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Hezbollah Rockets Strike Deep Into Israeli Territory; Iraqis Demonstrate in Support of Hezbollah; Hillary Clinton Demands Resignation of Donald Rumsfeld

Aired August 04, 2006 - 20:00   ET

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

CAROL COSTELLO, CNN ANCHOR: And thank you for joining us tonight. Paula has the night off.
Tonight's "Top Story": Hezbollah fires rockets deeper into Israel than ever before.

Our in-depth coverage starts with the very latest "War Bulletins."

More than 200 rockets hit Israel today, killing three civilians and sending others to emergency rooms. But tonight's big news is that several of those rockets came down near Hadera, the farthest south that any Hezbollah rockets have flown. It could be an attempt to make good on a threat by Hezbollah's leader to hit Tel Aviv, which be -- would be a major escalation of the conflict. Hadera is only 25 miles north of there.

Israel is stepping up attacks on what it suspects are hiding places for Hezbollah's rockets. At least two dozen people died when Israel hit a warehouse near the Syrian border. The Lebanese and Syrians say the warehouse only held fruit and vegetables, and the only people killed were farm workers.

Israel also knocked out the bridges along the last open highway between Beirut and Damascus.

Right now, we're bringing in live reports from Beirut and the Israeli-Lebanese border. We're also watching top stories in Baghdad and in Washington.

But, now, let's get right to the story in Israel. Hezbollah rockets hit closer than ever to Tel Aviv.

Matthew Chance joins me live from the Israel-Lebanese border to tell us more.

Hello, Matthew.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): The attack on Hadera was captured on a cell phone camera. Police say two or three rockets landed there. And though there were no casualties, the strike may be the most dangerous yet. It's the furthest any Hezbollah rocket has traveled into Israel, only 25 miles from the densely populated area around Israel's major city, Tel Aviv.

Across the country, more than 200 Hezbollah rockets struck, killing at least three people. The militia's ability to strike seems relentless.

From Israel, a ferocious artillery barrage of southern Lebanon -- officials say they will keep pounding Hezbollah positions to stop the rockets and end the threat from Hezbollah. But the battle is proving tougher than expected. As Israeli forces push back Hezbollah, there has been heavy fighting. The militia is well-armed and dug in.

The Israeli military has released pictures of troops with what it says are captured militia fighters. But the Israelis are taking casualties, too. In one incident, at least three soldiers were killed in an anti-tank missile attack. Israel has at least 10,000 troops in southern Lebanon, fighting at close quarters with Hezbollah guerrillas. Morale and expectations seem high.

"We will beat Hezbollah," says this soldier, "and we will get Nasrallah, too."

But the cost of this war is increasing for Israel. More than 70 soldiers and civilians have been killed. It's only a fraction of the number of Lebanese who have died, but it is still painful here, painful enough for demonstrators, for and against the war, to face off in the Israeli city of Haifa. The military says, it has reduced the number of Hezbollah rockets striking here, but the methods have proved divisive.

ORR HORREV, ANTI-WAR PROTESTER: We are here to protest against what we see as unjustified and disproportionate aggression against civilians and against our neighbors.

DAVID HEKSNER, PRO-WAR DEMONSTRATOR: This is a terrorist organization that is aiming to kill women and children. And I want to show my support for the IDF and for the Israeli army and -- and the government in their fight against the Hezbollah.

CHANCE: And, with Hezbollah now fulfilling its threats to strike deeper into Israel, majority Israeli opinion remains broadly in support of the war.

After more than three weeks of bitter fighting, there remains a grim determination to press on.

(END VIDEOTAPE)

CHANCE: And the Israeli military is indeed pressing on across southern Lebanon, determined to establish a buffer zone north of the Israeli border. Once they have that buffer zone, what they say they will do with it is hold on, until an international force is agreed upon, then deployed on the ground. Until then, Israeli troops will be in southern Lebanon, policing that border area -- back to you.

COSTELLO: Matthew, we hear the booms behind you. Have they been going on all night? CHANCE: It certainly has, Carol. There has been a -- a percussion of artillery barrages going in both directions. Of course, we have heard about the 200 or so rockets fired by Hezbollah across the border into northern Israel.

But, throughout that time as well, Israeli artillery batteries and tanks have been firing almost a shell every couple of minutes, more than that, at times, into southern Lebanon, in support of the thousands of troops that are currently in close-combat operations there.

COSTELLO: Matthew, I know you said morale was high amongst Israeli forces, but -- but, since those rockets from Hezbollah landed so close to Tel Aviv, are they more worried than ever?

CHANCE: Well, morale is high, but people in Israel are deeply concerned about what Hassan Nasrallah, the leader of Hezbollah, intends to do next.

He has certainly threatened to strike cities deeper and deeper into Israel. And it's believed by Israeli intelligence, and others, that he has missiles capable of hitting Tel Aviv with a massive payload. And, so, morale is high, but there's a deep sense of concern amongst Israelis that, unless Hezbollah is stopped soon, they could see big population centers, not just targeted, but hit with a very effective weapon, indeed -- Carol.

COSTELLO: Matthew Chance, in northern Israel tonight, thank you.

As for Israel, it launched more than 100 airstrikes in Lebanon today. The biggest struck the village of Qaa, near the Syrian border, and killed more than two dozen people. It's one of Israel's deadliest attacks in the war, so, let's go to Beirut now.

Michael Ware is there. And he joins me live.

Hello, Michael.

MICHAEL WARE, CNN CORRESPONDENT: Hello, Carol.

Tonight, so far, it has -- it has been quiet. However, people now hold their collective breaths, with Israeli jets overhead, waiting to see if there's a repeat of last night's heavy barrage. But, this morning, Lebanon awoke, reeling from the evening's devastating attacks.

(BEGIN VIDEOTAPE)

WARE (voice-over): Bodies lined side by side, bombed, burned, some beyond recognition, the aftermath of an airstrike, lifted away to waiting ambulances -- to the Lebanese, another massacre of innocence, more than 20 dead -- to the Israelis, a just strike on a Hezbollah weapons store in the small village of Qaa, these Syrians, said to be fruit-pickers, camouflage for an arsenal in the guerrillas' Bekaa Valley stronghold. This is the face of war in Lebanon, ghostlike Hezbollah fighters, Israelis claims of civilians used as human shields and hospitals as supply bases, a population under siege.

The full fury of the Israeli air campaign has resumed and continues. Of its 120 airstrikes across the country today, a quarter hit in Beirut within less than half a square-mile, a concentration of firepower not seen since the war's first days.

(on camera): This is a result of the intense Israeli bombardment of the southern district of Uzai. It seems to fit an emerging pattern of the air campaign, targeting routes in and out of Lebanon, from the roads and bridges to the north leading to Syria, to this humble fishing fleet.

(voice-over): Beyond those boats, the last main road, the artery, once seen as safe, leading out of the country, its back now broken, four key bridges obliterated, leaving Lebanon isolated, strangled, no escape or help.

MARK SCHNELLBAECHER, CATHOLIC RELIEF SERVICES: This is a huge setback. One of the major supply routes, for both commercial shipments for the supermarkets, for example, but also for relief assistance, was that highway.

WARE: Fuel tankers critical to keeping hospitals functioning, cars running, lights on, still shut out by Israel's naval blockade.

Israel says it is stopping Syria from rearming Lebanon. If the strategy to also to bring this country to its knees, it's working. But, still, Hezbollah keeps fighting, sending more than 200 rockets south into Israel today.

So, on the 24th day of this conflict, Lebanese officials say the human toll is now 675 dead, a ghastly count by anyone's measure.

(END VIDEOTAPE)

WARE: And no one wants that count to rise. But with the fierce combat under way in the south and more than 10,000 Israeli troops driving north, few hold out much hope -- Carol.

COSTELLO: So, Michael, the Israelis are -- are bombing roads and bridges. That's got to make the people of Lebanon feel even more isolated.

WARE: Oh, absolutely. There's a great sense that people are being cut off from the rest of the world. Their only lifeline out, the main road to the north, to Syria, has been cut with the latest round of airstrikes.

That leaves them with very little recourse, even for much-needed fuel. The ships are still out there, waiting to come in. It's a desperate situation. And the people of Lebanon are beginning to harden their hearts -- Carol.

COSTELLO: Michael Ware, live in Beirut tonight, thanks.

Earlier tonight, I spoke with Dr. Mohamad Chatah, senior adviser to Lebanon's prime minister. Here's what he had to say.

(BEGIN VIDEOTAPE)

COSTELLO: You -- you know, I guess my first question would be, we're 24 days into the fighting. Hezbollah has fired more rockets into Israel, the farthest they have ever fired, Hadera, 25 miles from Tel Aviv. What does this say about the strength of Hezbollah to you?

DR. MOHAMAD CHATAH, SENIOR ADVISER TO LEBANESE PRIME MINISTER: Well, it may say something about the strength of Hezbollah, but it also says something about this war.

This is not a war. It's bombs being lobbed at civilians. This morning, four of our main bridges were bombed. And -- and that pretty much finishes all bridges in Lebanon. This is a war about damaging civilian facilities, civilian infrastructure, killing people, maiming people. And it ought to stop.

COSTELLO: The Pentagon said, earlier today, that it would be willing to help the Lebanese military. What kind of help would you want?

CHATAH: We need help from anyone who can help the Lebanese government.

We have an army that is capable of doing a lot. But it also needs the support of the international community to give confidence to all parties that this is a serious plan to bring peace to the south of Lebanon. Our army also needs technical support. And -- and, first and foremost, it needs the empowerment. It -- it -- it needs the support of the Lebanese people -- and it does have that -- and also needs the confidence of the international community to begin protecting all Lebanese, and to be the only -- the only armed group in the country.

COSTELLO: The idea of this international peacekeeping force, there was a poll taken. Fifty-one percent of Americans said they would like to see U.S. troops involved in that international peacekeeping force. Would that be something that Lebanon would embrace, the Lebanese people, the Lebanese government?

CHATAH: No. I don't think that's on the table. Neither Lebanon, nor the United States want to see American troops in Lebanon. That's not needed, and that's not going to happen.

The Lebanese army can be assisted by -- by many countries who are willing to do that. And we are talking to a number of countries that will be able to support the Lebanese armed forces, be the central authority in keeping the peace and protecting the Lebanese people.

COSTELLO: So, who would make up that international peacekeeping force? And would it work? CHATAH: This force will be meaningful, only after a solution out of this war is agreed by the parties. Once you have an agreement to a cease-fire and a lasting solution, the international support, the international force, will come to bolster our own military.

And that's the only way it can help. We have seen international forces come in many different countries, including our own, and end up being part of the problem, and not part of the solution. This is something we don't want.

COSTELLO: Dr. Chatah, thank you so much for joining us. I appreciate it.

(END VIDEOTAPE)

COSTELLO: Coming up: other top stories we're following tonight, including the disturbing effects of the Mideast crisis right here at home.

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): The unrelenting violence in the Middle East could be a lot closer than you think -- how the war is heightening fear and suspicion between American Arabs and Jews.

And, if you think Mel Gibson's out-of-control outburst is no laughing matter, just wait until you hear what late-night comics are saying -- all that and much more just ahead.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

COSTELLO: Another "Top Story" we're following tonight, the effects of the Mideast crisis here in the United States -- coming up, the growing fear that Jewish gathering places, like one in Seattle, will become targets of revenge attacks.

And, tonight, Israel is facing more international criticism for airstrikes against bridges in and out of Beirut. Israel says it's trying to stop Syria from sending weapons to Hezbollah.

John Vause has that part of our "Top Story" coverage.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): This truck, according to Israel, is crossing from Syria into Lebanon to resupply Hezbollah. When it's hit by an airstrike, the huge explosion which follows is proof, according to Israeli officials, that it's carrying a cargo of munitions.

Israeli intelligence believes, since the conflict began more than three weeks ago, Syria has been actively smuggling weapons across the border, an allegation which Damascus denies. BRIGADIER GENERAL YOSSI KUPERWASSER, ISRAELI INTELLIGENCE: Because, from the Syrian point of view, Hezbollah is an indivisible part of their military.

VAUSE: At least seven of the longer-range missiles have so far landed in open fields in northern Israel.

MICKY ROSENFELD, ISRAELI POLICE SPOKESPERSON: Yes, in fact, the Syrian rocket, 302 rocket is the exact number of it. And the rocket itself had approximately 100 kilos of a warhead.

VAUSE: Up to five times the payload of a smaller Katyusha.

Israel says its air campaign has destroyed many of the launchers for long-range missiles. And, right now, Syria is urgently trying to resupply Hezbollah fighters.

KUPERWASSER: And they don't have launchers produced by themselves, Hezbollah. So, they have to bring in launchers from Syria.

VAUSE: To stop that, earlier this week, Israel bombed the major road between Lebanon and Syria in the south. And, Friday, four main bridges to the north were hit.

But some Mideast experts question the effectiveness of Israel's airstrikes.

ROBERT SPRINGBORG, MIDDLE EAST INSTITUTE: After all, it's the dry season. Most of these bridges are for use in -- in winter rain, when the rivers are -- are flowing much more fully. So, an ability to interdict from the air a flow of weaponry from Syria into Lebanon is probably beyond the capacities of the Israeli air force.

VAUSE: A major concern to Israel, anti-tank missiles, which have conflicted heavy casualties -- Israeli intelligence believes Hezbollah has been armed with the latest made by Russia, once again, they say, smuggled in through Syria.

KUPERWASSER: The Russians said, oh, forget it. You can't prove that it really came from us.

See, so, they fell from heaven.

VAUSE (on camera): Israeli intelligence believes, the main lesson from this war, regardless of diplomacy, more preventive strikes will most likely be need to stop Hezbollah rebuilding its arsenal.

John Vause, CNN, Jerusalem.

(END VIDEOTAPE)

COSTELLO: And, for 24 days now, the world has been watching Israel's war with Hezbollah. But, for the U.S. military, there are some important lessons being learned, on how to fight a war against Syria and Iran. Here's why from Pentagon correspondent Barbara Starr.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): U.S. war planners and intelligence analysts are watching closely to see exactly how Hezbollah is fighting Israel -- and for good reason. As one U.S. Army general told CNN, "You're watching how we would have to fight Iran."

The Pentagon needs to know if its forces are ready to fight Hezbollah-type tactics if it came to war with Iran or Syria.

DONALD RUMSFELD, U.S. SECRETARY OF DEFENSE: Our people clearly are watching what's taking place. I think anyone whoever underestimated Hezbollah were few and far between.

STARR: Hezbollah has about 10,000 troops -- Israel, nearly 500,000. But analysts say, Hezbollah is using tactics and weapons to its advantage.

First, Hezbollah has Iranian- and Syrian-supplied fire power.

GENERAL JOHN ABIZAID, COMMANDER, U.S. CENTRAL COMMAND: Hezbollah fields greater and longer-range weapons than most regional armed forces.

STARR: Hezbollah rockets now have hit 50 miles inside Israel. If it was a U.S. base being targeted with the same type of weapons, the U.S. military would have to use precious manpower to defend it. Second, Hezbollah has forced Israel to fight on Hezbollah's home turf, and fight in civilian areas.

COLONEL THOMAS X. HAMMES (RET.), U.S. MARINE CORPS: They have learned how to draw Israeli forces in close, so that they take away most of the advantages the Israelis have and reduce it to a small-unit on small-unit fight in a built-up area.

STARR: And, third, Hezbollah has shown it can challenge Israel's airpower. Bombs from Israeli warplanes have killed Lebanese civilians and caused international embarrassment for Israel. Some military experts now doubt that Hezbollah can be defeated from the air.

HAMMES: They have underground paths between buildings. They have bunkers they can retreat to. They have set up the houses so they are not fighting from the outside part of the house, but more inside.

STARR: One former Israeli soldier says, Hezbollah guerrillas have received sophisticated training. Their ability to organize and fight should not be underestimated.

UNIDENTIFIED MALE: They're able to coordinate those activities, ambushes, frontal attacks on Israeli units, and combine that with artillery and mortar. And that's something that is very similar to any type of infantry unit that a military force would expect. STARR (on camera): Many of Hezbollah's tactics date all the way back to the Vietnam War. But experts say, this time, it is different. With Iran exercising its influence all the way into Lebanon, the key question for U.S. war planners is, where will Iran turn its attention next?

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: And the fighting between Hezbollah and Israel is sparking worldwide outrage, most directed at Israel and the United States.

Next, in our "Top Story" coverage: You may be surprised at where today's biggest pro-Hezbollah demonstration took place.

And could all that anger overseas spark attacks on Jewish targets here in the United States? It's another part our in-depth coverage.

(COMMERCIAL BREAK)

COSTELLO: The fighting in the Middle East is the "Top Story" across the Muslim world. Demonstrators took to the streets today to show support for Hezbollah and denounce the United States and Israel. U.S. and Israeli flags burned in the streets of Manila in the Philippines, in Jakarta, Indonesia, Istanbul, Turkey, and in Iran.

Demonstrators in Tehran also threw firebombs and rocks at the British Embassy. No one was hurt.

Our "Top Story" coverage moves to Iraq now, but not away from the conflict between Israel and Hezbollah. Thousands of people packed the streets in one Iraqi city today in a huge show of support for Hezbollah.

Harris Whitbeck is live in Baghdad.

Harris, tell us more.

HARRIS WHITBECK, CNN CORRESPONDENT: Carol, those were out on the streets of Sadr City today were passionate about expressing what they believe in, and passionate -- passionate about saying how far they're willing to go to defend it.

(BEGIN VIDEOTAPE)

WHITBECK (voice-over): Chanting that Hezbollah leader Nasrallah is waging his war against Israel in the name of religion, Shia protesters from all over Iraq converged on Sadr City, the bastion of Shia fundamentalism in the Iraqi capital.

They arrived in buses and private cars, and they numbered in the tens of thousands, accompanied by armed militiamen waving the yellow flag of Hezbollah. As Israeli and American flags were burned and effigies of George Bush and Tony Blair waved in the air, an imam prayed for Hezbollah fighters.

UNIDENTIFIED MALE (through translator): The victory will be for the Islamic resistance in Lebanon. Imam Ali, peace be upon him, will support him, like he did before, with the Mahdi Army in Najaf.

WHITBECK: That was a reference to the bloody fight between Shia militias and U.S. forces two years ago that led to the rise in prominence for radical Shia clergy Muqtada al-Sadr, who then emerged as one of the main leaders of the resistance to the U.S.-led invasion in Iraq. It was also a call to arms for Hezbollah supporters elsewhere in Iraq.

This protester, shrouded in white, signifying his willingness to die for his cause, said he was ready.

UNIDENTIFIED MALE (through translator): I will fight with Hezbollah and Hassan Nasrallah, and we will support him until we free Palestine, Lebanon and Iraq, God willing.

WHITBECK: Others demanded that Hezbollah strike Tel Aviv next.

Iraqi television said there were a million demonstrators. The Associated Press put the figure at hundreds of thousands, contradicting U.S. military officials in Baghdad, who say their analysis of photographs taken by a surveillance drone indicates there were only 14,000 there.

(END VIDEOTAPE)

WHITBECK: Regardless of the numbers, the protest was described as the largest one in support Hezbollah in the Middle East. It was a show of strength by Shia radicals, Shia radicals who say Hezbollah's fight is their own -- Carol.

COSTELLO: Well, I was just going to ask you about that, because you don't hear about Hezbollah within Iraq. So, was this really an outward show of support for Hezbollah? And do many of the -- do many Iraqis feel that way?

WHITBECK: Well, it most definitely was a -- a show of support for Hezbollah.

We saw that in many of the chants, many of the signs and waving of yellow -- of yellow Hezbollah flags out in that street. Is that view shared by all in Iraq? I would say not. But there were certainly a lot of people out there today who felt strong enough about this to risk their lives and go out into the streets of Sadr City to express that.

COSTELLO: Harris Whitbeck, live in Baghdad tonight, thanks.

The worldwide anger against Israel has already turned Jewish people here into the United States into targets. Next in our "Top Story" coverage: What's being done to prevent the violence that happened in Seattle from spreading to other cities?

Then, later, tonight's "Top Story" in politics: Senator Hillary Clinton is demanding the resignation of Defense Secretary Donald Rumsfeld. We will go in-depth to see what's really going on.

(COMMERCIAL BREAK)

COSTELLO: In this half hour, the top story in politics, there's a lot more than meets the eye behind senator Hillary Clinton's new attack on Defense Secretary Donald Rumsfeld.

Fidel Castro's health is the top story in Cuba and in Miami. We have tonight's latest word on his condition.

Plus a unique double perspective on Cuba's past and future from two families that fled the island nearly 50 years ago.

After more than three weeks of bloody fighting between Israel and Hezbollah, there are signs of anger and concern right here in the United States tonight. This week in Maryland, someone threw a molotov cocktail at Baltimore Hebrew University. No damage there, no one hurt. Also this week, we have heard that the FBI has stepped up monitoring of the large Muslim community in Michigan. And this time last Friday, police in Seattle were just beginning to sort out a shooting rampage at a Jewish center. One person was killed. Five others wounded. A Muslim American charged. All this has Jewish leaders in the United States taking a hard look at security.

Our justice correspondent Kelli Arena joins me now with more on this heightened concerned. Hello, Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Hi there, Carol. You know there is a lot of concern. And joint terrorism task forces across nation have been in touch with community leaders to be sure that everyone is taking the proper precaution, but there's only so much that you can do to protect facilities that are meant to welcome the public.

(BEGIN VIDEOTAPE)

ARENA (voice-over): Paul Goldenberg has been on the phone all week with frightened members of the Jewish community, concerned they will be targeted for an attack. Goldenberg's group works with law enforcement and Jewish groups sharing intelligence and security advice.

PAUL GOLDENBERG, SECURITY COMMUNITY NETWORK: The best advice we can give to institutions, to Jewish institutions and faith-based institutions is to educate your staff, understand your vulnerabilities, understand your risks.

ARENA: Even before the shooting rampage at a Jewish center in Seattle last week, the FBI warned Jewish leaders the fighting in the Middle East could spur violence back home. Security plans are being reviewed across the country with the FBI and local law enforcement briefing Jewish leaders. This meeting took place in Cincinnati. ROBERT FEINSTEIN, CINCINNATI JEWISH FEDERATION: We want every single institution, synagogue, temple, office, to have some type of security plan in place that is unique to their facility.

ARENA: Authorities got no warning before the Seattle attack and acknowledged there probably won't be any prior intelligence if another lone individual chooses to act out. Mike Mershon heads the FBI's New York Field office.

MARK MERSHON, FBI ASST. DIR.: It isn't what we know. It isn't individuals we have focus on that frankly is our concern. It's what we may not know.

ARENA: As a result, agents are reaching out to Arab-American leaders for help.

MERSHON: Part of our message is, you may recognize or see those dangerous types, where we may not. Or you certainly may see them much sooner than we would.

ARENA: But the approach has backfired. Arab-Americans feel as though they are constantly under suspicion.

RAMI NUSEIR, ARAB-AMERICAN ACTIVIST: The burden of proof is shifting on the community. We have to be the proactive community. Or proactive member to go to the law enforcement and convince law enforcement there's nothing on our end.

ARENA: Especially under scrutiny, Hezbollah sympathizers. FBI officials say they're carefully monitoring individuals in the United States with known connections to the group. The State Department classifies Hezbollah as a terrorist organization but many Arab- Americans disagree.

UNIDENTIFIED MALE: Certainly a lot of people look at Hezbollah as a social service agency. That they provide a lot of help to the Lebanese people. And that where the sympathy come from.

ARENA: So despite all the efforts to increase security, both Arab and Jewish-Americans are feeling targeted. And that only intensifies the potential for violence.

(END VIDEOTAPE)

ARENA: Now Carol, officials repeatedly told me that there isn't any intelligence, that anyone's plan anything further attacks but as I mentioned in my report, there may not be intelligence if someone chooses to act on their own.

COSTELLO: Question for you, you said the FBI has reached out to the Arab-American community but it sort of backfired on them. So what do they do now?

ARENA: The officials that I spoke to say that the key is to keep the dialogue open. Many agents say that face-to-face contact is very important. FBI field officers are holding regular meetings with Arab- American leaders and I have heard, some of those have been pretty contentious, but at least there's been an honest exchange. One other thing is to continually educate agents about how to properly engage the community. Not to ask inappropriate questions, so on.

COSTELLO: Kelli Arena, thanks.

ARENA: You're welcome.

COSTELLO: Tonight's top story in politics will interest both Democrats and Republicans. Next, we go in-depth to see what's really behind Senator Hillary Clinton's, behind her call for Defense Secretary Donald Rumsfeld's resignation. There's a lot more to it than meets than eye.

And later a very personal take on a top international story. Could two families that fled Fidel Castro's Cuba nearly 50 years ago be going home again soon?

(COMMERCIAL BREAK)

COSTELLO: Our top story coverage turns to the war in Iraq and the next presidential election. That tense face-off between Defense Secretary Rumsfeld and Senator Hillary Clinton in yesterday's Iraqi war hearings, did you see it? Well, it has Washington absolutely buzzing tonight. The New York Democrat seems to be packing a more aggressive punch. Here's congressional correspondent Dana Bash.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: The political equivalent of boxing, a polite greeting, then off to competing corners.

SEN. HILLARY CLINTON (D), NEW YORK: Under your leadership, there have been numerous errors in judgment that have led us to where we are in Iraq and Afghanistan.

DONALD RUMSFELD, DEFENSE SECRETARY: My goodness.

BASH: After this public scolding, Senator Hillary Clinton called on Defense Secretary Donald Rumsfeld to resign, something several other leading Democrats did long ago.

So why now? Clinton told supporters in this letter, Secretary Rumsfeld's answers were "inadequate" and the military needs new leadership.

But some Democratic strategists see another motivation, an effort to shed her image as a war supporter. Anti-war activists are making Iraq a party litmus test. Senator Joe Lieberman could lose a primary next week for staunchly backing the Iraq mission. Clinton voted for the war in 2002 and has repeatedly stood by it.

CLINTON: I don't regret giving the president authority.

BASH: She also disagrees with Democrats who want troops home now and got booed for that.

CLINTON: I do not agree that that is in the best interest of our troops or our country.

TOM MATTZIE, MOVEON.ORG: There was broad frustration with Senator Clinton for not standing up and being more visible in her criticisms of the Bush administration Iraq policy.

BASH: Iraq aside, the senator seems an ideal fit for her party's nomination in 2008. Consider this chart prepared by a top Republican pollster, who researched Mrs. Clinton's presidential potential. The blue traces how Democratic primary voters see themselves ideologically. The red, how they view Hillary Clinton. A near perfect match, making her hard to beat, especially if she calms her anti-war critics.

So while she's firmly against a deadline for a full withdrawal, Clinton enthusiastically joined Democratic calls to bring some troops home this year.

CLINTON: I simply do not believe it is a strategy or a solution for the president to continue declaring an open-ended and unconditional commitment.

BASH: Clinton aides say her call for Rumsfeld to go is not an abrupt change in her Iraq position, because she's been criticizing the war's management for some time. But this showdown deliberately raised the volume. Liberals noticed, and hope it sticks.

MATTZIE: People are going to be watching closely as we move past the 2006 elections to make sure that her criticism isn't just a short- term thing.

(END VIDEOTAPE)

BASH: And that is one thing that is a given when it comes to Hillary Clinton, Carol, people are always watching what she says very closely.

COSTELLO: You've got that right. OK, so let's say this new staunch anti-war policy of hers, you know, gets her through the Democratic primary, but once she gets to the national election, might it backfire?

BASH: Now, that's a great question. In looking at Senator Clinton, and frankly some other Democrats here in Congress who are considered perhaps more hawkish when it comes to the Democratic Party and they have nuanced positions, it is very hard for them to explain, especially if they're up against people who have pretty black and white positions, whether in the Democratic primary perhaps, if she or others have positions where, you know, the liberals say, look, bottom line is, we think this war is bad and we want the troops to come home, or as you said, maybe in the general, where it certainly would be the opposite point of view. Maybe a Republican might say, look, we need to stay the course. That's something that we heard in 2004. Remember, Carol, John Kerry, he had this very same problem. He had a nuanced and evolving position in 2004. And in the end, it hurt him. Democrats, by and large, no matter where they stand, though, they say things are really different in Iraq and that could really change the political landscape when it comes to the debate over this.

COSTELLO: Interesting. So she, like, lobbed the first loud volley. How loud will it get?

BASH: You know, that's a good question. When you talk to people who are close to Hillary Clinton, they insist, as I mentioned in the piece, that she has been talking about the fact that she's very upset with the way the Bush administration has prosecuted this war, pretty close from the beginning. She sits on the Armed Services Committee. Obviously that's what sparked this. And she's in hearings where she questions people. Very often, it's just that -- it's not necessarily something that gets a lot of headlines. Her aides understand that things that she's said perhaps have been overshadowed. That's probably not going to happen very often anymore.

COSTELLO: Dana Bash live from Washington tonight, thanks.

Still ahead, tonight's top story in entertainment. If you think Mel Gibson's legal troubles are no laughing matter, just wait until you hear what late-night comedians are saying.

But first, let's take a biz break. A rally fizzled, and the Dow suffered a 2-point loss, the Nasdaq down 7 points. The S&P down almost 1.

The economy produced fewer new jobs than expected in July for the fourth month in a row, and the Labor Department also reported an unexpected rise in unemployment.

Also, Delta Air Lines is now asking a bankruptcy court to terminate its pilots' pension plan. The company employs 6,000 pilots.

And here's our "Crude Awakenings." It's a look at gas prices across the country. The states with today's highest gas prices are in red. The lowest -- actually, they're in yellow. There you go. You saw Alaska. Anyway, the average today for unleaded regular, $3.03 per gallon. That's a three-cent increase in just one day. Another upward trend in gas prices.

Secretary of State Condoleezza Rice has a message for the people of Cuba tonight, but that's only part of our top story coverage. Coming up, the remarkable perspectives of two families that have been away for nearly half a century. And they now get to go home. Plus, the lighter side of our top story entertainment. Hear some of the best in the business have some fun at Mel Gibson's expense.

(COMMERCIAL BREAK)

COSTELLO: Our top story coverage continues now with new word about the condition of Cuban leader Fidel Castro. Reports quote Castro's health minister as saying Castro is recuperating from intestinal surgery and will return to his position as president of Cuba, but he didn't say when. Castro temporarily turned over power this week to his brother, but there's been very little specific information since about his health.

Just a couple of hours ago, Secretary of State Condoleezza Rice delivered a message of support to the Cuban people.

(BEGIN VIDEO CLIP)

RICE: It has long been the hope of the United States that a free, independent and democratic Cuba would be more than just a close neighbor. It would be a close friend. This is our goal now more than ever. And throughout this time of change, all of you must know that you have no greater friend than the United States of America.

(END VIDEO CLIP)

COSTELLO: Rice was speaking on the federally-funded radio and TV Marti, which broadcasts to Cuba -- when they can get through Cuban jamming, that is. The Cuban exile community here in the United States has been rejoicing over this week's news. But those exiles have mixed feelings about the possibility of going back to their homeland once Castro is really gone. Here's more from John Zarrella.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT (voice-over): From a cabinet shelf, Fernando Sanchez pulls out a dusty bottle of champagne. For Sanchez, no matter how it tastes, when he finally opens it, it will taste good.

FERNANDO SANCHEZ, CUBAN EXILE: If the old man with the beard passes away, we will certainly open it and enjoy it.

ZARRELLA: Since 1960, when they fled into exile, Sanchez and his wife Anuka have waited for Castro to go, have waited to see democracy return to their homeland, have waited to see their homeland again. But while their roots here in Cuba, their branches are in the U.S.

F. SANCHEZ: All my family's here, established.

ZARRELLA: Neither Fernando or his wife have any desire to live out their final years in Cuba.

F. SANCHEZ: I would go on the first plane to visit. I would never go to live.

ANUKA SANCHEZ, CUBAN EXILE: Because it's not the Cuba that I left and that I love. It's a completely different place. And to see the ruins of something that I love I don't know if I have the courage.

ZARRELLA: Those ruins are the reasons Salvador Lew, a Spanish language radio host, wants to go back for good. He believes that if a free Cuba emerges after Castro, that he has a duty, a responsibility to help. SALVADOR LEW, CUBAN EXILE: The buildings are deteriorated. Everything is falling apart. We have to give the Cubans there that are exactly human beings like the Cubans here in the United States, have to give them a bit of life and rebuild the houses.

ZARRELLA: For decades here in Miami, Domino Park was the place to come to hear stories of Cuba before Castro, to listen to the longings of aging men waiting to go home. But for many, as years passed, there became less reason to go back and more reason to stay. The Sanchezes have children and grandchildren all here and very little there.

Three ranches were taken by the Castro government along with homes in Havana and Verridero.

(on camera): And you lost all of that? Everything was taken from you.

F. SANCHEZ: Oh yes, completely. We only came out luckily with one suitcase in 1960.

ZARRELLA (voice-over): Less than a year later, he returned as part of a U.S.-backed invasion force, fighting to topple the Castro government. Part of the infamous Bay of Pigs invasion, the fight was short lived. Fernando's last memories of Cuba are from inside a prison. He was jailed for two years after his capture.

F. SANCHEZ: I lasted four days eating live crabs and we'd rip off the crab and drink what was inside.

ZARRELLA: Back at the radio station, Lew and his guests debate whether Castro has met his end. At the Sanchez residence, the bottle of champagne goes back on the shelf until there is confirmation that he has. John Zarrella, CNN, Miami.

(END VIDEOTAPE)

COSTELLO: And there's this, Fidel Castro's younger sister who's an exile in the United States, says her contacts in Cuba say Castro is out of intensive care and improving, but still very sick.

What's so funny about tonight's top story in Hollywood? Apparently quite a bit. Stay with us and hear what the biggest jokers around are saying about Mel Gibson.

(COMMERCIAL BREAK)

COSTELLO: Whether Mel Gibson's Hollywood career is dead or alive after all of the bad publicity of the past week really depends on his popularity. And tonight's top story in entertainment, how do Americans feel about Mel Gibson's roadside rant? Well, the latest CNN poll results might surprise you, but first entertainment correspondent Brooke Anderson shows us how Gibson is now the favorite target of late night zingers.

(BEGIN VIDEOTAPE) JAY LENO, LATE NIGHT HOST: It was so hot in Malibu, people were sweating like Mel Gibson running in to Steven Spielberg at the Ralph's market.

CONAN O'BRIEN, LATE NIGHT HOST: Today, Israel launched an attack on Mel Gibson's house.

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT (voice-over): TV's late-night funny men are slaying Mel Gibson with a lethal weapon of their own, humor.

LENO: He could face up to six months in prison. Well, life if he gets a Jewish judge.

ANDERSON: Gibson's first court date on his DUI charges isn't until the end of September but the actor/director sentence of relentless ribbing in the court of public opinion has already begun.

JOHN STEWART, THE DAILY SHOW: Mr. Gibson announced today that he will be entering rehab at the Betty Ford Center for his alcoholism and I believe the Henry Ford Center for Anti-Semitism.

BRUCE VILANCH, WRITER/ENTERTAINER: This is a guy who's world famous and cuts across so many areas and has been controversial in the past. And suddenly it's like it's all catching up to him. And so much of comedy is about a pompous ass slipping on a banana peel and looking like an idiot and that's what happens here. Somebody falls from a very great height and looks like a fool. And that's probably the single, funniest thing in the history of mankind when that happens.

O'BRIEN: Mel Gibson apologized to the Jewish community for anti- semitic remarks he made when he was drunk. Yes then Gibson apologized to Catholics for not being able to hold his liquor.

ANDERSON: Gibson's actions have even prompted more jokes about other stars and their public mistakes.

LENO: Here's the really sad part. Do you know who was in the car with him at the time, do you know? Britney Spears' baby. Oh god, that poor kid. Mel said he learned his lesson. The last time he tries to out drink Lindsay Lohan.

ANDERSON: The Mad Max actor has been the butt of jokes before. This now infamous 2004 South Park episode portrays the "Passion of the Christ" director as a raging religious lunatic.

UNIDENTIFIED MALE: I have to use that money to build my church.

ANDERSON: It is available on the popular website You Too, as is plenty of other Mel mockery, taking aim at Gibson's most recent controversy.

UNIDENTIFIED MALE: Are you a Jew? You know the Jews start all the wars, don't you? ANDERSON: Gibson spoofs have exploded all over the Internet. Date line Hollywood.com released their version of his mug shot. Taking liberties with Nick Nolte's 2002 close-up. Suburbanhomeboy.com took a musical approach to Gibson's gaff.

VILANCH: The Internet has made everything instant. So people can do their own talk shows on the Internet. They can go on to You Tube and they can create their own stand-up, their own tonight show.

ANDERSON: But some still believe that despite the ridicule --

LENO: Condoleezza Rice has been extremely busy this week, shuttling back and forth between Israel and Mel Gibson's house.

ANDERSON: In the end, Mel will come out looking good. Just like his mug shot.

LENO: Who shot this?

ANDERSON: Brooke Anderson, CNN, Hollywood.

(END VIDEOTAPE)

COSTELLO: You know it's going to blow over because here's what might be a surprise. In the latest CNN polled by Opinion Research Corporation, 52 percent of Americans say they do not think Mel Gibson is anti-semitic and 58 percent still call themselves fans.

Before we go, some new developments in tonight's top story, the crisis in the Middle East, senior State Department officials and diplomatic sources are telling CNN that the United States and France are close to reaching agreement on a United Nations resolution to stop the fighting.

A draft of that resolution may be presented to the U.N. Security Council this weekend, with a final vote coming early next week.

U.N. Secretary General Kofi Annan spoke by phone today with President Bush and the French President Jacques Chiraq. That's all for tonight. LARRY KING LIVE starts right now.

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