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The Situation Room

War in Lebanon Widens; Castro Temporarily Yields Power to Brother Raul

Aired August 01, 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: Congratulations, Lou, to all of the Dobbs family. Good work.
To our viewers, you're in THE SITUATION ROOM where new pictures and information are arriving all the time. Standing by CNN reporters across the United States and around the world to bring you tonight's top stories.

Happening now, it's 2:00 a.m. in Lebanon where the war is widening. A daring raid, Israeli troops are reported on the ground in a Hezbollah stronghold in northeastern Lebanon, even as Israel launches a major new push deeper into south Lebanon where heavy fighting rages.

It is 7:00 p.m. in Havana where an ailing Fidel Castro yields power for the first time in almost five decades. Ninety miles away, Cuban Americans are ecstatic, but will the aging revolutionary recover? We're just learning of a new statement from Castro on his condition.

And it's 4:00 p.m. in Los Angeles. After a drunken driving bust and an anti Jewish rant, Mel Gibson issues an apology. But is it enough?

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

Right at this hour, a partial pause in the air war ends. And Israel is once again unleashing its full might against Hezbollah. And as the war widens, there is breaking news. In a stunning new twist, Lebanese security sources say Israeli troops were airlifted to the northeastern part of the country very close to the Syrian border. There they're said to have entered a hospital in the Hezbollah heartland near Baalbeck and there's fierce fighting going on right now.

Heavy fighting as well in southern Lebanon where Israel is launching an expanded military offensive, thousands of Israeli ground forces have moved in. The cabinet approved a much more major push which Israeli officials say is aimed at clearing out Hezbollah fighters as far north as the Litani River. That's almost 20 miles from the Israeli border.

And Israel's vice premier Shimon Peres has just met with national security advisor Stephen Hadley at the White House following a separate meeting with the Secretary of State Condoleezza Rice. He says Israel's campaign in Lebanon could go on for weeks.

As the fighting rages on in this widening war, our senior international correspondent Brent Sadler is standing by in Naqoura, Lebanon. Also Michael Ware is in Beirut. But let's go to northern Israel first. John Roberts is watching the situation from very close to the Lebanese border -- John.

JOHN ROBERTS, CNN SR. NAT'L CORRESPONDENT: Good evening to you, Wolf. Just a few minutes ago we spoke with officials from the Israeli defense forces who would not comment on the Lebanese reports that troops are operating on the ground in the ancient city of Baalbeck, but it would be an expected target that is a hotbed of Hezbollah activity. It is an area where there have been terrorist training camps for the PLO and for Hezbollah in years past.

And so it would be expected that the Israeli Defense Forces would want to go in there. It's also an area close to where there is a major train shipment point between Syria and Lebanon to bring in those arms, to bring in those Katyusha rockets that Hezbollah has amassed in southern Lebanon.

We spent the day today, Wolf, traveling the border from the very far northeast tip all the way down to the cities of the towns of Zirit (ph) in northern Israel watching a lot of the fighting in Aita Al- Shaab, which is the newest front here in this war in southern Lebanon, intense fighting there. Israeli forces taking casualties.

The Israeli Army saying that it also killed a lot of Hezbollah fighters. There is every indication tonight Wolf that while it may not have started yet a major ground operation is about to get under way.

(BEGIN VIDEOTAPE)

ROBERTS (voice-over): From a hilltop right on the Lebanese border, we watched the Israeli military pound positions in a town they say is a Hezbollah base. It is just two miles from where two Israeli soldiers were kidnapped on July 12, the incident that touched off this war.

(on camera): This is where the heaviest of the fighting is now. This is Aita Al-Shaab. You can see that the Israeli Air Force dropped what appears to be a 500-pound bomb on this village. It has been shelled all day and there is heavy fighting in the city streets. The Israeli Army is in there with a lot of ground forces. There is close quarters fighting, very, very heavy combat.

(voice-over): The battle has been costly for the Israeli military. Three soldiers killed so far, 25 wounded. Israel claims it killed at least 20 Hezbollah fighters in southern Lebanon in the past 48 hours.

(SOUNDS)

ROBERTS: We stay on the hilltop, watching the battle until soldiers arrive and tell us there are snipers in the village and it is far too dangerous to be here. We move to another location along a border route, pockmarked with Katyusha rocket hits and evidence that Hezbollah mortar rounds found vehicles they were looking for.

(SOUNDS)

ROBERTS: On the road to an Israeli military outpost, we see a powerful murk of a tank being towed back from the battle in Aita Al- Shaab, still smoking from a direct hit by a high explosive Hezbollah round.

(SOUNDS)

ROBERTS: And the fighting is only expected to intensify. As diplomats seek a way to end the hostilities, Israel is expanding its ground campaign, now intent on pushing Hezbollah 14 miles north to Lebanon's Litani River, determined to hold on to a broad safe zone until an international force can arrive.

(END VIDEOTAPE)

ROBERTS: Now, Wolf, that was the strategy by the Israeli Army all the time. They wanted to go all the way to the Litani River. There was political opposition to that. The politicians only wanted to occupy a small slice of southern Lebanon, but it now looks as though the Army has gotten its way. After much criticism of Israeli officials...

(SOUNDS)

ROBERTS: ... and the Israeli government, people were saying that there was a weak response at the very beginning, it took a long time to ramp up this ground campaign, so Wolf, we fully expect in the next 24 to 48 hours we're going to see a lot more action on the ground from traveling the border. There wasn't enough armor and equipment to really tell us that this big ground invasion that everybody is expecting tonight is about to get under way, but we expect to see that in the next 24 to 48 hours -- Wolf.

BLITZER: We constantly hear behind you, John, those artillery pieces, those artillery shells going off. I take it that's part of the so-called softening of the terrain when these Israeli troops move in. Is that what is going on?

(SOUNDS)

ROBERTS: During the daytime, Wolf, the artillery fires a lot to try to soften up Hezbollah positions. It also lets Hezbollah know that the Israelis are still there. It keeps their heads down. But there are major ground incursions in the northeastern part of Israel tonight with infantry forces who go in there and these pinpoint attacks. They come back in the morning and these artillery right now are firing in support of them.

BLITZER: At this hour, in fact about six minutes ago, the deadline came and went. The 48 hours in which the Israelis reduced their air strikes against Hezbollah targets in Lebanon. Give our viewers a sense, John, what it means now, the Israeli Air Force once again unleashed.

ROBERTS: The justice minister today said, Wolf, that he fully expects the air campaign is going to pick exactly where it left off 48 hours ago. But you know they can't afford another Qana that killed dozens of people in that apartment building collapse, many of them children. So it would seem to me that from what I've heard from talking with Israeli officials and what I've heard Israeli officials say that they are going to try to make those air attacks much more surgical.

They're going to double check all of the targets, try to bring together and bring to bear all of the intelligence that they have on a target before they drop those bombs. But Wolf, during the day today, in terms of close air support of troops on the ground, it was like there was never any pause of any kind in the aerial campaign.

BLITZER: John Roberts on the Israeli side of the border, not far from Lebanon, thanks very much. Let's go to the other side only a few miles away. Brent Sadler is on the phone. Brent, you're in Naqoura, Lebanon. You're listening, you're watching. I take it the fighting is getting very close to where you are.

Brent Sadler, can you hear us? Unfortunately we just lost his connection. Let's go to Beirut. We'll come back to Brent in a moment. Michael Ware is our reporter in Beirut watching all of this unfold. It looks -- at least to those of us who are watching this from afar, Michael, that the Israeli military thousands of troops either are or will shortly be moving into south Lebanon.

The air war about to resume full speed ahead as far as Israel is concerned. And at the same time, Israeli troops moving all the way north to Baalbeck not far from the Syrian border in some sort of operation that is unfolding right now. Give our viewers a sense, what are you hearing about what is happening first of all in Baalbeck.

MICHAEL WARE, CNN CORRESPONDENT: Well, Wolf, this is a fascinating development that is happening this evening in Baalbeck. This is a new form of operation that we haven't so far seen in the campaign by the Israeli military. There is very much is a deep strike kind of operation. Most likely working on actionable intelligence. Perhaps they have some very specific information and are moving on a target, be it to interrupt a command and control center, to hit a particular arsenal or perhaps after a high profile target, a high value target. What we're hearing now is Lebanese military sources are confirming that Israeli troops entered a hospital in northern Baalbeck where they went inside and checked the identity cards and papers of all the hospital staff and all of the patients.

Now what we're hearing is that military sources again say the fighting continues, but on local media and on Arab channels, what the news is, is that the Hezbollah forces are claiming to have this group of Israeli soldiers or commandos as they're being described surrounded, certainly engaged in heavy combat -- Wolf.

BLITZER: Michael, stand by for a moment. I think we have re- established our contact on the phone with Brent Sadler. He's in Naqoura. That's not far from Israel and south Lebanon, but Brent, you've been our bureau chief in Lebanon for a long time. Give our viewers a sense, Brent, of this battle that's unfolding now in Baalbeck and what it could symbolize given what the Israelis say is Baalbeck being a hotbed of Hezbollah activity.

BRENT SADLER, CNN SR. INT'L CORRESPONDENT (via phone): If we take (INAUDIBLE) now Wolf, the Israeli's are now engaged in heavy combat air support operations in at least six major concentrated areas along the border. Throughout this day I've heard intense shelling. It hasn't stopped.

And since that partial cessation of Israeli air strikes stopped and now hearing planes and (INAUDIBLE) unmanned aircraft (INAUDIBLE) followed of something much bigger to come. If you switch to a moment to what Michael Ware was talking about, in Baalbeck as he said, confirmation from security sources that Israeli commanders landed by helicopters and stormed a hospital. This is a hospital that is owned and operated say (INAUDIBLE) sources by Hezbollah, funded (INAUDIBLE) charitable (INAUDIBLE) and manned by (INAUDIBLE).

BLITZER: All right, Brent, I'm going to interrupt for a moment, Brent, because your line is coming in and out. Stand by for a moment, Brent. We're going to fix that connection that you have. Michael Ware -- let's go back to Michael in Beirut. Earlier in the day the Israelis said that over these nearly three weeks, the Hezbollah were firing about 100 or 150 rockets a day, Katyushas mostly into northern Israel. Yesterday it went down to only three or four and today it's less than a dozen at least so far. What if anything should we read into this?

WARE: Well this is very difficult to get a fix on as you can well imagine, Wolf. This could be one of any number of things. First, the most obvious is that there's been some degrading of Hezbollah's capability to launch extended operations to strike within Israel, either their arsenals have been hit or their supplies, their chains have been hit or simply that they're incapable of establishing the launch sites.

The other thing is perhaps a political play in that during this 48-hour cessation of air strikes by the Israelis within southern Lebanon, perhaps Hezbollah was calculating that to play to their constituency they had to be seen not to be going on the offensive either to give a clear run for whatever evacuations could take place or for whatever aid to arrive. So it could be any manner of things at this stage -- Wolf.

BLITZER: Michael Ware in Beirut, Brent Sadler in Naqoura in southern Lebanon. We're going to get back to both of you. Lots of news unfolding.

Jack Cafferty is in New York. He's joining us now with the "Cafferty File" -- Jack.

JACK CAFFERTY, CNN ANCHOR: Thanks, Wolf. Of course we have been reporting all date the future of Fidel Castro down there in Cuba, very much in question tonight. The administration is ready to bring democracy to Cuba if Fidel Castro dies. The U.S. plans to have assistance there within weeks to support a transitional government if requested. A government report was prepared on all this by an outfit called the Commission for Assistance to a Free Cuba, the co-chairman, Secretary of State Condoleezza Rice, Commerce Secretary Carlos Gutierrez.

Of course they want $80 million of your money, my money, for a democratic fund for two years to strengthen civil society, boost opposition to Castro, and increase the flow of information. An additional $20 million a year is recommended for democracy programs until the dictatorship in Cuba ends. The report says the U.S. should put in place legal experts to help with elections. Other priorities include training judges and police and helping out with health care and clean water. Let's help Cuba with health care. Then maybe some day Americans who need it can go there.

Here is the question. Should the United States get involved in trying to bring democracy to Cuba? E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Jack, thank you. Jack Cafferty in New York. And we're following the breaking news coming from the Middle East. Israel resuming its air attacks full speed ahead this hour against Lebanon now that that 48-hour deadline is over with.

Plus, much more on what Jack just spoke about. Fidel Castro, dead or alive or gravely ill? Speculation and rumors flying in Havana right now after the dictator gives up power for the first time in 47 years. Is this the beginning of the end? We're going to go live to Havana.

Also dancing before he's dead, Miami's Cuban community celebrating Fidel's bad news. And Mel Gibson's mea culpa, he is saying sorry for some anti-Semitic words. Is Hollywood ready to forgive?

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

(COMMERCIAL BREAK)

BLITZER: There's breaking news this hour. Israeli troops are attacking deeper and deeper into Lebanon during this nearly three-week old war. We're going to go back to the region in a moment. But there is another major international story we're following. Just moments ago Cuba's state run TV read a statement, said to be from President Fidel Castro himself. Zain Verjee joining us now with more on this important story -- Zain.

ZAIN VERJEE, CNN ANCHOR: Wolf, according to Cuba TV Fidel Castro says he is in stable condition and in good spirits after having surgery for intestinal bleeding. He handed over power for the first time in 47 years to his brother Raul yesterday fueling speculation that the end was near. Tonight's message from the Cuban leader may have been intended to dispel rumors of his death.

Earlier the White House expressed caution about Castro's condition saying that there is no way of really knowing his condition. But in Miami there were wild celebrations by Cuban exiles on the news of Castro's ill health. For now though, Wolf, it seems that these celebrations may have been premature. The U.S. says that its policy toward Cuba remains unchanged. The embargo is still there. Washington has also (INAUDIBLE) a strategic plan to promote democracy in Cuba after Castro. One state department official calls the timing fortuitous -- Wolf.

BLITZER: Zain thank you very much. We'll have more on this story coming up. Zain Verjee reporting.

Let's get back to our top story, the breaking news out of the Middle East, the crisis in the Middle East. Israeli forces moving thousands of troops into Lebanon. The air war as far as Israel is concerned moving back full speed ahead after a 48-hour deadline. Meanwhile, Lebanese civilians are clearly caught in the crossfire and they're growing more desperate by the hour.

CNN's Ben Wedeman got a first-hand look at the situation in southern Lebanon -- Ben.

BEN WEDEMAN, CNN CORRESPONDENT: Wolf, today we had the opportunity to go down to a town called Aitaroun (ph) very near the Israeli border. There we found disturbing scenes. We saw people who have been clearly traumatized.

(BEGIN VIDEOTAPE)

WEDEMAN (voice-over): The residents of Aitaroun (ph) are leaving as fast as they can.

UNIDENTIFIED FEMALE: (INAUDIBLE)

WEDEMAN: Israel's 48-hour period of relative restraint is almost over.

UNIDENTIFIED MALE: (INAUDIBLE)

WEDEMAN: After nearly three weeks in cramped shelters, the young, the old, the infirmed are desperate to go.

UNIDENTIFIED FEMALE: (SPEAKING FOREIGN LANGUAGE)

WEDEMAN: Get us out of here again, says this woman. Please, get us out of here.

UNIDENTIFIED MALE: (INAUDIBLE)

WEDEMAN: The first to reach the mainly Shiite village of Aitaroun (ph), a group of journalists who do what they can to help.

(on camera): The people in this town have been under bombardment for 20 days. The Red Cross hasn't made it here. The U.N. hasn't made it here.

(voice-over): Everyone is fleeing. (SOUNDS)

WEDEMAN: But for one man dazed who stares at the rubble of his village. The neighboring village of Inata (ph) has also been pounded and unexploded artillery round lies in the main square. The stench of decomposing bodies rises from the ruins.

UNIDENTIFIED FEMALE: (INAUDIBLE)

WEDEMAN: (INAUDIBLE) says she and her son were pinned down in their house for five days with the body of her dead sister killed in the bombing.

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

WEDEMAN: Habas Halill (ph) came to get his sister and found her dead under the rubble of her home.

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

WEDEMAN: It was unbearable, unbearable, is all Ahmi Basam (ph) can say. He's going straight to Beirut. Everyone here painfully aware there is little time left.

(END VIDEOTAPE)

WEDEMAN: And, Wolf, those people left. But we know that despite the fact that many people have taken advantage of this 48-hour window of opportunity, there are still many people in south Lebanon who are going to stay -- Wolf.

BLITZER: Ben Wedeman reporting. Thank you, Ben.

Still to come in THE SITUATION ROOM, we're continuing to follow all of the late breaking developments in the Middle East crisis. Could Syria, Syria be drawn into the fighting? We're going to speak with a Syrian ambassador to the United States.

Plus, Mel Gibson issuing a new statement from rehab. We'll have the details of what he's saying now about his remarks, disparaging Jews and his plea for forgiveness.

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

(COMMERCIAL BREAK)

BLITZER: Situation in the war in the Middle East changing rapidly. Right now Israel moving ground troops by the thousands into south Lebanon. The air war resuming full speed ahead. And there's a major battle under way in Baalbeck, in the northeastern part of Lebanon right now, not far from the Syrian border. We're watching all of this.

And as this unfolds, the Secretary of State Condoleezza Rice is once again rejecting the notion of an immediate cease-fire. This is what she said only moments ago. (BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: If we really put our minds to it and work, that this week is entirely possible. Certainly we're talking about days, not weeks before we are able to get a cease-fire. It is time to end the violence, but the reason that the United States has talked about an urgent cease-fire but one that cannot lead to a return to the status quo ante, the Middle East has been too far -- through far too many of these spasms.

(END VIDEO CLIP)

BLITZER: The secretary speaking in an interview on PBS' "The News Hour". Much more coming up on the Middle East, but there is other important news we're watching right now. Let's bring back Zain Verjee. She's watching some other headlines -- Zain.

VERJEE: Wolf, more than 70 people are dead in a wave of violence across Iraq. It includes a car bomb attack at a Baghdad bank where police and soldiers were picking their paychecks. Fourteen people died and 37 were wounded. And a roadside bomb destroyed a bus carrying Iraqi soldiers in northern Iraq killing all 24 people on board.

Defiance from Iran's president in the face of a U.N. ultimatum. Mahmoud Ahmadinejad is rejecting a U.N. deadline for his country to stop enriching uranium or possibly face sanctions. Mr. Ahmadinejad says Iran will not be pressured to give up its nuclear program, which he says is peaceful and adds that his country has a right to pursue it.

It's a very busy day for emergency officials in and around El Paso, Texas. They have rescued more than 60 people from flooding triggered by three days of heavy rain. As much as half a foot has fallen on the region, which had only had an inch of rain since January. There are no reports though of any serious injuries -- Wolf.

BLITZER: Zain thank you very much. And just ahead, we're following all of the late breaking developments in the Middle East crisis. We're going to have the latest for you including Israeli troops moving deeper and deeper into Lebanon right now. Fierce fighting reported. We're also going to go live to CNN's Matthew Chance in northern Israel and to CNN's Brent Sadler in southern Lebanon.

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

(COMMERCIAL BREAK)

BLITZER: To our viewers, thanks very much for joining us. You're in THE SITUATION ROOM where new pictures and information are arriving all the time. Happening now, Israel takes its battle against Hezbollah even further. Lebanese security sources saying Israeli forces landed in northeastern Lebanon near Syria and raided a hospital and a 48-hour partial pause in Israeli air strikes has now ended just in the past several moments. Cuban television, meanwhile, quoting Fidel Castro as saying he's in stable condition and in good spirits after surgery to stop bleeding in his intestines. Castro temporarily handed power over to his younger brother, the first time the communist leader has given up control of Cuba during his 47-year regime.

And the actor/director Mel Gibson now saying he's sorry for making those anti-Semitic remarks during his drunken driving arrest last week. Gibson says the comments were blurted out in a moment of insanity -- his words -- and there is no excuse for it.

I'm Wolf Blitzer and you're in THE SITUATION ROOM.

As Israel steps up its campaign against Hezbollah and pushes deeper and deeper into Lebanon, Brent Sadler is standing by in Naqoura, Lebanon, but let's go to our senior international correspondent Matthew Chance. He's in northern Israel where the artillery shells keep going off. Matthew?

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: That's right, Wolf. The artillery here in northern Israel really keeping on pounding, those positions in southern Lebanon where much of the military activity is taking place.

We understand that thousands of Israeli troops are currently being deployed on the ground into areas of south Lebanon. There they have been engaged in very close combat, fighting with Hezbollah militia members. We understand that at least three Israeli soldiers have lost their lives over the course of the past day. And 25 others have been injured, many Hezbollah fighters according to the Israeli military have been killed as well.

The emphasis really is on southern Lebanon, though we also understand -- I'm sure Brent will be talking about this, the fact that Israeli troops are elsewhere in Lebanon as well, particularly around the northeastern town of Baalbeck in the Bekaa Valley. But the emphasis from our point of view and from the point of view of the Israeli military is very much on south Lebanon.

That's where much of the forces have been deployed. Their strategy seems to be to push the Hezbollah militants as much as possible away from the Israeli border and then instead of coming out again, to hold onto that territory until such times as the multinational force that has been discussed is actually set up and deployed on the ground. So Israeli forces could be there for some time, Wolf.

BLITZER: And in recent days, the Israeli cabinet has authorized the mobilization of tens of thousands of Israeli reservists presumably for these kinds of operations.

Stand by for a moment Matthew, Brent Sadler is in southern Lebanon right now in Naqoura. He's joining us via broadband. Brent, for our viewers who are just tuning in, it seems there are multiple fronts in this war right now, escalating violence in south Lebanon, Israeli forces on the ground moving in. The air war from Israel's standpoint, resuming only in the past half hour or so. And in Baalbeck, near the Syrian border, in northeastern Lebanon, there is an Israeli operation involving a hospital. Tell our viewers what we know.

SADLER: That is what we can piece together so far, Wolf. It appears the Israelis launched a dramatic snatch operation right in the heart of Hezbollah's territory in the Bekaa Valley. This it seems delivering now only a military blow deep inside Lebanon, but perhaps also a psychological blow, an attempt it seems by the Israelis to try to get to the very heart of the Hezbollah leadership.

Now we understand so far that commandos, Israeli commandos, landed by helicopter and stormed the hospital that is owned and operated by Hezbollah and funded by an Iranian charitable organization. Lebanese security sources say that Lebanese commandos went inside the hospital and rounded up all medical staff to check their papers.

After that, it is not quite clear but one medical eyewitness inside the hospital, this isn't confirmed, Wolf by security sources, says that at one or perhaps more people from inside that hospital were taken away by the Israelis.

A counterclaim by Hezbollah says that their fighters prevented the helicopters from landing and dispersing troops. We can confirm heavy fighting between Israelis and Hezbollah. So the picture still has to be made clear. But if it is true that the Israelis mounted a snatch operation, this indeed is very interesting in terms of the psychology of Israel not only hitting Hezbollah on the border and also straying deep inside Lebanon. Wolf?

BLITZER: Very quickly Brent, the only thing I can imagine in terms of a snatch operation along these lines, either they're looking for a major figure in the Hezbollah leadership or on the other side, potentially, maybe one of those Israeli soldiers who was kidnapped and presumably might have been held at that hospital. Right now we have no idea who the Israelis were looking for.

SADLER: Absolutely right, Wolf. Intelligence assessment reports on the ground certainly throw in the possibility that Israeli intelligence have picked up information that perhaps one of those two abducted soldiers that really -- that incident triggered off this war may well have been -- too early to say, but certainly an important commando style certainly linked in with special ops operations conducted by the Israelis this night here, Wolf.

BLITZER: Brent Sadler reporting for us. Brent, thank you. Matthew Chance, thanks to you as well along the border with Lebanon.

And as we heard a short while ago, Secretary of State Condoleezza Rice says a cease-fire between Israel and Hezbollah could be reached in days rather than weeks. So far President Bush has refused to demand an immediate cease-fire pushing instead for a long-term and in his words sustainable peace. Some members of Congress, including Democratic Senator Joe Biden, say the Bush administration could be doing more. (BEGIN VIDEOTAPE)

BLITZER: Senator, thanks very much for coming in.

SEN. JOSEPH BIDEN (D), DELAWARE: Happy to be here.

BLITZER: It looks like the Israelis are trying to destroy as much of Hezbollah's military capability as possible, before some sort of United Nations Security Council cease-fire is imposed. What do you make of what's going on?

BIDEN: Well, I think they probably are doing that. And it's kind of hard to blame them.

You know, while the world is sitting around, twiddling its thumbs, there's a need for a stabilization force in there, with people who can -- that are sanctioned by the United Nations, but folks that can shoot straight, and are tough, not going to stand by and watch things happen to occupy the territory that Israel, I'm confident, does not want to occupy.

They just want to make sure that, when, in fact, they pull back on the other side of the border, Hezbollah is not back in the game again, shelling them and indiscriminately bombing their cities, and killing their people.

BLITZER: Your good friend Republican Senator Chuck Hagel of Nebraska, a member of the Foreign Relations Committee and the Intelligence Committee, yesterday said, this is simply unacceptable.

Listen to what he said.

(BEGIN VIDEO CLIP)

SEN. CHUCK HAGEL (R), NEBRASKA: The sickening slaughter on both sides, Mr. President, must end, and it must end now. President Bush must call for an immediate cease-fire. This madness must stop.

(END VIDEO CLIP)

BLITZER: President Bush is not calling for an immediate cease- fire. Neither are the Israelis.

What do you think? Is Senator Hagel right or wrong?

BIDEN: Well, I think he's -- this madness should stop. And the way it stops is to get an international force agreeing to go in there and stop it.

But, look, if we stop it, if you just say, look, Israel, back off now, pull back on the other side of your border, this is just going to be repeated again in a day, or two, or a week, or three.

And, so, the answer here is for the international community to step up to the ball, led by the United States of America, to do what it promised to do over a year ago, when the Syrians left. We promised to bring in the Lebanese army along that border. And we promised to disarm Hezbollah.

In the meantime, nobody can convince me that Israel likes sending their troops into Lebanon. Everybody forgets, they voluntarily left Lebanon. They left Lebanon. They said, we don't want any part of it.

And look what has happened to them.

BLITZER: So, what do you want President Bush and Secretary of State Condoleezza Rice to be doing right now, anything differently than they're doing?

BIDEN: Well, yes.

I would suggest a couple things. First of all, I think, from the very beginning, they would have said -- they should have put the onus on Hezbollah, by saying, we want a cease-fire immediately, with the moving in of a stabilization force.

I doubt whether Hezbollah would have agreed to a stabilization force moving in. We would have put the onus where it belongs, on the bad guys, the very bad guys, Hezbollah.

The second point I would make is, you have got to get Syria in this game or totally out of the game. I would be putting overwhelming pressure, through all the rest of the Arab Sunni states with money and oil that support Syria, to say, cease and desist, or get cut off. Either become part of the solution, or you are part of the problem.

And the third thing that I would be doing is, I would be putting as much of our effort as we possibly could to bring about a stabilization force go in. And I think they are trying that part.

BLITZER: Should...

BIDEN: But I...

BLITZER: ... U.S. troops be involved in that stabilization force?

BIDEN: No. No. No, I don't think they should, for two reasons.

One, we would not be viewed as credible by the Lebanese in the region as we should be. And, two, because of this administration's policy, our -- all of our options are pretty well run the string, in terms of use of our forces in the Middle East.

Look at the situation that exists in Iraq now. It's near out of control in Baghdad. And you have no administration political plan how to deal with the two things that have to be dealt with in Iraq, one, get a political settlement by giving the Sunnis a piece of the oil revenue guaranteed to them if they stay part of this government.

And, two, disarm, get the Mahdi militia, Sadr's militia, out of the police force, so you have a legitimate force. That's what we should be doing there. But we're -- but, because we're not, we're just -- this -- they have squandered so many of our resources. (END VIDEOTAPE)

BLITZER: Senator Joe Biden speaking with me just a little while ago. And up ahead tonight in THE SITUATION ROOM, we'll get Syria's reaction to the latest developments, the breaking news unfolding in the Middle East crisis. Plus, some significant new developments and new questions about the fallout from Mel Gibson's remarks about Jews. He's reaching out to them tonight in a surprising new statement. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Will Syria be drawn into the Middle East war? Yesterday I interviewed Israel's ambassador to the United Nations. Tonight, we hear from Imad Moustapha, Syria's ambassador to the United States.

(BEGIN VIDEOTAPE)

BLITZER: Thanks very much for coming in.

Yesterday, the president of Syria, Bashar al-Assad, told the Syrian military to raise their military readiness to a new level. How likely is it that Syria will get involved in this war between Israel and Hezbollah?

IMAD MOUSTAPHA, SYRIAN AMB. TO U.S.: Well, you see, this is a very serious situation. Israel is not only escalating, but also expanding its military operations in Lebanon. They are very close to our borders right now, and Syria would normally have to be on a very high level of alertness and readiness.

And, of course, this is what Syria has done. And today, the news we are hearing is the Israelis are trying to infiltrate the Baalbeck area. And the closer they come to the Syrian borders, the more -- the possibility is that a total war might erupt.

BLITZER: Is -- this is, the Baalbeck area, that is a hotbed, supposedly, of Hezbollah activity. And as you know, and as our viewers know, Syria is closely aligned with Hezbollah.

Do you sense that the Syrian military is ready to take action to help Hezbollah because the Israelis are trying to deal it a crushing blow?

MOUSTAPHA: Well, right now, the situation is not as bad as it is presented to the American audience through the media channels. Actually, Israel is caught in a "catch-22" situation.

On the one hand, Israel only wanted at the beginning -- only wanted to bombard and shell Lebanon. And, of course, they only ended up killing civilians and destroying the infrastructure of Lebanon.

Then they said, what we really need to do is for our ground troops to engage with Hezbollah. However, Hezbollah is very successful in guerrilla tactics, and they can inflict heavy casualties on the Israelis.

So Israel doesn't really know what to do. Now -- now...

BLITZER: But in the past couple of days -- in the past couple of days, the Hezbollah attacks, the rocket attacks into northern Israel, have gone down from 100 to 150 a day to only a handful. Yesterday three or four, and less than a dozen today. It looks like their military capability is being eroded.

MOUSTAPHA: Please do remember, Hassan Nasrallah, the leader of Hezbollah, has said this at the very early stages of this war, what we really want is to have the opportunity to engage on the ground with Israeli soldiers and the Israeli troops so we can inflict heavy damages on them. This is what's happened in the past two days.

BLITZER: So you're saying that they will welcome this military ground offensive in Lebanon right now?

MOUSTAPHA: Exactly. This is what has happened in the past two days.

Hezbollah cannot match the Israeli air force capabilities and their power to bombard Lebanon. But once their troops are there, then Hezbollah can engage the Israeli troops in a fierce battle. And, you know, even the United States, the world's most powerful nation on earth, look at this situation in Iraq. And this is exactly what will happen in Lebanon.

BLITZER: But does Syria support what the United States and the Europeans are trying to achieve right now, an international stabilization force to go into south Lebanon and patrol that area to make sure Hezbollah is not rearmed and that rockets no longer endanger northern Israel?

MOUSTAPHA: Syria supports two things. On the short term, we support what the United Nations and most of the European nations are trying to do, an immediate cease-fire so that the Lebanese civilians can be spared. This is on the short term. And on the long term, we fully support a comprehensive solution to the whole Middle East problem.

BLITZER: Including a U.N.-backed force?

MOUSTAPHA: We want a comprehensive solution. We want the occupation to end. We want to live in peace with Israel and with everybody else. Enough is enough. The occupation should stop.

BLITZER: Imad Moustapha, Syria's ambassador here in Washington. Thanks for coming in again.

MOUSTAPHA: You're welcome.

(END VIDEOTAPE)

BLITZER: Our Internet team is monitoring all the latest images and personal stories coming out of the Middle East crisis. Now CNN has another important tool to bring you those on-the-ground reports. Abbi Tatton standing by with details -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, this video from Lebanon is just into CNN. It was taken with a cell phone. It is from an Israeli strike on July 22nd of television towers in Fatka. That's north of Beirut in Lebanon. It was taken by a 19-year-old Antoine Maalouf. He tells me that he was in his home when the strike happened. It was on a hill just opposite his house. He rushed to the window with his cell phone and recorded these images. It's the television towers that are usually used by the Lebanese Broadcast Corporation.

Antoine then sent these images directly to CNN using a new tool that has just launched today. It's called IReport. This lets you submit your work online and lets you report for CNN. We've made it easy for you to submit your images and videos that are already pouring in. We're going to be constantly checking this, Wolf, and bringing you the best -- Wolf.

BLITZER: An excellent new tool, Abbi. Thank you very much.

And still coming up, dancing on his grave before he's dead. Miami's Cuban American community celebrating Fidel Castro's demise. Jeanne Moos standing by with the story. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Moments ago, Cuba's state TV read a statement. It says it came from President Fidel Castro himself. Castro reportedly says his health is stable after undergoing surgery for intestinal bleeding. But in Miami, there were already cheers and dancing going on in the streets.

Here is CNN's Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Fidel shouldn't expect a get well soon card from these folks.

UNIDENTIFIED MALE: We're just hoping the son of a (EXPLETIVE DELETED) is dead.

MOOS: It may look like a cross between a World Cup championship celebration and a Super Bowl victory parade, but these anti-Castro Miami residents were, metaphorically speaking, dancing on Fidel's yet- to-be-occupied grave.

At times, it looked like a dance competition. One guy seemed prepared to return to Cuba on an inflatable boat lift. T-shirt twirling was practically an Olympic sport at this celebration in Miami's Little Havana. They rocked SUVs, and they banged pots, and banged pots and banged pots. This guy banged a pot with his hands and held the Cuban flag with his teeth.

A reporter for one of the Miami stations had to contend with shell blowing, not to mention overexcited interviewees grabbing the mic. Even the dogs were anti-Castro in this parade. After awhile, traffic cops like this one just shrugged and gave up. Celebrants took over the street. Searchlights from a chopper played on the crowd as if it were a movie premiere.

UNIDENTIFIED FEMALE: What is going through my mind? Cuba libre. That's what is going through my mind.

MOOS: A gut response to whatever is wrong with Castro's gut.

UNIDENTIFIED MALE: Castro has reportedly undergone surgery for intestinal problems.

UNIDENTIFIED MALE: My problem is that I really wouldn't want him to die, not fast -- a very, slow painful death.

MOOS: The prognosis was more hopeful on quieter streets of the real Havana. Remember when Castro tripped and fell almost two years ago. He managed to recover from a fractured arm and broken knee.

UNIDENTIFIED FEMALE (through translator): Look that happened with the leg. With one bleeding ulcer, he'll be back in no time. Fidel is going to be around a long time.

MOOS: Don't tell that to this Cuban exile.

UNIDENTIFIED FEMALE: I'm so happy that he's dead because I think he's dead.

MOOS: Instead of lighting candles, they lit everything from cigars to fireworks. When it comes to this Fidel, these are infidels.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

BLITZER: Let's get more from Jack Cafferty -- Jack.

JACK CAFFERTY, CNN ANCHOR: The Bush administration wants to bring democracy to Cuba if Fidel Castro dies. The U.S. plans to have assistance there within weeks to support a transitional government if we're asked. That's according to a new government report.

The question is, should the United States get involved in trying to bring democracy to Cuba?

Ben writes in Washington, "Of course we should. If America stands by and does nothing, then others like Hugo Chavez and other South American fascists will. Doing nothing would be mean waiting 50 years only to see anti-Americanism, tyranny and oppression traded for another, more vile form of the same thing."

Carol in Indiana: "The Bush administration screws up every foreign policy matter they touch. The Cuban people are probably very nice and deserving. Please ask the administration to leave them alone. We don't need any more enemies in this world, and we can't afford any more debt." Larry in Stone Mountain, Georgia: "The best way to bring democracy to Cuba is to open trade and tourism now. Why continue to perpetuate a 50-year-old failed policy? Once trade is established, the communist regime will crumble just like it did in Eastern Europe."

Ed writes in Rhode Island, "Why not? The new democracy in Iraq is up and running isn't it? Why stop now?"

Marcel in Miami: "I live in Miami about 200 miles from Cuba. If Venezuela gets control down there, that would mean that Iran has a buddy within range of a possibly nuke. Sounds to me like if the U.S. is not proactive in creating a democratic state in Cuba, we could be looking at another Bay of Pigs."

And Dave in Ontario says, "Based on America's current efforts at spreading democracy, I have to think Osama bin Laden would be delighted. Just give the project a catchy name like Batista Version 2.0 or Gitmo for Dummies."

You can look for more of these online, if you didn't see your e- mail here. Go to CNN.com/CaffertyFile where we post some additional e-mails each hour -- Wolf.

BLITZER: Jack, thank you very much.

And still ahead tonight, Mel Gibson's apology. Is it enough to save his career? Stay with us.

(COMMERCIAL BREAK)

BLITZER: New pictures and a new apology from Mel Gibson. CNN's Chris Lawrence is joining us from L.A. -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Wolf, the head of the Jewish Anti-Defamation League says he's willing to forgive Mel Gibson. The question is, will Hollywood executives still want to do business with him?

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): Mel Gibson released another apology Tuesday, for the first time speaking specifically to the Jewish community, quote, "I know there will be many in that community who will want nothing to do with me and that would be understandable. But I pray that door is not forever closed." He asked forgiveness, but the fallout is deep.

After drinking at a Malibu bar with tourists last week, Gibson was pulled over for speeding on the Pacific Coast Highway. He was arrested on suspicion of drunk driving, and afterwards went on a rant against Jewish people, allegedly saying quote, "F'ing Jews. The Jews are responsible for all the wars in the world."

MICHAEL SPEIER, MANAGING EDITOR, "VARIETY": Let's assume that he really believes this and there are some Jewish executives that are sitting across from him, absolutely, they might have second thoughts about wanting to do business.

LAWRENCE: "Spiderman" producer Laura Ziskin is Jewish. She called Gibson's comments, quote "appalling and sad." And producer Arnon Milchan was quoted in the "L.A. Times" saying, quote, "To make all your money from Jews and say you hate Jews is shocking."

But some say Gibson's "Passion of the Christ" film built up a lot of goodwill in the Christian community. And even President Bush's spokesman addressed Gibson's apology.

TONY SNOW, WHITE HOUSE PRESS SECRETARY: The president believes in the forgiveness of sins for all who seek forgiveness.

LAWRENCE: Gibson's statement makes his position clear. Quote, "Please know from my heart that I am not an anti-Semite, I am not a bigot."

(END VIDEOTAPE)

LAWRENCE: Now Disney is releasing Gibson's next film, and the head of its film studio is Jewish. He says willing to forgive Mel Gibson, but ABC recently canceled a mini-series about the Holocaust that it was developing with the actor's company although ABC didn't specifically say it was because of what Gibson said -- Wolf.

BLITZER: Chris Lawrence in Los Angeles, thanks very much.

Tomorrow here in THE SITUATION ROOM, Israel's vice premier, Shimon Peres. Until then, thanks very much for joining us.

Let's go to Paula Zahn. She's in New York -- Paula.

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