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The Situation Room

Is President Bush Revisiting Iraq Battle Plan?

Aired October 23, 2006 - 19:00   ET

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


WOLF BLITZER, CNN ANCHOR: Thanks very much, Lou. 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 tonight's top stories.
Happening now, bloody October in Iraq. Is President Bush revising his battle plan two weeks before America votes? It's 7:00 p.m. here in Washington. We'll get an inside view from the secretary of state's top adviser on Iraq, plus new poll numbers on the public's dim view of victory.

Also this hour, a Senate smack down gets even more confrontational, a new ad and an ambush fueled a fire in Tennessee. Is one side playing the race card?

And look who's opening the door to a White House campaign, Senator Barack Obama once said no. Is he saying yes now or maybe? Jeanne Moos reads between the lines.

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

We begin now with breaking news out of Baghdad where a search is now underway for an American soldier who went missing only a few hours ago. There are now fears this soldier may have been kidnapped. Our senior national correspondent John Roberts has been embedded with U.S. troops conducting this search. He's joining us now from Baghdad with this exclusive report. Update our viewers, John, tell us what has happened.

JOHN ROBERTS, CNN SR. NAT'L CORRESPONDENT: Good evening to you, Wolf. First of all, I should tell you that we have a tremendous amount of information about this missing soldier because we were there with the 172nd Stryker Brigade as they were conducting searches for what may be a kidnapped U.S. soldier. That's the fear at this point.

We have the soldier's name. We have the soldier's background. We have known possible whereabouts or at least last-known possible whereabouts. But we are trying to clear all this information with the Pentagon, so for now we're not going to report that. But here's what we can tell you.

About 5:30 this afternoon when we were on patrol with the 117 Infantry Battalion out of Fort Wainwright, Alaska, this is part of the 172nd Stryker Brigade, we got a 911 call about a missing U.S. soldier, a possible kidnapped victim. So we were dispatched to a certain neighborhood in Baghdad to start looking for this person, the last known whereabouts or at least suspected whereabouts of this person.

The 117 dismounted from the Stryker vehicles. They were going door-to-door; some of the houses that they went into were abandoned. The gates were locked, the doors were locked. They got out shotguns. They blew the locks off of the door. They went room to room, house to house, trying to find this person who the Pentagon believes is missing at this point.

It also led them into an area that is the home of Al-Furat television, which is a television station that is owned by the Shiite bloc in parliament, which holds the greatest number of seats. This sparked a little bit of a diplomatic incident, Wolf, because they are providing security outside of that television station themselves against possible attacks from Sunni militias. They had a tremendous number of weapons there.

The company that I was with was worried about security. They cordoned off the security guards. They brought out all of the weapons. They decided that there were weapons there that did not coincide with permits that these security guards had. So they decided to take those weapons back to their base here at Camp Taji, but part way through that operation, the owner of the television station pleaded with first of all the American military and then with Iraqi government authorities to allow them to get the weapons back saying that if they did not have those weapons, they might be left vulnerable to attack.

We got around the corner, then we drove back and we gave the weapons back. And Mowaffak Al-Rubaie, who you know quite well, the national security adviser for Iraq drove up just as the weapons were being handed back and was questioning American officers about the operation about why they took the weapons looking for some answers, making sure that all of those weapons got back. So an intense search was underway in some parts of Baghdad earlier tonight for the soldier who is missing, presumed to have been kidnapped, though they're not sure about this at this point.

There is -- there was no sign of this particular soldier during this particular search. The 117 now back at Camp Taji. They're going to be heading out on another patrol tomorrow morning. Don't know if the search for this missing soldier is going to be part of that, Wolf, but definitely a lot of concern here at Camp Taji and among the whole U.S. military here in Iraq as to where the whereabouts of -- about the whereabouts at least of this soldier, whether the soldier is missing, has gone AWOL, or has been kidnapped. Nobody is sure at this point, Wolf.

BLITZER: A lot of concern. John, how long have these soldiers -- the unit that you are embedded with right now, how long have they been in Iraq?

ROBERTS: They have been in Iraq since August of 2005. You might remember we had a lot of stories about the 172nd Stryker Brigade. They were supposed to have departed Iraq in August of 2006. They were packing up, getting ready go back home to Alaska when the orders came in that their tour of duty had been extended through the middle of November, so they have had an extra four months added on for their tour of duty.

A little bit of disappointment at first but they believe that they are doing an important job. We were out with them all day today, Wolf, and I'll tell you, those Stryker vehicles and the people who man them certainly are an effective tool in trying to quell the sectarian violence, which is threatening to engulf not only Baghdad but all of this country now.

BLITZER: All right, we'll check back with you. John Roberts embedded with the U.S. military, Camp Taji, outside of Baghdad. John thanks very much. We're going to stay on top of this breaking news for our viewers this hour and throughout night here on CNN.

Crucial midterm elections are now only two weeks away. One key issue overshadows all the races for control of the Congress; that would be the war in Iraq. In our latest CNN poll, one in five Americans believes the United States is actually winning the war. Almost the same number, 18 percent say the insurgents are winning. Sixty percent say no one is winning. As the Bush administration holds top level strategy huddles here in Washington, is the White House straying from its motto of staying the course in Iraq? Let's go live to our White House correspondent Suzanne Malveaux -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, really it is an extraordinary admission from the White House today and really illustrates the lengths to which the Bush administration officials are trying to convince the American people that they are, in fact, being flexible when it comes to Iraq. We heard from Press Secretary Tony Snow today saying that the stay the course message that has come from President Bush for the last months and months has been abandoned now.

You may recall the press conference the president held just a couple of weeks ago when he said stay the course is only a quarter correct. Stay the course means keep doing what you are doing. My attitude is don't do what you are doing if it is not working, change. And that's exactly what the Bush administration is trying to convince the American public of that they are willing to change.

(BEGIN VIDEO CLIP)

TONY SNOW, WHITE HOUSE PRESS SECRETARY: Because it left the wrong impression about what was going on. And it allowed critics to say well here is an admission that's just embarked upon a policy not looking at what the situation is when in fact it is just the opposite.

(END VIDEO CLIP)

MALVEAUX: Well, Wolf, make no mistake they are not talking about a failed Iraq policy per se. But they are talking about changing tactics. We saw the president meet with his top generals over the weekend. Coming out of that, there were no announcements about an increase or decrease in U.S. troops but rather continuing to push the Iraqi government to try to get a hold of the security situation as well as governance, critics say, Wolf that this really seems to be very much the same -- Wolf. BLITZER: Suzanne thanks very much -- Suzanne Malveaux at the White House. The strategy huddles come during an exceptionally bloody month for American troops in Iraq. Are U.S. commanders coming up with any answers to the rising death toll? Let's go to our Pentagon correspondent Barbara Starr -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Wolf, so far this month, 580 U.S. troops wounded in Iraq. But there is even tougher news about what a difficult month it has been.

(BEGIN VIDEOTAPE)

STARR (voice-over): With at least 86 Americans killed so far this month in Iraq, it is the worst month for the military in a year.

DONALD RUMSFELD, DEFENSE SECRETARY: And there's been a pattern that incidents have gone up during Ramadan.

STARR: Generals John Abizaid and George Casey, the two top commanders, now believes sending in large numbers of additional U.S. troops might only provide more targets and not improve security according to military sources. Instead, they are focused on getting Iraqis to take more control. The White House may not be talking timetables but Defense Secretary Donald Rumsfeld is doing just that.

RUMSFELD: Question is Wolf, when do you think that might happen? When do you think the Iraqis might be ready to do that, to assume those responsibilities?

(SOUNDS)

STARR: U.S. commanders say they asked for six Iraqi army battalions to fight death squads in Baghdad. Only two have shown up so far, leaving the U.S. short of 2,000 badly needed Iraqi troops in the city. The question is whether Prime Minister Nouri al-Maliki can stand up to the militias and assure the U.S. of progress.

RUMSFELD: I think people have to be realistic. And our hope is that we can assist them, the coalition can assist them in assuming responsibility for their country, as I said the other day, sooner rather than later.

(END VIDEOTAPE)

STARR: One indication of just how concerned top officials are, General George Casey, the top commander in Iraq, and Zalmay Khalilzad, the U.S. ambassador, will hold a rare joint press conference tomorrow to talk about the security situation -- Wolf.

BLITZER: All right, Barbara, thank you. Jack Cafferty has the day off. He'll be back on Wednesday.

Coming up, down and dirty in Tennessee, nasty politics, very nasty politics in a race the Republicans must win to keep control of the Senate.

Plus, a seat where the Democrats are facing a major challenge of their own -- it is a must-win for the Democrats, but can they hold on? Also the possibility of a possible run for the White House, Barack Obama and the evolution of a maybe.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: In the final two weeks before Election Day, the gloves are clearly coming off in some of the most critical match-ups. The Tennessee Senate race is one very striking example. An eye-popping new ad and a close encounter between the candidates are making that showdown even more bitter and bruising. Let's go to our senior political correspondent Candy Crowley -- Candy.

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Wolf, there are 33 Senate races this year, some of them a lot more fun to cover than others.

(BEGIN VIDEOTAPE)

CROWLEY (voice-over): You don't need polls to tell you when a race is close. In Memphis, a parking lot will do.

BOB CORKER (R-TN), CANDIDATE FOR U.S. SENATE: It's a true sign of desperation that you would pull your bus up when I'm having a press conference.

REP. HAROLD FORD JR. (D), TENNESSEE: No, sir, I can never find you anywhere in the state.

(CROSSTALK)

CORKER: Oh, I was in Jackson last night...

CROWLEY: Welcome to the Tennessee Senate smack down. Screen left, Democrat Harold Ford, who tried to crash a press conference held by screen right, Republican Bob Corker.

CORKER: As a matter of fact, this is my press conference. Not yours.

UNIDENTIFIED MALE: I would love to hear you talk about Iraq, though.

CROWLEY: They don't like each other much, but mostly they are radiating the heat of a pivotal race. There are no last words, just the next ones.

FORD: What kind of a man attacks another man's family in the face of a campaign? I will tell you the kind of man. His name is Bob Corker.

CORKER: I have never said a negative word about his family. He came in, in almost a juvenile fashion and crashed a press conference on Friday. It's been called the Memphis meltdown. And he just got through saying a load of non-truth.

CROWLEY: This is nastier than most, because it is not just about winning this race. It is about who will control the U.S. Senate. Republicans are trying to build a firewall to hold on to their majority status. If you weed out four Republican seats that look ready to fall, there are three must-wins for Republicans -- Virginia, Missouri, and Tennessee. Money is pouring into this state like a Niagara Falls of the South, some of it in ads, including this beaut.

UNIDENTIFIED FEMALE: I met Harold at the Playboy party.

UNIDENTIFIED FEMALE: I'd love to pay higher marriage taxes.

UNIDENTIFIED MALE: Canada can take care of North Korea. They are not busy.

UNIDENTIFIED MALE: So he took money from porn movie producers, I mean who hasn't?

(LAUGHTER)

CROWLEY: Even in this brawl, that's rough.

UNIDENTIFIED FEMALE: The Republican National Committee is responsible for the content of this advertising.

UNIDENTIFIED FEMALE: Harold, call me.

FORD: And I think my opponent has gotten very nervous and skittish. And this isn't the first ad that's been in the gutter.

CROWLEY: Not that Ford has not thrown some punches on the air, but even Corker says his party's ad is over the top.

CORKER: We think the ad is tacky. We think it's not senatorial. We think it has no place in this race.

CROWLEY: The ad is still playing. Did we mention this race is close?

(END VIDEOTAPE)

CROWLEY: Tennessee is also a race about history. If he wins, Harold Ford will be the first African American from the south elected to the Senate. Wolf?

BLITZER: Candy, thank you very much -- Candy Crowley reporting.

Still to come tonight in THE SITUATION ROOM, more on the breaking news we're following, an American soldier in Iraq missing and feared kidnapped. CNN's John Roberts was with U.S. troops when they learned of this incident. They are now involved in a search. We are going to bring you the very latest on this heartbreaking story that's unfolding in Iraq right now.

And will he or won't he? That would be Barack Obama -- puts one foot in the presidential pool.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: So what have they done for you lately? Not much Americans say when asked about members of Congress and what they've accomplished this year. Check this out.

A new CNN poll says a whopping 85 percent of Americans say they wish Congress had done more this session and many are calling it a do- nothing Congress. Let's bring in our White House correspondent Ed Henry. He's watching this for us -- Ed.

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Wolf, if Democrats take control of Congress, the onus will be on them to prove that they can govern, not just throw darts at President Bush. But for now, the onus is on congressional Republicans and they are feeling the heat.

(BEGIN VIDEOTAPE)

TOM DASCHLE (D), FORMER U.S. SENATOR: Senator Lott and I used to joke that if we really wanted everybody here for every important vote the only time we could actually schedule it was Wednesday afternoon.

HENRY (voice-over): Congress has become the Tuesday through Thursday club, with lawmakers enjoying a work schedule most Americans can only dream of -- pulling in $165,000 for what's essentially become a part-time job.

UNIDENTIFIED MALE: You're looking good.

UNIDENTIFIED MALE: (INAUDIBLE)

(LAUGHTER)

HENRY: Former Majority Leader Trent Lott recalls senators routinely lining up in front of his office, begging for their four-day weekends.

SEN. TRENT LOTT (R), MISSISSIPPI: Oh, yes. They just oh please, let me get out of here on Thursday tonight. I'd rather stay until midnight on Thursday so I can catch the 7:30 flight out or please don't have votes after about 7:30 so I can catch that and some of them would get pretty aggressive about it.

HENRY: A recent "New York Times" poll found most Americans can't name a single major piece of legislation that made its way through this Congress. Social Security reform didn't happen. Tougher immigration laws, nope, tighter ethic standards, not a chance. In the 1960's and '70's, Congress met an average of 161 days a year. In the '80's and '90's, that number dropped to 139 days. This year, Congress will probably end up working just about 100 days.

DAN ROSTENKOWSKI (D), FORMER U.S. CONGRESSMAN: It isn't a legislative process anymore. Work one day a week; work a day and a half a week. I mean, it's crazy. It is just crazy.

(END VIDEOTAPE)

HENRY: Now the result of all this is lawmakers in both parties are providing very little oversight of the White House Republicans. In this one-hour special we have at 8:00 Eastern are very candid in saying that they now realize they did not ask enough tough questions about Iraq before the war started and Democrats like Tom Daschle also candid in admitting he thinks Democrats did not stand up to the president enough right after 9/11 on issues like the Patriot Act, Wolf.

BLITZER: So Ed, the top of the next hour, you kick this off with the "BROKEN GOVERNMENT" series and you are going to folk news on Congress, 8:00 p.m. Eastern.

HENRY: That's right and another thing is that there has been such a partisan divide that very few lawmakers in both parties end up really standing up to their leadership. And we take a close look at a Republican lawmaker, Joel Hefley. He tried to stand up to the powers that be on these ethics issues, these scandals; he paid a heavy price for that.

BLITZER: Ed Henry thank you very much. And to our viewers, please stay with CNN and primetime all this week for our series on "Broken Government", 8:00 p.m. Eastern, except on Wednesday night. Our series begins an hour earlier 7:00 p.m. Eastern with a Lou Dobbs "BROKEN BORDERS" special. He'll be live from San Antonio, Texas.

In the lead-up to Election Day Americans are taking an increasingly dim view of the situation in Iraq and the war on terror. Let's bring in our senior political analyst, Bill Schneider. He has got some brand-new poll numbers -- Bill.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, there's a phantom candidate in every election called expected. It is not enough to win. You have to do better than expected.

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): Bad news from Iraq, Afghanistan, North Korea, and Iran are ticking a toll. Only 20 percent of Americans now believe the United States and its allies are winning the war in Iraq, half as many as last December. The numbers who say they are satisfied with the way the war on terrorism is going has dropped to 40 percent, the lowest level ever. Republicans are asking can you really trust the Democrats.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I view this as a clarifying moment for the country. A chance for Republicans, Democrats, and Independents to learn firsthand the differences of opinion we have in Washington, D.C.

SCHNEIDER: OK, which party would do a better job dealing with corruption? Democrats have an 18-point lead. Iraq, Democrats by 11 points. Republicans continue to have the advantage on terrorism, although it has narrowed to six points.

SEN CHUCK SCHUMER (D), NEW YORK: It's sort of in a little room and all the exits are closing. The security exit is closing because Iraq is a mess. The domestic policy exit is closing because the middle class is being squeezed. And now even the values exit is closing because they have so mishandled the Mark Foley problems.

SCHNEIDER: Most Americans believe the Democratic Party shares their values. Most believe the Republicans don't. Democrats are feeling cautiously optimistic.

UNIDENTIFIED MALE: I feel good.

SCHUMER: We are really feeling very, very good.

SCHNEIDER: The first President Bush speculated that his son might have to learn what to do if the Democrats win control of Congress. Hint, ask your dad.

BUSH: He shouldn't be speculating like that because -- he should have called me ahead of time. I will tell him they are not going to.

SCHNEIDER: Expectations for Democrats are rising. Most Americans believe that the Democrats will take control of the House of Representatives and by a very narrow margin, maybe even the Senate.

(END VIDEOTAPE)

SCHNEIDER: That could be a problem for Democrats. If they gain seats but fail to win the majority, it could look like a defeat for Democrats. They will have done worse than expected -- Wolf.

BLITZER: All right, Bill, thank you -- Bill Schneider reporting.

Just ahead, an exclusive update on the breaking news we are following out of Iraq -- an American soldier now missing in action. We will check back with CNN's John Roberts. He is embedded with U.S. troops who are on the search mission right now.

And later, Senator Barack Obama's new open-door policy at a presidential campaign. Is he saying anything voters didn't know already?

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: To our viewers, you're in THE SITUATION ROOM where new pictures and information are arriving all the time. Happening now, his whereabouts unknown -- that's the status of an American soldier who's gone missing in the past few hours in Iraq. There is a frantic search underway amid fears he may have been kidnapped. We will have an exclusive report in a minute.

Also, Hurricane Paul churning near Mexico's Baja Peninsula. It was a category two storm, but has now weakened to a category one. Forecasters say it could weaken even more by tomorrow.

And he's known as an architect of the largest corporate fraud in history. Today a judge sentenced former Enron chief executive Jeffrey Skilling to more than 24 years in prison for his role in the Enron scandal, attorneys say they will appeal.

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

Back now to our top story, the breaking news out of Baghdad where a search is now underway for an American soldier who just went missing a few hours ago. There are fears he may have been kidnapped. Let's bring in our senior national correspondent John Roberts. He's embedded with U.S. troops. John, you were there when they got word of this missing American soldier.

ROBERTS: I was embedded with the 177 Stryker Brigade, the 117 Infantry Battalion Charlie Company, when the 911-call came through. It was about 5:30 this afternoon, Wolf, and I should tell you that because we were with the lead element who is conducting the search for this missing U.S. soldier, we do know the soldier's name, rank, what they were tasked to so, the background of this soldier, perhaps their last known whereabouts or their suspected whereabouts, but we're checking with the Pentagon and with the multinational force to make sure that divulging that information (A), would not compromise security, or (B), endanger this particular soldier's life.

But here's how it unfolded. We were on a routine patrol when the call came in over the radio. The commander of the unit that we were with was given coordinates to where they believe this soldier may have been. I can't tell you how they found out that information, Wolf, at this point, but we hope to be able to in the not too distant future.

The Stryker units, there were three of them, ran into this area. The soldiers dismounted and started conducting a house-to-house search. There was one house that was boarded up, it was all locked up. It was vacant. They had to break their way in, use bolt cutters to cut the chains on the front gates, use their shotgun to blow the locks off the doors and conduct a thorough search of that house. But no sign of the missing soldier.

And Wolf, they continued through that neighborhood, going into houses, talking to a lot of people on the streets. They even looked through a television station that is associated with the Supreme Council For Islamic Revolution in Iraq, which holds the greatest number of seats in the Iraqi Parliament, caused a little bit of diplomatic issue, that search did, as well as the seizure of some weapons from that area. That all got straightened but. But Wolf, at this point the whereabouts of that soldier still unknown.

BLITZER: And these soldiers that you are embedded with, they've been in Iraq for an incredibly long time.

ROBERTS: They have, Wolf. They were supposed to go home in August of this year. They were sent into Iraq in August of 2005, but at the very last minute, just as they were packing up, this is a group from Fort Wainwright, Alaska, they told that their tour of duty had been extended for four months' time.

A lot of disappointment with these soldiers who'd been here for so long, particularly among the family members who were expecting their loved ones home. But Wolf, they've got a good attitude about it. They know they have about a month left to go, so they're ticking off the days here and trying to complete the mission to the best of their abilities.

And I saw them out on the search tonight, Wolf. And they're leaving no stone unturned. They're going at this with as much professionalism and as much enthusiasm as they possibly can.

BLITZER: We'll pray for his safe return.

John, thanks very much. And we'll check back with you as we get more information.

Also concerning Iraqis, a man who used the word stupidity in relation to the war. But while you might think he's a critic of President Bush, he actually works in the Bush administration.

Let's bring in CNN's Zain Verjee, she's watching this story for us -- Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Wolf, two words got him in trouble on T.V. Alberto Fernandez is saying "Oops," and has apologized.

(BEGIN VIDEOTAPE)

(voice-over): He whipped up a firestorm over comments he made about U.S. Iraq policy, and now he's trying to pour cold water on them. Senior State Department diplomat Alberto Fernandez says he's sorry.

ALBERTO FERNANDEZ, U.S. STATE DEPARTMENT: (SPEAKING IN ARABIC)

VERJEE: He told the Arab T.V. network Al-Jazeera that there's a strong likelihood history will show the U.S. displayed arrogance and stupidity in how it handled the Iraq war.

In a statement released Sunday night by the State Department, Fernandez says,

"Upon reading the transcript of my appearance on Al-Jazeera, I realized that I seriously misspoke by using the phrase 'There has been arrogance and stupidity by the U.S. in Iraq. This represents neither my views nor those of the State Department. I apologize'"

Earlier Fernandez told CNN that he was just answering questions about how the United States would be judged in the future, defending U.S. policy in a region where no one likes America.

At today's State Department briefing, Spokesman Sean McCormack this to say about the Fernandez uproar.

SEAN MCCORMACK, STATE DEPT. SPOKESMAN: As far as we're concerned the matter is closed.

QUESTION: Was he rebuked by his superiors for this?

MCCORMACK: He's still in his job.

VERJEE: While Fernadez's comments ignited furor, he insists he didn't say anything that hadn't been said before by other officials, including the U.S. ambassador to Iraq, Zalmay Khalilzad, who said earlier this month, "Although well-intentioned, there have been times when U.S. officials behaved arrogantly."

Even Secretary of State Condoleezza Rice has acknowledged U.S. mistakes in Iraq, like what she said in Blackburn, England earlier this year.

CONDOLEEZZA RICE, U.S. SECRETARY OF STATE: I know we've made tactical errors, thousands of them, I'm sure.

VERJEE: She later tried to clarify her comments.

RICE: I meant it figuratively, not literally.

(END VIDEOTAPE)

VERJEE (on camera): Fernandez has been described to CNN as someone who's passionate about issues in the Middle East, someone who wants to engage the viewer in a debate rather than give the party line. But this time, he may have gone a little too far -- Wolf.

BLITZER: And in private, Zain, as you know, a lot of Bush administration officials have long suggested that former ambassador L. Paul Bremer was arrogant in the way he conducted that provisional government early on.

We'll continue to watch the story, Zain. Thank you very much.

With Iraq awash in violence and bloodshed this October, the Bush administration is holding high-level talks on its overall Iraq strategy. And it's trying to show a new willingness to be flexible. But how flexible? And how hard will President Bush actually push the Iraqi government to meet benchmarks for success?

Joining us now is Senior Adviser on Iraq to the Secretary of State, Condoleezza Rice, Ambassador David Satterfield.

You are just back after almost 16 months in Iraq. You saw the situation up close and very, very personal. I assume you are glad to be back here in Washington where there are other pitfalls beyond the dangers in working in Baghdad.

One of your colleagues, Alberto Fernandez, an Arabic speaker, was on Al-Jazeera the other day and he said this, according to our translation. He was speaking in Arabic.

"We tried to do our best but I think there is much room for criticism, because, undoubtedly, there was arrogance and there was stupidity from the United States in Iraq."

Now, he's come to apologize for those remarks. But as you know, a lot of people believe there was a lot of arrogance going into this war and a lot of stupidity.

DAVID SATTERFIELD, SENIOR ADVISER TO SECY. OF STATE: Well, Wolf, we don't agree with those remarks. Mr. Fernandez has expressed his own regret for having made them. This administration assesses constantly how to respond, how best to adapt to changing circumstances in Iraq.

We don't underestimate the seriousness or the complexity of the situation as it affects us, as it affects the Iraqi people themselves, who are the prime victims, the prime sufferers from this. But, arrogance, stupidity, no.

BLITZER: Because it's clearly more dangerous today than it was when you got there 16, 17, 18 months ago. It did not improve during your tenure in Baghdad.

SATTERFIELD: Well, Wolf, the fundamental nature of the threat has changed. The threat has moved from an insurgency with two different extreme wings, Baathists and Saddamists on the secular side, al Qaeda on the religious extremist side.

It is something very different, and frankly, much more threatening. And that's sectarian violence, sectarian killings primarily in Baghdad.

BLITZER: Why did it get so bad? Because a lot of people, including the Republican Senator Arlen Specter -- he was on "LATE EDITION" on CNN yesterday, he now says flatly, this is a civil war.

Listen to what he also says. Listen to this.

(BEGIN VIDEO CLIP)

SEN. ARLEN SPECTER (R-PA): We have James Baker saying that there are alternatives besides staying the course and cutting and running. And I don't believe a shift in tactics ought to wait until the election. There are too many casualties there. If we have a better course, we ought to adopt it sooner rather than later.

(END VIDEO CLIP)

BLITZER: Now you were there at the strategy session at the White House on Saturday, when the president was briefed by his military commanders. A lot of people say, you know what, if there has to be a major change, don't wait until after the election. If it can save the lives of American troops and others, do it right now. Is a major shift in strategy in the works right now?

SATTERFIELD: Wolf, we are assessing and we have been assessing for some time in the form of the consultations that the President undertakes with his senior military commanders and political advisers, both in Baghdad -- we went through these when I was there, as well as with his staff in Washington. What's the situation? What's the threat? What's the challenge? How best to respond?

We try to adapt on a continuous basis for this. And I would steer away from the idea of dramatic radical changes, but to more adjustments and strategy to cope with changing situations on the ground.

BLITZER: How much time does he have, Nouri al-Maliki, the prime minister, to show the United States, the world that he can crack down on these death squads and these militias and get the job done? Because in the meantime, a lot of Americans are dying and we're spending billions of dollars every month.

SATTERFIELD: A lot of Americans are dying and Iraqis are dying. A lot more Iraqis are dying. Progress needs to be made as rapidly as possible on security, on reconciliation and political process.

Is there a timeline? I can only tell you that the longer things go on while this killing and violence increases, while sectarian divisions increase, the more difficult it makes it for the Iraqis, for us, for all the friends of democracy and peace in Iraq to see this through to success. Action needs to be prompt.

BLITZER: Will there be a change before the election, do you think?

SATTERFIELD: We will take whatever steps are necessary as soon as possible to help address the situation. The elections are not a factor in this at all.

BLITZER: Ambassador David Satterfield, good to have you back here in Washington. Thanks very much for coming in.

SATTERFIELD: Happy to be with you.

BLITZER: And still ahead tonight in the SITUATION ROOM, things are very tense in Tennessee right now. An already rough Senate race is getting even rougher. Now one prominent Republican says members of his own party may wrongly be playing the race card in this battle in Tennessee.

Also, you might think he's a rock star, judging by the reception he gets virtually everywhere he goes these days. That would be Senator Barack Obama. Many want to know if he'll run for president in 2008. Now the man from Illinois is answering, sort of.

We'll be right back.

(COMMERCIAL BREAK)

BLITZER: Now to a race that could prove pivotal in the balance of power in the United States Senate. Let's bring in Mary Snow. She's watching this for us -- Mary.

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, for Democrats, New Jersey is a must-win state if they want to gain control of the Senate. And to get a sense of how high the stakes are, consider who has been on the campaign trail lately.

(BEGIN VIDEOTAPE)

SNOW (voice-over): In Democratic Senator Bob Menendez's corner...

SEN. HILLARY RODHAM CLINTON (D), NEW YORK: If we can take back the Congress, we will stop that radical right-wing Bush-Cheney agenda!

SNOW: In Republican Tom Kean Jr.'s corner...

SEN. JOHN MCCAIN (R), ARIZONA: The control of the United States Senate, (inaudible) probably under Democratic control is (inaudible) the state of New Jersey. The eyes of America will be on this race.

SNOW: Senators Clinton and McCain, viewed as front runners in the 2008 White House race, were just the latest to campaign in the Garden State.

Presidents past have also visited. President Bush rallying support for Kean, and President Clinton doing the same for Menendez.

JENNIFER DUFFY, COOK POLITICAL REPORT: This is a race that to me defies political gravity.

SNOW: That's because New Jersey is a blue state that hasn't elected a Republican senator since 1972. Tom Kean Jr. is hoping to change that. He's the son of former governor and 9/11 Commission chairman, Tom Kean. He's tried to tie his opponent to the ethics problems that have been plaguing New Jersey politics.

UNIDENTIFIED MALE: Kickback schemes, federal criminal probes. That's what you get with Bob Menendez.

SNOW: Menendez's strategy has been to tie Kean to President Bush.

UNIDENTIFIED MALE: Tom Kean Jr. is running a negative smear campaign. Why? Because he doesn't want you to know he will be another vote for the Bush agenda.

SNOW: Their ads have made headlines for their nasty tone, and so have their debates.

SEN. ROBERT MENENDEZ (D), NEW JERSEY: If we are going to continue down the negativity, which I thought we were trying to avoid...

THOMAS KEAN JR. (R-NJ), CANDIDATE FOR U.S. SENATE: You're answering my question...

(CROSSTALK)

SNOW: With the fate of the Senate at stake, political observers say expect heavy political hitters to line up in the state, with one exception. They say while first lady Laura Bush is campaigning for Kean, don't expect to see President Bush.

DUFFY: Well, New Jersey is such a blue state, and Kean is running as a very independent Republican. So a rally with Bush wouldn't do Kean any good.

(END VIDEOTAPE)

SNOW: This race is so close, it is considered a tossup, and with political observers saying that at the end of the day, it may be money that will be the deciding factor -- Wolf.

BLITZER: All right, Mary, thank you.

At least one prominent Republican is now accusing his own party of using racial politics in the Tennessee Senate showdown. As we reported earlier, the RNC is airing a new ad that shows a white woman saying she met the Democratic candidate, African-American Congressman Harold Ford Jr., at a Playboy party. I spoke about that and the broader battle for Congress with former Defense Secretary William Cohen, who also served for many years as a Republican senator.

(BEGIN VIDEOTAPE)

BLITZER: Put on your political hat for a moment. You were elected for many, many years...

WILLIAM COHEN, FORMER DEFENSE SECRETARY: Right.

BLITZER: ... in the House of Representatives, then the Senate. It looks like the Democrats have the momentum behind them right now. But a lot can still happen in the final two weeks.

COHEN: There are two -- two things I would say. Number one, the Democrats should be very careful about not appearing to be, quote, "giddy," which has been quoted on -- on several accounts here. That is something that can only fire up the Republican base, which may not be quite as enthusiastic about going to the polls on this occasion. And I think it doesn't serve the Democrats well.

Secondly, I think the Republicans have to be careful, also, in terms of not engaging in conduct -- and I was watching the Tennessee race specifically. It reminded me of what happened in North Carolina with Harvey Gantt, a purely overt racist approach.

BLITZER: You are talking about the new RNC ad, which has this white woman talking about Playboy and the African-American candidate, Harold Ford Jr., the Democratic candidate.

COHEN: It's -- to me, at least as I watch that, it's a very serious appeal to a racist sentiment.

And when the question is always asked, why -- he would be the first African-American since Reconstruction elected to the Senate, you say, well, why is that the case? So, why is the South different? Why would they not elect someone...

BLITZER: So, you're a former Republican senator. Is the RNC playing the racial card against Harold Ford in Tennessee right now?

COHEN: I think they are coming very close to it, if not doing it exactly. I think they ought to stop it. I think that they have a candidate, and discuss the -- the issues on the merits, and not get into that kind of personal type of an attack.

We know that negative attacks work. But we're living in a country now when we have to come together. Once this election is over, we have to find some way of getting together with Democrats, if they take the majority in the House, or come close in the Senate. They have to work together. You cannot govern from the extremes. You must govern from the center. And it's very important that we try to do that.

BLITZER: Thanks for coming in, William Cohen, as usual. Appreciate it.

(END VIDEOTAPE)

BLITZER: A new kind of game is gaining popularity online. It is called Fantasy Congress. Abbi Tatton joining us with more -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, with names like Traficant for President and Barack and Roll, this is not your regular kind of fantasy league. This is Fantasy Congress, where users draw a team of sitting members of the House and Senate. It's the brainchild of a group of students at Claremont McKenna College in California, and it's growing in popularity. Sixteen hundred users now signed up to the new site, waiting for lawmakers to get back into Washington so they can all start playing.

How does it work? Well, points are scored when a lawmaker moves legislation through Congress. Five points for introducing a bill. Fifty if the president signs it into law.

For novices, there are illustrated guides to help you understand the process. And you can slip through the stats of lawmakers as if they were baseball cards.

And if a member of your team isn't doing so well for whatever reason, don't worry; there is a weekly opportunity to bench them for someone new -- Wolf.

BLITZER: Thank you very much, Abbi, for that.

Up ahead, we are going to take you back to the ground in Iraq for a much closer look at what's fueling the violence. Michael Ware with that.

Also, the evolution of a baby. Barack Obama dips his toe in the presidential pool. Jeanne Moos with that. Stay with us. You're in "THE SITUATION ROOM."

(COMMERCIAL BREAK)

BLITZER: Let's get back to our top story, the crisis in Iraq. (BEGIN VIDEOTAPE)

BLITZER: And joining us now from Baghdad, our correspondent, Michael Ware -- Michael, I'm sure you've heard about these comments on Al Jazeera from a senior State Department official, Alberto Fernandez, suggesting in Arabic that U.S. policy in Iraq has been -- has shown "arrogance and stupidity."

You speak to U.S. diplomats, officials, military commanders on the ground all the time.

Is there a sense that U.S. policy over the past three-and-a-half years has shown "arrogance and stupidity?"

MICHAEL WARE, CNN CORRESPONDENT: Well, what's clear, what is common consensus and taken as fact here on the ground, Wolf, by senior U.S. commanders, by top U.S. diplomats is that grave errors were made, particularly in the first year of the occupation in Iraq. Most often cited was the way in which the disbandment of Saddam's military was handled, the extent and depth of de-Baathification and a host of other issues.

There's a whole range of reasons postulated as to explain those mistakes, from ideology run-amok to people not listening to those on the ground to people simply being unaware or unaccepting of the realities to suggestions that people were far too cloistered and shrouded within the green zone and other fortified bases.

I think implicit in most of those is some element or charge of arrogance and/or stupidity -- Wolf.

BLITZER: Why is October of this year, this month, shaping up already as the worst month of the year for the U.S. military in Iraq?

WARE: Well, there's a whole host of factors at play here, as well, Wolf.

I mean, firstly, this has been the month of Eid, of the holy month of Ramadan. This is a time traditionally of an offensive by the insurgents. Indeed, this is the fourth Ramadan offensive of this war. So there's naturally an increase in insurgent activity.

Couple that with an increased presence of U.S. troops on the streets of the capital in what's the now ailing if not failing Operation Together Forward, or Battle of Baghdad. That increases the U.S. troop exposure. And don't forget, the insurgency took a number of hits this year in terms of its leadership, most spectacularly Al Qaeda in Iraq losing Abu Musab al-Zarqawi, its charismatic leader. These insurgents, these groups, had to re-gather. And we see them now lay out yet another offensive platform.

And don't forget, once more, the insurgents here are savvy politically. They're attuned to what's happening elsewhere in the world, and particularly what's happening with American domestic policy. So I'm sure that's a factor in this upswing in American casualties -- Wolf. BLITZER: Michael Ware reporting for us from Baghdad.

Michael, thanks very much.

WARE: Thank you, Wolf.

(END VIDEOTAPE)

BLITZER: Still ahead, Obama '08? The senator himself finally gives a little bit of a hint. CNN's Jeanne Moos is next with the growing buzz.

(COMMERCIAL BREAK)

BLITZER: So will Obama run? Here's CNN video columnist Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN VIDEO COLUMNIST (voice-over): Barack Obama has been generating buzz, from Africa to Oprah.

OPRAH WINFREY, TALK SHOW HOST: Barack Obama.

MOOS: You'd be doing a little dance too if everyone were asking you...

TIM RUSSERT, NBC CORRESPONDENT: Are you running for president?

BLITZER: Is it a silly question?

OBAMA: Making sure the Democrats...

UNIDENTIFIED FEMALE: You're too busy to think about running for president?

MOOS: But we're not too busy to ask. Will he or won't he? We now have an answer, sort of. He will, maybe, possibly, some day -- maybe some day soon.

RUSSERT: But it's fair to say you're thinking about running for president in 2008?

OBAMA: It's fair, yes.

RUSSERT: It sounds as if the door has opened a bit.

OBAMA: A bit.

MOOS: Can you imagine if he opened it all the way?

UNIDENTIFIED MALE: We certainly have seen a lot of him lately, haven't we?

MOOS (on camera): Too much or not enough?

UNIDENTIFIED MALE: Well you know, I didn't pay attention. He certainly makes sense when he talks, which a lot of them don't.

MOOS (voice-over): Reporters love digging out those old sound bytes from back when the door was closed.

RUSSERT: So you will not run for president or vice president in 2008.

OBAMA: I will not.

WINFREY: Would you announce on this show?

MOOS: And Obama's the cover boy on "Time" magazine. It sure beats the cover of questioner held up at Hillary's latest Senate debate.

UNIDENTIFIED MALE: From "Time" magazine.

MOOS: That's Senator Clinton giggling. She is used to deflecting the "are you running for president question."

SEN. HILLARY CLINTON (D), NEW YORK: I have made no decisions about any future plans. I don't know what the future holds. I can't make a decision now.

UNIDENTIFIED MALE: Come on, senator. You haven't thought about it at all? About running for president?

CLINTON: I didn't say that.

MOOS: The Obama watch has already started churning out puns. "Hil better watch her Barack." What's next? Barack to the future? Folks on the street seem to think he has a future.

UNIDENTIFIED MALE: I think he's awesome.

UNIDENTIFIED FEMALE: I think he is fabulous.

UNIDENTIFIED FEMALE: Best thing since Bill Clinton.

UNIDENTIFIED FEMALE: He certainly is an attractive person and that's a pleasant change.

MOOS: Speaking of changes, while Senator Clinton proposed changing defense secretaries, getting rid of Donald Rumsfeld, her Senate opponent fired back.

UNIDENTIFIED MALE: You are not president yet, Mrs. Clinton, so do not call for that.

OBAMA: There is a famous saying that every United States senator wakes up in the morning and looks in the mirror and looks at a future president.

MOOS: But at least when a senator looks in the mirror...

UNIDENTIFIED FEMALE: ... Brixman Omen? Something like that? MOOS: ... He knows how to say his own name.

UNIDENTIFIED FEMALE: Barrack?

UNIDENTIFIED MALE: What does he do? Anything good? Never heard of him.

UNIDENTIFIED MALE: Barack Obama? Never heard of him, to tell you the truth.

UNIDENTIFIED FEMALE: His name is like Iraq Ofembala.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

BLITZER: And that's it for us. With only 15 days left until Election Day, CNN presents an "America Votes 2006" special, "Broken Government." Tonight, Ed Henry reports on "The Do Nothing Congress."

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