highly advanced fighting force, very sophisticated military. Hezbollah represents a guerrilla group with far less military capabilities, but did Israel still underestimate Hezbollah's ability to fight.

Brian Todd has more now from Washington -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, the intensity of the fight and the casualties tell the story. This a grind for Israeli forces and it's raising a lot of questions about Israel's strategy.

(BEGIN VIDEOTAPE)

TODD (voice-over): Heavy casualties in the field, a mixed message at headquarters. Israel's defense minister says his forces are prepared to fight an extended campaign against Hezbollah. But the security cabinet turns down a request from military commanders to launch an expanded offensive. Staying with the strategy of trying to take small pockets at a time.

Some military experts believe those conflicting messages are designed as misinformation to throw off the enemy. Others say it's a signal of confusion. One thing they agree on, Israel misjudged Hezbollah. COL. PATRICK LANG (RET.), MILITARY INTELLIGENCE ANALYST: They grossly underestimated their enemy and their enemy's willingness to fight and ability to fight, not as guerrillas but as guys who would hang around and defend these little rocky villages and ledges and caves and things like that.

TODD: Experts say Hezbollah's military capability was not a mystery. That Israel knew their manpower and missile ranges. They say Israel's immediate goal of establishing a two-kilometer buffer zone along the border is likely a stopgap.

MAJ. GEN. DON SHEPPERD (RET.), CNN MILITARY ANALYST: And Brian if the Israelis can push the Hezbollah north of the Litani River, it gives them protection from the 12-mile range of the Katyusha rockets. Hezbollah has other rockets that go all the way out to 120 miles. It takes a lot of territory to protect Israel.

TODD: One analyst says another potential problem for Israel is that its reserved base army is only conditioned to fight shorter wars. But a top Israeli general indicates the IDF is ready for the long haul with Hezbollah.

GEN. MICHAEL HERZOG, ISRAEL DEFENSE FORCES: In this type of asymmetric warfare, when you have a military confronting a terror group that blends in civilian population and acts from within civilian population, these things take time.

(END VIDEOTAPE)

TODD: So for now it's pocket fighting, one bunker, ridgeline or village at a time. And analysts say that might have to be the strategy for at least the next few weeks because air power does not seem to be working militarily or politically -- Wolf.

BLITZER: Brian thanks very much. Brian Todd still reporting. And still to come tonight here in THE SITUATION ROOM there are new developments on the diplomat front that could bring Secretary of State Condoleezza Rice right back to the Middle East. John King is standing by with late details.

And there's been a startling turn of events for the winner of the Tour de France. Could American Floyd Landis actually be stripped of his title? We have details. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: I'm Wolf Blitzer reporting tonight live from Jerusalem. Ahead, much more of our complete coverage of the Middle East crisis including my exclusive Black Hawk helicopter trip into the war zone earlier today. First, though, Zain Verjee joining us from THE SITUATION ROOM in Washington with a closer look at some other important stories making news tonight. Hi Zain.

ZAIN VERJEE, CNN ANCHOR: Hi Wolf. Exxon Mobil clears near record profits. The world's largest public oil company says that its second quarter profits surged to nearly $10.5 billion, soaring gas prices are a big reason. It's too soon to tell though if the sky-high profits could trigger a backlash on Capitol Hill.

(MUSIC)

VERJEE: A little bit of Brahms. Secretary of State Condoleezza Rice is showing off her piano skills before an international audience. She played the piano at the gala dinner of the ASEAN Regional Summit in Malaysia. And keeping with tradition, other foreign officials also demonstrated their hidden talents. Japan's foreign minister did a Humphrey Bogart impersonation and New Zealand's foreign minister sang like the man in black, Johnny Cash.

And American Tour de France winner Floyd Landis could face the loss of his title. His racing team says a drug test taken during the Tour de France last week found unusually high levels of testosterone in his system. Landis denies ever taking it to enhance his performance and he tells SI.com that elevated levels of testosterone are common among pro cyclists. And he's waiting the results of a second back up test -- Wolf.

BLITZER: Zain, thank you. Just ahead, voice of terror, Osama bin Laden's right-hand man calls for attacks worldwide. We'll update you on what's going on.

Plus, rocket sounds, sirens sound on our visit to a city targeted by Hezbollah. We're live from Jerusalem and you're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: I'm Wolf Blitzer in Jerusalem and to our viewers, you're in THE SITUATION ROOM where new pictures and information are arriving all the time. Happening now, new movement on Israel's second front against Islamic militants. The Israeli military saying some of its tanks and troops are in fact rolling out of Gaza after a two-day sweep. Earlier Israel launched new air strikes in Gaza.

Israel claims its battle against Hezbollah guerrillas in southern Lebanon has done -- quote -- "enormous damage to the militant group." The Israeli government is vowing to press on with the fight, but decided today not to expand it, at least not yet. Thousands of Israeli reservists, meanwhile, are being called up in case they're needed for active duty.

The United Nations Security Council is expressing shock at the Israeli air strike earlier in the week that killed four U.N. military observers in southern Lebanon. But the statement approved today does not condemn Israel directly.

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

We're following all the latest developments in the Middle East crisis tonight. Standing by live for us our senior international correspondent Nic Robertson in Beirut, our CNN chief national correspondent John King. He's here in Jerusalem. Let's begin on the front lines though. Our senior national correspondent John Roberts is with Israeli troops in northern Israel.

John, we heard the Israeli cabinet, at least the inner security cabinet, announced no immediate expansion of this war. But what are you hearing on the front lines? What does exactly that mean for the rank and file troops fighting this battle?

ROBERTS: It means, Wolf, that what they're going to do is they're going to go in with the number of troops that they have and then they will start to bring in some reinforce but bring them on slowly. The cabinet also authorized today the call up of as many as three divisions of reserve forces. The division in Israel, because it is far smaller country, far smaller than it is in the United States. A division in the United States is 20,000 men and women. A division here in Israel is more like a brigade size in the United States, about 5,000. But, there's a growing split here, Wolf, in Israel over just how far the ground campaign should go.

While the Israeli government says they want to continue it like it is right now, not expand it, concentrate on air power further north and the artillery barrages, to try to soften up Hezbollah and slowly move out from the areas around Maroun al Ras, Bint Jbeil and now in to the Lebanese town of Yaroun. The hard liners are saying, look, if you're going to go in to Lebanon, go in full scale, the way they did in 1982.

BLITZER: John, thank you very much. John Roberts on the front lines for us. Let's go from northern Israel to Beirut right now. Our senior international correspondent Nic Robertson is joining us live from the Lebanese capital where there were some ominous words expressed today by the number two in al Qaeda, Ayman al Zawahiri, Nic, perhaps forming an alliance between al Qaeda and Hezbollah. But give our viewers some context, what exactly does this mean?

ROBERTSON: I think it's interesting that in Ayman al Zawahiri's statement, he didn't mention Hezbollah or Hamas by name. It's not clear why he didn't do that. But, perhaps his call here is as much more Jihadi radical Islamists to rally to the fight in Lebanon and fight their own cause in their own corner, so much as come in and support Hezbollah. He said that this was a fact that al Qaeda wasn't going to stand on the side lines and watch the Palestinians and the Lebanese be attacked.

The really, most analyst will look at Ayman al Zawahiri's statement and see this as trying to exploit the situation on the ground here for al Qaeda's advantage. I talked with a radical Islamist just last week here who has the very same thinking of al Qaeda. He said look, you don't hear Hezbollah, in their statements, saying they're doing what they're doing in the name of god, saying that they're fighting for global Islamic Caliphate, which is what, essentially, al Qaeda is doing. So there are some fundamental difference.

Another difference that people will point out for you here is that only a couple weeks ago, Ayman al Zawahiri was calling for the Jihadis, the al Qaeda supporters in Iraq, to fight and kill the Shias there. Hezbollah is, essentially, a Shia movement here, a Shia organization, a Shia guerrilla group. It seems almost sort of counter-intuitive that a few weeks later al Zawahiri would be coming out in support of a Shia group. It's more like, and people read it here, as an exploitation of the situation. There's no doubt though, Hezbollah has had connections and ties with al Qaeda in the past. They don't appear to be extensive. Al Qaeda does want to expand here. How effective are they going to be with this call, Wolf? We will see.

BLITZER: What they do share, al Qaeda and Hezbollah, both a deep hatred of Israel.

Let's move on to the diplomat front. Nic, thank you very much. John King is here in Jerusalem with me tonight, following the diplomacy. What are the chances that we're going to both be seeing Condoleezza Rice here in Jerusalem in the coming days?

JOHN KING, CHIEF NATIONAL CORRESPONDENT: They're almost certain. They're not publicly confirming she will come, just in case something on the ground changes the dynamics to make it not worth her while to come here. But, the plan is that she will come here late Saturday for meetings with the Israelis, meetings with Lebanon as well. Essential taking what little progress they made in Rome toward a cease-fire. They know what the obstacles are. They couldn't get over them in Rome. Going to the Israelis and saying would you be prepared to do this. Going to the Lebanese and saying will you be prepared to did this, including on Lebanon's end, a very difficult dialogue with Hezbollah. You would have to convince Hezbollah to accept any cease- fire. So, she will be back Saturday night, barring some big change.

BLITZER: There's no doubt though, the Europeans are going to take the lead when it comes to multinational peacekeeping forces in South Lebanon. And while the United States supports that, U.S. troops are not, necessarily, going to be there with, so called, boots on the ground.

KING: For now the White House position is no U.S. troops. The United States is stretched thin in Iraq, doesn't have the troops to give up. There are some who think if you need some symbolic commitment to get this over the hump, to the finish line, then perhaps a couple hundred troops and some logistics support, but right now you have four European countries who so far said they are inclined. They want to hear the details.

They want to know the mandate, but France, Italy, Norway and Turkey so far have said they're willing participate. You need more troops, obviously. The initial force they envision is about 10,000 troops. What people are talking about is to get a troop in fast and again you need a cease-fire. At first, supplement the existing U.N. force and then roll in the bigger force later but remember, you need the cease-fire first, which is why Secretary Rice is coming back.

BLITZER: Interesting that they're all members of NATO but this is not going to be a NATO sanctioned force. John thanks very much. John's going to be busy, like all of us, over these next several days.

We have seen some amazing images coming in from the region over the past two weeks. But, earlier today we got an entirely different perspective as we took to the skies over Israel.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): The U.S.-made Black Hawk Helicopter waits to take Israel Air Force Brigadier General Ido Nehushatan and us to the war. We fly north at a relatively low level along Israel's Mediterranean coast line, toward Haifa and beyond.

UNIDENTIFIED MALE: We are approaching. This ends up in Haifa. All the way in order.

BLITZER: The further north we go, the less traffic we see along the coastal highway and that's for good reason since Hezbollah rockets have rained down over northern Israel by the hundreds for more than two weeks. Many Israeli citizens living in those areas have relocated for their own safety.

Haifa, a city of some 300,000 under normal circumstances, is drained. We fly over warehouses, factories, and garages, including one struck by a rocket the other day, killing eight people working inside.

The huge port area, usually full of cargo ships from around the world, is largely empty. So are the beautiful Mediterranean beaches nearby.

UNIDENTIFIED MALE: The beach is empty. No traffic. Very low traffic in the streets. No people out. The city has no life. This is the third largest city in Israel.

BLITZER: We continue north from Haifa about 20 miles.

BRIG. GEN. IDO NEHUSHTAN: We're now approaching the border with Lebanon.

BLITZER: Flying overhead underscores how tiny these areas are.

NEHUSHATAN: On the right, this area is completely (INAUDIBLE). They make a living from tourism and all industries. Nothing there now, ghost town.

BLITZER: We can easily see Lebanon, though we don't fly there. We stay completely on the Israeli side. As destructive as this side of the border is, I know it's a lot more destructive on the other, the result of heavy Israeli shelling and air strikes. The general Nehushatan knows that as well.

NEHUSHATAN: This is our challenge. How to give these people security. How can we restore life here? Here and on the other side.

BLITZER: Some 90 minutes after we took off back near Tel Aviv, we touch down at a military base near Haifa. The sights were spectacular, the story so heartbreaking.

(END VIDEOTAPE) BLITZER: Still to come tonight in northern Israel, the city of Haifa under siege from Hezbollah rockets. I went there for a first- hand look at the disaster and the devastation. That's coming up.

In Iraq, some U.S. troops were supposed to come home next month. So, imagine how they and their families now feel, they've being told they won't be leaving any time soon. Much more of our coverage from here in the Middle East right after this.

(COMMERCIAL BREAK)

BLITZER: We're getting some more information now on Israel's decision to pull its troops and tanks out of Gaza after a two-day incursion from the northern part of Gaza. The IDF says the troops completed their mission between Tuesday and Wednesday. They're pulling out. Israeli forces moved into Gaza several times since June 25th. That's when Palestinian Hamas forces went ahead and captured, kidnapped an Israeli soldier, that soldier still being held in captivity.

Palestinian security forces say three Israeli airstrikes, by the way, earlier today, left 10 people wounded. One of the strikes hit a house of an activist in Gaza. IDF had no immediate comment on those reports. We're watching that story. We're watching all of the news here in the crisis in the Middle East.

Let's go to Zain Verjee. She's in Washington. She has some more headlines on the war -- Zain.

ZAIN VERJEE, CNN ANCHOR: Wolf, Iranian president Mahmoud Ahmadinejad is reportedly weighing in on the Middle East conflict. He is quoted by state-run media as saying, Israel has, quote, "pushed the button of its own destruction" with the fighting in Lebanon. Ahmadinejad has provoked international condemnation with past comments doubting the Holocaust and calling for Israel to be wiped off the map. Iran is a major supporter of Hezbollah.

The Middle East crisis is expected to be high on the agenda when the British prime minister, Tony Blair, meets with President Bush tomorrow at the White House. Blair is under growing pressure at home and in Europe to break ranks with the U.S. and call directly for a cease-fire. The two leaders will take questions from the press and, of course, CNN will cover that live.

Let's go back to Wolf now in Jerusalem. Wolf, I'm wondering, the Israeli cabinet decided not to launch a wider ground offensive to fight Hezbollah. Why did they decide not to use all their force, all their firepower to beat Hezbollah?

BLITZER: The Hezbollah over the past six years, Israeli military sources have told me, have built up a very elaborate network in Southern Lebanon, tank traps, land mines, IEDs, improvised explosive devices, thousands of these missiles.

They know the territory, they know the terrain and Israeli military authorities, as well as the political leadership here in Jerusalem, recognizes that -- they recognize that if Israeli troops were to move in with much bigger numbers and try to deal a death blow, if you will, to Hezbollah right now, they probably could do it.

They have the military wherewithal to do it, but at least in the short term, they know they would suffer some major, major casualties on the part of the IDF, and that's something the political leadership, I suspect right now, is reluctant to see. Yesterday eight or nine Israeli soldiers were killed, and that is causing quite a large amount of grief here in Israel, Zain. So they have to weigh the pros and cons and right now they're going to continue the status quo.

VERJEE: How much damage does Israel believe its done to Hezbollah?

BLITZER: They believe they've done a quite a bit of damage, but they also recognize they have a whole lot of work left to do. Even if they have destroyed a lot of the rockets, the missiles, the launchers, they know Hezbollah has had at least 10,000, maybe 12,000 that they gathered from Iran through Syria over these past six years.

So they know that even if they do destroy a lot of Hezbollah's military capability, their work is just only just beginning. And everyone seems to suggest now two weeks into this was, plus Zain, that it's going to continue for some time.

VERJEE: As you mentioned, Israel suffered its heaviest losses yesterday. Eight soldiers were killed. Do those losses do anything to change the belligerent mood in Israel and what was the mood like in northern Israel where you were today?

BLITZER: It's a very sobering thing for this country to lose any of its soldiers. It's a small country and everyone seems to know everyone else. They have got relatives and friends. So it does have a profound impact on morale.

But by all accounts, Zain, the political establishment here, the government, the opposition, left and right, they are pretty determined now that they have to stop these rockets from coming into the northern part of the country, and they're going to pursue it to the best of their military capability.

I had an opportunity, by the way, to travel earlier today to Haifa to see what was going on firsthand, Haifa being a top target of Hezbollah rocket fire. The usually vibrant port city is now desolate, depressing, and at times, very frightening.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Shortly after arriving in Haifa, we hear a wailing sound, a warning that Hezbollah Katyusha rockets are on the way.

(on camera): All right, we are at this Israeli air force base. The sirens have just gone off. You can hear them behind us. And, so, they are telling us we should go to a shelter, which is what we are going to do right now. (voice-over): Israeli civil defense officials say the rockets could land as quickly as 20 seconds after the sirens sound. Sometimes, you have a little longer.

UNIDENTIFIED MALE: But, if they don't hit in the first two minutes, then you will get an all-clear sign.

BLITZER (on camera): Yes.

UNIDENTIFIED MALE: That's how long it takes from here. On the other side, it's a close view.

BLITZER: Did they get the all-clear?

(voice-over): That does not give someone a lot of time to run. And that explains why so many residents in the northern part of Israel have moved south, to more secure areas.

(on camera): How often do these sirens go off?

UNIDENTIFIED MALE: They have been going off every few hours.

BLITZER: Yes?

UNIDENTIFIED MALE: As you have seen, since this morning, we have had three of them. So...

BLITZER: All right, we just got the all-clear. That means the sirens are off. If Katyushas have landed, they have landed. We don't know if there was any damage or destruction. But we're going to get out of here now, and walk back to our van, and head over to our location in Haifa, where we are working.

(voice-over): The ride through this city is bleak, not many cars on the streets, not many people either.

(on camera): As I take a look at this port, and this Haifa Bay, it's pretty depressing to see there aren't very many ships at all docked in Haifa right now, pretty much empty, understandably, because those Katyusha rockets, they have been coming in, day 15, day 16.

And there's, according to Israeli military authorities, really no expected end in sight, at least over the short term.

If you take a look down there, you see that beautiful Bahai temple, the shrine here in Haifa, such a great attraction. People come from all over the world to see it. And you see these buildings that -- pretty much deserted.

You see the infrastructure. You see what was a robust city, and probably will come back to be a very robust city down the road. But, right now, it's not.

(voice-over): For the future of Haifa and the northern part of Israel, this will be a turning point. It's still not clear, though, in which direction things turn. (END VIDEOTAPE)

BLITZER: And there's another war going on not very far from here as well. That would be in Iraq, where there are days of death. Baghdad right now exploding with violence, claiming hundreds of lives every month. Sadly, today was absolutely no different. Our Arwa Damon has the latest on an attack that flattened an upscale apartment complex.

(COMMERCIAL BREAK)

BLITZER: In Iraq, American troops who thought they would soon be coming home are now learning they're not leaving Iraq any time soon. Some 3,500 troops based in Alaska were supposed to come home next month. But today the U.S. Army said they will stay in Iraq for up to four more months. The soldiers were moved to Baghdad in fact, to help restore some of the stability there, to try to end the bloodshed, if possible. There were no letup in that bloodshed earlier today. CNN's Arwa Damon has more -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: Wolf, Iraqi police were pulling bodies out of the rubble well into the night here in Baghdad, as the death toll from that complex attack continues to rise.

(BEGIN VIDEOTAPE)

DAMON (voice-over): Through the thick smoke, the luckiest escape. As the dust settles, those unharmed help the walking wounded. Some carry the limp bodies of the dead. Rescue workers rush to help others trapped beneath the rubble.

Dozens killed, over 100 wounded after a car bomb, mortars and Katyusha rockets devastated a central Baghdad neighborhood, a complex attack. Its specific target is unknown.

Attacks like this in commercial areas take not only a civilian toll, they also deal severe blows to Iraq's already failing economy. State-owned TV was the first to broadcast the devastating images and angry reaction from the scene.

"We are asking," this man says, "where is this security plan that the government promised us?"

(END VIDEOTAPE)

DAMON: Whether or not an increase in U.S. and Iraqi troops in the capital will actually decrease the violence remains to be seen. But until that plan is put into action, the death toll here will likely continue to rise, Wolf.

BLITZER: Arwa, thank you very much. What a horrible situation unfolding in Iraq right now as well.

Let's bring in Paula Zahn. She's standing by to tell us what's coming up on her program that begins right at the top of hour -- Paula. PAULA ZAHN, CNN ANCHOR: Thanks, Wolf. Tonight in our top story coverage, life in a war zone. We are going to visit a town where they can hear both Hezbollah and Israeli rockets streaming overhead. How are people living through that terror as their new normalcy?

Also, does U.S. support for Israel hinder our ability to broker peace in the region? Top story coverage from the front line fighting to the backroom diplomacy, all coming at you in just about six minutes from now -- Wolf.

BLITZER: Paula, thank you very much.

Citizen journalists on the front lines continuing to post their personal photos online. Let's bring in our Internet reporter, Jacki Schechner -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Some really talented photographers, Wolf, with some really powerful images. These showing up on Flickr.com, the group photo blog.

Masser, a 41-year-old journalist and father in Lebanon, this a house destroyed in the center of Tyre. He says it was hit by two laser-guided Israeli missiles. There, the same house, different image.

Also taking this photograph of a south Lebanese refugee. He said he wanted to talk to her, but felt she was too distressed to interview.

In Israel, we have a 26-year-old photo journalist named Niv Calderon. He's right on the front lines. This is a photograph taken in a town called Avivim. This is right on the border with Lebanon. Let me show a map right here where you can see, here's the border and here is Avivim. Again, let me just show you that image. You can see just how close they are to the border. Also, there's another shot here of Avivim itself under attack from mortar shells is what it says.

He also took this powerful photograph of a Katyusha rocket that fell in a town called Mrar, went right through the ceiling of the house here, and unfortunately killed a 15-year-old girl.

Now, we have posted a link to all of these images online for you at cnn.com/situationreport. As we find these things online, we want to steer you right to them, Wolf. So that's where you can go to find links to all of these sites.

BLITZER: All right, Jacki, thanks very much.

Still ahead, a new message from Osama bin Laden's right-hand man. And it has Jack Cafferty wondering, do the media overreact every time al Qaeda releases another tape? Jack with your email and "The Cafferty File" right after this.

(COMMERCIAL BREAK)

BLITZER: Jack's in New York with "The Cafferty File" -- Jack. CAFFERTY: The question, Wolf, is do the media overreact every time al Qaeda releases another tape. Why, we get positively beside ourselves.

Peter in Washington writes: "I think the media give al Qaeda criminals way too much free air time. We don't broadcast demands from every other thug and street criminal in the U.S. Why do we give them the privilege?"

James in Destin, Florida: "Bingo, Jack. The media overreact and overdramatize nearly everything. That's how they keep their ratings up. I guess they would include you as well. Keep up the good work."

Robert writes: "The unfortunate situation is that there are still extremists that take what the leaders say in these tapes to heart. And as long as the Arab world listens and obeys these tapes, the media have every reason to report them as they currently do."

Chris writes in Florida: "Jack, al Qaeda and Hezbollah and Hamas are spineless vermin who hide beneath the skirts of women and behind children. In my opinion, the media quake too loud and long every time one of these creatures even belches."

This from Darrell in Seattle: "Like any good dog, the media do exactly what the Bush administration wants it to do. Sit, lay down, speak, piddle on itself. The free press is dead, and has been replaced by corporate stenographers. Except for a few left around like you, Jack."

Thank you, Darrell.

Pete writes from Bristol, Pennsylvania: "Jack, television stopped showing nude streakers at pro football games and nobody has streaked since. Time to lose the terror tapes."

And T. in Tennessee writes my favorite letter of the day. "Do you think al Qaeda will release a Christmas tape?"

If you didn't see your email here, you can go to cnn.com/caffertyfile, and read more of them online. We post some each hour that we don't have time to read here on the television.

Mr. Blitzer, back to you.

BLITZER: Did you get a lot of email today, Jack?

CAFFERTY: We've been getting an awful lot of email ever since this war heated up. The letters are probably running 30 to 40 percent above average every day.

BLITZER: All right, Jack. Thanks very much. We'll see you tomorrow here in THE SITUATION ROOM. I'm still here in the Middle East. Much more of our coverage, though, coming up. Paula Zahn standing by for that -- Paula.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com