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American Contractors Ambushed in Iraq; Arrest Warrant for Sunni Leader Raises Fears of All-Out Civil War

Aired November 16, 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, breaking news. We're getting word of an ambush involving American contractors in Iraq. Some have been taken hostage. It's 3:00 a.m. in Baghdad where there's also an arrest warrant issued for a key Sunni leader raising fears of all-out civil war. And even as Congress debates ways to bring U.S. troops home, there is word that more Americans are about to be sent to Iraq.

It's 7:00 p.m. here in Washington. One nasty dispute is resolved by divided House Democrats. Another though is brewing. We'll speak with the incoming majority leader Steny Hoyer.

And she stood by his side during a long presidential campaign. He stood by hers during a long illness. Are they ready for another campaign right now? In THE SITUATION ROOM tonight, John and Elizabeth Edwards.

I'm Wolf Blitzer. And you're in THE SITUATION ROOM.

We begin with breaking news we're following out of Iraq. The U.S. military saying a number of security contractors, including four Americans have now been abducted following the ambush of a supply convoy. The attack took place in southern Iraq near Nasariya. Our Michael Ware is standing by in Baghdad, but let's turn and go to the Pentagon, our senior Pentagon correspondent Jamie McIntyre for the latest developments. What do we know right now, Jamie?

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Wolf, officially the U.S. military is saying very little about this except that there was an incident, they are calling it, near Nasariya involving a convoy. That's all they'll say for the record. While they say they are gathering information and about to put out some sort of release.

Unofficially a U.S. military official confirms to CNN that as a result of this incident or attack, that a number of people were abducted by unknown assailants, including, it is believed, four U.S. contractors who are working as part of this supply convoy. It is not known who was responsible for the abduction, although it took place in or near Nasariya in the southern part of Iraq, a largely Shia area. But again, the U.S. military insists that it's still gathering information. They did confirm, however, that a search is under way for those missing American contractors -- Wolf.

BLITZER: Stand by, Jamie. I want to come back to you. Michael Ware is our man in Baghdad. You are checking this story out as well. What are you hearing in Baghdad, Michael?

MICHAEL WARE, CNN CORRESPONDENT: Well, Wolf, obviously it's very difficult. It's 3:00 a.m. here. And the city is under curfew like the rest of the country. But I've just spoken to some of the British forces in the south. They confirm that an incident has taken place. However, they say that it did not involve any British military or British civilians. Nonetheless, we have been told here in the capital that as many as four American contractors may be missing. So it's confirmed that it's in the area of Nasariya and clearly, there's a lot yet to come -- Wolf.

BLITZER: What we're hearing also, Jamie and Michael, let me pick it up with Michael first, that this is one of these regular convoys. There's an enormous amount of traffic, ground traffic going in from northern Kuwait where they stage -- I was there last year and watched how they do this -- usually 30 or 40 trucks. They drive on that 400- mile road toward Baghdad and beyond, usually under pretty heavy security right now. Certainly it's a very dangerous drive from Kuwait up to Baghdad. But, Michael, I'm sure you've been on that road many times. These contractors, these truck drivers, the U.S. military who go along with them, they are doing it all the time.

WARE: Absolutely. Generally what we see is a certain company will have a contract to provide food or other services to the U.S. military or coalition forces. They will then contract a security firm to protect their facilities and their convoys. It seems to be that this is the type of convoy that we're talking about. So it has a private security firm that is providing the protection.

Now what we understand is it was traveling towards one of the major bases in or around Nasariya. Nasariya, there is certainly one American logistics facility that is very significant and deals with a lot of the supplies that come into the country for coalition forces. So there's a lot of regular traffic. We also know that in this province, around this area, there has been some tension with the coalition forces, the Brits who are in control of that area.

And the governor of that province has requested or insisted that British forces do not patrol the area and restrict themselves to the protection of these logistics bases. This is an area that is controlled by Shia militias. Some of which U.S. intelligence claims are backed by Iran. This is not a Sunni area and this is unlikely to be the work of Sunni insurgents -- Wolf.

BLITZER: Jamie McIntyre, this coming on a day where the U.S. military announcing that 2,200 more United States Marines are about to be deployed to the Anbar Province, that huge province in Western Iraq. What's going on, on that front?

MCINTYRE: Well, again, a day after General John Abizaid made a pretty spirited argument that additional U.S. military forces really wouldn't make much difference in the long run, he also conceded that he had approved this dispatch of some 2,200 Marines, part of a force that had been held in reserve on ships to the al Anbar Province to assist the 20,000 Marines already there. This is an area where admittedly all U.S. commanders admit they do not have control of al Anbar Province, which is a Sunni insurgent stronghold.

But just to come back to the point that Michael Ware made, this abduction that took place in the south of Iraq is an area that's controlled by Shia militias. And coming after a day when we saw this mass kidnapping in Baghdad, which was carried out by people who appeared to be dressed as Iraqi police, it raises the questions about whether -- whether there could have been any Shia militia involvement in this incident in the south. And again I just want to stress the U.S. military says it is still gathering information about precisely what happened, even as they've already launched a search to try to see if they can find the missing people.

BLITZER: And Michael, even as the tension, the tense -- the tension level in Iraq is sky high right now, potentially it could get a whole lot worse in the coming days with word now that the Iraqi interior ministry has issued a warrant for the arrest of a top Iraqi Sunni leader. What's going on, on that front?

WARE: Well, what we know is that this evening the ministry of interior announced that it issued this arrest warrant for this leading Sunni cleric. Now he may not speak for all Sunnis in Iraq, but certainly most of that community will see this as an attack on them more broadly. Now what generally is happening is that we're seeing this predominantly Shia-led government, and this is a government that has buried deep within it many, many of these militia elements. We're seeing it going on the offensive.

It clearly thinks elements within this government that now is the time, during this period of strategic uncertainty in the U.S. following the midterm elections, there is a U.S. soldier missing who was, according to the U.S. military, abducted in the lead-up to the midterms. Now U.S. military intelligence sources say all investigative channels point to a Shia militia. Now we're seeing this in the south in a Shia militia controlled area. It certainly begs a lot of questions about what's going on strategically here -- Wolf.

BLITZER: All right, we're going to have both of you stand by, Jamie and Michael. Both stand by. We're following the breaking news. I want to get some more details now on the abducted contractors, including those four Americans. We'll bring in our Internet reporter Abbi Tatton. What are we picking up, Abbi?

ABBI TATTON, CNN INTERNET REPORTER: Wolf, this is the Web site of the company that may have been involved in today's incident. This is the Kuwait city-based crescent security group. Now what we're learning from the Web site is that this group employs both Western and Iraqi security operators offering the clients a mixture of either both Western and Iraqi or just Western, given the client's preferences. Now what the company does is conduct convoy escort duties for a variety of these clients, whether they are military, government, embassies or private businesses.

And the site does detail, along with having many pictures, of the kind of security involved in these convoy escorts. It says they operate a minimum of three gun trucks per convoy that the emphasis is on safety. Also details of the recruitment of the people, the security operators, that work for the company that they only employ former military and specialist law enforcement personnel with a minimum of four years experience. Again, the Kuwait city-based crescent security group that we're hearing may have been involved in today's incident -- Wolf.

BLITZER: Abbi, thanks very much. Let's turn to Jack Cafferty. He's in New York. You know Jack, just thinking of this story, these convoys that go back and forth from Kuwait where so many of the supplies come in to go up to Iraq, when I was there last year, I discovered, you know there may be 140, 145,000 U.S. troops right in Iraq, but there are thousands of others in northern Kuwait and maybe eight, 10,000 others and a lot of them 20 days out of the month, they are in those convoys driving back and forth, although they are not formally listed as being deployed to Iraq. They are in Kuwait. But they spend most of their time in those convoys, which are so, so dangerous as exemplified by the breaking news we're getting right now.

JACK CAFFERTY, CNN ANCHOR: Well on the point that Michael Ware was making. That the people who are fomenting this kind of activity over there aren't stupid. They understand with the results of the U.S. midterm elections that there are a lot of unanswered questions in this country about what happens next. And they are going to use that opportunity to make hay while the sun shines if you pardon a kind of poor play on words. But our uncertainty and lack of direction at this moment simply creates another opportunity for the bad guys and they are taking full advantage of it.

Back on this side of the ocean, Wolf, the American people want the border with Mexico secured. Look at any public opinion poll on this subject. It's part of what drove the election last week. It's a matter of national security, has been for a long, long time. Twelve million illegal aliens in this country now and 3,000 a day streaming in here. The American people's wishes apparently though don't matter that much. Our government finally says it's going to build a fence along part of the border to keep the illegals out, and the outcry against the idea is deafening.

Not from our citizens. They want it. The government of Mexico doesn't want the fence built. The corporations that exploit the cheap labor from Mexico don't want the fence built. And now the Catholic Church is weighing in. Some high-ranking cardinal in the Vatican, which is walled off by the way, from the masses, is comparing the fence on the U.S./Mexican border to the Berlin Wall. Note to the Vatican: The Berlin wall was built to keep people in. The fence is built to keep people out who don't belong here.

So here's the question. Should the Catholic Church be commenting on how the United States chooses to protect its national sovereignty? E-mail your thoughts on that to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile. Last time I looked, Wolf, the Catholic Church had an issue or two that were unresolved on their own plate.

BLITZER: Last time. Thanks, Jack. We'll see you in a little while -- Jack Cafferty reporting for us.

And coming up, more on the breaking news story we're following tonight, an ambush on a supply convoy in southern Iraq. At least four Americans kidnapped. We're watching this story. We'll update you with late details. Also speak about Iraq with the newly elected incoming majority leader in the House of Representatives, Congressman Steny Hoyer. Also my interview with Congressman Harold Ford Jr., he lost his Senate bid in Tennessee but he is still considered a rising star in the Democratic Party. I'll ask him what his future may hold.

Plus, my interview with the former vice presidential candidate, John Edwards -- will he run for president in '08? I'll ask him.

And new details of that deadly tornado that ravaged a North Carolina town, lots of news happening this hour.

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

(COMMERCIAL BREAK)

BLITZER: We're following a breaking news story out of southern Iraq. A convoy of contractors, including four Americans, ambushed just a little while ago near Nasariya in the southern part of Iraq. We're watching this story very closely. I want to bring in our military analyst, retired U.S. Army Brigadier General David Grange.

You hear this kind of story. You know there's protection. There's a lot of suspension, as you also know, General Grange, that those who may have ambushed this convoy were wearing Iraqi army uniforms or police uniforms, which are apparently very plentiful. This seems like sort of a new structure on how to go after the people they want to go after. Just dress up as the good guys.

BRIG. GEN. DAVID GRANGE (RET.), CNN MILITARY ANALYST: Well I think that is the case. What that does, it causes security personnel in this case or it could be U.S. soldiers or Iraqi -- regular Iraqi army soldiers that are actually loyal to the government to hesitate in executing rules of engagement if there is a threat. And that gives the opponent a little bit of an edge to get the jump on an organization like this.

BLITZER: These convoys, incredibly dangerous. But as I observed myself last year when I was there, they are pretty sophisticated and they seem to have all the equipment they need. They've built up the armor. Apparently these guys just stopped in Nasariya at what they thought was a regular Iraqi army checkpoint, but guess what? It apparently was not the case.

GRANGE: Well and also why four? I mean if they go with three gun vehicles, three each, there is nine right there. So, I mean, it just depends on how -- did they get separated? What kind of issue happened? But most of these contractors, former law enforcement agency personnel, and Special Ops or paratroopers, those kind of soldiers that -- or Marines that retired are well trained. I mean these are not green-type recruits.

BLITZER: The 2,200 Marines who are about to be deployed to the al Anbar Province in the western part of Iraq, they are aboard ships right now in the Persian Gulf. These are in addition to the 140, 145,000 troops already there. It sounds, given the enormity of that geography over there like a -- you know a limited capability that they'll have to really do much.

GRANGE: Well, I think it's about 20,000 to 30,000 Marines or soldiers short. This is the time, if anything, to surge even if -- and I am not talking about G.I.s patrolling streets. I'm talking about showing presence, showing resolve that we aim to win, to make the Iraqi government successful. And this four-to-six month period is not a time to reduce strength or to piecemeal but overwhelmingly occupy or support the different areas that are needed in Iraq.

BLITZER: David Grange, retired U.S. Army brigadier general, our military analyst, thanks very much for helping us understand what's going on, a very, very complicated situation in Iraq about to get even more complicated and more dangerous.

And there's political fallout that we're following involving Iraq as well. They are presenting a united front tonight but House Democrats were deeply divided as they chose their next majority leader. Speaker-elect Nancy Pelosi was backing Vietnam War veteran and outspoken Iraq war critic John Murtha of Pennsylvania. But he was defeated by the current Minority Whip Steny Hoyer of Maryland, the vote 149-86. When I spoke with him, he pledged party unity, especially when it comes to the war.

(BEGIN VIDEOTAPE)

BLITZER: Are you and Congressman Murtha on the same page basically when it comes to Iraq? Because he's been outspoken, as you well know, calling for in effect a timetable to redeploy U.S. troops over the horizon, if you will, to get them out of Iraq.

REP. STENY HOYER (D-MD), MAJORITY LEADER-ELECT: Yes, I have not signed on to a timetable. I have not projected a timetable. But Jack Murtha and I, as well as Nancy Pelosi and the other leaders of the House and Senate signed three letters to the president in July, September and October, urging a change of policy, urging a policy that would effect a transition of our troops out of Iraq in the foreseeable future, not the long-term future, consistent, obviously, with the safety of our troops and the stability of Iraq.

We're going to have to work that out. But I think that the Democratic Party can be and will be on the same page. We'll create a consensus and we'll try to work with the president. We're certainly going to look to the Baker/Hamilton report to see what they have to say and see what effect that has on the president and see whether we can come to some agreement.

BLITZER: One final question very quickly because we're almost out of time, Congressman. James Carville here in THE SITUATION ROOM yesterday very bitter, very angry at Howard Dean, the chairman of the DNC, says if they would have used the money that they had, you might have been able to have another 10 seats, another 10 Democrats in the House of Representatives. Do you want to react to that?

HOYER: Sure. There's not a time for bitterness. Nancy Pelosi said today, we were talking about where we were going to meet. We have a small meeting room in the Capitol, HC-9, and then she caught herself and she said by the way, we can meet in any room we want to. So there's no time for bitterness. We won a victory, but we've also won a responsibility. We've been given responsibility by the American people to move this country forward, to move it in a new direction to solve our problems. That's what we're going to do.

BLITZER: Congratulations once again Congressman.

HOYER: Thank you very much, Wolf.

(END VIDEOTAPE)

BLITZER: We're just getting this in from Florida. Let's turn to Susan Candiotti. She's watching this story for us from Miami on the phone. What are we picking up, Susan?

SUSAN CANDIOTTI, CNN CORRESPONDENT (via phone): Well this is about ex-Congressman Mark Foley. And we have now learned that the Florida Department of Law Enforcement has upgraded its preliminary investigation of Mr. Foley to a criminal investigation. Quote, according to the FDLE spokeswoman, "we have a basis to open a criminal investigation. The e-mails are one thing we're looking into, and we're continuing to assist the FBI."

The FDLE you might remember recently broadened its statewide preliminary inquiry that began after Mark Foley resigned in the wake of the page scandal. And among the questions authorities have, whether Foley used computers in Florida to engage or solicit minors in any illegal activities. Foley's attorney, David Roth, has previously denied Mr. Foley engaged in any sexual activities with minors. You'll recall that he is currently -- Mr. Foley is now in Florida to attend the funeral of his father who passed away on Tuesday -- Wolf.

BLITZER: All right, Susan, thanks. We'll stay on top of this story as well -- lots of news happening this hour.

Still to come tonight here in THE SITUATION ROOM, we're going to update you on the breaking news we're following out of Iraq -- a supply convoy ambushed in southern Iraq. U.S. troops searching right now for kidnapped Americans. We'll go back live to Baghdad.

Plus, two interviews. Will John Edwards run for president? I'll ask him. We'll also speak with Congressman Harold Ford Jr. And I'll ask him will he run for the United States Senate from Tennessee once again.

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

(COMMERCIAL BREAK) BLITZER: It was an election earthquake for Democrats across much of the country. But they didn't feel the ground shake in the Tennessee Senate race.

And joining us now, Congressman Harold Ford Jr., Democrat of Tennessee. You lost, what about 1.7 million votes cast. You lost by about 50,000. Is there anything you look back on what you did, you should have done differently and maybe you would have won?

REP. HAROLD FORD (D), TENNESSEE: No, I mean I don't -- I try not to look back. Naturally, it weighs on you a bit as you think about the race.

BLITZER: Do you wake up every day and say to yourself, I wish I would have done this? Maybe that -- what your opponent called the Memphis meltdown, maybe you shouldn't have done that.

(CROSSTALK)

BLITZER: Do you second-guess any of that thing?

FORD: Not at all. I'd do it all over again. I think I'd do all the campaigning over again. I think there were a few things that happened at the end of the race with some of the public polling showing a wide margin for my opponent which just never was the case and I think that may have depressed some vote.

BLITZER: Because some of those polls showed 10 points and in the end it was 51, 48 percent, which is very...

FORD: About 50.6 to 48.3, but who's counting...

BLITZER: But who's counting that specifically?

FORD: You know I don't look back in life. And I mean, you got to look forward. The Democrats have a majority now. It's time for them to govern and lead. There is so many things we talked about from character education classes for kids to increasing the nation's savings rate to obviously the huge issue on people's mind, what to do in Iraq. These are the things we ought to be focused on and long term how we find new energy sources. I'm going to continue to be involved and work with my governor and work with others at home to try to be a part of allowing Tennessee crops and farmers...

BLITZER: The fact is that a black Democrat in a blue -- in a red state like Tennessee got very, very close. And what does that say about Tennessee?

FORD: Well I think the fact that a lot of people who had not ordinarily been involved in politics, and I've been involved in the political process, weighed in, worked hard and we got close. Politics is not out of my blood or public service is not. The governor of California, who is a friend, said at one point in his career that he'd be back. And I hope to have the opportunity to come back and continue giving. But in the meantime, I plan to spend a lot of time in Tennessee. I've not made a decision on what I'm going to do... BLITZER: Because you know Lamar Alexander is up for re-election in two years.

FORD: I read that somewhere. The next two years will be interesting. I'm rooting for the country...

BLITZER: If you want to run for that, you got to start thinking about that right away.

FORD: Well that's one of the problems in this business, is that the presidential race starts -- I guess now started a few months ago. I want to see this Congress and Senate do good work. I want to see the president listen to the Iraqi study group and put forward a set of ideas and put forward an agenda that not only works for the Americans, but it works for the Iraqis and helps create more stability in that region of the world...

(CROSSTALK)

BLITZER: Let me press you -- I want to press you on Lamar Alexander. Are you thinking seriously of challenging Lamar Alexander...

FORD: The last thing on my mind right now is another race.

BLITZER: But you're certainly not ruling that out?

FORD: No, I mean in the future no, not at all. I love the idea of service. And I've done it for 10 years. Voters in Memphis gave me a unique chance when I was 25 years old to go to the Congress and I think the most notable expenditure of time is public service.

BLITZER: Harold Ford, Jr., thanks for coming in.

FORD: Thank you. Tell Michael Steele I said hello too.

BLITZER: Yes, Michael Steele was here in THE SITUATION ROOM yesterday. He lost in Maryland, but he's got a huge future ahead of him.

(CROSSTALK)

BLITZER: You lost in Tennessee...

FORD: I support Ben Cardin, but Michael Steele is a good man and he ran a hard race and I hope he doesn't let up either because good ideas even when you don't agree with them all the time are ideas, even if they're not the best all the time are not -- you don't agree with all the time, you need them in the marketplace and Mike is a good man.

BLITZER: OK. Thanks very much.

FORD: Yes, sir.

(END VIDEOTAPE) BLITZER: And to our viewers, you are in THE SITUATION ROOM where new pictures and information are arriving all the time. Happening now, breaking news from Iraq. U.S. troops are desperately searching for several security contractors, four of them Americans, who were kidnapped in southern Iraq. That according to a U.S. military spokeswoman who says the contractors were kidnapped after the ambush of a supply convoy.

Also, more U.S. troops are being sent to Iraq right now to battle insurgents. Up to 2,200 extra Marines are being deployed to Iraq's volatile Anbar Province to aid the security effort. They are being sent from the Persian Gulf region.

And in North Carolina, a tornado tears through a mobile home park and leaves eight people dead, 20 others are hurt, four of them children who are critically injured.

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

Back now to our breaking news story -- an ambush of security contractors in southern Iraq. The U.S. military saying four Americans are among those abducted after the attack. Our Michael Ware is in Baghdad. Jamie McIntyre is over at the Pentagon.

Michael, this kind of situation we don't hear about a lot of Americans being kidnapped or captured, at least recently, in Iraq. I assume that's because security precautions have really been beefed up.

WARE: That's part of the reason, Wolf. There definitely has been an increase in the protection of MSRs, or main supply routes. There's also been beefing up of convoy protection, in terms of anti- IED technology, more armor -- and this is both civilian contractors and security teams and U.S. and coalition military teams.

So, yes, this has very much been a part of doing business here in Iraq. We've seen contractors hauled from their trucks or hauled from their vehicles in the past, including at least one American. And what we're hearing now is that, perhaps, this incident now involves four Americans. And there's unconfirmed reports from coalition sources that there may be a fifth missing person as well, a European.

Now this is in an area, a province that was handed over to Iraqi control just in September. So technically, the British, Australian and Italian forces and Americans there protecting significant logistics bases do not patrol the province itself. They're not responsible for security in that region. That's left to the Iraqis.

But this is in a very heavily militia -- Shia militia dominated area. So something like this could not take place without the involvement of some kind of paramilitary organization down in this area, one would have to speculate -- Wolf.

BLITZER: And Jamie, if, in fact, these Shia militia, the death squads are putting on Iraqi Army uniforms and creating what seem to be normal Iraqi military checkpoints, how is the U.S. military -- what are they telling you? How are they dealing with this real threat to U.S. forces trying to determine who's friendly -- who's a friend and who's a foe?

JAMIE MCINTYRE, CNN PENTAGON CORRESPONDENT: Well, first of all, they're still trying to figure out what happened in this particular incident. And you know from your days as a Pentagon correspondent, that they always urge you to be cautious about the initial reports. In fact, we're now being told it's not clear that U.S. forces are participating in a search. It may, in fact, be British forces along with Iraqi security forces, as Michael Ware pointed out, who are actually trying to sort out what happened.

Just to backtrack slightly, it appears that this was a civilian convoy coming out of Kuwait of about 19 vehicles, according to a Pentagon spokesman, and that it resulted in as many as 14 people being abducted, including those four Americans who work for this Kuwaiti- based contractor.

But at this point, they're still trying to sort out exactly what happened, and whether or not there was any subterfuge involved in the form of somebody dressing up as Iraqi security forces.

BLITZER: Jamie McIntyre, Michael Ware, thanks to both of you.

We'll stay on this story. We're going to continue to follow it. Other security contractors, abducted as well. Their whereabouts, unknown after they were kidnapped. We're going to have the latest.

Also, John Edwards. I'll talk with the former Democratic vice presidential candidate about his prospects for becoming a presidential candidate.

Stay with us. We'll be right back.

(COMMERCIAL BREAK)

BLITZER: With their victory in the 2006 elections, Democratic lawmakers are now jockeying for key committee positions. One case in point involves two of the most powerful women in Washington.

CNN's Brian Todd, joining us with this story -- Brian.

BRIAN TODD, CNN CORRESPONDENT (on camera): Wolf, just as Nancy Pelosi finishes navigating that contentious battle for the House leadership position, she herself is involved in another one.

(BEGIN VIDEOTAPE)

(voice-over): Two accomplished, powerful women with long histories in California's Democratic political machine. Both married to successful businessmen, whose fortunes have made them two of the richest members of Congress.

With Nancy Pelosi set to become House Speaker, she alone decides who chairs the powerful House Intelligence Committee. So why not pick ranking member Jane Harman, the woman waiting in the wings: a question Wolf Blitzer asked Pelosi, who responded this way.

REP. NANCY PELOSI, (D-CA) FUTURE HOUSE SPEAKER: There is no seniority on the Intelligence Committee.

TODD: Pelosi and Harman's offices wouldn't speak publicly for this story, but several Capitol Hill sources tell CNN it's becoming less likely that Pelosi will elevate Harman to the top House intelligence job.

The most widely cited reason? Pelosi's frustration that Harman, who voted for the U.S. invasion of Iraq but has since become more critical, wasn't tough enough on President Bush over the war.

JULIAN EPSTEIN, DEMOCRATIC STRATEGIST: Nancy Pelosi has taken a much stronger position that the U.S. troops ought to be withdrawn and redeployed. Jane Harman has had a much more moderate position.

TODD: But according to Hill sources, personal style has played into this. Harman: known as an ambitious gloves-off fighter, tough, hard to work for. Pelosi: outwardly warm, subtle, and confronted with an aggressive behind the scenes campaign for intelligence chair by Harman.

THOMAS MANN, CO-AUTHOR, "THE BROKEN BRANCH": She has persuaded a number of people to contact Pelosi. And Nancy Pelosi, by all accounts, has not taken kindly to this.

TODD: The possible beneficiary? Congressman Alcee Hastings, who brings his own baggage. Before joining Congress, Hastings was removed by Congress as a federal judge after being acquitted on bribery charges in a jury trial.

(END VIDEOTAPE)

(on camera): But some now believe Pelosi will pass over both Harman and Hastings and go with a more obscure but safer choice, Congressman Silvestre Reyes of Texas -- Wolf.

BLITZER: All right. Thanks, Brian for that.

Brian Todd reporting.

Up ahead tonight, John and Elizabeth Edwards. She talks with our Zain Verjee about her battle with cancer. And he'll talk with me about his possible run for the White House in 2008.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer in Washington.

He's on the short list of possible Democratic presidential candidates in '08. And former Senator John Edwards has the distinct advantage of having been through it before, as the party's 2004 vice presidential nominee.

John Edwards is here in THE SITUATION ROOM.

We're going to ask him shortly if he's about to announce that he will run for president.

But first, our Zain Verjee sat down with his wife, Elizabeth Edwards, to talk about lessons learned from 2004 and her own health crisis.

(BEGIN VIDEOTAPE)

ZAIN VERJEE, CNN CORRESPONDENT (voice-over): Elizabeth Edwards campaigned hard for her husband in 2004. Opponents said that as a first-term senator, he was too young and too inexperienced to be vice president, and lacked credentials on national security.

Elizabeth says the Kerry-Edwards ticket made a mistake in 2004.

ELIZABETH EDWARDS, WIFE OF JOHN EDWARDS: There were things that I wish we had gotten across better. There are things that we could be doing better. You asked about national security. I don't think that we communicated very clearly -- apparently not clearly enough, anyway -- how important it is to keep people safe.

VERJEE: Elizabeth was by her husband's side the day after the election, as the Kerry-Edwards campaign conceded defeat. Hours later, she had her worst fears confirmed -- she had breast cancer.

As for the reaction of her husband, John...

E. EDWARDS: He just said nothing can happen to you. And, you know, he was -- he wanted to take care of me. He wanted to make certain that we did whatever we could to fight this.

VERJEE: Her treatments have worked and she's been cancer-free for a year. And John Edwards is back on the campaign trail, in Iowa and in New Hampshire, fueling speculation that he wants to run again in 2008.

(on camera): Does he want to be president?

E. EDWARDS: I think he has important things that he thinks need to be accomplished for the country. And he wants to see them done. I, you know, I think that he's capable of doing them.

VERJEE: Do you ever think of being first lady? Does that idea sort of cross your mind? Do you entertain that?

E. EDWARDS: Honestly, I think that it's such a bubble of an existence that it's sort of hard to imagine what it would be like to be in that bubble. There are a lot of things that I like -- that I advocate for now, and it would be great to get a huge megaphone to talk about those things.

VERJEE: Would your health condition be something that would influence the decision?

E. EDWARDS: He wants me to be healthy. You know, that would be part of the decision he would make, that I would be healthy enough. VERJEE (voice-over): Elizabeth Edwards is still an avid watcher of politics, but she's also frank about the challenge the Democrats face.

(on camera): Do you think the Democratic Party has its act together?

E. EDWARDS: Well, I mean, whenever you don't have the White House, you don't have a single spokesperson. And so that allows the Republicans to accuse you of having no message, because, you know, there's no single messenger setting that slate.

But I think that the Democrats had and continue to have a real positive agenda about where we're going to go. But I do also have some criticism about what has happened in the past.

(END VIDEO TAPE)

BLITZER: First of all, how is your wife doing?

JOHN EDWARDS, (D) FORMER V.P. CANDIDATE: She's doing great. Thanks for asking, Wolf. Doing very, very well.

BLITZER: Give her our best.

J. EDWARDS: I will.

BLITZER: Do you want to be president of the United States?

J. EDWARDS: Maybe. A resounding maybe. I haven't decided for sure, but seriously thinking about it.

BLITZER: There's one explorer out there already. That was John McCain, he's announced he's exploring the possibility. It doesn't mean he's going to run. But by all accounts, that's a pretty good bet.

J. EDWARDS: It feels like he's doing more than exploring to me. But it remains to be seen.

BLITZER: Do you want to be an explorer?

J. EDWARDS: I don't know. I think the question is, do you want to be president of the United States? And most importantly, does the country need somebody like you to be president?

The primary responsibility of the next president, in my judgment, will be to restore America's leadership role in the world, which I think is absolutely crucial. Not just for us, but for the entire world.

BLITZER: So give us the back and forth in your mind. When will you decide you want to throw your hat in the ring?

J. EDWARDS: Oh, I'll decide in the next few months. And it will be dependent in part on how Elizabeth is doing. But right now, she's doing great. And whether I think it's an important thing for the people that I would want to represent for me to run for the White House.

BLITZER: So you're leaning one way or another right now? Because we've got a resounding maybe from you.

J. EDWARDS: Listen, I've been through this, as you pointed out earlier. There's a certain level of experience and maturity that comes to going through a national campaign. I understand what's involved. I understand what's at stake. And I think anybody who is considering running for president better have a very clear idea about what they want to do as president of the United States, because it is an enormous responsibility.

BLITZER: Now, the Democratic presidential nominee, John Kerry the last time, I suspect he's thinking about running as well. If he decides to run, will that influence you one way or another?

J. EDWARDS: No one else's decision will influence me. What will influence me is making sure my family is OK, and secondly, what I believe in my best judgment is best for the country.

BLITZER: And Senator Hillary Clinton, by all accounts, she's seriously thinking about it. If she runs, will that deter you?

J. EDWARDS: No, that's not the issue. I hope it's not the issue for any of them. I mean, what we want is we want the best people possible to run for our party's nomination, because our country needs a very strong leader in 2008.

BLITZER: What do you bring, specifically, John Edwards, to the table?

J. EDWARDS: You mean if I were to run for president?

BLITZER: Yeah.

J. EDWARDS: I hope two things, a basic understanding of what America's role in the world is, how we should lead. I've spent an awful lot of time over the last few years traveling around the world, meeting with world leaders, speaking to other people around the world. What the structure of a real vision for America's leadership is. Not just dependent on raw power, but recognizing our need to have moral authority, to engage in big issues that really matter, issues like the genocide in Sudan, the spread of HIV/AIDS, global poverty, so that we can deal with the crises when they occur, for example, North Korea testing a nuclear weapon. That, I think is important, enormously important.

Second, I think I understand because of my own life experience, the kind of struggles that most ordinary Americans are going through right now. And what needs to be done to give them an opportunity, a real chance.

I feel like, Wolf, the country is really hungry for inspiration. This war in Iraq, which you've covered so beautifully is... BLITZER: You've apologized basically for supporting the resolution that authorized the U.S. invasion of Iraq.

J. EDWARDS: I've told the truth. I said I was wrong. I was wrong. And I didn't conduct the war. This president conducted the war. He's responsible for that. But I voted for it and I was wrong to vote for it.

But I do think that America -- this is just a gut sense, that's all I know about this -- is really hungry to be inspired and be lifted up. The war has drained a lot of the energy of the country. And I think most Americans just think, you know, we're better than what the world sees us as.

BLITZER: Are you among those Democrats who thinks the United States has to get a timetable, like John Murtha for example, and start pulling out right away?

J. EDWARDS: I wouldn't set an exact timetable. If I were president today, what I would do is make a significant withdrawal now. What I've been suggesting is about 40,000 troops. Make it clear we're going to leave. And then I would say to my military leadership, I want our combat troops out of Iraq in somewhere around 12 to 18 months. I'd pay some attention to what they said, and give me a time, give me a plan for accomplishing that.

Then I would engage with both the Iraqi leadership and with the leadership of other countries in the region to get them involved in trying to stabilize Iraq.

BLITZER: You're going to be making a major announcement, you told Jon Stewart the other day. When is that announcement going to happen?

J. EDWARDS: Well, first of all, what I actually told him was people should go to my website over the next couple of weeks; they'll see some new and interesting things. And I hope they'll do that.

BLITZER: We'll be watching. Thanks very much.

J. EDWARDS: Glad to be with you.

BLITZER: Thanks for coming in.

J. EDWARDS: Glad to see you.

BLITZER: And up next, should the Catholic Church be commenting on how the United States chooses to protect its national sovereignty? Jack Cafferty with your email. That's coming up.

And putting on a positive face. Jeanne Moos takes a special look at what the Democrats are really feeling. You're going to want to stick around and see this.

(COMMERCIAL BREAK)

BLITZER: Jack's here with "The Cafferty File" -- Jack.

CAFFERTY: Thanks, Wolf.

A Vatican official this week criticized the U.S. plan to build a fence along part of the Mexican border. The question is, should the Catholic Church be commenting on how the United States chooses to protect its national sovereignty?

Sam in Santa Rosa California: "The last time I looked, it was illegal for tax exempt religious organizations to involve themselves in politics unless they want to lose their tax exempt status. Oh, and then there's the matter of separation of church and state. Maybe it's time we found a new revenue source from all those in the religious community who think they can be secular when it's convenient and religious when it's tax time."

Vern in Keyser, West Virginia: "The Catholic Church should concentrate on saving souls and quit trying to run the rest of the world like the United States does."

Tim in British Columbia: "Where does this morally bankrupt organized religion get off commenting on a country's immigration policy? Why aren't they speaking out against Mexico for not taking care of their own? And why doesn't the church share some of its insane wealth in order to help curb some of these problems. I guess it's easier to deal with other's problems instead of your own."

John writes, "It's a bit of a misnomer to suggest the proposed wall between Mexico and the U.S. is benign and positive when compared to the Berlin Wall. Any such wall that divides people for whatever reason merely foments more nationalistic antagonism on all sides."

Barry in El Cajon, California: "Jack, if Catholics don't want their church to step up and speak out, that's for Catholics to work out among themselves. Let's stop this culture of complaining about every group or individual who dares to exercise their freedom of speech in America."

And finally, Rachel in Cosmopolis, Washington: "Let them talk. It's obvious to everyone they're only interested in filling the U.S. with illiterate illegals who will give a boost to the Catholic Church hierarchy, unlike the native born U.S. Catholics who tend to think for themselves."

If you didn't see your e-mail here, go to CNN.com/CaffertyFile where you can read more of them online. You'll probably do a better job of reading them than I just did -- Wolf.

BLITZER: Thanks, Jack. See you tomorrow.

Still ahead, it was all smiles today from the Democratic leadership. But what were they really feeling? Jeanne Moos dares to look beneath the surface. Stay with us.

(COMMERCIAL BREAK) BLITZER: It was a family feud featuring the lady of the House and her fellow Democrats. After a bitter battle, they say they are all united.

But our Jeanne Moos wants to know, can you feel the love tonight?

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Behind the smile...

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER-ELECT: How are you?

MOOS: ... she didn't want him...

REP. STENY HOYER (D-MD), HOUSE MAJORITY LEADER-ELECT: Hey, hey, hey.

MOOS: ... to be her second in command. The speaker-to-be wanted Jack Murtha.

UNIDENTIFIED FEMALE: There's in-fighting.

UNIDENTIFIED FEMALE: Bitter family feud.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Internal mess.

MOOS: To sort it out, Democrats holed up behind closed doors while the press waited...

UNIDENTIFIED MALE: Test, one, two, three.

MOOS: ... and waited and waited. Reporters knew the wait was almost over when they started moving in the flags, one flag, two flags, three flags -- pretty soon a whole forest of flags, the perfect background for the impending lovefest.

Remember, this is the guy the speaker-elect didn't want to be House majority leader, but there they were holding hands. He's the one with the funny name.

UNIDENTIFIED MALE: Steny Hoyer.

UNIDENTIFIED MALE: Steny Hoyer.

BASH: Steny Hoyer.

MOOS: Steny comes from his father's Danish name, Stein. Steny won, Nancy's man lost.

REP. JOHN MURTHA (D), PENNSYLVANIA: Because I know you'd like to know why I didn't win. I didn't have enough votes.

PELOSI: We've had our disagreements in that room and now that is over.

MOOS: What happens in that room stays in that room. Let the lovey-dovey times roll.

PELOSI: The distinguished new leader, Leader-Elect Steny Hoyer.

(MUSIC)

MOOS: There were hugs and kisses, rivals shook. There was round after round of progressively weaker applause.

PELOSI: We're applauding each other in any event.

UNIDENTIFIED FEMALE: All smiles from the new House Democratic leadership.

UNIDENTIFIED FEMALE: Quite a performance.

BASH: Unity, unity, unity.

HOYER: I want to make one comment on that.

MOOS: Unity except for when the new majority leader took the mic one more time. His defeated rival apparently had enough. Jack Murtha decided to just walk away. There was one final bumpy moment of togetherness.

HOYER: Oh, we didn't get our...

PELOSI: A picture. We didn't get a picture.

MOOS: And while the Democrats were trying to project unity, President Bush was more into harmony on his Asian trip. Those clapping along seem more coordinated than the Democrats. Sometimes body language can get lost in translation.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

BLITZER: Let's go to Paula in New York -- Paula.

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