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The Situation Room

Federal Judge Orders Halt to Wiretapping Without Warrants; Ramsey Case Arrest; Battlefield Tea Party; Violence Continues in Iraq

Aired August 17, 2006 - 17:00   ET

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

WOLF BLITZER, CNN ANCHOR: And to our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time.
Standing by, CNN reporters across the United States and around the world to bring you today's top stories.

Happening now, it's 5:00 p.m. in Detroit, where a federal judge brings the hammer down on the Bush administration's domestic spying program. The ruling orders a halt to eavesdropping on Americans without warrants. The White House fighting right back right now.

Shocking revelations from the man facing charges in the decade- old killing of JonBenet Ramsey.

It's 3:00 p.m. in Boulder, Colorado, where the district attorney warns there's much more work to do on the case.

And it's midnight here in the Middle East, where Lebanese troops are taking over territory captured by Israeli forces. But will they take on Hezbollah? Did Israel suffer from an intelligence failure in Lebanon? I'll ask a former Israeli spy chief.

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

A damaging blow today to the Bush administration's anti-terror program. A federal judge in Detroit ruled that the wiretapping of Americans without court orders unconstitutional. The judge ordered an immediate halt into the domestic spying operation carried out by the National Security Agency. The Justice Department, though, is appealing.

Our White House correspondent, Elaine Quijano, is standing by with reaction from there.

But let's begin with our Justice correspondent, Kelli Arena -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, this is the first judge to strike down the NSA's program, saying that the public interest is clear.

(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 the historic ruling of the federal district court today. Clearly, the judge agreed with our arguments that 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 they 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, U.S. 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, FMR. JUSTICE DEPT. 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: The Justice Department was quick to appeal this ruling. What's more, it won't take immediate effect, so the judge can hear a Justice request for a stay -- Wolf.

BLITZER: Kelli Arena, thank you very much.

And arguing that the surveillance program is a vital tool against terrorism, the White House says it will appeal this court ruling.

Let's go to CNN's Elaine Quijano. She's standing by with more on that -- Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: And Wolf, the Bush administration is strongly defending this program as legal and necessary. In fact, even before today's ruling, President Bush just this week, in comments at the State Department on Monday, singled out this very program as a vital tool in the terrorism fight.

Well, today we are hearing that from the White House once again. White House Press Secretary Tony Snow, in a statement, saying, "We couldn't disagree more with this ruling, and the Justice Department will seek an immediate stay of the opinion and appeal. The Terrorist Surveillance Program is firmly grounded in law and regularly reviewed to make sure steps are taken to protect civil liberties."

Now, President Bush himself was asked about today's ruling as he left the White House today on the south lawn on his way to the presidential retreat at Camp David. He did not comment on this, but in that statement from Tony Snow, the administration is pointing directly to that recently foiled British terror plot as an example of why the administration says that this particular surveillance program is so necessary.

Meantime, of course, all of this happening against the backdrop of those midterm elections just some 80 days away. Democrats are pouncing, accusing the Bush administration of a power grab. And Democratic Senate leader Harry Reid saying in a statement that today's ruling, he says, is the latest example of how the Bush administration has jeopardized efforts in the war on terror -- Wolf.

BLITZER: Elaine, thank you very much.

Is the domestic surveillance program really necessary to stop terrorist attacks?

Coming up, I'll speak with leaders of the 9/11 Commission, Tom Kean and Lee Hamilton. That's coming up right here in THE SITUATION ROOM.

Let's check in with Zain Verjee. She's got a closer look at some other important stories making news right now -- Zain.

ZAIN VERJEE, CNN ANCHOR: Wolf, the Tri-State Airport in Huntington, West Virginia, was evacuated today. The TSA says two containers in a woman's carry-on bag tested positive for explosives.

The woman was going through screening at the airport this morning while trying to board a U.S. Airways flight. The FBI is questioning her. The Associated Press is reporting that an FBI spokesman says one of the containers contained a gel-like facial cleanser.

A woman whose erratic behavior caused a transatlantic flight to be diverted to Boston from Washington yesterday is going to remain in custody until a court hearing next week. Court documents say the woman was biting her figures and made possible references to al Qaeda and urinated on the cabin floor of United flight 923.

The flight landed safely with fighter jet escorts after the pilot declared an emergency on board. The woman's attorney says that she has mental health problems.

An apparent big court victory for the federal government in its multibillion-dollar lawsuit against the tobacco industry. A federal judge just last hour ordered tobacco companies to admit that they lied about the harmful effects of smoking and to warn consumers that tobacco is addictive. The judge also reportedly ruled that big tobacco must pay to help smokers kick the habit.

And a federal judge is ordering Barry Bonds' personal trainer to testify before a grand jury or face jail time. Greg Anderson (ph) has to appear before the grand jury at this hour. He was released from prison just last month after 15 days when he refused to testify. Government lawyers are investigating whether Bonds lied under oath when he said that he didn't know if he had been given steroids.

And Mel Gibson won't have to serve time in jail for his DUI arrest. The actor-director pleaded no contest to a misdemeanor drunken driving charge today. The L.A. District Attorney's Office says Gibson will receive three years probation. He's also got to pay $1300 in fines and attend AA meetings. Gibson publicly apologized for making anti-Semitic comments when police pulled him over last month -- Wolf.

BLITZER: Thank you, Zain.

Let's go to Jack in New York -- Jack.

JACK CAFFERTY, CNN ANCHOR: Wolf, the worms are beginning to crawl across the room to the other side of the aisle. Since there seems to be a pretty good chance the Democrats might capture at least one chamber of Congress in the midterm elections, the Washington lobbyists are out in force trying to hire Democrats to work for them.

The weasels of K Street wasting no time positioning themselves to be able to suck favors and money out of the new Congress, whoever controls things. And, of course, if the Democrats do win, they'll be in position then to be as sleazy and corrupt as the Republicans.

Want to bet they don't take the high road?

One lobbyist told "The Washington Post," "Democrats' stock has clearly risen." He adds that "Serious hiring of Democrats has become a high priority."

Swell.

The majority of companies already hire lobbyists from both parties, but for years, they've emphasized Republicans, because that's who's had control of both Congress and the White House, at least in recent years.

So here's the question: What does it mean if lobbyists are out trying to hire more Democrats?

E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Did you say worms, Jack? I just want to make sure I got that right.

CAFFERTY: I said worms, Wolf. That's what they are.

BLITZER: Yes, I got it right. Thank you, Jack.

Jack Cafferty in New York.

Up ahead, he says he was there when she died and that he's not innocent. The man accused of murdering JonBenet Ramsey, he's out with some stunning confessions, but is he actually telling the truth?

And during the Middle East conflict, what were two soldiers on opposite sides of the conflict doing sharing a cup of tea? And what is the fallout from that?

And what are the practical implications of this new ruling against the Bush administration's domestic spying program? I'll ask the two chairmen of the 9/11 Commission, Lee Hamilton and Tom Kean. They're coming up.

(COMMERCIAL BREAK)

BLITZER: It's one of the most notorious "whodunits" in recent memory. Now police hope they're one step closer to knowing what really happened to 6-year-old JonBenet Ramsey, beaten and strangled one day after Christmas in 1996.

A man is now admitting some involvement in her murder, but is he actually telling the truth?

We have two reports.

Ed Lavandera is standing by in Boulder, Colorado. But let's begin with CNN's Brian Todd in Washington -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, a Homeland Security attache at the U.S. Embassy in Thailand tells CNN John Mark Karr will face charges for kidnapping, sexually assaulting and murdering JonBenet Ramsey.

(BEGIN VIDEOTAPE)

TODD (voice-over): Who is John Mark Karr and what was he doing in Thailand? New details from the district attorney in Boulder, Colorado.

MARY LACY, BOULDER COUNTY DISTRICT ATTORNEY: Mr. Karr was living in Bangkok. He began his employment as a second grade teacher in the international school system in Bangkok on Tuesday morning of this week.

TODD: A Homeland Security official tells CNN he doesn't believe Karr's new job influenced the timing of the arrest. But according to CNN legal analyst Jeffrey Toobin...

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: The clear implication of the district attorney's statement was that he was arrested now because they feared he would molest the children he was teaching in Bangkok or that he might flee. TODD: But when cameras caught up with him, Karr wasn't shy.

UNIDENTIFIED FEMALE: Are you an innocent man? Are you an innocent man?

JOHN MARK KARR, SUSPECT: No.

UNIDENTIFIED FEMALE: What happened?

KARR: Her death was -- was an accident.

UNIDENTIFIED FEMALE: So you were in the basement?

KARR: Yes.

TODD: But Karr's ex-wife Laura tells CNN affiliate KGO Karr was with her in Alabama during the entire Christmas season of 1996 when JonBenet Ramsey was found dead at the Ramsey home in Boulder. And there are other inconsistencies.

A Thai police official says he was told by an American investigator that Karr said he drugged and had sex with the child before accidentally killing her. But according to JonBenet's autopsy, no drugs were found in her body.

But Karr does have a history with the law and children. According to divorce documents obtained by CNN, he split with his wife after local police in California investigated Karr for possessing child pornography. Law enforcement officials tell CNN Sonoma County Police arrested Karr in 2001, but Karr posted bail and never returned.

The divorce papers say Laura Karr sought to keep Karr away from their three children and secured a retraining order. And in the documents she claims Karr couldn't serve as a substitute teacher in Alabama in the late 1990s because he was too affectionate with children.

(END VIDEOTAPE)

TODD: And what of Karr's ties to the Ramsey family? JonBenet's father, in an interview, says he does not know Karr. Karr tells The Associated Press he wrote to JonBenet's mother, Patsy, before she died of cancer, apologizing for what happened, insisting JonBenet's death was an accident.

Karr is expected to be brought back to the United States within a week -- Wolf.

BLITZER: Thank you, Brian.

As a beauty queen contestant, little JonBenet Ramsey was well known in her Colorado community. So at the time of her murder, many in that community felt a personal sense of shock.

How many in Boulder are experiencing some of those same feelings once again right now? Let's bring in Ed Lavandera. He's on the scene for us -- Ed.

ED LAVANDERA, CNN CORRESPONDENT: Well, you know, this was a case that was -- brought so many intense headlines and so many headlines that many people in this community just did not welcome here. That it is something that annoys a lot of people, to a certain level. And, you know, bringing all of this back isn't something that a lot of people want to see. But it is back, and it is something that the Ramsey family has been waiting for quite some time.

They moved away from here in the years since the murder here in Boulder. But now the attention is on the prosecution and the attorneys going after John Mark Karr and building their case against him.

Right now, what we have is just a lot of swirling information as to what exactly John Karr knows and what exactly he did or might not have done. It's not exactly clear.

We have heard from his ex-wife who sys they were together in Alabama that Christmas season 10 years ago. His family in Georgia says it's ridiculous, there's no way he could have been involved. And even as you mentioned -- Brian Todd mentioned, that John Ramsey does not -- does not remember ever knowing John Karr at this point.

So -- and even the law professor who turned over John Karr's name to authorities, who had been e-mailing with this guy for two years, isn't revealing a lot of information from his correspondence with John Karr that he's had over the last two years.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Is there a single thing that prompted you to say, "OK, I've got to go to the cops now"?

PROF. MICHAEL TRACEY, UNIVERSITY OF COLORADO: There was, but I'm not going to say what it is. There was one particular thing, yes.

UNIDENTIFIED FEMALE: Was it a detail that hadn't been reported?

TRACEY: No, no.

UNIDENTIFIED FEMALE: That's what they're saying, that he knew parts of this crime that hadn't been reported.

TRACEY: No, I'm not going to comment on that. There was -- there was one particular thing.

(END VIDEO CLIP)

LAVANDERA: Wolf, the mood kind of changed here this afternoon after the prosecutors held their press conference at about 10:00 a.m. local time. After prosecutors given every opportunity, as we reported, to mention that John Karr was there man, that this was the person they were confident committed these crimes, really backing away from any language close to that. That has really kind of turned the attention here back on to John Karr and questioning the credibility of the story that he released today in Thailand -- Wolf.

BLITZER: I guess that credibility would be strengthened if they had DNA match. Is there any indication they do have a DNA match?

LAVANDERA: We don't have any indication that has happened yet. And another thing to remember as well, too, is that a handwriting sample, we would imagine that in the coming weeks, would become a major factor as well.

Remember, there was a ransom note left in the Ramsey home when JonBenet Ramsey was murdered. So, you know that attorneys, defense attorneys are going to want to see a handwriting sample to compare John Karr's handwriting to that ransom note.

BLITZER: Ed Lavandera, thanks very much.

The 41-year-old teacher arrested in Thailand possesses ties to California and to Georgia. And now we're picking up some online clues concerning John Mark Karr's whereabouts over the past few years.

Our Internet reporter, Abbi Tatton, has been digging for details -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, resumes in John Karr's name have been posted to job Web sites for international teaching opportunities. Here's a resume for John Karr, his photo in the corner, next to a young girl of elementary school age. We don't know who that girl is.

The resume, if you read it through, puts Karr in Honduras from 2004, 2005 teaching second grade. Before that, in western Europe, in the Netherlands, in Germany. It says he took special attention changing, feeding and bathing a baby for the family that he worked for.

From 1996 to 2001, the resume puts John Karr in the United States at prestigious schools, it says, although it doesn't say where. There is no indication that Karr got a job with these resumes through any of these sites. While Karr has been arrested, he is still presumed innocent -- Wolf.

BLITZER: Abbi, thanks very much.

Coming up, normal signs of life after the raging war. Things are slowly returning back to normal in Lebanon. Today we're seeing one important sign of all of that at Beirut's airport.

And in another post-war review, did Israel's foreign intelligence service -- that would be the Mossad -- underestimate the threat posed by Hezbollah? I'll ask a former chief of the Mossad.

That's coming up.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Here in the Middle East, troops are on the move, but it's part of an effort to try to keep the fragile peace. The Lebanese army may be taking control of parts of southern Lebanon right now, but is it actually prepared to take on Hezbollah?

Let's go live to our Beirut bureau chief, Brent Sadler -- Brent.

BRENT SADLER, CNN BEIRUT BUREAU CHIEF: Thanks, Wolf.

A rapid deployment so far of some 12,000 of 15,000 Lebanese army troops pushing south from the Litani River into the former battle zones. Now, this deployment has been demanded by the Israelis, otherwise they wouldn't have withdrawn, it was threatened. So, the army moved pretty quickly.

But they wouldn't be there if it wasn't for the acquiescence of Hezbollah, whose fighters, in effect, have already melted into the local population in there and whose weapons, really, their whereabouts, are still unknown. Hezbollah has said that it will neither take its fighters nor its rockets and other weaponry out of the south. Neither will the Lebanese army have any direct orders to go after those weapons or to go after fighters, as demanded by that cease-fire resolution.

Another problem is that nations thinking about sending troops to bolster the United Nations interim forces in Lebanon now have something of a dilemma because of the fact that Hezbollah is still there. So that may -- may take longer than expected to deploy those first contingents of an expected 15,000 international troops to police the south of Lebanon.

In other encouraging signs, though, Beirut's international airport that was subjected to attacks by Israeli warplanes and gunboats just over a month ago reopened for several flights earlier today. This does not signal a complete lifting of the Israeli land, sea and air blockade, but it certainly is an easing of the situation.

France was asking the Israelis, demanding the Israelis to lift those sieges. So this may be a first step in that direction.

Meanwhile, 200,000 Lebanese, it's expected, have returned to their areas having been displaced by the war. And those areas that were subjected to the worst damage, estimated cost about half a billion dollars in rebuilding some 15,000 homes, money that Hezbollah says it will put up -- Wolf.

BLITZER: Thank you very much for that, Brent.

Brent Sadler in Beirut.

We're also learning about a strange encounter that took place on the battlefield in Lebanon. A time-out, if you will, for tea.

Let's bring in our Zain Verjee -- Zain.

VERJEE: Wolf, it was a strange tea party, one that has landed the host in hot water.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): Two enemy armies sharing a cup of tea and casual conversation as war raged all around. Lebanese and Israeli soldiers in the town of Marjayoun were showing a bizarre camaraderie.

It's August 10th. About 350 Lebanese troops are at this military base six miles from the Israeli border.

This edited videotape shot by an unknown Israeli shows Israeli troops and at least two tanks rolling into the base. There is no resistance, only white flags.

Lebanon's brigadier general, Adnan Daoud (ph), a Christian, is in charge and offers the Israelis tea. Then, on the tape we hear this odd exchange.

"We need to brief our bosses on what happened," says Daoud. The Israeli commander says, "We briefed Bush. You brief whoever you want." Daoud responds, "We need to brief Bush, too."

On the video, we see Israeli soldiers checking I.D. cards. They spend the day with Daoud and his men.

As the Lebanese convoy came out of Marjayoun, a CNN crew asks Daoud what happened.

Daoud says, "The Lebanese Interior Ministry ordered Lebanese troops to leave." "Why didn't you fight?" we asked, but the car had sped away.

The acting Lebanese interior minister did give orders not to fight, saying the likely armed troops were not a combat force but a humanitarian protection force. Lebanese army intelligence sources tell CNN that Daoud has not been formally charged or arrested for treason, but an investigation is ongoing.

(END VIDEOTAPE)

VERJEE: And Wolf, those videotape images first aired on Israel's Channel 2 and then on Hezbollah's Al Manar TV -- Wolf.

BLITZER: All right. It shows you that there's still a long, long way to go for these parties in the Middle East to reconcile and try to work something out.

Appreciate it, Zain, very much. Good report.

Coming up, unconstitutional. That's what a federal judge decides about the Bush administration's domestic spying program. And the judge says it must top.

So what are the practical implications of all of that? I'll ask the two leaders of the 9/11 Commission. And Iraq is exploding with death right now. More innocent Iraqis are dying and so are more U.S. troops. Now a U.S. military report making some dire warnings about what will happen if the violence does not stop.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. While Israel's defense minister has named an inquiry commission to look into the handling of the difficult war with Hezbollah, there are also calls today for an independent investigation, as Israelis ask, what went wrong. And joining us now here in Jerusalem, the former director of the Mossad, Israel's intelligence service, Efraim Halevy.

Mr. Levy thanks very much for coming in. A lot of people are pointing fingers here in Israel right now. First of all, based on what you know and the history that you have, was there an intelligence failure in Israel as to the capability, the military capability of Hezbollah?

EFRAIM HALEVY, FORMER MOSSAD HEAD: I do not think there was an intelligence failure. I think over the years, information is collected of a wide range of sources. And I think that there was sufficient intelligence in the hands of those who needed it, in order to use it when the time came.

BLITZER: Because a lot of people were surprised at how robust, how strong, how unified Hezbollah emerged over this 33, 34 day war.

HALEVY: As far as I'm concerned, I was not surprised and I don't think that colleagues of mine were surprised. I think it was known for over years that Hezbollah was a robust, capable, deadly enemy with a guerrilla capacity, which was second to none.

BLITZER: Which suggests that the military, the IDF, the Israel Defense Forces, or the political leadership, the prime minister, the defense minister, they got it wrong, they had the intelligence but they didn't know what to do with it.

HALEVY: No I don't think that was the case. I think that over the years there was a policy here not to confront Hezbollah for a variety of reasons, political and otherwise. And when the time came and when the powers that be in this country decided to move, they moved. I don't think that there was a problem here of a lack of intelligence or a lack of knowledge at the highest level.

BLITZER: Did Israel fully understand the sophistication, the weapons, the missiles, the rockets that Hezbollah was getting presumably from Iran, through Syria. For example, that one rocket that hit that ship early on in the war and knocked it out. That seemed to have caught the Israeli navy by surprise.

HALEVY: It may have caught the Israeli navy by surprise. I think that's an isolated case. But by and large, I think there was a good idea here of the capabilities of Hezbollah, the nature of the weaponry they had, the performance of the weaponry which they had, the sophistication of the weaponry they had. It was known that the Iranians and the Syrians would supply Hezbollah with the best they could.

BLITZER: Hassan Nasrallah, the leader of Hezbollah, we know, and Israeli officials have confirmed this, that Israel tried to take him out several times during this war. From your perspective, as a former Mossad director and presumably you've given the order to take out enemies of Israel on many occasions. Is that a legitimate target to go after someone like Hassan Nasrallah?

HALEVY: Hassan Nasrallah is the head of a terrorist movement, he's not just a political leader. And I think that in times of war the way they were a month ago, in terms of the nature of the threat that he posed, I think that it was legitimate then, to consider Nasrallah a target. As you know, his predecessor was targeted several years ago in 1992.

BLITZER: And he was killed.

HALEVY: And he was killed. And this, of course, set in motion a series of very, very serious bloody reactions. I think in this case, had we succeeded, had Israel succeeded, it could well be that there would be similar reactions. But he is a very, very formidable foe and is a key figure in the whole plot.

BLITZER: How dangerous to Israel, from Israel's existence and existential threat, is the potential of Iran, under the current regime, of Ahmadinejad, getting a nuclear bomb?

HALEVY: Well I hate to disappoint you. I don't believe that there is an existential threat to Israel. I believe that there is a deadly threat to Israel. I think that the Iranian nuclear threat to Israel is a serious one, it is a threat which we have not faced up to before, I don't think that Iran will ever be able to erase Israel from the map.

BLITZER: Well I don't know why you're saying you're disappointing me to say that, but that's encouraging, certainly from everyone in Israel's perspective and all of Israel's friends around the world. Does Israel though, have the capability to take out Iran's nuclear facilities?

HALEVY: I won't give you a direct answer to that question. What I will say is that I believe that if there was a confrontation from Israel and Iran, Israel will find the ways and means of not having to suffer the brunt of the Iranian capability.

BLITZER: Just elaborate, I'm not exactly sure I understand what you're saying.

HALEVY: I say that there are a variety of means that can be used in order to prevent Iran from taking the step of putting its nuclear capability to the test. I think Iran in the final analysis will be deterred, if he has the capability, if it obtains the capability from using it.

BLITZER: Efraim Halevy, former Mossad director and the author of the important book, "Man in the Shadows." Thanks very much for joining us.

HALEVY: Thank you, it was a pleasure being here.

BLITZER: Now let's go to Iraq now where three more Iraqis died when a bomb ripped through a market in Baghdad. It's just one of several attacks around Iraq today. Much of the violence caused by a tool on the insurgent's preferred list of weapons. Let's get some more now from our pentagon correspondent Barbara Starr. Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well Wolf more frustration about the progress in Iraq and more indications that violence in many parts of that country is on the rise.

(BEGIN VIDEOTAPE)

STARR (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. 110 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's 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 IN IRAQ: I'm very much against set time tables, because as we've seen just in the last six to eight weeks, conditions on the ground here changed.

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 SPOKESMAN: 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.

(END OF VIDEOTAPE)

STARR: But Wolf, according to the Iraqi health ministry, 3,500 Iraqi citizens died last month alone in the violence. President Bush has been meeting with outside experts about the whole Iraq issue, but according to administration officials, there are no new ideas out there about how to do anything different. Wolf? BLITZER: All right Barbara, thank you. Let's go to Lou Dobbs, he's standing by in New York with a quick preview of what's coming up at the top of the hour. Lou?

LOU DOBBS, CNN ANCHOR: Wolf thank you. Coming up at 6:00 p.m. eastern here on CNN, tonight we'll have extensive reports on a federal judge's ruling that the Bush administration's warrantless wiretaps are unconstitutional. We'll be examining the political and legal implications of the ruling.

Also tonight, Congress and corporate America escalating what is already an outright war on our middle class, supporting amnesty for millions of illegal aliens. But lawmakers still believe they can win middle class votes in the midterm elections, irrespective of their position on illegal immigration.

We'll have that special report. And we continue our reporting on the case of the illegal alien whose taken refuge in a Chicago church trying to avoid deportation to Mexico, again. The illegal alien is now trying to use her American born son as a shield against deportation. We'll have that live report for you from Chicago and a great deal more. We hope you'll join us. Wolf, back to you.

BLITZER: Thank you, Lou. Still to come a federal judge orders a halt to the Bush administration's domestic spying program. But is that just the sort of program that could prevent another 9/11? I'll speak with the chairman and the vice chairman of the 9/11 commission, that's coming up. And Jack Cafferty lays into Washington's lobbyists and wonders what it means if they're starting to hire more democrats. We'll be right back.

(COMMERCIAL BREAK)

BLITZER: Let's go right to Zain Verjee, she's following a story out west. Zain?

VERJEE: Hi, Wolf. Part of Arbuckle Mountain is on fire, you see the high plumes of white smoke and beneath that dangerous glows of orange as a wild fire rages here. It's about 40 miles outside the Oklahoma/Texas border. It's about a mile from Falls Creek in Oklahoma and it's apparently moving toward Cedar Village. The road, the I-35 has been shut down. Firefighters Wolf are on the scene, trying to fight this fire but they don't appear to be able to get it under control. Wolf?

BLITZER: Thank you Zain. We'll get back to our top story now. A federal judge in Michigan ordering a halt to the Bush administration's domestic spying program, ruling that the wiretapping of Americans without warrants is unconstitutional. The administration is appealing, arguing that it's a vital tool in the war against terrorism.

And joining us now in Washington, the co-chairman of the 9/11 commission Governor Thomas Kean, Congressman Lee Hamilton, they're the authors of a new very important book entitled, "Without Precedent, The Inside Story of the 9/11 Commission." Gentlemen, thanks very much for coming in. Let me get your quick reaction to this judge's order today, this ruling against the Bush administration's warrantless wiretapping program. And Governor Kean, I'll start with you. If this holds, if the government can no longer go forward with these warrantless wiretaps, will American lives be lost potentially?

THOMAS KEAN, CHAIRMAN, 9/11 COMMISSION: I don't think so, but the administration may say something quite different. I think it's fairly easy to get a warrant, you can move fairly fast with a warrant. And we don't really know how often these are used. The administration has never told us.

BLITZER: Congressman Hamilton, I want you to weigh in as well because the argument that the White House, that the Justice Department, the Bush administration makes is it would be much too cumbersome to have to go get these warrants from the so-called FISA court every time this new process, the new technology, it will protect American lives in the war on terror?

LEE HAMILTON, VICE CHAIRMAN, 9/11 COMMISSION: First of all, I think we really do not know an awful lot about this surveillance program, for example, how frequently it's invoked. Secondly, I think there may be good reasons, from a counter terrorism standpoint to have national surveillance and interceptions of all kinds of conversations. Third, I believe that if you give that power to anyone, that power should be checked, it should be balanced. And so I think there has to be a framework put into place to make sure that this power is not abused.

BLITZER: So is it your point, Congressman Hamilton that the judge's decision today was a good decision?

HAMILTON: Well this was a federal district court judge. You're going to have a lot of court rulings on this in the days and months ahead. And it's going to be a long time before this is resolved in the courts. I do want to see the Congress and the courts involved in checking power, the power to conduct surveillance of American citizens. That ought not to be a decision made by one person, even the president.

BLITZER: Let's move on and talk a little bit about some of the things you've said and the things you've written in the book. Because both of you have spent an enormous amount of time learning the lessons of 9/11. Governor Kean, the other day you said this, "We're not protecting our own people in this country. The government is not doing its job." I want you to explain what you mean, it sounds like you're saying the president of the United States five years after 9/11 is not doing his job?

KEAN: I didn't particularize it, I was talking about the government as a whole including the United States Congress. Because there are a number of things they can be doing that they're not doing as well. And you can go into any number of areas, from the fact that we're still five years after 9/11, we're still not distributing funds to the areas that need it the most. We're not doing it according to risk. We're doing it instead, just giving it around to the various congressional districts.

That's terrible five years after 9/11. We're still not doing -- we found out everything we can in the airports. We're not doing enough, we don't believe to protect us against a possible nuclear attack. We're not doing enough in the courts. I mean there's just a whole range of issues here that we addressed and we addressed in the 9/11 report and a number of our 41 recommendations are not yet in place.

BLITZER: Well the executive branch of the U.S. government stops with the president of the United States. So I'll rephrase the question. Is he doing enough, is he doing everything that he can five years after 9/11 to make sure the American people are safe from terror?

KEAN: I don't know whether you -- everything is a big term. I think the president is doing a lot. We're safer than we used to be. I'd like to see the president doing more, I would like, for instance, see the president highlighting in a much greater way the dangers of nuclear terrorism and things that we can do about them.

The president has a wonderful bully pulpit, it's not just what he does and what he can get through Congress. But he can set the agenda and there are some things on the agenda that need to be addressed. And the risk of a terrorist with a nuclear weapon is, from our point of view, the number one.

BLITZER: Well let me bring Congressman Hamilton in and talk about that nuclear fear, that nuclear threat. How credible, how realistic is it, congressman, that a terrorist, Al Qaeda or any other affiliate group or whatever, could get their hands on some sort of nuclear device?

HAMILTON: I don't think the attack by a terrorist, using a nuclear weapon is the most likely threat. It's not easy to do, but it is doable. The reason it's so high on our list is because the consequences of that attack are almost beyond imagination.

We calculated in the report, and in the book, that 500,000 Americans would die if a nuclear bomb went off in Manhattan, and the casualties beyond that and the economic disruption are just beyond calculation. So this is the number one priority. You have to make a lot of hard choices, establishing priorities in Homeland Security. We've put this at the top of the list, not because of its likelihood but because of its consequences.

BLITZER: Governor Kean, is Al Qaeda still a viable terror threat to the United States? Because we know Osama bin Laden, presumably he's on the run some place, Ayman al-Zawihiri is number two, even though he shows up on video tapes, he's on the run. Can this group, which committed the atrocity of 9/11, can they do it again and perhaps even do it worse?

KEAN: They can do it again. We think Al Qaeda is a different kind of organization now, it's not centrally controlled by Bin Laden any more. He may be the visible force but it's not controlled by him. But it's morphed into a number of loosely affiliated organizations. Each one of those organizations capable of planning and carrying out a terror attack against the United States. And they plan to do it, and they want to do it and they're going to try as best they can to hurt as many of us as possible.

BLITZER: Final question on screening for you Congressman Hamilton, there's new technology, people can go through lines at airports and effectively they could be seen naked as they go through. But there's a lot of privacy concerns, understandably. Is there a line, is there some sort of area that you think needs to be addressed, given the enormity of the threat out there, as far as this new technology is concerned?

HAMILTON: Well there surely is. Up to this point, I think the people on the security side of the equation have won every argument. And we want to do everything we can to make our people as safe as we can. Now we are beginning to understand that the cost of doing all of that gets to be very, very large. Both in terms of resources spent but also in terms of intrusion into your private life.

So this is one of the reasons we think you have to have a very robust and aggressive civil liberties and privacy board that oversees all of the government activity with regard to counter terrorism and homeland security. And constantly ask the question and probes, are the civil liberties and the privacy of Americans being adequately protected with the steps that you take to protect homeland security. It's a major question for the future.

BLITZER: Congressman Hamilton, Governor Kean, thanks to both of you for joining us, thanks for writing this important book, "Without Precedent, The Inside Story of the 9/11 Commission."

HAMILTON: Thank you, Wolf.

KEAN: Thank you, Wolf.

BLITZER: And stay tuned to CNN day and night for the most reliable news about your security. Up ahead, a hiring boom on K Street in Washington. At least for democrats, but is it good? Your thoughts in "The Cafferty File", that's next. And it's been a day of bazaar developments in the JonBenet Ramsey case. CNN's Jeanne Moos will have a special take on what's going on, that's coming up in our 7:00 p.m. eastern hour. Stay with us.

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BLITZER: Let's go right to Zain Verjee, she's following a developing story. Zain?

VERJEE: Wolf, ABC News is sighting unidentified U.S. officials essentially saying North Korea may be preparing an underground test for a nuclear bomb. Now the report quotes senior military officials, one of them saying that a U.S. intelligence agency has recently observed, quote, suspicious vehicle movement at a suspected North Korean test site. The senior state department official has apparently told ABC that it's the view of the intelligence community that a test is a real possibility. Now the Reuters news agency said that they asked about this report and they're quoting a senior U.S. official saying this, "We have no new evidence to support that." That just coming in to us, Wolf and we'll keep you up to date the more we get.

BLITZER: Thank you, Zain. We'll take a quick break. When we come back, Jack Cafferty. We'll be right back.

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BLITZER: Let's check back with Jack. Jack?

CAFFERTY: The question this hour Wolf is, what does it mean if the lobbyists down in Washington, D.C. are starting to hire more democrats, which they are.

Jim writes from Texas, "Jack your question is confusing. You said the lobbyists are hiring democrats, are you saying our members of Congress are for sale?" Nah!

Dale in Massachusetts, "Lobbyists have switched over to the democrats because they've already given so much money to republicans they're not getting a good enough return on their investment any more. I mean how many houses and offshore bank accounts can one guy have anyway?

Bill in Massachusetts, "The problem for our country is the democrats are just as eager to sell us out to the lobbyists as the republicans. No one who has ever served in public office should be allowed to work as or for a lobbyist organization." That's a good idea.

Mike in Las Vegas, "The hiring of more democrats means there will be a new ringmaster and different clowns, but the circus will be the same."

Craig in Florida, "You can buy a democrat a lot cheaper than a republican at the moment, they've been marked down. Republicans won't go on sale until after the elections."

Jimmy in Georgia, "It means the lobbyists know what the American people have known for at least six months, we're being price gouged by the oil companies, lied to by the president, and suckered by the Congress. The 2006 midterm elections can be compared to a baby's dirty diaper. When it's full it's time to change it." And Andrew writes from California, "Bi-partisan jail cells." Wolf?

Oh, if you didn't see your thing here, go to CNN.com/CaffertyFile, where we post some more of these. You'd think after reading that every day twice a day I'd remember, but I didn't.

BLITZER: A lot of people like to go there Jack. See you in a hour, we'll be back 7:00 p.m. eastern. Let's go to Lou Dobbs in New York -- Lou. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com