Return to Transcripts main page

The Situation Room

President Bush Reacts to Domestic Spying Criticism; Interview with Ned Lamont; Civil Rights Leader Steps Down from Position at Wal- Mart

Aired August 18, 2006 - 16:00   ET

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


WOLF BLITZER, CNN ANCHOR: Thank you very much, Susan, and to our viewers you are in THE SITUATION ROOM where new pictures and information are arriving all the time. Standing by CNN reporters across the United States and around the world to bring you today's top stories. Happening now, President Bush says critics of domestic spying just don't understand the world in which we live. It's 4:00 p.m. at Camp David where the president disputes a judge's ruling that his wiretap program is unconstitutional.
Also, he beat him in the Democratic primary. Now the Senate candidate Ned Lamont, is he going too far in linking Joe Lieberman to the Republican Party? You'll hear from the hard-charging newcomer Ned Lamont. He will join us in THE SITUATION ROOM.

And the latest case of foot in mouth. The civil rights leader Andrew Young hired to help Wal-Mart improve its image steps down after public remarks offending Jews, Asians and Arabs.

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

Today, President Bush launches a counter attack. It's aimed at a federal judge's ruling yesterday that the president's domestic surveillance program is illegal. But at his Camp David retreat the president is fighting a defensive battle on a number of other fronts as well. Let's go live to our White House correspondent Elaine Quijano.

Elaine?

ELAINE QUIJANO, CNN CORRESPONDENT: And Wolf, after his annual August meeting President Bush hit back hard today against the not only that federal judge's ruling out of Michigan but also critics who have touted the judge's opinion. Now an appellate hearing is set for next month and the president says he does expect the administration to win that appeal one day after that federal judge's ruling which called the NSA surveillance program unconstitutional. The president staunchly defended the warantless wiretaps. And with just 81 days until the congressional midterm elections. The president took a swipe at his critics. Democrats who say that the ruling shows the Bush administration has mishandled the terrorism fight.

In response, the president said quote, "those who herald this decision simply do not understand the nature of the world in which we live," end quote. He also pointed to the recently foiled airliner terror plot as an example of the threats that exist. (BEGIN VIDEO CLIP)

GEORGE W. BUSH, U.S. PRESIDENT: This country of ours is at war and we must give those who are -- whose responsibility it is to protect the United States the tools necessary to protect this country in a time of war. The judge's decision was a -- I strongly disagree with that decision, strongly disagree. That's why I instructed the Justice Department to appeal immediately. And I believe our appeals will be upheld.

(END VIDEO CLIP)

QUIJANO: So, Wolf, as we have heard before many times, the president saying once more that the NSA surveillance program he believes is both legal and necessary.

Wolf?

BLITZER: The president was also asked about North Korea and some indications perhaps the North Koreans may be seeking to test a nuclear bomb. What did he say?

QUIJANO: Well, that's exactly right. The president didn't comment directly. He says that obviously in intelligence matters he wants to keep with tradition and not comment on anything like that. What he did, however, say is that if in fact that country, North Korea were, in fact to conduct a test, it would demonstrate that it does, in fact pose a threat. Wolf?

BLITZER: Elaine Quijano at the White House, thanks very much.

Over in the Middle East as Lebanon waits for other nations to send peacekeeping troops into southern Lebanon its own army is deploying in the region right now. Meantime Hezbollah is busy with a rebuilding effort. Let's go to Beirut, our bureau chief Brent Sadler has the latest. Brent?

BRENT SADLER, CNN CORRESPONDENT: Wolf, first of all, some hard news, Lebanese security sources saying that Israeli helicopters have been flying low over the Bekaa Valley, one of the areas where there was intense fighting during the month-long conflict. Now we understand from those security sources that Hezbollah has used anti- aircraft weapons, we understand anti-aircraft artillery as well as at least one ground-to-air missile.

Now the helicopter was not hit, we understand, but the missile missed and exploded on the ground, giving the impression to some residents in the Bekaa that there was a renewed assault. That being denied by security forces officially here.

Now, to other developments, Wolf, as you say, the Lebanese army has now more or less fully deployed to south Lebanon finally reaching the border zone where the Lebanese army has not been present for almost four decades. Now this historic move would not have taken place without the full agreement and acquiescence of Hezbollah whose fighters and weapons, have nearly, it seems, have melted away. Now that continuing presence of Hezbollah south of the Litani River has given some countries cause for concern, especially France, that is still expected to lead the United Nations Interim Force in south Lebanon. France already committing 200 troops is having some second thoughts about the rules of engagement given the continuing presence of Hezbollah.

Now, in other developments there was a funeral today, a mass funeral at Qana in south Lebanon, a funeral for some 30 people who were killed when an Israeli strike demolished the house under which civilians were sheltering. It drew world condemnation at that time. Today scenes in Qana were turned into both a political and pitiful (ph) event. At least three Hezbollah fighters were also buried during that mass funeral. Wolf?

BLITZER: Yesterday, Brent, Zain Verjee reported on this incident near the end of the actual war when a Lebanese general met with and Israeli general together with UNIFIL troops along the border, they had tea and Israelis were actually videotaping the incident and there's some suggestion that Lebanese general could be indicted for treason because he actually sat down with an Israeli. What's the fallout from that?

SADLER: Well, there are many people in the political elite here saying that this really was brought about by Hezbollah in Lebanon first broadcasting those pictures that appeared in Israel. Hezbollah pointing out the fact that this general from the police should not have been doing this at all, it was, in effect an act of treason. Now whether it is or isn't is being investigated. That general, that brigadier general from the security forces has not been seen since this incident and there are many people looking at this now from the official point of view and the legal perspective to see if any charges might or might not be brought against him. Wolf?

BLITZER: All right. Thanks. We'll continue to watch that story, Brent, together with you. Brent Sadler reporting from Beirut. Let's go to Zain. She got a closer look, now, at some other stories making news.

Hi, Zain.

ZAIN VERJEE, CNN ANCHOR: Hi, Wolf, welcome back.

A car bomb exploded in Baghdad today just as the vehicle ban in the Iraqi capital was going into effect. The Iraqi police say the explosion near a Shia mosque killed one person and injured five others. The citywide vehicle ban is through Monday. It's intended to halt a recent surge of violence during a Shia Muslim pilgrimage this weekend.

Cuba's acting president Raul Castro is making his first public content since taking over temporarily for his ailing brother. Raul Castro tells Cuba's Communist Party newspaper that Fidel Castro is recovering from intestinal surgery. He also says he mobilized thousands of Cuban troops after his brother became ill because he feared a possible U.S. invasion. The U.S. has said it has no plans to invade.

Ford Motor Company is announcing some big cutbacks. The nation's number two automaker plans to close 10 plants in North America for much of the rest of the year. It's trying to cut costs and deal with slumping truck sales. Ford plans to reduce production by 21 percent compared to a year ago. Workers will be paid nearly their full salaries while the plants are shut.

And Boeing says it may have to shut down production of its C-17 military cargo plane in 2009. It says Congress has not authorized new purchases. The aerospace giant is telling suppliers and subcontractors to stop working on planes that aren't already on order. The move is expected to affect 5,500 Boeing jobs in California, Missouri, Georgia and Arizona. Wolf?

BLITZER: Zain, thank you very much. Zane Verjee reporting.

Yet another twist today in the JonBenet Ramsey case. The reports that details only investigators and the killer could know are emerging. CNN has learned that John Mark Karr described the murdered six-year-old body in graphic detail. Our Susan Candiotti broke the story. She's joining us now live from Miami with more. Susan?

SUSAN CANDIOTTI, CNN CORRESPONDENT: Thanks, Wolf, and not only that, and if I may we will get to more of those details in just a moment. But let's give you some brand new information developing on the story we have just received by the Associated Press.

That is this -- you recall hearing that there might possibly be a link between John Mark Karr and the Polly Klaas murder, you remember the little girl from California who was murdered in 1993. You might remember hearing that John Mark Karr was obsessed with both the JonBenet Ramsey case as well as the Polly Klaas case. Now we have learned that officials at San Quentin Prison in California searched the cell of Polly Klaas' convicted killer Richard Allen Davis. They conducted that search yesterday.

And later on this afternoon, prison officials are said to be holding a news conference to talk about what if anything they found during the search of the cell of Richard Allen Davis. That's about all we have on that.

Now moving back to what you topped off with and that is this. A U.S. law enforcement official tells us that John Mark Karr offered details, physical, graphic details about the condition of JonBenet Ramsey's body. Information that has been known -- never been made public before and been known only to investigators and the medical examiner in this case, information that has been kept secret for 10 years.

It is not clear how John Mark Karr might have had access to this information. Obviously, this becomes part of this ongoing investigation. Perhaps we might learn more when Karr eventually makes it back to the United States, makes his first court appearance, perhaps some of that information will be contained in the arrest warrant. Wolf?

BLITZER: Susan but there's so many questions now being asked whether this guy may have simply confessed, made up this story. Is there any actual evidence, DNA evidence, handwriting samples, physical presence in Boulder, Colorado that night of the murder that suggests that there could be this link?

CANDIOTTI: That's what we are all trying to find out, what was the detail and what about a DNA link. As you know a DAN swab has been taken, we reported that, from John Mark Karr. But so far no results revealed to see whether there's a match between the crime scene and John Mark Karr.

Obviously that would be a key link between him and the murder of JonBenet Ramsey. There are questions whether he could have even been there in 1996 because his ex-wife claims he was with her in a different state altogether during that timeframe.

She says they were both in Alabama on that very day. All right. Suzanne Candiotti, thanks very much. We will monitor that news conference coming up in San Quentin and bring you the information as we get it right here in THE SITUATION ROOM. That's coming up. Let's check in with Jack. He's in New York with the "Cafferty File." Hi, Jack.

JACK CAFFERTY, CNN ANCHOR: Welcome home, Wolf, did you bring your windbreaker home with you?

BLITZER: I am thinking of putting it up for auction or something and giving the money to charity.

CAFFERTY: That thing should be bronzed and put in the Smithsonian or something.

Immigration enforcement officers do not plan to enter a Chicago church to remove an illegal alien who has sought refuge there since Tuesday. Elvira Arellan says it authorities want here they have to come get her, she has been to church with her son and says she is not coming out.

This is a woman who entered the country illegally in 1997. She was caught, she was deported, she came back within days. She was arrested in 2002 and ordered deported, again, but was granted an extension to stay in this country to care for her son who was born here. Supporters say that Arellano is an important example for immigrants around the country.

They claim no illegal alien with a child who is a U.S. citizen should be deported. One group is even urging all immigrants all over the country to seek sanctuary in their local churches. Imagine that. There's 12 million of them here. Here's the question -- should churches be sanctuaries for illegal aliens. E-mail your thoughts to caffertyfile@cnn.com or go to cnn.com/caffertyfile.

Wolf? BLITZER: Thank you Jack, Jack Cafferty with the "Cafferty File" and if you want a sneak preview of Jack's questions plus an early read of what's ahead right here in THE SITUATION ROOM. Sign up for our daily e-mail alert, go to cnn.com/situationroom. That's where you can do it.

And coming up my interview with Democrat Senate nominee Ned Lamont of Connecticut. He is trying to brand his Democratic Senate rival Joe Lieberman as a closet Republican. Is that strategy going to work? I'll ask Lamont. That's c0oming up one-on-one.

And concerning other political strategies, talking terror or politics? Are some politicians simply talking about the war against terrorists to wage war against their political enemies? And yet it's another dire diagnosis. Another politician tests positive for foot- in-mouth disease, this time it's former UN ambassador Andrew Young who makes inflammatory comments about Jews, Koreans and Arabs. Stay with us. You are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Not long ago you might say my next guest was a political unknown but now he's virtually a household name at least in the State of Connecticut after taking on President Bush and taking down Senator Joe Lieberman in the Democratic primary but has Ned Lamont's popularity been slipping lately or has it been going up?

A new poll from Quinnipiac University for the Connecticut Senate Race shows the newly independent Joe Lieberman beating Lamont by 12 points in a three-way race. So what might that mean?

Ned Lamont, thanks very much for joining us. Congratulations on your win in the democratic primary but the hard work looks like it's only about to begin, right now you saw that Quinnipiac University poll that has Senator Lieberman at 53 percent, you are down at 41 percent. How does it feel to win a Democratic primary yet still be behind the former Democratic candidate in the general election.

NED LAMONT, (D) U.S. SENATE CANDIDATE: Hi, Wolf. Delighted to be here.

It feels like Groundhog Day. We set the clock to midnight, we start all over again as of Wednesday morning after primary day. Look, I started out this race seven or eight months ago, I was an asterisk in the polls and I think we're right now within striking distance. I feel like it's very competitive. I feel like the people of Connecticut voted last Tuesday for real change and they are going to vote again for real change in November.

BLITZER: Now you want him to step aside. Is that right?

LAMONT: That's a decision only the senator can make. I got into this primary and said I am going to play by the rules of the primary and respect the winner of the primary.

BLITZER: But he went that the primary and basically said he wasn't going to necessarily respect the winner. Because he was making plans to run as an independent even before he lost.

LAMONT: That's correct, yup, he was having it both ways there.

BLITZER: But right now, given the fact he's ahead in the polls, it would be from his perspective crazy to drop out.

LAMONT: Again, that's a decision only the senator can make. I can tell you there a lot of his friends are urging him to reconsider but I have a feeling the senator's going to stay in the race.

BLITZER: So he's appealing in Connecticut. He's appealing obviously to Democrats, to independents and I assume there are a bunch of Republicans who like him a lot since the Republican candidate barely shows up in any of these polls. So this is basically a two-man race, is that how you see it?

LAMONT: Right now it looks like a two-man race. Senator Lieberman is overwhelmingly supported by Republicans, we have got the Democratic support and we are looking at moderates and independents, Wolf. And I am a guy that started up a business from scratch. I am not a career politician. I have met a payroll and I am going to go right at this race and offer people real change when I get to Washington.

BLITZER: One of your spokeswomen, Liz Dupont-Diehl said this in a statement the other day. She said, "It's no surprise that the National Republican Senate Committee has endorsed Lieberman." We checked with them and a spokesman said it's not true, they have not endorsed Lieberman.

LAMONT: I think what they did do is they said don't endorse the Republican and feel free to endorse Joe Lieberman individually if you would like to.

BLITZER: But they haven't formally endorsed Lieberman.

LAMONT: No. They have not.

BLITZER: All right. Now there was a little confusion the other day in some of the stories about your daughter, what is she, 18 years old? She was registered as an independent and her vote for you really was disqualified. Explain what happened on that front.

LAMONT: Oh, don't make me bring that up. She's 19 years old. This is going to be the first vote she ever had an opportunity to cast. She was going to cast it for her dad. So she and I went to the polling booth together there were a few TV cameras there with us and when we got to voting booth I didn't have my wallet actually and she found out she has inadvertently registered as unaffiliated. So she will be there in November, believe me.

BLITZER: She will be registered as a Democrat, you think.

LAMONT: I think so.

BLITZER: If you can't get your daughter's vote you are in trouble.

Let's talk about the big issue that dominated the primary, namely Iraq. You know the criticisms being leveled against you that you basically want to cut and run. That's what Republicans are saying. That's what a lot of those who support the war are suggesting.

Do you want to simply pull out U.S. troops unilaterally right now, irrespective of what's happening on the ground?

LAMONT: No. Obviously not. We've been very clear. First of all, I think George Bush rushed us into this war, I think Joe Lieberman cheered him on every step of the way. And now have 130,000 of our troops stuck in this bloody civil war, I don't think we're making the situation any better. I do believe it's time for us to change course. I think the people of Connecticut think it's time for us to change course.

By that I mean I think we ought to set a goal. I think we ought to have our front line troops, you know, home by a year from now. I think it's time for the Iraqis to step up, take responsibility for their own destiny, political and military. We can't pose a solution at the barrel of a gun, nor are we going to desert the people of Iraq. We will be there for reconstruction, we will be there for humanitarian, we'll be there for political support. We will have our troops in Kuwait. We will be there to make sure as a deterrent that Iran and others can't create mischief as the Iraqis solve this for themselves.

BLITZER: So you would want all 130,000 U.S. troops out of Iraq irrespective of what happens on the ground by next summer.

LAMONT: Yeah, that's our goal. We need to be very clear with the Iraqis. It's not an open-ended commitment. We should get our troops out of the way. It's time for the Iraqis to step up. They are going to have something on the order of 200,000 troops trained. They ought to step in. I think us in the middle of a civil war is not making the situation better.

BLITZER: What about this other issue that's a huge issue, warrantless wiretaps right now.

I want you to listen to what the president said today responding to this judge's decision, a federal judge in Michigan yesterday saying it was unconstitutional and should be stopped right away by the NSA, listen to this.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT: This conduct of ours is at war. And we must give those who are -- whose responsibility it is to protect the United States the tools necessary to protect this country in a time of war.

The judge's decision was a -- I strongly disagree with that decision, strongly disagree. That's why I instructed the Justice Department to appeal immediately. (END VIDEO CLIP)

BLITZER: What do you say to those like the president who argue that this is an absolutely essential tool that will save American lives in the war on terrorism?

LAMONT: I think the president has the tools to protect us. I think wiretaps are an important tool when it comes to intelligence. That's the front line of our defense. If the president wants to change any of the rules under the FISA courts otherwise, he should go to Congress and do so but I think the idea he can just say that he's above the law and he will interpret the law any way he sees fit is wrong.

BLITZER: What do you think, should there be an opportunity for the National Security Agency to engage in wiretaps without warrants?

LAMONT: Look, I think we absolutely have to have the wiretaps. My understanding is under the FISA courts, you can start the wiretaps to go to the courts ex post facto to the courts to get that permission.

So I think probably we have a situation that works. But if the president wants to come back and he wants something more aggressive, some more freedom, he should do so, but he can't just say I'm above the law and I will interpret it as I see fit.

BLITZER: Do you think the people of Connecticut are going to elect you come November given Joe Lieberman's track record these many years in the Senate?

LAMONT: Yeah. I think they will. The senator has been there a long time. But experience does not equate to judgment. First of all, I think this war in Iraq has done nothing when it comes to the security of the United States of America. It has destabilized the Middle East. We have taken our eye off the ball when it comes to Afghanistan, taken our eye off the ball when it comes to al Qaeda. I think that's been a mistake. And I think the people of Connecticut really think we ought to take care of homeland security in our own country. Be it the ports, the chemical, the nuclear facilities. We have been woefully inept at that over the last five years.

BLITZER: Ned Lamont, the Democratic candidate for the U.S. Senate. Thanks very much for coming to THE SITUATION ROOM.

LAMONT: Wolf, delighted to be here.

BLITZER: We would like to point out we invited Senator Lieberman to join us as well, his campaign tells us it is working to find a good time when the senator could join us right here in THE SITUATION ROOM. We look forward to speaking with Senator Lieberman as well.

And still ahead, he was the chairman of Working Families for Wal- Mart, so why did the Atlanta former mayor, Andrew Young's comments about Arabs, Jews and Koreans end his relationship with the famous chain of superstores? And it's a fair that's - it's a fair that's quite an affair, that is. There is duck calling, sheep, goats, and a herd of presidential hopefuls all strutting their stuff at this year's Iowa State Fair, Bob Franken, and only Bob Franken, our man, he's there covering this fair.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer in Washington. A Democratic Web attack that went after Republicans on national security has disappeared from the Internet. The video by the Democratic Senatorial Campaign Committee was criticized by Hispanic groups because they say it unfairly groups immigrants in with terrorists like Osama bin Laden.

So what's all this about? Let's bring in our Internet reporter, Abbi Tatton. Abbi?

ABBI TATTON, CNN CORRESPONDENT: Wolf, that ad is now gone from the DSCC Web site. It's been replaced by an ad about Iraq. We also tried to pull it up on YouTube where it appears to have been posted, as well. There is a message, this video has been removed by the user. Calls from CNN to the DSCC were not returned about this ad.

Another ad appearing on-line today, this one from the Republican National Committee criticizing the Democrats on national security. Let's pull it up there and we will play a little bit for you.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY, (D) MA: I actually did vote for the $87 billion before I voted against it.

REP. JOHN MURTHA, (D) PA: We need to redeploy and let the Iraqis handle this themselves.

(END VIDEO CLIP)

TATTON: After a string of quotes from prominent Democrats. The ad goes on to tout Republican achievement on national security. Asked for a comment on this latest ad, a spokesman from the Democratic National Committee responded, quote, there they go, again, he went on to add that the Republicans are trying to use fear to solve their political problems. Wolf?

BLITZER: Abbi thank you. In today's "Strategy Session", President Bush says a judge's ruling calling the NSA surveillance program unconstitutional doesn't understand the world Americans live in right now. Is he right and will terrorism be the focus of the upcoming midterm elections?

Joining us, CNN Political Analyst and Democratic Strategist Paul Begala and CNN Contributor and American Cause President Bay Buchanan.

Here's what the Pew Center poll -- you have seen these numbers Paul. Are you concerned that a Democratic Congress would weaken the U.S. on terrorism, 57 percent say, yes, 40 percent say, no. Is it any wonder Republicans want to as this as an issue?

PAUL BEGALA, DEMOCRATIC STRATEGIST: It's no wonder, but it's a fading issue. That same survey, as I'm sure you know, asked a follow- up questions: Are you more concerned that Republicans will get America engaged in too many military engagements overseas. People are more worried Republicans will be too reckless, too trigger-happy than they where worried that the Democrats are too week. They've narrowed the gap.

In years past, since 9/11, Republicans have had a 30 percent, a 30 point lead on terrorism. That's evaporated now. In fact, in today's "Washington Post" they report on a study that says security moms, who are, you know, mostly married woman, who are concerned about personal security, national security, voted 53-36 Republican in the '02 election, are now planning to vote Democrat by 50-38, so the security issue has flipped on the Republicans.

BLITZER: And it's this part, and I think you'll agree, Bay, because of the competence issue. Was the administration competent in handling the war in Iraq? Was it competent in handling Hurricane Katrina, the aftermath of that? I think that has hurt Republicans.

BAY BUCHANAN, PRESIDENT, AMERICAN CAUSE: There's no question, Wolf, there is an undercurrent with Republicans, as well as Democrats, but even with his own base, that the administration has fallen short on many counts.

However, on the issue, that Paul just addressed, he's correct that this issue of national security has flipped, has closed. However, in the last week we had the situation over their in London, and again today the decision by the judge that said the NSA taping was faulty, it was wrong. This brings the issue back into the forefront.

It has the Democrats out saying, see the president was too aggressive. I think this hurts Democrats because, Wolf, it tells Americans, listen the president has been assertive, he has been aggressive, he has stopped our country from being attacked again. And we are clearly presently continuing to be in threat. The Democrats are coming in on the wrong side of this. I think this could play to our advantage in November.

BLITZER: She said it was unconstitutional and illegal.

BUCHANAN: She did.

BLITZER: The judge in Michigan. She minced no words.

BUCHANAN: Yes, it was an activist judge, to say the least, on steroids, I might add.

BEGALA: I would say as an activist president -- but there is peril for both parties on this NSA wiretap issue. It's really an interesting one. The Democrats run the risk of looking weak, as has been a traditional problem for my party, really since the Vietnam War days.

But the Republicans also have a problem. This is not -- they can say it is a Democrat judge or activist judge, it's a federal judge. And when a president of the United States is found having violated the Constitution, he has a problem.

One of the ways, in fact the NSA did -- there are reports -- wiretap to help bust that plot in Britain, but they got a warrant first. And I even heard Ned Lamont, who is supposed to be a big liberal, saying I support wiretapping, let's just get a warrant. And the president has to make the case that he should have unlimited power instead of having to get a warrant, like the Constitution says.

(CROSS TALK)

BUCHANAN: I react as Americans across the country, you know, you say, hey, he was listening to the enemy. He was listening to the enemy who are plotting to attack us, good, Mr. President, you keep doing that and take your little slap on the hand by these activist judges.

BEGALA: I just want all this -- I want Hillary Clinton to have the same power to wiretap people that George W. Bush has. (INAUDIBLE) go to a federal judge before they do it.

BLITZER: John Edwards is weighing in on all of this issue. And I want you to listen to what he said yesterday.

(BEGIN VIDEO CLIP)

JOHN EDWARDS, (D) FMR. V.P. CANDIDATE: What Dick Cheney and George Bush want to do, they want to engage in fear mongering. They've want to scare the American people. The truth is the American people are stronger and more courageous than Dick Cheney believes. That we don't operate out of fear. I don't want my children and grandchildren to grow up in an America that operates out of fear.

(END VIDEO CLIP)

BLITZER: All right, Bay, why don't you respond.

BUCHANAN: So much total nonsense. The Democrats have attacked this president for the way he waged this war on terror for how long now? The Patriot Act they attacked him, the detainees, the wiretapping. They attack him constantly and now they say he cannot reverse this and say, defend himself, and explain to the Americans why he is tough, why he is aggressive, and indeed, expose Democrats as being entirely too weak and hesitant.

BLITZER: One of the Republican talking points, and it's a fair one, it's a good one, is that since 9/11, and we're approaching the fifth anniversary now, there has not been another major terrorist attack here in the United States.

BEGALA: Absolutely. So if you are satisfied with how we are fighting the war on terror, you need to vote Republican. That's what Democrats should say. Because my concern is that that talking point suggests a level of complacency, even laziness on the part of the Bush administration. They still haven't adopted the 9/11 Commission recommendations.

Every container coming outs of the port of Hong Kong is screened. Only 5 percent of the containers in America are screened. So I think they have a very stay-put, stand-pat, status quo, self satisfied approach. Keep in mind Al Qaeda waited eight years after the first of attack on the World Trade Center, until the second. So I think, for President Bush it's very perilous for Mr. Bush and Mr. Cheney to go around saying we have done such a great job, because Al Qaeda hasn't attacked.

BUCHANAN: Equally dangerous, or more so, is for the Democrats to say that they are somehow going to be tough and put Bill Clinton out there. He's a man, that under him, Al Qaeda attacked us three times. He did nothing during that time. He did nothing. They plotted and planned 9/11. The Democrats are too hesitant. We have Bill Clinton to prove it. So, you may say that we -- that George Bush may have been too aggressive, but I think the American people want that.

BLITZER: I will give you 10 seconds to respond for your former boss.

BEGALA: We'll take it to the voters. If we could repeal that goofy 22nd Amendment, put Bill Clinton on the ballot against George Bush --

BUCHANAN: Good luck!

BEGALA: We'd beat him like a barred mule.

BUCHANAN: I will take that any day.

BLITZER: Paul Begala and Bay Buchanan, thanks very much. And as our viewers know, Paul and Bay are part of the best political team on television, CNN, America's campaign headquarters.

Up next, you can find almost anything at the fair from rides to clowns and maybe even the next president of the United States. Why the Iowa State Fair is the place to be, for 2008 potential White House hopefuls.

And long-time civil rights activist, Andrew Young, asks for forgiveness after some rather controversial comments. Stay with us.

(COMMERCIAL BREAK)

BLITZER: There more than a year to go before the Iowa caucuses, but you won't necessarily know that if you went to the Iowa State Fair right now. In fact, fairgoers might just wind up shaking hands with the next president of the United States. CNN's Bob Franken, not going to be the next president of the United States, but maybe he's shaking hands with the next president of the United States.

What's it like out there, Bob?

BOB FRANKEN, CNN CORRESPONDENT, THE SITUATION ROOM: Well, if the country knows what's good for it, anyway.

What's it like here? Well, at the Iowa State Fair it's very easy to get your fill of both food and politics.

(BEGIN VIDEOTAPE)

FRANKEN (voice over): Did you know there are 20 different foods on a stick at the Iowa State Fair?

UNIDENTIFIED MALE: Nice to see you. How are you?

UNIDENTIFIED FEMALE: Welcome to the Iowa State Fair.

FRANKEN: And about a dozen possible candidates for president. Republican Senate Majority Leader Bill Frist, Doctor Frist, was the latest who came to take the pulse of Iowa's voters.

GOV. BILL RICHARDSON, (D) NEW MEXICO: Nice to see you, Bill Richardson.

FRANKEN: Democratic New Mexico Governor Bill Richardson happened to be in the neighborhood Thursday. So was one of the Republicans.

SAM BROWNBACK, Hi, I'm Sam Brownback.

UNIDENTIFIED FEMALE: Nice to meet you.

FRANKEN: So far 10 potential candidates have stopped by the state fair here, a year and a half before the all-important Iowa party caucuses. Joe Biden, Delaware Democrat, was here Wednesday, a day after Republican John McCain.

The visitors have included a roll call of presidential wanna- bes, among them Pataki, Bayh, Gingrich. Meanwhile, those they will need to impress are waiting to have their pet issues addressed.

UNIDENTIFIED FEMALE: Cutting taxes.

UNIDENTIFIED FEMALE: Yeah. Cutting taxes, stopping crime, family values.

UNIDENTIFIED MALE: In my opinion for the next election, I really want to see that they are pro military and treat our military guys right, and don't just leave them high and dry overseas.

FRANKEN: Right now the candidates are here mainly to be seen.

UNIDENTIFIED MALE: The media comes to Iowa, the candidates come to Iowa, the media comes to Iowa. There is a sort of a back and forth still symbiotic relationship.

FRANKEN: But for normal people, the political cattle show doesn't compare to the real thing -- or the real bull, or the butter sculpture of a cow, or to Waldo, the Huge Hog. No lipstick on this pig.

(END VIDEOTAPE)

FRANKEN: And, of course, Wolf there's an important lesson that the presidential politicians can learn here, for the campaign, it's the same one that one always learns at an agricultural fair, watch your step, Wolf.

BLITZER: You know, right after the midterm elections, Bob, as you well know, in November, it's only a little bit more than a year until the Iowa caucuses. And in U.S. politics that like a presidential sprint, but what I hear you saying is, that people are already gearing up, already, right now in Iowa.

FRANKEN: I think they started the day after the last election, Wolf. It probably seems that way, at least, to the people in Iowa.

BLITZER: Bob Franken having a little fun, I hope, in Iowa, as well. Thanks very much, a good report. Bob Franken reporting.

Coming up, from Virginia to Florida to Georgia. What's behind the recent rash of blunders from political figures? And does a flurry of activity in a secret North Korean site signal an upcoming nuclear test? Stay with us you are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Why would a man who has dedicated most of his life to civil rights, make some rather insensitive remarks about Jews, Koreans and Arabs. The man is the former Atlanta Mayor Andrew Young. Let's bring Mary Snow, she's watching the story in New York -- Mary.

MARY SNOW, CNN CORRESPONDENT, THE SITUATION ROOM: Wolf, Andrew Young calls his comments about immigrant store owners completely and utterly inappropriate. He has apologized. He's resigned from his job as a lobbyist for Wal-Mart, but it hasn't stopped the controversy.

(BEGIN VIDEOTAPE)

SNOW (voice over): On the Reverend Al Sharpton's call in radio show:

REV. AL SHARPTON, CIVIL RIGHTS ACTIVIST: You, me, and this new controversy of Andrew Young --

SNOW: The hot topic among callers, comments by Andrew Young, one-time aid to the Reverend Martin Luther King, former U.N. ambassador, congressman and former mayor.

In a "Los Angeles Sentinel" interview Young defended Wal-Mart's practice of driving mom and pop stores out of business, saying, quote, "You see those are people who have been overcharging us, selling a stale bread, bad meat and wilted vegetables. And they sold out and retired to Florida. I think they've ripped off our communities enough. First it was Jews, then it was Koreans, and now its Arabs, very few black folks own these stores." NIDAL IBRAHIM, EXEC. DIR., ARAB AMERICAN INSTITUTE: Having some knowledge about his relationship to Doctor Martin Luther King, and his efforts fighting bigotry, it was surprising and disappointing that he would make those comments.

SNOW: Groups representing Jewish and Asian-American communities, condemned the remarks but commended Young for apologizing.

In a statement, Young said, quote, "These comments run contrary to everything I have dedicated my life to. I apologize for those comments. I retract those comments."

SNOW: Repeated attempts by CNN to contact Young were unsuccessful.

Wal-Mart also declined an interview, but quickly distanced itself from the man it hired in February to boost its image. In a statement it said, "We were outraged when the comments came to our attention."

Not everyone was outraged, among the predominantly black listeners to Reverend Sharpton's radio show:

UNIDENTIFIED MALE: I have a problem with what he said. I have a problem with his apology.

UNIDENTIFIED FEMALE: Andrew Young spoke the clear truth.

SNOW: Sharpton called Young's statements unfortunate and said he was trying to reach him for explanations.

SHARPTON: I was surprised, as he used to warn us about how things can be taken, and can feed the very fires that you're trying not to inflame.

(END VIDEOTAPE)

SNOW: Sharpton said their are problems among small businesses in black communities, but it shouldn't be broken down by ethnicity -- Wolf.

BLITZER: Mary Snow, thank you very much.

On our political radar this Friday, a Florida congressional candidate is apologizing for comments he made about African-Americans. Tram Hudson told a Christian Coalition political forum, earlier this year, and I'll quote it now, "Blacks aren't the best swimmers or may not even know how to swim." Hudson now says it was a stupid comment and he's sorry.

Texas Republicans have selected an off-ticket candidate to support Tom DeLay's replacement. Despite his resignation, the courts prevented the GOP from removing the embattled congressman from the ballot in his district. Now precinct Republicans say they will back Houston City Councilwoman Shelly Secula Gibbs (ph), as a write-in candidate.

The Democratic National Committee votes tomorrow on a plan to drastically change the early presidential campaign season. The DNC will decide whether or not to move Nevada and South Carolina up the nominating calendar, which is typically dominated by Iowa and New Hampshire. The proposal is expected to pass. New Hampshire's attorney general says he will fight it.

Up next, churches have been a sanctuary for many people over many years, now an illegal immigrant is seeking refuge in a Chicago church, with her son, who was born in the United States. Should she be allowed to stay there? Your thoughts in "The Cafferty File". That's coming up.

And Apple Computer investigates claims of forced labor at an i- Pod factory in China. What is says it found. All that coming up, stay with us you are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: That's Zain Verjee, she's there, she has some other news making headlines right now.

Hi, Zain.

VERJEE: Hi, Wolf.

The Israeli government is facing another setback in the wake of political unease over the conflict with Hezbollah. Israel's justice minister announced today he will resign. He's facing trial on accusations that he forcibly kissed an 18-year-old female soldier last month. The minister is a key ally of the Prime Minister of Israel Ehud Olmert.

Security has been beefed up at one of India's most famous sites. Security officials say they received a letter threatening to blow up the 17th century Taj Mahal. Police are investigating whether it's a hoax. Dozens of armed soldiers are guarding the Taj Mahal around the clock. The symbol of eternal love is one of the Eight Wonders of the World.

This update now, Apple Computer says it can find no evidence of forced labor at an i-Pod factory in Shanghais, China. But the California-based company does say that it found that employees are working more than its weekly limits on days and hours. The investigation came in response to a British news report alleging poor conditions at the factory. Apple says it's taking measures to resolve the issues.

New developments now for firefighters on Wyoming's Casper Mountain. They are getting a break and even some help from cooler, calmer weather. They've been battling a 12,000-acre wildfire, threatening hundreds of homes. The calm air and unusually high humidity gave them a leg up. Crews have the huge blaze about half contained. Some evacuated residents have been allowed to go home -- Wolf.

BLITZER: Zain, thank you very much.

Still to come, she entered the country illegally and now she's taking refuge in a house of worship. Jack Cafferty wants to know, Should churches be sanctuaries for illegal immigrants?

And as truck bombs take a toll in Iraq, the FBI tries to help troops prepare by making vehicle bombs of its own. Our Kelli Arena sets one off. That's coming up in the next hour.

(COMMERCIAL BREAK)

BLITZER: CNN.com's most popular items, right now, they're up and about.

Let's go to Jack Cafferty. He's always popular here in THE SITUATION ROOM.

CAFFERTY: Yes. All right Wolf, thanks.

Immigration enforcement officers say they don't plan to enter a Chicago church to remove an illegal alien woman who has sought refuge since Tuesday. Elvira Arellano is there with her son. She says she's not coming out.

The question we asked is, should churches be sanctuaries for illegal aliens?

Jim wrote, from Beardstown, Illinois: "If the churches are going to get their noses into the illegal immigration debate, they should forfeit their tax exemption."

Stan in St. Joseph, Illinois, "Historically, churches have serve as sanctuary for many individuals and causes. I think church have a responsibility that goes beyond borders.

Ken in Brooklyn, New York: "The church has always been a safe haven for criminals. Child molesters have been protected, relocated and kept safe from criminal prosecution by these holy institutions. If I were an illegal immigrant, the church would be the last place that I would seek refuge."

Norma writes from Newhall, California: "Imagine briefly this woman was an Al Qaeda operative rather than an immigrant activist. Shouldn't we be concerned about the ease with which she was able to pass back across the border, live illegally here for years even though the INS new she was here illegally after having deported her?"

Yeah, Norma, I think so.

T. in Salt Point, New York: "The church shouldn't be a sanctuary to anyone, citizen or immigrant, that has broken any federal or state laws. They a re really harboring criminals and should be punished like any citizen would for doing so."

John writes from Marlton, New Jersey: "No, churches are reserved for the born-again, Bible-clapping politicians that have substituted religion for their past addictions."

This weekend, on "In the Money", that tidy little business program that we do here on CNN, just when ethanol looks like it might be the answer to cutting our dependence on foreign oil, we're going to talk to a guy who says it might not be all it's cracked up to be. His thinking is the more corn you use to make gasoline, the less corn there is to eat. "In the Money" airs Saturdays at 1, Sundays at 3 Eastern Time. We invite you to join us for that.

And since we have a couple of extra seconds, Wolf, why don't you give our viewers a glimpse at what it's like to be a glamorous TV anchorman, and tell us what your last 24 hours on this Earth have consisted of?

BLITZER: Uh, working -- and Jerusalem, getting off the air in THE SITUATION ROOM at 8 p.m. Eastern Time. Driving the Ben Gurian (ph) Airport, flying to Frankfurt, waiting for an hour and a half and going through all sorts of hassles to get on a plane from Frankfurt to Washington Dulles Airport. Getting into a car, and here I am, right now, Jack. Simple as can be.

CAFFERTY: Nothing to it, right?

BLITZER: Very glamorous.

CAFFERTY: All right. Well, it's good to have you back.

BLITZER: Thank you very much.

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