Return to Transcripts main page

The Situation Room

Granddaughter of Former Lebanese President Speaks Out on Bloodshed; Mark Regev Discusses Conflict in Middle East; Lebanon Pledging To Send Thousands of Troops South

Aired August 07, 2006 - 16:00   ET

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

WOLF BLITZER, CNN ANCHOR: Thanks very much Ali, and to our viewers you are in THE SITUATION ROOM, where new pictures and information are arriving all the time. Standing by, CNN reporters across the United States and around the world to bring you today's top stories.
Happening now, breaking news here in the Middle East, Lebanon pledging to send thousands of troops south near the Israeli border but there are strings attached. It's 11:00 p.m. in Beirut, where Israel is pounding new Hezbollah targets and Israeli leaders are threatening worse to come if diplomacy fails.

High emotions and drama in the scramble to stop the fighting. It's 3:00 p.m. in Texas where President Bush and Secretary of State Rice promoted a draft U.N. Security Council resolution, but changes may be in the works after a strong appeal by Arab leaders.

Plus a new test of the U.S. mission in Iraq. It's 4:00 p.m. in Connecticut where Senator Joe Lieberman is a day away from facing Democratic primary voters. We will tell you where his support stands right now and what it may mean for other candidates in November. I'm Wolf Blitzer in Jerusalem, you are in THE SITUATION ROOM.

First the breaking news from Lebanon, a late night decision by the government to deploy 15,000 Lebanese troops to southern Lebanon as soon as Israeli troops start withdrawing from that combat zone. The Lebanese army calling up reservists today in anticipation of the move. But tonight Israel is showing its commitment to keep hammering Hezbollah targets in Lebanon until the militia group stops its rocket attacks. An Israeli air strike hit a crowded area in south Beirut, once again, at least five people were killed, 24 others wounded.

Israelis police say Hezbollah fired about 140 rockets in to northern Israel today. Fifteen Israelis were killed in rocket attacks yesterday, the highest single-day Israeli death toll since the conflict began.

Lebanon's prime minister choked back tears today describing attacks on his homeland to Arab League delegates in Beirut. The Arab League is sending a high-level delegation to the United Nations to press for changes in a Security Council draft resolution that does not call for an immediate cease-fire.

Meanwhile in Texas today President Bush and Secretary of State Condoleezza Rice are standing behind that U.N. draft resolution as the right basis for bringing peace to Lebanon. Our reporters are standing by across the region and across the United States. Suzanne Malvo is with the president in Crawford, Texas. Matthew Chance is in northern Israel. First though, let's go to Beirut, our bureau chief Brent Sadler standing by with breaking news on this latest Lebanese cabinet decision to deploy Lebanese forces to southern Lebanon. Brent what happened?

BRENT SADLER, CNN BEIRUT BUREAU CHIEF: Wolf, this breaking news out of the cabinet comes from an emergency session. It followed the break-up of the Arab prime ministers meeting here, who have giving sympathy and support to the Lebanese position that they want to see major changes that would suit Lebanon and therefore, they say, possibly end the war, changes that could be made in New York at the Security Council. Now, Lebanon is saying it is prepared to send 15,000 Lebanese army troops to the south to move into positions, providing Israel agrees to withdraw its forces from Lebanon. Forces that have been building up a security zone inside Lebanon along that Israeli, Lebanese border.

Reservists on the Lebanese side are being called up in preparation in case this offer flies. But there are other strings attached to it. Lebanon also wants prisoners back from Israel in exchange for Israel's two servicemen captured on July 12th. It is an interesting development. It's an important development and it's one that is going to carry the diplomatic initiative much further, may slow things down even, but certainly a very interesting development at this diplomatic timing. Wolf?

BLITZER: And there was a dramatic, very poignant moment when the prime minister of Lebanon earlier today, Fouad Siniora nearly broke down speaking to ministers from the Arab world. Set the scene for us Brent. Tell our viewers what happened.

SADLER: Well this is Fouad Siniora, the Lebanese prime minister, itemizing some of the damage that Lebanon has sustained. He was talking about the mounting death toll and he was appealing, not just for their sympathy, he was appealing for their direct help at this 11th hour in the diplomatic initiative to stop this war. For a moment he could barely speak. There were moments of stunned silence and at one stage, Siniora took off his glass and wiped tears that you could see rolling down his cheeks. These were remarkable scenes in front of Arab foreign ministers. Siniora really very emotional as he said that the nation is attempting to put an end to this war coming up with realistic ideas that can really make people think twice before moving to a diplomatic solution that in realistic terms won't end this war. That's why Siniora was so emotional with that impassioned plea. Wolf?

BLITZER: And Brent tell us about this latest Israeli air strike in Beirut. I take it a different part of the Lebanese Capitol, a largely Christian area. What do we know?

SADLER: There were two strikes against the southern suburbs today. One at first light and the second one at last light. I saw two large plumes of smoke rising over the southern suburbs. But afterwards, in the aftermath, when we saw rescue workers scrabbling to get the dead and those who survived the blast out of the rubble, we realized that this is not the area that we are familiar with, that's been attacked by war planes for the past almost two months. This was not traditionally Hezbollah security zone territory, as it's become to be known, inside those suburbs. This was a different area, targeted for the first time, two buildings hit and we understand from official sources, at least 10 Lebanese killed and more than 60 wounded as a result of that latest strike on the outskirts of the Lebanese capital. Wolf?

BLITZER: All right Brent, thank you very much. From Brent Sadler in Beirut let's head south to northern Israel. Matthew Chance is standing by with more on what the Israelis were up to today. Matthew?

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Thanks, Wolf. Well, there's been still fierce fighting across southern Lebanon as Israeli forces continue to sweep into areas of Hezbollah activity in that part of the south Lebanon. Although it's interesting to see that some of the areas that have previously been cleared, supposedly by the Israeli military, have now become centers of Hezbollah activity once again. I will give you an example. Bint Jbeil, a town where there's fierce fighting over the past several weeks, described as a Hezbollah strong hold, but even today, a week after Israel said it had control over that town, it seems there were clashes again with Hezbollah fighters. At least three Israeli soldiers dying in those clashes, one in a gun fight, two more when an anti-tank rocket was fired at their position.

And so it goes across south Lebanon. All these areas Israel has been operating in, it seems that Hezbollah has been managing to infiltrate them once again and conduct a guerrilla war against Israeli forces. That is the big concern if Israel is to expand its operations into the rest of Lebanon, that it will come up against this very tough, very resilient, very well-trained guerrilla force in Hezbollah, wolf.

BLITZER: Matthew, what kind of reaction are you getting from Israeli sources where you are, as far as all the dramatic diplomatic action that's unfolding today?

CHANCE: Well, there's been reaction already from the Israeli government about that proposal, that order by the Lebanese cabinet to send up the 15,000 Lebanese troops to the south of Lebanon. The Israeli government spokesman that we heard from earlier has said that all along, in principle, that's what they wanted to see in south Lebanon, the Lebanese army replace Hezbollah guerrillas on the Israeli border. The big question for Israel at the moment is whether that force will be robust enough to stop Hezbollah rearming and to reign in that militant group. They want to see a force on that border that will stop Hezbollah fighters infiltrating Israel and stop Hezbollah fighters from receiving weapons from Iran and Syria. Now, whether that's the Lebanese army, whether it's an international force or indeed whether it's the Israeli army is really something the Israeli politicians are saying they don't much care about at this point.

BLITZER: Matthew Chance in northern Israel for us, thank you. President Bush says today that everyone recognizes the violence in the Middle East must stop. He and the Secretary of State Condoleezza Rice insist a U.N. draft resolution is the way to reach a lasting peace. They spoke to reporters today in Crawford, Texas. Our White House correspondent Suzanne Malveaux is there. She's joining us now live with a complete wrap of what the president and secretary had to say. Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Wolf, it really was an absolutely rare picture to see President Bush in a suite and tie, holding this formal news conference while vacationing at his Crawford ranch. Really, this picture meant to kind of convey a sense of seriousness and urgency to resolving this Middle East conflict. We heard from President Bush, Secretary Rice by his side, outlining these two step process.

The first resolution calling for an end to the violence and the hostilities, not an official cease-fire, which of course allows Israel to continue launching attacks in self-defense and then this second resolution, of course it would come afterwards. That setting up the political conditions for a permanent, a sustainable cease-fire. At the same time, getting together a multinational force.

Now, already, Wolf, there have been a lot of people who have objected to this first draft resolution, saying, first, they want an immediate cease-fire. That is not included. And secondly, they want Israeli forces to withdraw from Lebanese territory as quickly as possible.

Now, I asked President Bush whether or not that was a point that was negotiable, and here's what he had to say.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Whatever happens in the U.N., we must not create a vacuum into which Hezbollah and its sponsors are able to move more weapons. The -- sometimes the world likes to take the easy route in order to solve a problem. Our view is it's time to address root causes of problems. And to create a vacuum, Suzanne, is unacceptable. It would mean that we haven't addressed the root cause.

(END VIDEO CLIP)

MALVEAUX: So far today, we've heard from Lebanese officials, from Hezbollah and from other key Arab allies throughout the world who are saying, essentially, that this is not acceptable; that this first draft resolution isn't good enough.

So we know that Secretary Rice is working the phones at the Crawford Ranch, as well as national security adviser, Stephen Hadley. Both of them putting out calls to their counterparts. But what is happening behind the scenes, very quietly, is that U.S. officials are trying to buy time here to convince the Lebanese, hang tight, hold on here; that this multinational force will come about as quickly as possible. But in the meantime, you've got to pull back and stop the violence -- Wolf.

BLITZER: I was struck at one point in that news conference, Suzanne, when the president confirmed that, yes, it's almost four weeks since this war between Israel and Hezbollah started. He hasn't, during this entire time, spoken directly with the prime minister of Israel. What's going on?

MALVEAUX: Well, certainly, the thinking behind that is they do not want to make it look like the U.S. administration, the White House, is essentially working together in concert with the Israelis, with the Israeli officials, in this military campaign, in whatever they do. While at the same time, they want to give Israel the kind of room it needs to maneuver to carry out these strikes. But they do not want it to look like these are two leaders who are working in concert.

We do know, however, that Secretary Rice has been on the phone with Olmert today, yesterday; that those conversations continue. But they are very, very sensitive about how all of this is perceived in the Middle East.

BLITZER: Suzanne Malveaux, reporting for us from Texas, thank you.

Jack Cafferty is off today.

Coming up, will Israel be persuaded to pull out of Southern Lebanon now that the Lebanese army is pledging to move in? I'll get the first reaction -- official reaction -- when I speak to a foreign ministry spokesman right here in Jerusalem.

Plus, a desperate situation in Tyre, Lebanon. Under attack and isolated. We'll get a first-hand look at the combat and the humanitarian crisis.

And Joe Lieberman's moment of truth. Will his Senate career be dashed by a political newcomer tomorrow? We'll have an update on that pivotal Democratic primary contest, and Iraq as an election year issue.

We're live from Jerusalem. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: I'm Wolf Blitzer, reporting tonight from Jerusalem. Lebanon now says it's willing to deploy 15,000 troops to its southern border if Israeli soldiers withdraw from the area. But what does Israel think about that?

And joining us here in Jerusalem is the spokesman for the Israeli Foreign Ministry, Mark Regev. Thanks for coming in.

MARK REGEV, SPOKESMAN, ISRAELI FOREIGN MINISTRY: My pleasure, Wolf.

BLITZER: Fifteen thousand Lebanese forces. The Lebanese government says it's ready to deploy those troops in South Lebanon, assuming you, the Israeli forces, get out. This is what you wanted, right?

REGEV: We've been calling for quite sometime now, for years now, for the Lebanese government to put its army in the south. You know, up until now, Wolf, when you went to the northern part of Israel and you looked north, you didn't see Lebanese army, you didn't see Lebanese flags, you saw Hezbollah flags and Hezbollah military formations.

So this, in principle, is something, of course, we embrace and we support. The proof of the pudding, though, is in the eating. And I'd want to know the rules of engagement. Is the Lebanese army now finally going to follow through on its commitments and start to disarm Hezbollah?

BLITZER: This was a unanimous decision of the Lebanese cabinet. And, as you know, there are two Hezbollah ministers in that cabinet. So presumably, they agreed to it. And, at least on the surface, it means that the Lebanese forces come in, backed up by an expanded, more robust UNIFIL, the temporary United Nations force there, and the Israeli forces pull out.

REGEV: It's difficult for me to believe, as an Israeli, that Hezbollah is going to voluntarily disarm. I mean, Hezbollah is a very extremist organization, a very radical agenda; supported, as you know, Wolf, by Iran and Syria. And if those Hezbollah members of the Lebanese government supported this, it makes me wonder if they're not being a bit disingenuous.

So this will come to the table, I'm sure, in New York in the next couple of days. The principle, of course, we accept, but I want to know and I repeat my point, what are the rules of engagement? Up until now, the Lebanese army has done nothing to stop Hezbollah terrorist activity. Are they going to start?

BLITZER: Let's move on and talk about some of the latest Israeli airstrikes. Today, in a predominantly Christian part of Beirut, what's going on? Because a lot of people around the world are shaking their heads. They're wondering what Israel is doing.

REGEV: No, there's logic behind our behavior. I understand that in that particular strike, there was a target of opportunity worthy of trying to hit. And I can't go into more details at this stage. I apologize.

BLITZER: Did you hit the target you were looking for? Was it a successful mission?

REGEV: No more details at this stage. I apologize.

BLITZER: Because you understand that you run the risk of not only alienating the Muslims -- certainly the Shia, Sunni; but the Christians, at least historically, they've been the most receptive in Lebanon to dealing with Israel.

REGEV: Well, I think most Lebanese do understand -- the Christians, the Sunnis, the majority of the Lebanese population understand that Israel has no hostile intention whatsoever towards Lebanon. And if it wasn't for Hezbollah orchestrating this crisis that we're currently in, that we'd have a peaceful relationship with Lebanon.

Ultimately, Israel -- we have no hostile intention whatsoever toward Lebanon. We don't want an inch of Lebanese territory. We don't want a gallon of their water. We'd like to live in peace with Lebanon, and I think most Lebanese know that.

BLITZER: Right now, if you listen to all the reports coming out of Lebanon, they don't know that, because the destruction of the infrastructure has been so severe, and the civilian casualties that have resulted as a result of the Israeli airstrikes have been so significant. You understand the anger that is felt in so much of Lebanon and the Arab world?

REGEV: But I think if you listen carefully to what people are saying in Lebanon, that anger is focused at Hezbollah that orchestrated this crisis. This Iranian proxy that took a quiet and stable border, that took a situation where people in Lebanon and people in Israel were looking forward to a prosperous, peaceful summit and they turned everything upside down.

And I think everyone understands in Lebanon that you have to take the guns away from this extremist group because this Iranian proxy, this militia, this armed organization that is the tool of the Iranians, and the most extreme elements in the region, as long as they are armed they will have the capacity to orchestrate this sort of violence that no one wants to see.

BLITZER: But just to get it on the record, the draft French- U.S./U.N. Security Council resolution, you welcome?

REGEV: We have not said anything public about the draft resolutions. They are only drafted at this stage. They are going to the council. When the council adopts a decision, we will have something to say.

BLITZER: And specifically, let me read to you what the Arab League ambassador to the United Nations says. He says "the presence of Israeli soldiers on the Lebanese soil means this is an army of occupation and therefore we are back to square one. To resolve this issue, the Israelis must withdraw behind the blue line." That's the line that exited before July 12th, when those two Israeli soldiers were kidnapped and brought into Lebanon. Under what circumstances will Israel completely withdraw from Lebanon?

REGEV: We are committed to their withdrawal. We don't want a single inch of Lebanese territory. And all we say is when we pull out, there can't be a vacuum. Because if there is a vacuum, Hezbollah will move into there and they'll redeploy and we'll be back to square one. That's not good for Israel, that's not good for Lebanon, that's not good for anyone. We have, as we pull out, we have to see the Lebanese army and those international forces that people are talking about moving in there, making sure there's not a vacuum for this extremist group Hezbollah to exploit. BLITZER: And very briefly, as we speak right now, we are just getting word that Israel and Venezuela are basically coming close to severing diplomatic relations because of what? What has happened that has forced you or has caused you to recall your ambassador from Venezuela?

REGEV: We have called him back for consultation and I think we are concerned about the Venezuelan government towards the Middle East. And Venezuela, which was always a very friendly country to Israel, has now suddenly adopted a very one-sided extreme position. They embrace the most radical element in the region, people like the Iranian president, Mr. Ahmadinejad, that calls just on Friday, he said Israel should be wiped off the map. You can't support that sort of extremism and expect that you'll be considered an honest broker or a friendly country.

BLITZER: So you're saying Hugo Chavez, the president of Venezuela is doing that?

REGEV: I think he says that himself.

BLITZER: So that's it, Israel-Venezuela, it's going to be a severed relationship.

REGEV: Well, we'll call back our ambassador consultations. We'll have to see what happens with those consultations.

BLITZER: Mark Regev, thanks for coming in.

REGEV: My pleasure.

(END VIDEOTAPE)

BLITZER: And still ahead, war and bloodshed in Lebanon. The granddaughter of a former Lebanese president shares her concerns that history is repeating itself.

And a new move for undo a legal defeat for ex-Congressman Tom DeLay. We're going to tell you what's happening right now. We are live in Jerusalem and you are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: We are just getting this in from the Reuters news agency, they're quoting sources in Lebanon as saying that the death toll in that Israeli air strike in south Beirut has now risen to 15 -- 15, quoting rescue workers on the scene. We previously reported 10, we're watching this story on this, a day when the Lebanese cabinet announces they are ready to deploy some 15,000 troops, south Lebanon, in order to get Israeli forces out. A very significant development potentially. We are watching all the news on the crisis here in the Middle East. Get right back to it, let's bring in Zain Verjee from Washington now for a closer look at other important stories making news -- Zain?

ZAIN VERJEE, CNN CORRESPONDENT: Wolf, oil prices have jumped to more than $2 today, to top $77 a barrel. That's nearing crude oil's record price of $78.40 a barrel that was set back on the 14th of July. Today's spike comes after BP Exploration Alaska announced it's shutting down the nation's largest oil field to fix a pipeline corrosion problem. Experts say prices at the pump could go up 10 cents a gallon. Oil prices are now about 26 percent higher than they were time last year.

The oil fields being shut down by BP is in Prudhoe Bay, Alaska. It accounts for about eight percent of U.S. oil production, or 400,000 barrels a day. BP says it will have to replace 73 percent of the pipelines, which could take weeks or even months. The energy department says it will provide oil from the nation's strategic petroleum reserve if refineries request it.

Landings almost back to normal at Los Angeles International Airport. an instrument landing system failed earlier today. That forced one of two runways for incoming flights to close. But air traffic controllers were able to reopen it by having airplanes approach LAX from the west over the Pacific Ocean, basically because visibility is just better that way. Wolf?

BLITZER: Zain, thank you very much.

I want to get to a unique and impassioned view of the fighting here in the Middle East. Tracy Chamoun is the granddaughter of a former Lebanese president, Camille Chamoun. Her family suffered through decades of bloodshed in Lebanon and now she says her one wish is for the killing to stop. Tracy Chamoun is with us in THE SITUATION ROOM. Tracy, thanks very much for coming in. A lot of us who have covered Lebanese politics, know Lebanese history over the years, know that you bring some unique perspective. Share with our viewers some of the history of your family and what brings you to this moment that you want to speak out right now?

TRACY CHAMOUN, GRANDDAUGHTER OF FORMER LEBANESE PRESIDENT: Well, my family was one of the founders of this very precious country, Lebanon. My grandfather, Camille Chamoun, was its second president and really considered one of the foremost statesman in the Middle East.

I have lived through all the years of war and fighting in Lebanon and the invasion of Israel and Syria, the occupying force of Syria. And recently when Syria was asked to leave after the terrible assassination of Prime Minister Hariri, we finally felt that it was an opportunity to rebuild our country. And now to have to confront this complete devastation and destruction again is heartbreaking for every Lebanese.

BLITZER: The president of Lebanon as you know, and many of our viewers know, Tracy, is always a Meronite Christian. So you come from a Christian family which, over the years has had no great love for Hezbollah is that right?

CHAMOUN: Well, we have fought our battles in the past, but I think that Lebanon has been traumatized by its civil war and we are very reluctant as a people to go back to civil war, which is why you'll find that the Lebanese government today is under such pressure to find a solution to this problem, without bring about the complete demise of country and dragging it back into civil war.

BLITZER: Let me read to you from this open letter that you have written, Tracy.

"Allowing an armed militia, such as Hezbollah, to jeopardize the stability of a nation has been beyond foolish. And the consequences are most certainly playing out as I write you. However, the wanton and deliberate destruction of a country and the killing of innocents, delivered with such relentlessness and disregard for Lebanon's hard- won peace, seem beyond all proportion."

What do you make of this latest proposal for the Lebanese government to do what presumably they were supposed to do over these past six years, to deploy Lebanese forces to south Lebanon, to disarm the Hezbollah militia? What do you make of this proposal now?

CHAMOUN: I think it's very timely, and it's probably the most important move that we can make at this stage. And we need all the support of the West and Arab nations to do this. We are not a very strong army, so, we need the help of the West and the Arab world.

And it was very encouraging today to hear President Bush's support four the legitimate government of Lebanon and the army of Lebanon to take such a role. You have to understand that Lebanon was under Syrian occupation for a very long time. So, Hezbollah was allowed to proliferate and to grow under that occupation. And that's how it became so powerful.

But now the situation has changed, and Hezbollah needs to resume its position in the political life of Hezbollah and to disarm.

BLITZER: In the past, when I have interviewed many Lebanese leaders and asked why the Lebanese army was not taking steps to disarm Hezbollah, the answer, almost always, was the same. There was fear it would spark another civil war in Lebanon.

In the '70s and '80s -- you lived through that period. You know what the Lebanese people went through. If the Lebanese army takes step now to make sure that Hezbollah does not rain rockets on northern Israel or tries to prevent the rearming of Hezbollah, do you fear another civil war?

CHAMOUN: I think we are in a very different place than we were all those years ago.

We had a huge influx of Palestinians in Lebanon. We still do have a Palestinian presence in the south that is armed, that is a concern, with the Lebanese army down there.

But I also think, in terms of the international situation, this is an ideal time to do this, because we have the whole world backing us. And we need to use this time to our advantage, and to move into -- a more democratic situation, and get rid of weapons, and stop killing each other. BLITZER: Well, let's hope that that process can begin.

Tracy Chamoun, thanks very much for coming in to THE SITUATION ROOM. Good luck to you. And good luck...

CHAMOUN: Good luck.

BLITZER: ... to all the Lebanese people.

CHAMOUN: Good luck to all...

BLITZER: Israeli airstrikes...

CHAMOUN: ... the Lebanese.

BLITZER: ... leave the Lebanese port city of Tyre virtually isolated. Could a major ground offensive there by Israel against Hezbollah militants be coming next?

And what's it like to be embedded with Israeli troops in southern Lebanon as they search out Hezbollah targets? CNN's John Roberts is going to tell us about his eye-opening experiences. That's coming up in our 7:00 p.m. Eastern hour, right here in THE SITUATION ROOM.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. I'm Wolf Blitzer, reporting tonight from Jerusalem.

The port city of Tyre is now virtually cut off from the rest of Lebanon. Israeli warplanes have bombed the main roads in Tyre. And that has left aid workers with no safe way in or out.

CNN's Karl Penhaul now has the latest from Tyre -- Karl.

(BEGIN VIDEOTAPE)

KARL PENHAUL, CNN CORRESPONDENT: Wolf, Israeli warplanes and artillery guns have now been bombarding an area just south of Tyre for about 36 hours. Warplanes, in the course of the day, have struck a series of apartment buildings inside the city itself.

And, as night started to fall, artillery shells began falling right on Tyre's southern outskirts. Humanitarian aid organizations and city officials believe this is the prelude to an Israeli ground attack on the city itself.

(voice over): Smoke rises, as Israeli warplanes and artillery guns pound suspected Hezbollah positions south of Tyre. Airplane gun camera video released by the Israeli military shows explosions hitting targets. But that's not enough to stop Hezbollah firing more Katyusha rockets off to Israel.

Humanitarian aid workers say, they fear a two-day Israeli bombardment six miles, or 10 kilometers, south of Tyre may be the prelude to a ground attack on the port city.

(on camera): A Lebanese military intelligence officer has told me that Israeli ground troops did reach the outskirts of a Lebanese village on high ground just south of here, but he says they were repelled by Hezbollah fighters.

(voice over): And, to the north, bridges along the highway to Beirut have been bombed, destroying the only route in for humanitarian supplies.

ROLAND HUGUENIN-BENJAMIN, SPOKESMAN, INTERNATIONAL COMMITTEE OF THE RED CROSS: The roads from Tyre to Saidar (ph) has been damaged by bombing last night. So, Tyre is beginning to look like a city under siege.

PENHAUL: No way out either for aid workers to help the thousands of civilians thought to be stranded in outlying villages.

HUGUENIN: And now, for two or three days, we are just getting red lights on our security clearances. We aren't able to move out of Tyre.

PENHAUL: In the Old Quarter, the Doctors Without Borders aid group is preparing in case there is an all-out attack on central Tyre.

"What we fear over the next few days is that Tyre is a high-stake target, and this could be the theater of a larger military operation," he says.

Ladeck (ph) and his team are rushing to refit this operating theater in Bashur (ph) Hospital. It has not been used for the last year.

He says a potential Israeli assault could split Tyre in two, cutting off this hospital in the west of the city from three others in the east.

"We're preparing for the worst, in the event the fighting spreads into downtown Tyre, so we can tend to the wounded from street battles," he says.

With the bridge on the approach to Tyre blown up, Doctors Without Borders volunteers had no choice but to wade into the Litani River Monday. They say they desperately need these boxes of medical supplies for their clinic.

As they stepped up the humanitarian effort, Israel was ratcheting up the war effort. Planes flattened six apartment blocks in the north of Tyre with bombs and missiles, leaving smoking ruins.

Israeli commandos stormed these buildings before dawn Saturday, killing a handful of Hezbollah commanders. By, late Monday, shells were exploding on the city outskirts, but no sign yet of Israeli ground troops at Tyre's gate.

PENHAUL (on camera): City officials have said that an extended artillery strike on downtown Tyre or an Israeli ground assault would be a nightmare scenario. They estimate that 20,000 civilians are still trapped in the city -- Wolf.

(END VIDEOTAPE)

BLITZER: Karl Penhaul, thank you very much.

And coming up, we will have more live coverage from here in the Middle East. Plus, the politics of the other Mideast war, namely, in Iraq -- will it be Senator Joe Lieberman's downfall? We will find out where he stands, on the eve of his critical Democratic primary.

And we will also catch up with Senator Hillary Clinton's reelection campaign. Is she looking better in 2006 than she may be looking in 2008?

We are live in Jerusalem, and you are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: We will get back to the crisis in the Middle East shortly.

But, on the eve of his do-or-die primary race, Senator Joe Lieberman's campaign finally has something to feel good about. A new poll shows the Connecticut Democrat and former vice presidential nominee isn't as far behind his challenger as he was last week.

Our Mary Snow is Connecticut -- is in Connecticut -- Mary.

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, if not for Iraq, many say there probably wouldn't even be a primary. But now, from the White House to Democrats and Republicans across the country, this race is being so closely watched, it's seen as a political thermometer to really kind of test just how far those who are opposed to the war will go.

(BEGIN VIDEOTAPE)

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: We are now down to the crunch.

SNOW (voice-over): He leaned on union supporters, appealed to white-collar workers.

LIEBERMAN: We need your help. Want to keep working for you.

SNOW: With his political future on the line, Senator Joseph Lieberman chose his last major speech to focus on Iraq, telling voters he gets their message.

LIEBERMAN: I feel a special responsibility, in some sense, a heavy, personal responsibility, because I have supported the war, to do everything I can to -- to see that it ends as quickly and successfully as possible. NED LAMONT (D), CONNECTICUT SENATORIAL CANDIDATE: Great to see you, sir.

SNOW: But challenger Ned Lamont tapped into anger over the war and challenged Lieberman's support of the Bush administration. This businessman and novice politician forced Lieberman's first Democratic challenge in his 18-year Senate career.

LAMONT: I think, when it comes to our priorities in this country, too often, he has sided with the Bush administration, and not put forward a constructive alternative.

SNOW: The latest poll shows Lamont with a six-point lead, considered a statistical dead heat. Connecticut voters see their state as a litmus test, of sorts, that could reverberate through the country if Lamont wins the primary.

WAI CHAN, CONNECTICUT VOTER: It's going to demonstrate that the United States people really want an exit plan, really want to get out of Iraq now. And we are willing to sacrifice some very senior senators, in order to get that done.

SNOW: Political observers say, short term, a Lieberman loss may actually help Democrats.

STUART ROTHENBERG, "THE ROTHENBERG POLITICAL REPORT": It certainly confirms what we believe, that the Democrats are energized, excited and angry, and that that could mean -- could well mean that they will turn out in big numbers in November to give Democrats big gains for the U.S. House and the U.S. Senate. The -- the problem for Democrats comes not in 2006. It would come in 2008.

(END VIDEOTAPE)

SNOW: And the question is, how will a potential Lamont victory affect Democrats who may be White House hopefuls, such as Senator Hillary Clinton, Senator John Kerry, and former Senator John Edwards, who all voted for the war in 2002? -- Wolf.

BLITZER: All excellent questions. We will soon find out. Thanks very much, Mary, for that.

Many see tomorrow's Democratic primary in Connecticut as a test of the power of the blogs. Liberals in the online community have rallied behind challenger Ned Lamont. But are they helping or hurting right now?

Our Internet reporter, Jacki Schechner, has more -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, we want to take a closer look at how we got here. Liberal bloggers have been anti- Lieberman for some time, and have been pushing Ned Lamont online, in both cash and in conversation.

As for that cash, you can see it, ActBlue.com, which is a Democratic clearinghouse for individual donations. A total of almost $300,000 has been raised so far.

Now, we also have MoveOn.org, the big liberal political action committee that says they have not only endorsed Lamont officially, but they have also raised an additional quarter of a million dollars for his campaign.

As for on-the-ground action, liberal bloggers, local bloggers in Connecticut built a float for the Fourth of July parade -- it's an anti-Lieberman float -- showing him almost kissing President Bush.

And we have also got Markos Moulitsas right here, who runs the big liberal blog DailyKos.com, appearing in a campaign ad for Ned Lamont, right there.

Now, we also have the opportunity of blogs to possibly hurt Lamont's campaign. We have a liberal blogger, Jane Hamsher, who posted a graphic online of Lieberman in blackface that the Lieberman campaign called a disgusting and hurtful image. Lamont had to distance himself somewhat from that.

But, as for all the online messaging, the Lamont director of Internet communication e-mails today, in a statement, saying that it doesn't really matter now. What matters, Wolf, is the vote.

BLITZER: That's right. That's what's going to happen tomorrow.

Thanks very much, Jacki Schechner and Mary Snow, part of the best political team on television -- CNN, America's campaign headquarters.

Another incumbent in trouble is on our "Political Radar" today -- in Georgia, a new poll shows Congresswoman Cynthia McKinney trailing Democratic challenger Hank Johnson by 13 points. Their Democratic primary runoff is tomorrow. The Insider Advantage survey shows Johnson above the 50 percent support level. The controversial McKinney has a less-than-impressive lead among her base, African- American voters.

By contrast, Senator Hillary Clinton continues to hold big leads over her potential Republican rivals this fall. But a new Siena College survey suggests, Clinton may not fare as well among New York state voters in 2008, if she runs against another big-name New Yorker. The survey shows New York's former Republican Mayor Rudy Giuliani leading Senator Clinton by six points among New York voters in a hypothetical presidential matchup.

In Ohio today, embattled Republican Congressman Bob Ney abandoned his bid for reelection and announced he will retire at the end of this term. Ney is under federal investigation for his dealings with convicted lobbyist Jack Abramoff. He has not been charged with any crime. Ney made no specific mention of the probe, but he said he was stepping down because he could no longer put his family through what he calls this ordeal.

And, in Texas, the state Republican Party today filed an emergency application with the U.S. Supreme Court. It's an effort to remove former Congressman Tom DeLay's name from the November ballot. An appeals court ruled last week that DeLay's name must stay on the ballot, even though he ended his reelection bid and quit Congress. The application is designed to prevent any further action until the Texas GOP can file additional appeals.

And up next: Is there any new hope for a cease-fire, now that Lebanon is pledging to send thousands of its own troops to the border with Israel, if Israel gets out? I will ask the former defense Secretary and our world affairs analyst William Cohen.

And President Bush, does he know anything more about Fidel Castro's health? The headline of the situation in Cuba, that's coming up.

From Jerusalem, you are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Lebanon is trying today to grease the wheels of a Middle East cease-fire by pledging to send thousands of its troops to the combat zone in southern Lebanon. That's if and when Israeli troops withdraw.

We are joined now by the former Defense Secretary and CNN world affairs analyst William Cohen. He's the chairman and CEO of The Cohen Group in Washington.

What do you make of this Lebanese proposal, a unanimous decision, supposedly, coming in from the Lebanese cabinet?

WILLIAM COHEN, CNN WORLD AFFAIRS ANALYST: Well, I think it's a very positive development, because, most recently, the Lebanese government has said that they -- the proposal before the U.N. was unfair and that it was un -- imbalanced, that the Israelis would still be -- quote -- "an occupying force" on their territory, and, therefore, they couldn't support it.

I think this is an effort on the part of the Lebanese cabinet and government to say that: We are prepared to send thousands of our soldiers there, backed, I assume, by the U.N. -- UNIFIL, which is currently there, would have to be beefed up -- and, also, a pledge coming from the United Nations that they intend to move forward and try to get a -- a military force, along the lines of NATO or NATO countries, to put a force on the southern border, to protect the Israelis against any attack coming from Hezbollah.

So, I think it's a very positive thing that should be welcomed by -- by the Israelis and certainly by the administration.

BLITZER: Well, what happens to Hezbollah? They have still, by all accounts, a very, very robust military force in south Lebanon, despite nearly a month of Israeli strikes against Hezbollah. What happens to those Hezbollah troops? Do you think it's realistic to assume that, between an expanded, shall we say, UNIFIL and Lebanese army, they are going to be able to get the job done?

COHEN: Well, this brings us back to the United Nations.

I think, once again, you have to go to the United Nations to say that, if the U.N. is taking the position that this war must stop, and -- and stop immediately, then, they have to be prepared to back it up by going to the Syrians and to the Iranians, and saying: You have been undermining the disarmament of Hezbollah for the past several years. It has got to stop. And we intend action against you, diplomat -- diplomatic or economic, to make sure that you do stop.

That would have to be a signal to Hezbollah to stop where they are. Hezbollah has made its point. Israel has made its point. Israel is not going to tolerate being attacked, as they have been. Hezbollah has said: We can withstand your attack to date.

So, both have proved a point. Both are in a position now to reach an agreement. Hezbollah may become a more powerful political force to achieve their objectives politically, which they have tried to do by this kind of attack, which will prove unsuccessful.

So, I think there's an opportunity here for both the Israelis and Hezbollah to claim a partial victory, as -- as such, but to move Hezbollah into a political force, and not a military insurgent or terrorist organization. If they continue the types of attacks that they are continuing today, then, obviously, the international community has to come down very hard on those countries, Iran and Syria in particular, for supporting them.

BLITZER: But, you know, Hezbollah, now is a -- has two members in the cabinet, in the Lebanese government, two ministers. Is it realistic to assume that maybe Hezbollah, this militia, could be brought into the Lebanese army?

COHEN: Well, I am not sure about bringing them into the army.

If they -- first, they have to disarm. This is what Resolution 1559 requires. Hezbollah must be disarmed. They then can then seek to become a political element in Lebanon, as they are. They have some positions now. They might be able to gain more.

But what has happened, politically, is that many of the people in Lebanon have now seen Hezbollah as being the -- the -- the group that has solidified support, political support, within the country and within the Arab world.

You have more and more people in all of the countries that have supporting us, Saudi Arabia, Jordan, Egypt, those leaders are no longer in a position to openly criticize Hezbollah. So, they have an opportunity to become a -- a political force. First, they must disarm.

And, then, the -- the politics will sort itself out. But that has to take place first. And I think that this is a positive step coming from the Lebanese government. It ought to be certainly welcomed by the Israelis. And the United Nations has to back it up with its support and with forces, authorized forces, coming from a country such as those who make up NATO, if not NATO itself. BLITZER: And we did hear earlier this hour from a spokesman from the Israeli Foreign Ministry here in Jerusalem, saying that Israel is ready to accept this Lebanese offer to -- to dispatch some 15,000 Lebanese army forces to the south, if, in fact, it leads to the disarming of Hezbollah.

Secretary Cohen, thanks, as usual, for coming in.

And still to come: more on a possible peacemaking deal from Lebanon, even as Israel launches new airstrikes on Beirut and other southern Lebanese cities -- we're going to have the very latest on the crisis that has engulfed the region now for nearly a month. We will have live reports from Beirut, from northern Israel.

And Israeli forces are not just fighting Hezbollah on the ground. Why they are also taking aim at unmanned drones in the sky over Israel, that's coming up in our next hour.

Live from Jerusalem, you are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Let's check in with Zain once again. She's in Washington with a closer look at some other stories making news.

Hi, Zain.

VERJEE: Wolf, President Bush says it's up to the Cuban people to bring democracy to the island nation.

He also told reporters today that he hopes Cuba will become democratic. Mr. Bush says that he doesn't know anything more about Cuban President Fidel Castro's health than what the Cuban government has reported. Cuba's vice president has said Castro is recovering from intestinal surgery and will return to work in a couple of weeks.

Martha Stewart is downsizing her role at her lifestyle media empire. That's under a settlement announced today by the U.S. Securities and Exchange Commission. It says, Stewart has agreed not to serve -- serve as a director of a public company for five years to settle civil insider-trading charging. She will also pay a $195,000 fine. Stewart completed a five-month prison term back in 2005 for lying to federal investigators about a stock sale.

Embattled Tour de France champion Floyd Landis is vowing to prove that he is innocent of doping allegations. He told CNN there may be multiple reasons why synthetic testosterone showed up in a urine sample taken during last month's race. He insists that he never took performance-enhancing substances, and suggests -- quote -- that "some other agenda" at the lab that did the test may be responsible.

We are going to have a lot more on Landis' interview with CNN's Chris Lawrence. That's just ahead in THE SITUATION ROOM -- Wolf.

BLITZER: Thank you, Zain. Let's get some more now on BP's choice to shut down one of its largest American oil fields in Alaska. The closure follows news that one of the corroded Alaskan pipelines is leaking. This isn't the first time this pipeline has had some serious problems.

Let's bring in our Internet reporter, Abbi Tatton, for more -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, BP shut down this facility Alaska's North Slope after discovering severe corrosion and a small leak in this pipeline.

This is a facility that usually pumps 400,000 barrels of crude oil a day. But this isn't the first instance, as you said, of corrosion at the pipeline.

These are pictures now from March of this year, when a leak at a different part of the field resulted in a leak of 200,000 gallons and a month-long cleanup effort that was coordinated by the Alaska Department of Environmental Conservation.

BP America chairman Bob Malone said, after this weekend's discovery, operations would only resume after it can be -- they can be operated safely and pose no threat to the environment -- Wolf.

BLITZER: Abbi, thank you.

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