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Lou Dobbs Tonight

Justice Department Appealing Wiretapping Ruling; U.S. Military Says Number Of Roadside Bomb Attacks in Iraq Has Risen Sharply This Year; Democrats' Cynical New Campaign Ploy To Attract Middle Class Voters; Illegal Alien Trying to Avoid Deportation Remains In Methodist Church Seeking Sanctuary; D.A. In JonBenet Ramsey Investigation Warns Against Rush to Judgment; Border Security Advocates in Congress Promising Action in Case Of Two U.S. Border Patrol Agents

Aired August 17, 2006 - 18:00   ET

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

LOU DOBBS, CNN ANCHOR: Tonight, a federal judge strikes down a key part of the Bush administration's strategy to defeat radical Islamist terrorists. The judge says wire taps are unconstitutional. The judge has ordered an immediate halt to the program. We'll have complete coverage tonight.
And troubling new questions about the Bush administration's management of the war in Iraq. The number of insurgent attacks against our troops has doubled since the beginning of this year. Two more of our troops have been killed in combat. We'll have a special report tonight from the Pentagon.

ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate and opinion for Thursday, August 17. Live in New York, Lou Dobbs.

DOBBS: Good evening, everybody. A federal judge today ruled the Bush administration's warrantless wiretap program is unconstitutional. The judge ordered the National Security Agency to stop the eavesdropping program and stop it immediately. The Justice Department quickly appealed the judge's ruling. Attorney General Alberto Gonzales insists the program is lawful. And the attorney general said it has been effective in protecting the country from terrorism.

Kelli Arena tonight reports from Washington on the judge's ruling and why the judge says warrantless wiretaps are unconstitutional.

Elaine Quijano reports from the White House on the Bush administration's strong and rapid reaction and defense of the eavesdropping program.

Barbara Starr tonight reports from the Pentagon on new questions about the president's conduct of the war in Iraq as the number of insurgent attacks against our troops has escalated sharply.

We turn first to Kelli Arena -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Lou, this was a damaging blow for the Bush administration's anti-terror program. A federal judge ordered an immediate halt to the domestic spying operation carried out by the National Security Agency.

(BEGIN VIDEOTAPE)

ARENA (voice-over): Government officials point to the alleged plot to blow up jetliners over the Atlantic as a primary example of why the U.S. government sometimes needs to listen in on international communications without a warrant. But a federal judge in Detroit says the National Security Agency's controversial wiretapping program violates free speech and privacy rights.

ANTHONY ROMERO, ACLU EXECUTIVE DIRECTOR: We're enormously gratified by this historic ruling of the federal district court today. Clearly the judge agreed with our arguments, the president had overstepped his powers as the chief executive, that no one is above the law, not even the president.

ARENA: The NSA is monitoring phone calls and other communications between people in the U.S. and others overseas, when one of the parties is suspected of a terrorist link.

The American Civil Liberties Union filed a lawsuit on behalf of lawyers, academics and journalists like Jim Banford (ph) who say that some of the people he talk to could fit that description. They argue the possibility of the government eavesdropping interferes with doing their jobs.

Bush administration officials insist that the wiretapping program is well within the president's authority.

ALBERTO GONZALES, ATTORNEY GENERAL: It is a program that is reviewed periodically for its continued effectiveness. It is reviewed periodically to ensure that it remains lawful. It has been very important for the security of our country.

ARENA: In court, government lawyers have argued that to even talk about the program would mean revealing state secrets. And if the ruling is upheld, some government supporters say the impact would be breathtaking.

LEE CASEY, FORMER JUSTICE DEPARTMENT LAWYER: That would be an enormous limitation on the ability of the United States to conduct its foreign relations and to fight wars.

(END VIDEOTAPE)

ARENA (on camera): The Justice Department appealed the ruling. The wiretapping will continue until the judge decides what will happen as the case makes its way through the legal system, Lou.

DOBBS: Kelli, thank you very much. Kelli Arena from Washington.

The White House today strongly defended the government's warrantless wiretap program. President Bush has insistently and consistently said the program is an essential tool in the global war against radical Islamist terrorism and the program well within his presidential powers. Elaine Quijano reports from the White House -- Elaine. ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Lou, the White House is defending this program as legal and necessary, and officials say that the program itself is carefully administered and that it is regularly reviewed to make sure steps are taken in order to protect civil liberties.

Now, President Bush did not respond to a question about the judge's ruling today as he left the White House on his way to Camp David where he'll be spending the next few days. But in a statement, White House press secretary Tony Snow said quote, "We couldn't disagree more with this ruling, and the Justice Department will seek an immediate stay of the opinion and appeal."

Now, it is important to note that this ruling and the ensuing debate over this program come at a time, of course, when midterm elections in Congress are just around the corner. Some 80 days away. As we saw this week, the president, who visited the National Counterterrorism Center earlier this week on Tuesday and Republicans as well are really trying to display that their national security credentials are quite strong.

But Democrats are pouncing on today's ruling, trying to attack those credentials. Senate Democratic leader Harry Reid, in fact, saying this ruling is an example of how in his words, the Bush administration has jeopardized the country's efforts in the war on terror. Lou?

DOBBS: Elaine, thank you. Elaine Quijano reporting from the White House.

Joining me now to assess today's court ruling and the implications both political and legal, a former federal prosecutor, Jeffrey Toobin. Jeffrey, first, your reaction to this district court ruling?

JEFFREY TOOBIN, CNN LEGAL ANALYST: This one chapter in a long series of fights between the Bush administration and its adversaries on the question of civil liberties versus national security.

In court lately, the Bush administration has been losing more often than winning. Most dramatically in the Supreme Court. Earlier this year on the question of the Guantanamo prisoners. This is not as important. This is very likely to be appealed. It's one step in a long process, but it's another loss for the Bush administration.

DOBBS: Is it also likely to be overturned in your assessment?

TOOBIN: This one I think is much more likely to be overturned than some of the others. Because this deals with a core executive function, the conduct of foreign policy. The judge is a well known liberal judge from Detroit. If you read the opinion, she cites mostly other liberal judges' opinions. The same issue is before several other courts around the country. I think this one's going to be harder for the civil liberties union to win nationwide.

DOBBS: We'd like to get your opinion on one statement by the district court judge, Anna Diggs Taylor who you just referenced and if we could I'd like to put up this language.

"The president of the United States, a creature of the same Constitution which gave us these amendments, has undisputedly violated the Fourth in failing to procure judicial orders as required by FISA, and accordingly, has violated the First Amendment rights of these plaintiffs."

Now that statement is straightforward. It's as clear as one would ask a judge to be. Is it, however, accurate?

TOOBIN: And as scathing as the whole 43-page opinion is, the real core issue here is does the administration, is it totally barred by the Foreign Intelligence Surveillance Act, the law that says you have to get a warrant before you do any sort of surveillance? The Bush administration has said its executive powers extend beyond FISA. The Supreme Court is going to have to settle this. And they've got more justices to their liking there now.

DOBBS: And as we look on it, and I think it's interesting as you put a political context around these judicial proceedings, a liberal judge at the district court level and it seems that either politics abates somewhat, partisan politics, as you move up through the appellate structure, or they swing conservative, one or the other.

Is Congress also going to have a role here? Is it now the appropriate time for Congress to set forth law that will set parameters and boundaries over this president? Or is it going to be, as you suggest, ruled by the interpretation of the Constitution?

TOOBIN: Arlen Specter, the chairman of the Judiciary Committee is trying to get a bill that will be a compromise of all these positions. But as you know, we're coming up on an election, not much is getting through Congress these days especially on something as controversial as this.

DOBBS: And important. Jeffrey Toobin, thank you, as always.

In the war in Iraq, insurgents have killed two more of our troops in the past 24 hours. One soldier died of wounds he received in combat in al Anbar province. Another of our soldiers killed in a roadside bomb explosion south of Baghdad.

The U.S. military says the number of roadside bomb attacks in Iraq has risen sharply this year. Barbara Starr reports from the Pentagon.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): A new U.S. military intelligence report says if the sectarian violence isn't controlled, Iraq could plunge into civil war. Last month, 2,625 improvised explosive devices were planted across Iraq. The highest number of roadside bombs this year. Almost double the number seven months ago. On average, about half of all IEDs are found before they explode. But it is civilians paying the price. One hundred and ten Iraqis are killed in the war every day. The Pentagon says it's a grim statistic that has doubled in the last year.

By many measures, it is getting worse. Today one-third of all attacks target civilians and Iraqi security forces. In some areas of Baghdad and Anbar Province, it has been as high as 60 percent in recent weeks. No more talk of U.S. troops coming home.

GEN. GEORGE CASEY, COMMANDER, U.S. FORCES: I'm very much against set timetables because as we've seen just in the last six to eight weeks, conditions on the ground here change.

STARR: The U.S. believes security operations in Baghdad are helping, but there are ongoing worries about the long-term outlook.

TONY SNOW, WHITE HOUSE PRESS SECRETARY: That some guys are going to run and hide and try out something else.

STARR: And concern about Iraq's ability to fend for itself.

SNOW: The United States in and of itself cannot be chasing all over Iraq for each and every piece of insurrection.

STARR: And Lou, it is Iraqi civilians that are paying the price. According to the Iraqi Health Ministry, some 3500 Iraqis died last month alone in the violence. President Bush has met recently with some outside experts to talk with them about the situation, but by all accounts, there are no new ideas about what to do about Iraq. Lou?

DOBBS: And no new language. The Pentagon's term of art moving to death squads and militias, I noticed Tony Snow, the White House press secretary acknowledging the insurgency. Is the Pentagon clinging to "death squads" at this time?

STARR: Well, you know, they're using -- and I believe President Bush also now is using the phrase "death squads" quite a bit. What people say around here is that is a reflection of the sectarian violence which they say is now the number one cause of violence in Iraq as opposed to that other phrase insurgency, Baathists, Saddamists, all the words we'd heard for so long, Lou.

DOBBS: But not civil war. Barbara Starr, thank you very much. Reporting from the Pentagon.

Well the price paid high. Twenty-seven of our troops have been killed in Iraq this month. Two-thirds of them have been killed in al Anbar province west of Baghdad. Two-thousand six-hundred four of our troops have now been killed in Iraq since the beginning of this war more than three years ago.

Lebanese troops today took up positions in southern Lebanon as part of a peace deal to end the month-long conflict between Israel and Hezbollah. Lebanese soldiers and UN peacekeepers are deploying now in areas that have been controlled by Hezbollah for a quarter century. But Hezbollah s refusing to give up its weapons. And another possible setback to the peace deal, France now says it will send only 200 additional troops to join the existing UN force in southern Lebanon. And Germany has declared that it will not send any combat troops to southern Lebanon.

Israel says its troops already withdrawn from more than half of the positions they had taken up and have been holding in southern Lebanon. The Israeli army is expected to stay in a narrow buffer zone inside Lebanon until Lebanese and UN troops have completed their deployments to the area.

Still ahead here, Congress and corporate America escalating what is already an outright war on our middle class. They're putting the interests of illegal aliens before the rights of American workers and doing so apparently proudly. We'll have a special report for you.

And an illegal alien who has taken refuge inside a Chicago church continues to defy U.S. immigration officials and our laws. When will federal agents take action? We'll have a live report for you from Chicago.

We'll have the latest on the JonBenet Ramsey murder case. New details have emerged about the suspect who was arrested yesterday in Thailand. All of that, a great deal more straight ahead here.

(COMMERCIAL BREAK)

DOBBS: Tonight Congress and corporate America are proving once again they'll go to any length to attack and exploit the nation's middle class. Democrats are accusing Wal-Mart of hurting American workers while at the same time fighting for the rights and amnesty of illegal alien workers. And a U.S. hotel chain tonight, is being accused of an outrageous scheme to hire cheap foreign workers instead of American citizens.

Lisa Sylvester reports on the Democrats' cynical new campaign ploy to attract middle class voters. And Christine Romans reports on stunning new charges now leveled against a New Orleans hotel firm. We begin with Lisa Sylvester. Lisa?

LISA SYLVESTER, CNN CORRESPONDENT: Lou, Democrats are hoping to go after big business to win over voters, but is it a political stunt or are they really interested in helping middle class families?

(BEGIN VIDEOTAPE)

SYLVESTER (voice-over): Senator Joe Biden hopes to roll up new political supporters by beating up on big box giant Wal-Mart. Biden, a possible contender for the White House in 2008, had harsh words for the nation's largest retailer on a swing through Iowa.

SEN. JOE BIDEN, (D) DE: What they're basically saying to us is in order for Americans to be able to compete, they have to lower their standard of living. I mean, it's that basic, that simple. I'm not in on that ride. SYLVESTER: Senators Biden, Joseph Lieberman, John Kerry and Ted Kennedy have ripped large corporations for exporting good American jobs to overseas countries. But ironically these same political leaders are all ardent supporters of importing foreign workers through a guest worker amnesty bill. One notable exception in the Democratic camp, Senator Byron Dorgan, one of only four Democrats who voted against the Senate amnesty legislation.

SEN. BYRON DORGAN, (D) NORTH DAKOTA: Well, shipping American jobs overseas and importing cheap labor through the back door is just the reverse side of the same coin. I mean, you can't be concerned about the loss of American jobs being shipped overseas in search of $0.20 an hour labor and then not be concerned about bringing in cheap labor through the back door.

SYLVESTER: Immigration reform NumbersUSA argues that American workers are damaged more by importing foreign workers than exporting jobs.

ROY BECK, NUMBERSUSA: You export a job, the foreign workers who are taking those jobs are in other countries, therefore, they don't have to be subsidized by the American taxpayers. But when you import a worker to take a job, you've not only lost a job to an American worker but the taxpayers are subsidizing.

SYLVESTER: Importing jobs, importing foreign worker, critics like Senator Dorgan say it all leads to falling wages and the wholesale fleecing of the American worker.

(END VIDEOTAPE)

SYLVESTER: We called Senator Biden's office to get a comment from him but his office declined to talk about any discrepancy in his position.

Biden in a statement simply saying Wal-Mart's employees are the face of America. Hard workers across the country. And for the work they do, they should be paid a fair wage. Lou?

DOBBS: Nice job, Lisa. Thank you very much, Lisa Sylvester reporting from Washington.

Tonight, a New Orleans hotel firm is being accused of an outrageous attack on the working men and women of this country. A newly filed lawsuit says the Decatur Hotel group aggressively hired cheap foreign workers from Latin America instead of American workers in the aftermath of Hurricane Katrina. Christine Romans reports.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): Latin American guest workers are suing the owner/operator of these luxury New Orleans hotels. A federal lawsuit filed this week charges they were lured into the H2B guest worker program, then were unable to work off the cost of their visa fees, travel and lodging and were forbidden to get another job because their work visa doesn't allow. TRACIE WASHINGTON, WORKERS' ATTORNEY: It's slavery, it's peonage. It's whatever you want - it's a crazy system that we have. They can't quit their job, U.S. workers can't take their jobs. The only people who profit from this system are the big corporations.

ROMANS: Among the workers filing suit, Julia, mother of two from Bolivia, and Luis, father of three from the Dominican Republic. They claim that Decatur Hotels LLC used the government's H2B guest worker program to hire them as cheap labor.

Despite the fact that quote, "Local U.S. workers, mostly African Americans, had previously worked in this industry in New Orleans and were available to do so again."

The lawsuit alleges quote, "The defendants' goal in using foreign labor instead of seeking the services of U.S. workers was to drive down wages and working conditions."

Decatur Hotels and its owner, F. Patrick Quinn III would not respond on camera. A spokesperson said the company tried to attract workers locally and looked outside as last resort. In a statement t company said quote, "Management offered to meet with the small group of workers who were expressing concerns. This offer was declined."

Meanwhile, representatives of the workers cast the lawsuit in terms of race and civil rights.

SAKET SONI, N.O. WORKER JUSTICE: He and other profiteers are making use of the guest worker program to continue a long history of racial exploitation.

ROMANS: A press release about the lawsuit calls the workers quote, "corporate sharecroppers."

(END VIDEOTAPE)

ROMANS: Representatives for the workers say this guest worker program is a wedge between New Orleans' working poor and desperately poor foreign workers who will do anything to come here, playing right into the hands of employers.

In a statement, Decatur Hotels says it is distressed by the charges, Lou, but it declined to answer those charges on camera at this point.

DOBBS: There's so many questions to be answered. And one of them, of course, will be answered in this lawsuit. But the number of principally African Americans who live in New Orleans, hundreds of thousands who have been dispersed around the country, while New Orleans is trying to attract working men and women. It's a disconnect that no one has been able to explain fully yet.

ROMANS: And at the same time exploiting those workers who are coming into the country under the visa program.

DOBBS: A lose/lose proposition, I suppose it could be called.

ROMANS: Absolutely.

DOBBS: Thank you very much, Christine Romans.

Tonight, more complications for the Democrats. Senator Joe Lieberman is running as an independent after the Democratic primary went to his antiwar challenger Ned Lamont. Tonight, a poll of Connecticut's likely voters finds Lieberman beating Lamont by 12 points. Lieberman, 53 percent. Lamont at 41 percent. Republican Alan Schlesinger at four percent.

Today presidential hopeful John Edwards became the first nationally known Democrat to complain since the primary with Lamont. Here's Senator Edwards speaking live now in New Haven, Connecticut. So far Democrats have been gentle in their criticism of Lieberman's independent candidacy instead focusing their attacks on President Bush.

Just a few moments ago Senator Edwards said quote, "I voted for this war and I was wrong."

Coming up next here, the standoff continues in Chicago. An illegal alien holed up in a church for a third day. She's daring U.S. immigration officials to apprehend her. We'll have the latest for you in a live report.

Also, outrage rising on Capitol Hill over the report that we have been following each and every night on this broadcast. Two U.S. border patrolmen convicted. A drug smuggler given immunity. Congressional leaders are now promising action in the case of two U.S. Border Patrol agents facing up to 20 years in prison for trying to do their job, for trying to protect this country.

And the man suspected of killing JonBenet Ramsey is speaking out tonight. The district attorney in the case is warning of a rush to judgment. We'll be in Boulder, Colorado with a live report on the very latest for you. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Tonight, in Chicago, an illegal alien trying to avoid deportation to Mexico again remains in a Methodist Church seeking sanctuary. The case is becoming a flash point in the battle over illegal immigration. Elvira Arellano violated numerous American laws and has been deported before. U.S. immigration authorities say they will arrest her at a time of their choosing. Jonathan Freed is in Chicago tonight with the story. Jonathan?

JONATHAN FREED, CNN CORRESPONDENT: Lou, I'll set the scene for you. We are in day three of this where the woman is inside this church with her seven-year-old son claiming the ancient right of sanctuary trying to avoid deportation. Outside the building, depending on the time of day, you can have from a dozen to two dozen supporters. We were there midday today and the numbers were sort of in between there. The big question, though, outside up until now, we have not seen any immigration authorities. And the question is when might they show up? Now, I spoke to the people at ICE today, Lou. They say let me put in it context for you -- they said there are 590,000 immigration fugitives, as they call them, right now in the United States. I'll give that you number again, 590,000.

And they say that they're going after what they call the more dangerous criminal cases first. So I said, so does that mean that she might have to make herself a little bit comfortable inside that church if she intends to wait it out? And you kind of got a chuckle on the other end of the phone there.

Now, we spoke to the woman's lawyer as well. He denies -- he disputes the fact that they have classified her as a fugitive, saying that she told ICE where she is, and that she would not resist arrest. Lou, the lawyer also told me that they are looking at going to federal court to try to argue that deporting the mother would effectively be deporting the son who is an American citizen. Lou?

DOBBS: And the -- in other words, you're saying that Arellano is the one who is trying to create a confrontation here?

FREED: They're saying - I said, so, in this case we're looking at somebody who is being very vocal, who is drawing attention to herself, but that in your mind, you don't see her as a dangerous case that needs to be addressed immediately. And that's the -- you sort of listen to what they don't say. And that effectively is the conclusion that you draw.

DOBBS: Well, let's take a look at another thing that ICE has been saying and we've been reporting on this show for a very long time. Almost 600,000 fugitive illegal aliens in this country, and there are just about 3,000 ICE agents and only a fraction of those available to pursue those unknown illegal alien fugitives in this country.

Add to that anywhere between 12 million and 20 million illegal aliens living in this country and you can see why this country really is in a crisis when it comes to illegal immigration and border security. We will continue to follow this case, obviously, very carefully. Jonathan Freed, we thank you very much for that report from Chicago.

FREED: Thanks.

DOBBS: Time now for some of your thoughts. Kate in Massachusetts wrote in to say, "Help, Lou. A faithful viewer of your show and a loyal reader of 'The Nation', imagine my consternation this week to find you pitted against one another. On certain issues. Illegal immigration, outsourcing I'm in agreement with you.

On some issues, the restriction of American civil liberties under this administration in agreement with 'The Nation.' And on many issues, the incompetent prosecution of the war in Iraq, the danger of electronic voting, in agreement with you both. I must be, gasp, a well informed nonpartisan independent thinking American citizen."

And good for you because I hope that we can call make that claim. Independence in thinking, certainly.

And Susan in Utah. "Seems like Border Patrol agent is the most thankless job in America. Soon it might be a job Americans do not want. Does that mean illegals will do it?"

And Tim in Ohio, "Hi, Lou, I just wonder if the illegal who was given immunity for smuggling some 700 pounds of drugs, were smuggling 700 pounds of explosives, or worse, wouldn't we be giving those brave border patrol agents a medal? They are being screwed."

Send us your thoughts at LouDobbs.com. More of your thoughts are upcoming here in the broadcast.

Tonight, the district attorney in the JonBenet Ramsey murder investigation is warning against a rush to judgment in this case. 41- year-old John Mark Karr has confessed to killing the young girl almost a decade ago. He's speaking out about the crime tonight, but he's not yet been formally charged.

Ted Rowlands is live tonight with a report for us from Boulder, Colorado. Ted, what is the latest?

TED ROWLANDS, CNN CORRESPONDENT: Well, Lou, it is really unclear whether this 41-year-old traveling school teacher is the answer to this ten-year mystery or if he is trying to inject himself in a high profile case. John Karr was arrested in Bangkok, Thailand by authorities here in Boulder, Colorado. The district attorney had a press conference today. And, as you said, urged people to use caution. After he was arrested, Karr actually stopped and talked to reporters in Thailand.

(BEGIN VIDEO CLIP)

JOHN MARK KARR, SUSPECT IN JONBENET RAMSEY MURDER INVESTIGATION: I love JonBenet. She died accidentally.

QUESTION: Are you an innocent man?

KARR: No.

(END VIDEO CLIP)

ROWLANDS: Now, Karr claims that he was there when JonBenet Ramsey died. He said that he is guilty. When he was asked if he was innocent, he said, no, I'm not. He said it was an accident. He also said that he tried to, and did, reach out to the Ramsey family before Patsy Ramsey died of cancer a few months ago.

Now, here are the problems with the case as it stands. There are some real questions. First of all, Karr's ex-wife, who has no love lost between them, says that he was with her the day that JonBenet Ramsey was found dead, says he wasn't anywhere near Boulder, Colorado. There are some questions of how he could have gotten in to that house and out of that house without leaving any trace. He says he drugged the girl, yet the autopsy report says there were no drugs in her system at all.

Clearly there are questions and clearly the district attorney here said today in this press conference that they may have been forced to arrest Karr a little bit early, possibly because he took a teaching job this week in Thailand, teaching young children. If he's anywhere close to who they think he is, obviously, they would not want him around children.

Lou, he's expected to be extradited in the next few days and brought back to Colorado. At that point, you can bet that investigators will have a lot of questions for him and will be able to flesh this out.

DOBBS: As you well know, Ted, this case is a legacy and contains a litany of prosecutorial and investigative missteps and outright incompetence from almost the outset. The district attorney suggesting they had to move now. How long has this suspect been in Thailand?

ROWLANDS: Well, he's been, they're not sure how long he's been in Thailand, but he didn't come on to the radar screen here until May of this year, when a local professor, who had been communicating through e-mails, alerted authorities. That's when they started to move in. Clearly, as you mentioned, there have been problems with this case. They must have more evidence than just his strange confession going for them, otherwise, you can bet they wouldn't have pulled the trigger.

DOBBS: Ted Rowlands, thank you very much. We appreciate it.

Ted Rowlands will have much more on the JonBenet Ramsey case later tonight. He'll be hosting LARRY KING LIVE at 9:00 p.m. Eastern right here on CNN. We'll continue to follow any breaking developments in the case throughout the evening here on CNN.

Coming up next, two very different views on the illegal alien day labor crisis on this country and its affect on American workers. Also Congress wants to know whose side the U.S. Justice Department is really on in the case of two U.S. border patrol agents that we have been reporting every night here on this broadcast. We'll have that special report on the forces at work upon agents who have been betrayed.

It has been six months since Dubai Ports World promised to sell its American port facilities. Guess what Dubai Ports has failed to do over the past six months? We're watching. We'll have an update for you and a special report on a new port security outrage developing in Mexico. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Tonight, border security advocates in Congress are promising action in the case of two U.S. border patrol agents who were convicted of pursuing and then shooting a Mexican drug smuggler. The drug smuggler given immunity by U.S. prosecutors. Lawmakers today voiced their outrage over the case at a border security hearing held in El Paso, Texas, close to where the border confrontation took place. Casey Wian reports from El Paso.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Congressional leaders from both parties now promise to investigate the case of border patrol agents Ignacio Ramos and Jose Compean. They face 20 years in prison for a violent confrontation with a Mexican drug smuggler. He was transporting 743 pounds of marijuana and received immunity from prosecution.

ANDY RAMIREZ, FRIENDS OF THE BORDER PATROL: Those in the border patrol who believe in the highest ideals of public service will never forget the names of Ramos and Compean, the first agents in the history of the border patrol to go to prison for simply doing their jobs.

UNIDENTIFIED MALE: Their plight has reached the eighth district of Indiana. I got a question yesterday in Brazil, Indiana, in west central Indiana, at a rotary luncheon about the fate of these two agents who have faithfully served our country. We will have an investigation of their situation and we will go as far as it needs to go.

UNIDENTIFIED FEMALE: I welcome the investigation. We will do it enthusiastically. And we say that to the families because we are fact finders.

WIAN: Judiciary Committee chairman James Sensenbrenner said the investigation will take place before year's end and will focus on the Justice Department's decision to prosecute the agents.

REP. JAMES SENSENBRENNER (R), WISCONSIN: It is not our job in Congress, under the separation of powers, to go behind what the judicial branch does. But we do have oversight over the Department of Justice and what the U.S. attorneys do and what they seek indictments for.

WIAN: Agents Compean and Ramos had hoped to attend the congressional field hearing on Mexico's power over U.S. border security decisions. But their bond agreement prohibits them from being on federal property and the hearing was held on a national park near the border. The wives and family members did attend.

MONICA RAMOS, WIFE OF AGENT RAMOS: We are very happy to finally have an investigation on this. Being that we have felt so alone for so long.

WIAN: Questions remain about the role the Mexican government may have played in the prosecution of agents Compean and Ramos. Some lawmakers say the agents were targeted in an effort to appease Mexico.

(END VIDEOTAPE)

WIAN: Meanwhile, donations continue to pour in to two legal defense funds set up for the agents. Their families have just today, just this afternoon received several thousand dollars to begin paying their legal bills. Lou?

DOBBS: Casey, this case is so frustrating and we're hearing from our audience since we began these report and bringing national attention to the case of Compean and Ramos. Are we hearing any more there in El Paso about the community and how they can tolerate this kind of behavior?

Or is there a sense in that community that either it is the influence of a powerful drug cartel, which we know exists in that part of the country or is it the influence of the federal government, as Congressman Poe has suggested, trying to appease, through blighting the lives of these two outstanding border patrol agents, to appease the government of Mexico?

WIAN: Well, the sheriff of El Paso County said at the hearing today in no uncertain terms that the drug issue, the drug cartels are beginning to take a serious influence on the region of El Paso, all along the border, but especially here in El Paso because of the close relationship between El Paso and Juarez, the city in Mexico.

He says it is an absolute nightmare that this is allowed to continue. He says he's worried about drug. He's worried about illegal aliens. He's worried about terrorists. He's demanding that the federal government finally do something about this.

You're not hearing too much in the local media about this case. And there has been speculation that one of the reasons is because of the close relationship that this community has to Mexico.

DOBBS: Yet, the reporter, I believe her name is Sara Carter, has done a number of excellent reports on this case. Is that correct.

WIAN: That is correct. Sara Carter, though, is based in Southern California with the "Inland Valley Daily Bulletin." And you haven't seen nearly as much coverage as we've been giving it and that Sara's paper has been giving it, to this case, locally.

DOBBS: I just wanted to point out that there are a couple of news organizations with the guts to take a look at what's happening in this country, and when the U.S. government decides to put a drug smuggler's interests ahead of those of the U.S. Border Patrol agents that probably more than just a few Americans are going to be interested in the outcome.

WIAN: And Lou ...

DOBBS: It is really a shame.

WIAN: Yes, it is. And I would like to point out that it's -- it was at least to me pretty remarkable that you heard several Congressmen from both sides of the aisle say they're sick of this case and they want to look into it, too -- Lou.

DOBBS: And we've been waging a war on drugs. We talked about border security, this broadcast reports more on the urgent need for border security and port security than any other broadcast of any kind.

And to think of the lives that are wasted particularly among this nation's poor and disadvantaged because of drugs, and this government, this Congress and the administration before it and the Congresses before these all tolerating their deaths and the destruction of lives. It is sickening on every level.

And we will continue the reporting on this case and on the issue of border security, certainly, and illegal immigration for a very long time. But we're going to follow, thanks to you, Casey Wian, this case of Ramos and Compean throughout and through the duration. We thank you. Casey Wian reporting tonight from El Paso.

It's becoming increasingly clear tonight that President Bush's plan to send thousands of National Guard troops to our southern border has been an abject P.R. stunt, in my opinion. The National Border Patrol Council confirms tonight that hundreds of U.S. Border Patrol agents are being pulled from their jobs protecting our border with Mexico to protect unarmed National Guard troops located near the border instead.

These are the very same troops that were sent to the border, as the president and others have suggested, to support and protect our border patrol agents. The border patrol agents call their new assignments the "nanny" patrol. Anybody had a bellyful?

That brings us to the subject of our poll tonight. Do you believe securing our borders and ports is a more effective national security strategy than wiretapping Americans? Yes or no? We'd love to hear what you think. Case your votes at LouDobbs.com. We'll have the results upcoming.

The war in Iraq tonight appears to be more violent than at any time since the overthrow of Saddam Hussein. One hundred ten Iraqis on average are being killed each and every day. That is the highest casualty rate since this war began. And the number of attacks against our troops and Iraqi security forces has doubled since the beginning of this year.

Joining me now is General David Grange. General Grange served with distinction, a ranger in the special forces, counterterrorism unit throughout the world, commanding the 1st Infantry Division.

General, good to have you here.

BRIG. GEN. DAVID GRANGE (RET.), CNN MILITARY ANALYST: Thank you, Lou.

DOBBS: One of the things that is just immensely confounding to many people is that the secretary of defense talks about death squads and militias and thugs and dead enders when we're watching violence escalate every day, more of our troops die and we're hearing from more of our generals in the Pentagon and in Iraq, be patient, hold the course.

And we see little evidence of an effective strategy or execution, despite absolutely outstanding young men and women in uniform there serving this country. How much longer should the American people put up with what appears to be a failure of leadership?

GRANGE: I think what the American people need to demand right now are three priorities, Lou. One is that we have to become more expert in the irregular warfare. That means fighting insurgents, fighting guerrillas, lessons learned not only from Iraq, but just, for instance, what the IDF, the Israeli forces, learned in fighting the Hezbollah in Lebanon.

Number two, we need to fix broken equipment. We still have an army, a Marine Corps that's running on an almost empty tank of fuel, equipment is not being rehabbed fast enough. New equipment is not being bought.

And number three, we have to be prepared for the long-term in this region. There's no end of conflict in sight.

DOBBS: General, let me quote, if I may -- let's actually listen to something -- and I believe you know him, Robert Kaplan, a military analyst and author most recently of the book "Imperial Grunts." But he said this on the broadcast last night about the issue of what our troops are doing in Iraq. If we could listen to that, please.

(BEGIN VIDEO CLIP)

ROBERT KAPLAN, AUTHOR, "IMPERIAL GRUNTS": What we lack is not numbers, but we lack well-trained area experts, small unit area experts. Because in counterinsurgency, what it's all about is being embedded in with the indigenous forces, living in towns the and villages providing security 24/7, and learning how to kill without firing a shot almost, by finding out through language, through intelligence where these guys are. Because killing the enemy is easy. It's finding them that's difficult.

(END VIDEO CLIP)

DOBBS: What's your reaction, General?

GRANGE: Well, I mean, I think he's right on. Intelligence is the key. I mean, we're very good at killing people and the challenge is killing the right people at the right team and place, understand the community you operate in. In other words, have the savvy street sense you need to operate in communities throughout a hostile area. So he has a very good point here.

DOBBS: You know, as you talk about learning and learning what the Israelis learned in the month-long conflict with Hezbollah, one of the things we learned is that Israel wasn't very effective in taking down Hezbollah. Hezbollah was stronger than given credit for.

One of the other things is to talk about fixing, repairing and equipping our people, our men and women, and all the branches who are fighting. Why in the world do the generals have to continue to relearn these lessons? GRANGE: You know, there is a rush in learning centers right now, not only from what's happened so far in Afghanistan and Iraq, but what happened with the Israeli forces in southern Lebanon. And you have to understand that the Israeli forces are very similar to the American forces where they're focused on maneuver warfare, not regular warfare. And that's part of the challenge.

DOBBS: Absolutely. General David Grange, as always, good to have you here. Good to have your insight. Thank you.

GRANGE: My pleasure.

DOBBS: Today Palm Bay, Florida, may join the rising number of communities all across the country that are enacting local ordinances against illegal immigration and those who aid and abet it. Tonight the city's government votes on a tough new measure. I'll be talking with the city councilman who supports it, the mayor who doesn't.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Tonight, we have an update for you on how Dubai Ports World is coming along with its promised sale of its 22 U.S. port facilities. It has been six months since Dubai Ports World promised to sell its U.S. port operations within six months. Well, no sale has yet been announced. Dubai Ports World tonight says it is moving ahead with the sale.

In fact, Dubai Ports World says it is accepting initial bids on the properties beginning tomorrow. The company is not commenting on just who the interested buyers might be, nor what at what price it expects those properties to sell. A prospectus was mailed to potential buyers a month ago. None has seen fit to share it with us. We hope that will change.

A top Chinese government diplomat today revealed communist China's real attitude toward this country. In a moment of rare public anger for a senior Chinese official.

The Chinese Ambassador to the United Nations in Geneva, Switzerland used blunt language when he was asked to explain China's massive military build-up which we've been reporting on this broadcast for years. The communist Chinese ambassador said why blame China? It's better for the United States to shut up and keep quiet. The ambassador added, it's the U.S.' sovereign right to do whatever they deem good for them. But don't tell us what's good for China.

It appears the ambassador refuses to acknowledge his country's huge military modernization is causing concern in this country and throughout the Asian region.

"THE SITUATION ROOM" with Wolf Blitzer coming up at the top of the hour. Wolf, reporting tonight from Jerusalem -- Wolf?

WOLF BLITZER, CNN ANCHOR: Thanks very much, Lou. A blow to President Bush. A federal judge says the government cannot listen in to your phone calls without a warrant. We'll find out how the White House is fighting right back.

Plus, uneasy truce. Lebanese troops moving in welcomed with white rice and flowers. We're covering both sides of the border here in the Middle East.

Also, a strange wartime tea party. Lebanese soldiers sitting down with Israeli soldiers and now those Lebanese soldiers facing investigation. The kinder, gentler war moment all caught on tape.

And confessions and questions in the JonBenet Ramsey case. Does the story of the self-proclaimed killer really add up? We're taking a closer are look at the investigation. All that coming up here in "THE SITUATION ROOM" -- Lou.

DOBBS: Wolf, thank you very much.

The tidal wave of illegal aliens into American communities continues to trigger tough new laws against illegal immigration in communities and cities and towns across the country. Tonight Palm Bay, Florida's city government votes on a tough new measure. I'll be talking with a city councilman supporting it. And to Palm Bay's mayor who doesn't.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Palm Bay, Florida's city council tonight could pass a law that fines businesses that hire illegal aliens. The companies would also be barred from bidding for city contracts. And here in just a moment I'll be talking with the mayor of Palm Bay who is opposed to the measure. But first, Palm Bay city councilman Andy Anderson who supports the ordinance.

Councilman, good to have you with us. Can you hear me all right there?

ANDY ANDERSON, PALM CITY COUNCILMAN: I can hear you great. Nice to be with you.

DOBBS: Good to be with you.

Some are saying that this is a federal matter. We've talked about this with communities all over the country. It's a federal matter and that cities shouldn't be involved. And communities -- why do you think they should be?

ANDERSON: Well, one of the things that I must point out, our ordinance is a business regulation ordinance. And it is very important to note that any ordinance that we pass cannot be preemptive over federal law.

With that said, it is obvious that the federal government, the leadership in the federal government does not want to take control of this issue. And it's placed our business owners that are law abiding at a very big disadvantage with those unscrupulous employers who use those persons who do not have a legal right to work in the United States.

DOBBS: So, you see this is as unfair. Is there a particular problem in the community with illegal aliens? Or is it simply an issue of some business owners taking advantage and exploiting illegal labor and others at a disadvantage because they're hiring U.S. citizens?

ANDERSON: And that's exactly it. The ones that are out there hiring legal workers are having a hard time competing with those using people who do not have a right to work in the United States. So what occurs is when they bid on a project in construction, for instance, they have to be -- the legal guy -- the guy that's doing it right, has to bid at a much higher cost.

DOBBS: And let me ask you quickly, we're out of time, but are you going to -- will the city council pass this measure tonight in your judgment?

ANDERSON: Well, it's hard to say. You know, anything can happen. We have a lot of pressure to bear upon us from outside groups.

DOBBS: Like who?

ANDERSON: ACLU is one. The ACLU has really...

DOBBS: They're threatening, going to try to break the budget if you do it, like they're trying to do to Hazleton, Pennsylvania. But there's a solution for that. So we thank you.

ANDERSON: Thank you, sir.

DOBBS: Thank you.

All right. We're going to talk to the mayor of Palm Bay and another who is opposing the measure. I'll be talking with him next. We'll be right back after this. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Joining me now, the mayor of Palm Bay, Florida. John Mazziotti. He opposes the measure that would fine businesses hiring illegal aliens. Mr. Mayor, let me ask you this, it's what I asked Andy Anderson first, Is This measure going to pass your council tonight?

MAY. JOHN MAZZIOTTI, PALM BAY, FLORIDA: I don't know. The vote last -- two weeks ago was 4-1.

DOBBS: In favor or opposed?

MAZZIOTTI: Supporting the ordinance. I was the only one that went against it.

DOBBS: Why would you go against it? Are you -- I mean, Andy Anderson says it's really unfair to businesses that are not hiring illegal aliens to have that kind of labor advantage. Why would you be opposed to it?

MAZZIOTTI: Let me say this. I agree with everything Andy says. I believe that all those things are true, all those things are happening. My concern is that this ordinance doesn't do anything. This ordinance really -- to go on the job, you basically have to have a reason to go on the job. You can't just walk on it and start asking for cards. What it does is creates a whole bunch of animosity in this community, one side for and one side against.

My goal is to get the federal government down here to do their job. We need to get these people documented. If they want to apply for work permits, we need to work on that. And then like anyone else, they go to the end of the line, just like they were supposed to do. But the ordinance does not resolve the question.

DOBBS: It doesn't resolve everything certainly. It does, though, resolve some issues. And are you concerned about the threats from the ACLU and other activist organizations that will try to bust your budget with legal expenses?

MAZZIOTTI: Well, they can do that if they care to. The truth of the matter is that, you know, we take advice from our attorneys and our attorneys have told us it's defensible.

I just don't think the ordinance is a way to go. I think there are better things to do. And I think we need to put pressure on the federal government to do their job.

DOBBS: I couldn't agree with you more, about putting pressure on the federal government. John Mazziotti, we thank you for being here.

The results of our poll tonight -- 96 percent of you say securing our borders and ports is a more effective national security strategy than wiretapping Americans.

We thank you for being with you tonight. We hope you'll be with us tomorrow. Thanks for watching. Good night from New York. "THE SITUATION ROOM" begins now with Wolf Blitzer from Jerusalem -- Wolf.

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