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Lou Dobbs Tonight

At Donald Rumsfeld's Formal Sendoff President Bush Lavished Praise On Him; President Considering New Options For Military Strategy; Lawmakers Organizing Their Own Freelance Missions To Engage Foreign Countries; Treasury Secretary Henry Paulson Heading Home From China; Federal Officials Announce Plans To Protect Trains Carrying Toxic Chemicals From Terrorist Attacks

Aired December 15, 2006 - 18:00   ET

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


KITTY PILGRIM, CNN ANCHOR: Tonight, no regrets from Donald Rumsfeld as he leaves the Pentagon. Rumsfeld says the war on terror is neither hopeless nor without purpose.
And the federal government delays a key part of the program to improve border security. We'll have a special report and a great deal more straight ahead.

ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate and opinion for Friday, December 15th.

Live in New York, sitting in for Lou Dobbs, Kitty Pilgrim.

PILGRIM: Good evening, everyone.

Defense Secretary Donald Rumsfeld today left the Pentagon after six years in office. Rumsfeld did not mention the wide criticism he faced over his conduct of the war in Iraq. He said, "Leadership is not about doing what is easy.

As Rumsfeld left the Pentagon, the military announced the deaths of another four of our troops in Iraq.

Jamie McIntyre reports from the Pentagon on Rumsfeld's exit.

Ed Henry reports from the White House on the next steps for the president's Iraq strategy.

And Bill Schneider reports on a new direction for elected officials: freelance diplomacy.

We turn first to Jamie McIntyre -- Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, at Donald Rumsfeld's formal sendoff, President Bush today lavished praise on him, calling him one of the most dedicated, energetic and skilled public servants America has.

(BEGIN VIDEOTAPE)

MCINTYRE (voice over): There were the requisite full military honors and high accolades delivered by the Joint Chiefs chairman, the vice president, and the president.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This man knows how to lead, and he did. And the country is better off for it.

(APPLAUSE)

MCINTYRE: But for all the warmth on this unusually mild December day, this is not how Donald Rumsfeld hoped to go out, under the cloud of a war his successor says the U.S. is not winning.

DONALD RUMSFELD, SECRETARY OF DEFENSE: Leadership is not about doing what's easy. It's about doing what's right, even when it's hard. Especially when it's hard.

MCINTYRE (on camera): President Bush ticked off a long list of Rumsfeld's accomplishments over the last six years, but Rumsfeld's legacy will hinge on one event: the Iraq war.

(voice over): Rumsfeld himself has named the abuses committed by U.S. soldiers at the Abu Ghraib prison as the low point of his tenure. Crimes that were punished and, Rumsfeld argues, were never authorized by him or anyone at the Pentagon. But his critics point to larger miscalculations such as the failure to anticipate the tenacious insurgency that now resembles a civil war.

It's been a fiasco, says "Washington Post" reporter Tom Ricks, whose highly critical book of the same name faults Rumsfeld, President Bush and many of the top generals.

THOMAS RICKS, "WASHINGTON POST": He's likely to be remembered along with Robert McNamara as an aggressive, hard-charging leader who, unfortunately, presided a war that seemed to head south pretty steadily.

MCINTYRE: Many analysts have now come to believe the Iraq war was fought on the cheap, with too few troops and too many blunders.

MAJ. GEN. DON SHEPPERD (RET.), CNN MILITARY ANALYST: I think he made one decision that had a major, major effect, and that was the decision to shake his head and say, OK, at the recommendation of Secretary Bremer, let's basically take down the Iraqi army. That is a decision that will live in infamy, if you will.

It was a bad decision. I think that is a major cause of what's going on right now in Iraq.

MCINTYRE: Rumsfeld said he and President Bush agreed it was time for him to step down, but "The Post's" Tom Ricks says again it was Iraq that led to his departure.

RICKS: I think firing Rumsfeld was a message from President Bush to his own party that, I hear you, I will try to make changes in Iraq, so the Republican Party doesn't have to go into the '08 campaign with Iraq as an albatross around its neck as it was in the '06 campaign.

MCINTYRE: Rumsfeld is unapologetic, but his parting words were prayers for the troops he sent into battle and who did not return.

RUMSFELD: And I will remember the fallen, and I will particularly remember their families and the -- from whom I have drawn inspiration.

(END VIDEOTAPE)

MCINTYRE: Rumsfeld's critics call him arrogant, but his supporters say he is simply supremely confident. And Rumsfeld himself believes that what he calls the great sweep of human history will ultimately validate his judgments -- Kitty.

PILGRIM: Thanks very much.

Jamie McIntyre.

In Iraq, for more of our troops have been killed. Two Marines and a soldier were killed in combat. Another soldier died in a non- combat-related incident.

Fifty-one of our troops have been killed in Iraq so far this month. 2,940 troops have been killed since the war began. 22,229 of our troops have been wounded, 9,972 of them so seriously they could not return to duty.

Rumsfeld's departure comes at a critical time for President Bush and the war in Iraq. The president is considering new options for his military strategy. Among those options, a big increase in the number of U.S. troops in Iraq.

Ed Henry reports from the White House -- Ed.

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: That's right, Kitty. It's not just Secretary Rumsfeld's legacy that's on the line in Iraq. Of course, it's likely to be the determining factor on how history judges President Bush, which is why he rushed to the defense of his defense secretary today.

His speech caps a big week for the president in his efforts to huddle with top advisers, find a new strategy in Iraq. Mr. Bush was expected to unveil that new strategy before Christmas but, of course, this week he basically announced he will be delaying that until January, he does not want to be rushed into such a major decision.

He also wants to give Secretary Rumsfeld's successor a chance to weigh in. Bob Gates will be sworn into office on Monday, and the big question now is whether the new defense secretary will really have the clout to change direction -- change the direction of U.S. policy, whether or not he'll be a figurehead.

That was the question put today to White House spokesman Tony Snow.

(BEGIN VIDEO CLIP)

TONY SNOW, WHITE HOUSE PRESS SECRETARY: I think anybody who is the secretary of defense will tell you that they are not figureheads. They run a large and very complex operation.

With Bob Gates, you get somebody who provides, as the president said, a fresh set of eyes, and Bob will bring his talents and experiences to bear. He's somebody who has long experience in the intelligence community and also is an analyst. He is somebody who certainly has had an opportunity to study some of these issues.

(END VIDEO CLIP)

HENRY: He's going to need that studying. Obviously there will be a lot on the plate of Bob Gates, with the Army chief of staff yesterday basically declaring that the Army is so strained that it could break if it's not expanded soon, that that strain on the military obviously raises sharp questions about secretary -- outgoing Secretary Rumsfeld's philosophy of trying to do more with less with the U.S. military. It also presents a major challenge to Bob Gates.

One option, as you noted at the top, Kitty, the president is now weighing is whether or not to send more U.S. troops to Iraq. That could be especially difficult given the current strains on the U.S. military. It's going to be a very delicate balancing act for Bob Gates, who gets sworn in Monday -- Kitty.

PILGRIM: Well, I'm sure no matter what the politics in Washington, everyone is wishing Secretary Gates the very best of success in his new position.

Thanks very much.

Ed Henry.

Secretary of State Condoleezza Rice has rejected a key recommendation of the Iraq Study Group. Now, Secretary Rice told "The Washington Post" she does not support any U.S. engagement with Syria and Iran. Rice said the compensation required by Syria and Iran for talking about Iraq might be too high. She said she does not want to trade away Lebanese sovereignty or allow Iran to obtain nuclear weapons.

Some elected officials apparently believe that they can do a much better job at diplomacy than Secretary Rice. An increasing number of lawmakers are organizing their own freelance missions to engage foreign countries.

Bill Schneider reports.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice over): First the voters expressed no confidence in President Bush's leadership in the midterm election. Then a bipartisan committee of the national establishment in the form of the Iraq Study Group issued a similar no- confidence vote.

So what's happening? Freelancers are rushing in to fill the vacuum. Some of whom want to take over after President Bush. Four senators went to Baghdad to complain about weak leadership in two places.

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: There has to be leadership from the political leaders here, frankly, as well as the political leaders back home in the U.S.

SEN. JOHN MCCAIN (R), ARIZONA: Good to see you, sir. How are you?

SCHNEIDER: Likely 2008 contender John McCain offered his own policy prescription.

MCCAIN: I believe that there's still a compelling reason to have an increase in troops here in Baghdad and in Anbar Province in order to bring the sectarian violence under control.

SCHNEIDER: Four senators are defying the White House by going to Syria to meet with President Assad.

SNOW: We have discouraged members of Congress from doing this.

SCHNEIDER: Senator Dodd's response? "Members of Congress need to go to hotspots, not just garden spots."

Senator Kerry's spokesman said, "If Ronald Reagan could talk to the evil empire, surely United States senators with the responsibility to American troops can visit Syria."

Oh, by the way, Dodd and Kerry may run for president in 2008.

New Mexico governor Bill Richardson may run, too. The former U.N. ambassador met with North Korean officials in Santa Fe to discuss how to end the nuclear weapons crisis.

Ten members of Congress, six Democrats and four Republicans, went to Havana to talk with acting president Raul Castro about a new opening to Cuba now that Fidel Castro may be dying.

Is all this freelancing undermining the president's authority?

SNOW: No, the president is in charge of foreign policy. It may cost some people their credibility.

SCHNEIDER: White House to freelancers: You stand warned.

(END VIDEOTAPE)

SCHNEIDER: Freelancers to White House: You stand warned.

It's the president whose credibility may be suffering -- Kitty.

PHILLIPS: This is a lot of air miles, Bill, but are they getting anything done?

SCHNEIDER: Well, they are -- they say that they've made some progress, they've gotten some factual information to bring back both to the State Department and to the White House. It's hard to see progress in the immediate aftermath of these visits, but they claim they've gotten some valuable information.

PILGRIM: Thanks very much.

Bill Schneider.

Still to come, the federal government delays a critical component of its border security program. We'll have a special report on that.

National Guardsmen patrolling part of our southern border have been ordered out of the area. We'll tell you why.

And the Bush administration says it's making progress with China. Is the administration exaggerating?

We'll have a special report next.

(COMMERCIAL BREAK)

PILGRIM: A new delay tonight in implementing a program to track foreign visitors as they leave the United States. Homeland Security Secretary Michael Chertoff says the program, U.S. Visit, will go ahead for air travelers but will be delayed for land crossing and ports.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice over): This is how Homeland Security Secretary Michael Chertoff explains his priorities for the U.S. Visit program.

MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: Ask yourself what's more important, keeping a terrorist out in the first place, or having a terrorist come in and then finding out that he hasn't left after 90 days? Well, considering the fact that the 9/11 hijackers left by committing suicide, it seemed pretty obvious to us the first priority is to keep them out in the first place.

TUCKER: Critics point out there's a fundamental problem with that set of priorities.

MICHAEL CUTLER, FMR. IMMIGRATION AGENT: If we don't know who's leaving and we don't have any ability to follow up on people who failed to depart the United States, that's just half the equation. That's like saying the job of the airline pilot is to get the airplane off the ground.

TUCKER: It's estimated that as much as 40 percent of the illegal aliens in country are here as the result of visa overstays, including most of the 9/11 hijackers. They entered legally. They stayed illegally.

In addition, Chertoff announced that because of the cost involved and the huge inconvenience that might be created, implementation to the U.S. Visit at the 50th busiest land border crossings is proving too difficult.

DAN STEIN, FED. FOR AMER. IMMIG. REFORM: Let me tell you, if the -- if DHS and Michael Chertoff can't figure out how to implement this program without causing long lines and delays, then we got the wrong guy running DHS.

TUCKER: A report on the U.S. Visit program was published this week by the Government Accountability Office. The report is harshly critical of DHS, saying that U.S. Visits need tighter oversight and much more rigorous discipline in management controls.

(END VIDEOTAPE)

TUCKER: Now, today the income coming chairman of the Senate Judiciary Subcommittee on Terrorism, Technology and Homeland Security, Senator Dianne Feinstein, announced that she would hold hearings on DHS's failure to implement U.S. Visits at our 50 busiest land crossings.

And Kitty, I might point out, this is the not the first report by GAO that has been critical of DHS in its management of U.S. Visit.

PILGRIM: How many years since 9/11? It's seems a little late to be just getting this sorted out.

TUCKER: It's been five years, obviously. But the GAO, this report this week, noted they recommended 18 things since 2003. Only two have ever been implemented by DH.

And the criticism remains constant. You do not have efficient, tight management control on this program.

PHILLIPS: It seems absolutely preposterous.

Thanks very much.

Bill Tucker.

Senator Feinstein, by the way, will be on our guest on the program on Monday night.

National Guard troops trying to protect our border with Mexico are being blocked from patrolling a known crossing point for illegal aliens and drug smugglers by a Native American community in Arizona.

Karen Schaler from our Phoenix affiliate KNXV reports.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Border Patrol, Border Patrol, we have a sight of 10 UDAs on Asasma (ph) East. Need assistance.

KAREN SCHALER, REPORTER, KNXV (voice over): It's the National Guard's job to keep a close eye on the Arizona border, and specifically look for drug smugglers trying to bring in large drug loads like this. But now one community on the Tohono O'odham Indian Nation, the Pisinemo District, has passed a resolution to keep the National Guard out, shutting down one key lookout site.

JOHNSON JOSE, PISINEMO DISTRICT CHAIRMAN: That would prohibit them, you know, the National Guard, with their weapons, using our peaks as observatory peaks

SCHALER: The Pisinemo Direct is just north of the border, and at the nearby Ajo border station, drug apprehensions have skyrocketed 347 percent. And now with one lookout shut down, the Border Patrol fears even more trouble.

SEAN KING, BORDER PATROL AGENT: If you can imagine the amount of drugs and the amount of violence that comes with the drugs coming through a certain corridor because we're not allowed to be out there, it can get pretty nasty.

JOSE: When we were trying to do our ceremonial...

SCHALER: Pisinemo District chairman Johnson Jose says this all started when the Guard interviewed with a ceremonial hunting trip, apprehending some local hunters. So they've also told the Guard they now can't be armed.

JOSE: They are just running over us and not respecting our ways or what we try to tell them.

UNIDENTIFIED MALE: They make us pretty nervous out here.

SCHALER: Guard members still patrolling outside the district say they would be sitting ducks without their weapons.

SGT. WILLIE PAYNE, NATIONAL GUARD: If we didn't have the weapons and the drug lords knew about it, like I said, they would walk right up on us and may take us out.

SCHALER: But Pisinemo leaders say they are not backing down, so the battle continues.

JOSE: We don't want them to be out here.

SCHALER: But the Border Patrol says having the Guard on the district is critical, so it will continue to try and find a compromise.

(END VIDEOTAPE)

PILGRIM: Karen Schaler from our Phoenix affiliate, KNXV reporting.

Now, the Border Patrol says losing this lookout site has hurt security efforts along the border, and now there are growing concerns other districts on the reservation will follow suit and pass similar resolutions.

Well, that does bring us to the subject of tonight's poll.

Do you believe the Native American community has the right to prevent the National Guard from patrolling a section of our southern border with Mexico?

We ask you for yes or no. Cast your vote at LouDobbs.com, and we'll bring you the results a little bit later in the broadcast.

The Department of Justice today filed suit against the village of Port Chester, New York. Now, we've been reporting on this program last week the DOJ believes the town's at-large method of voting is unfair to Hispanic residents. It wants the village to devise a new system. Hispanics make up just under half of Port Chester's population, and no Hispanic has ever been elected to office in that town.

The city of Escondido tonight says it won't enforce a law that punishes landlords for renting to illegal aliens. Last month a federal judge temporarily blocked the city from enforcing the law. Escondido is one of the many cities across the country trying to take action on its own to solve the crisis of illegal immigration because the federal government has not.

And a California company that built part of the fence along the Mexican border tonight has agreed to plead guilty for knowingly hiring illegal aliens.

Golden State Fence Company will pay penalties of $5 million. Two executives also face jail time. Their sentencing is set for March.

Immigration officials said the company had over 100 illegal aliens on its books last year. The company built more than a mile of the 14-mile-long fence near the Otay Mesa border crossing.

Coming up, a high-level U.S. delegation, including six cabinet members, is headed back to the United States after talks on a wide range of economic issues. Was it a wasted trip? We'll have a report on that.

Also, the U.S. is falling behind in high-tech manufacturing. Not only jobs that are on the line. We'll have a special report on that.

And also, Senator Tim Johnson, he remains hospitalized tonight. We'll have the very latest on his condition.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Treasury Secretary Henry Paulson and half a dozen top administration officials are heading home from China tonight. The trade delegation had hoped to win some concessions from China to ease America's exploding trade deficit, but this special delegation is leaving with little more than a handful of empty promises.

Christine Romans reports. (BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice over): Half the Bush cabinet came to China for a strategic economic dialogue.

HENRY PAULSON, TREASURY SECRETARY: I'm very pleased with what we've accomplished because we've got some immediate, tangible results.

ROMANS: Like another pledge by the Chinese to allow their currency to float more freely. But, as usual, no timetable.

The symbolic gesture of allowing the NASDAQ and the New York Stock Exchange to open offices in Beijing, and a promise from the Americans to let China into the Inter-American Development Bank. All the while American jobs disappear because of China's unfair trade practices and the trade deficit with China explodes.

At the closing press conference, this gentle push...

PAULSON: China's full participation in the global economy requires transparency and a commitment to enforcing international laws, especially in relation to property rights.

ROMANS: China expert and author Gordon Chang...

GORDON CHANG, "THE COMING COLLAPSE OF CHINA": Paulson's trip to China was a great success, for the Chinese. But for us, it was a debacle.

ROMANS: He says U.S. policy toward China has failed.

CHANG: China's friends in the United States say they are worried about American protectionism. Well, they are not.

What they are worried about is that Washington eventually adopting a policy of reciprocity, because what they are really worried about is that we are going to start to treat the Chinese like they are treating us now. We need reciprocity. It's a basic understanding.

ROMANS: But he says this administration and those before it mistakenly equate reciprocity with protectionism, a critical policy failure.

(END VIDEOTAPE)

ROMANS: The administration calling this dialogue with the Chinese not a trade mission. This is a beginning. And Secretary Paulson acknowledged that the Chinese and the Americans don't necessarily see eye to eye on how quickly China should reform.

Another round of talks scheduled for May, this time in Washington. The question, though, Kitty, is how patient will Congress be with all this talking?

PILGRIM: And at the beginning of this trip there really weren't hard-and-fast goals set, right? ROMANS: There were no hard-and-fast goals, no expectations for breakthroughs. The administration really dialing back those expectations, saying this is the beginning of a process, not a conclusion. But, of course, the critics say we've been talking to the Chinese for a very long time. In the meantime, literally hemorrhaging American jobs.

PILGRIM: Thanks very much.

Christine Romans.

Let's look at some of your e-mails.

J.W. in Arizona wrote to us, "Let's see, we import smart people with H1B visas instead of teaching our own kids. And then to lower wages in America we import labor from Mexico instead of making goods with that cheap labor. We import them from China."

"Can someone please tell me what in the heck we are exporting besides failed democracies and our treasury? It's time to wake up, America."

And Bill in Virginia wrote to us, "Lou's article on 'A Tree Grows in Seattle' was brilliant! I hope it will hope Americans band together to stamp out the absurd posture of 'let's sue because someone got offended' people in this country."

Well, Sidney in Mississippi wrote, "I have been a big supporter of President Bush. No more! No action on illegal aliens, allowing the middle class to become an endangered species, and now illegals stealing and using stolen U.S. identities. If President Bush is looking for his legacy, how about, the president who gave America away."

We love reading your e-mails, and do e-mail us at LouDobbs.com. We'll have more of your thoughts a little bit later in the broadcast.

And each of you whose e-mail is read here will receive a copy of Lou's best-selling new book, "War on the Middle Class."

Now, this broadcast is often criticized for taking a position on issues such as illegal immigration and border security. Well, here's how the supposedly objective Associated Press covered Tuesday's immigration raids on Swift Company meatpacking plants.

In a story from Wichita, Kansas, and reprinted across the country, the AP reported that "Hordes of police and immigration officials stormed meatpacking plants in six states this week. The illegal workers arrested may not have been the only victims."

And that's right, The Associated Press calling illegal aliens, including some charged with stealing the identities of hundreds of Americans, they called them victims.

Coming up, there may be some small improvement in the condition or -- the condition of Senator Tim Johnson. We'll have the very latest for you on that

Also, we'll tell you what federal officials propose to keep terrorists away from freight cars full of toxic material. Some cities are not very impressed with the plan.

And outsourcing high-tech manufacturing? It harms not only the middle class. It also damages our national security.

We'll explain in a special report.

(COMMERCIAL BREAK)

PILGRIM: Now our top stories.

Defense Secretary Donald Rumsfeld today left the Pentagon after six years in office. During his farewell ceremony, Rumsfeld made no mention of the wide criticism of his conduct of the war in Iraq.

Treasury Secretary Henry Paulson today said the United States is making progress with its economic relationship with China, but critics say Beijing is refusing to give up its unfair trade practices.

And the federal government has delayed a key part of its program to secure our borders. Homeland Security Secretary Michael Chertoff said efforts to track foreign visitors when they leave the United States has run into serious problems.

Senator Tim Johnson remains hospitalized tonight after successful surgery to stop the bleeding in his brain. A spokesman said the senator is showing some signs of recovery. Dana Bash reports from Capitol Hill -- Dana.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well Kitty, late this afternoon we got the first official statement here from Senator Tim Johnson's doctors, a team of specialist -- three physicians, surgeons, who performed the operation on his brain to deal with the brain hemorrhage that he had two nights ago.

Now, the doctors say the surgery they performed was a success, they evacuated the blood on his brain and stabilized the bleeding and that his progress is encouraging. In fact, say that the senator had a CAT scan this morning showing no further bleeding.

Now that something that one of the several colleagues of Senator Tim Johnson, Senator Tom Carper, talked about when he came out of the hospital after visiting him today.

(BEGIN VIDEO CLIP)

SEN. TIM CARPER (D), DELAWARE: He's sedated. He's not uncommon in this situation. He's just going to get some rest over the weekend. Apparently he had a CAT -- another CAT scan during the night, and the signs are actually quite encouraging. And we're a lot -- got a lot of people praying for him all over the country, Democrats and Republicans. It's a bipartisan thing. And we're actually very much encouraged with his progress. (END VIDEO CLIP)

BASH: Now, since the senator's surgery two nights ago, we understand that he has movement on both sides of his body, that he is responding to touch and to voice, he even reached out to his wife -- for his wife's hand yesterday.

And doctors, though, are saying, Kitty, that they are a little bit --hey want to sort of have -- they want patience here, because they say it will take a while for this recovery.

They make a point in this statement that his brain is still swollen. That he will need physical therapy. So this is definitely good news, but, again, the idea is that there is going to be a long road for the recovery for Senator Johnson.

Democrats and Republicans, though, are breathing a sigh of relief, certainly on a personal level to hear that it does sound like he, at least now, is out of the woods. And on a political level, what we have been talking about, the fact that there have been questions swirling about what this means for the Democrats' one-vote majority coming into January, those questions certainly have been tamped down as we've gotten this good news over the last day or so about Senator Johnson's condition -- Kitty.

PILGRIM: Thanks for that report, Dana, good news. Dana Bash.

Security experts and lawmakers point out that since 9/11 virtually nothing has been done to secure our railroads. And just today, federal officials announced plans to protect trains from carrying toxic chemicals from terrorist attacks. Now critics say that this is too little, too late. Kathleen Koch reports.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): A potential disaster, a train derails this morning in Maryland, with a tanker carrying anhydrous ammonia, potentially deadly if inhaled.

This time it was an accident, not a terrorist act and no one was hurt, but it vividly illustrated the vulnerability of such trains. The incident came the same day the Department of Homeland Security announced plans to protect such rail cars from intentional sabotage.

MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: Almost over 90 percent of high-risk chemicals travel in bulk either by train or in barges or ships. If we focus on protecting those means of transportation, we are basically taking a very significant percent of the risk of high inhalation chemicals off the table.

KOCH: The new rules would require freight railroads to keep rail cars packed with the most hazardous materials in secure locations when parked in high-threat, urban areas. Railroads would have security coordinators to receive intelligence from the government and report security concerns and possible threats. A tracking system would be created to pinpoint the location and content of rail cars carrying dangerous material, but critics say the measures still leave gaping holes in rail security.

REP. ED MARKEY, (D) MASSACHUSETTS: We know what al Qaeda wants to do. We should be rerouting them around densely populated areas, but instead the Bush administration listens to the railroad industry instead of the warnings that have been emanating from al Qaeda for the last several years.

KOCH: Some cities are so concerned that they have proposed requiring such rail cars steer clear of their borders.

(on camera): Just last year Washington, D.C., passed a law banning hazardous material shipments within 2.2 miles of the U.S. Capitol. The railroad is suing. And it shows the cities are ready to take things into their own hands if the federal government doesn't act.

Kathleen Koch, CNN, Washington.

(END VIDEOTAPE)

PILGRIM: Florida's governor suspended executions in the state, that's after a botched execution earlier this week. A state medical examiner said the execution of Angel Nieves Diaz took 34 minutes. It required a second dose of lethal chemicals.

Governor Jeb Bush is creating a commission to examine the process. The moratorium on executions will stay in place until March 1st.

And in California, a judge tonight ordered a halt to execution by lethal injection in that state, saying the method may violate the ban on cruel and unusual punishment.

Another outbreak of food poisoning tonight. This time at and Olive Garden restaurant in Indianapolis, Indiana, about 300 people were sickened, 3 of them hospitalized. The victims all ate at the restaurant over a five-day period earlier this week. The local health department is conducting tests to determine what caused the people to fall ill.

There's a reason for hope for the three climbers missing on Oregon's Mt. Hood. The missing men apparently left a note at a ranger station before setting out on their climb. The note details the fuel and supplies they were taking so sustain themselves on their planned two day trip. Rescue crews are hoping for a break in the snow and wind that's been pounding the mountain.

And that the same storm is the worst to hit the state of Washington in 13 years. It's being blamed for four deaths. A dangerous one-two punch: heavy rain, howling winds. It toppled trees, knocked out power to more than 1 million customers in the western part of the state. Record winds gusted to nearly 70 miles an hour at the Seattle-Tacoma International Airport and tossed small planes around at another King County airfield.

The loss of high-tech manufacturing in the United States has put our nation at risk. It's not only the loss of jobs here, but many components of defense projects are now produced overseas. And the situation may get worse as foreign control of companies making our products for our nation's defense increases. Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): The United States is no longer the leading manufacturer of many critical military components. Japan, China and Russia have advanced, Capturing Leads in carbon fiber, titanium and electronics machinery.

The United States is down to only one manufacturer of carbon fiber used in the manufacturing of ships. There are only three U.S. titanium producers left.

REP. DUNCAN HUNTER (R-CA), ARMED SERVICES COMMITTEE CHAIRMAN: The idea of being subservient to a former supplier for the military hardware means at some point you may be a prisoner to his foreign policy.

SYLVESTER: The United States' reliance on foreign suppliers is reflected in the latest trade deficits. The trade deficit in advanced technology products soared 15 percent in the month of October alone. The U.S. annual trade deficit with China in computer hardware is $25 billion and growing. And electronics machinery and parts, $23 billion.

ALAN TONELSON, U.S. BUSINESS & INDUSTRY COUNCIL: The United States is running a substantial and growing risk of not being able to access various military capabilities and not being able to build various weapons systems when we need them.

SYLVESTER: At the start of the Iraq war, U.S. smart bombs were in short supply because a key component was made in Switzerland. That country temporarily cut off delivery because it opposed U.S. foreign policy.

More recently, the U.S. government says steel shortages have made it difficult to up-armor military Humvees.

HUNTER: We only have a couple of companies in the United States that make that armor and one of them, I'm told yesterday, is now being purchased by the Russians.

SYLVESTER: Oregon steel is only one of two companies left in the United States that make steel for the U.S. Humvees.

The Russian Everase (ph) Group is in the final stages of taking it over.

(END VIDEOTAPE)

SYLVESTER: Critics say the United States is not only selling off its defense manufacturing base, it is also at the same time arming possible future rivals -- Kitty.

PILGRIM: Thanks very much, Lisa Sylvester.

Coming up, outgoing defense secretary Donald Rumsfeld was honored for his service by the president today. And we'll see how Rumsfeld fares with our distinguished panel of political analysts.

Also, "heroes", it's our weekly salute to the servicemen and women who put their lives on the line around the world. And tonight the story of Airman First Class Brandon Byers. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Well, joining us tonight three of our sharpest political minds. Former White House political director, Republican strategist Ed Rollins, columnist for the "New York Daily News" Michael Goodwin, and Democratic strategist Robert Zimmerman. Gentlemen, thanks for being with me.

Let's start with Rumsfeld. It was big day and a lot of activity in Washington with him leaving. President Bush really stepped forward and praised Rumsfeld. Let's listen to what he said first.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The record of Don Rumsfeld's tenure is clear. There have been more profound change -- there has been more profound change at the Department of Defense over the past six years, than at any time since the department's creation in the late 1940s.

(END VIDEO CLIP)

PILGRIM: Now, the Rumsfeld reviews have pretty much been the sport du jour, but I'd like to get your thoughts on what you think his legacy is.

ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: You know, I have such respect for the office of the secretary of defense and recognize its significance, but unfortunately I agree with President Bush, the record is clear.

As a result of his tenure, our military is essentially broken. Iran and North Korea now have emerged as dominant powers in the Middle East region. We've seen a situation where the whole region -- Afghanistan, a war we were winning, is now a war that we are in serious trouble in. And ultimately, the world and America is not safer in the war on terror. It's a tragic legacy.

PILGRIM: Many suggest that this is circumstantial.

MICHAEL GOODWIN, "NEW YORK DAILY NEWS": Well, look, I think the problem for Rumsfeld in terms of his legacy is Iraq, primarily. And I think fundamentally there the issue is he is still talking as though we are making progress and we have to be patient.

And I think that that idea doesn't sell anywhere anymore including with the president. I mean, the president doesn't talk that way anymore. The Iraq Study Group said we're losing. The new replacement said we're not winning. So the notion of somehow we just have to be patient is wrong, and I think that's Rumsfeld's legacy. He didn't get it. He didn't catch up to it.

PILGRIM: How much of that was morale boosting for the troops?

ED ROLLINS, REPUBLICAN STRATEGIST: I don't think the troops -- the bottom line is this is a guy that left with the same two constituents that he had, President Bush praising him today and Dick Cheney. The generals didn't like him. He totally disregarded the whole concept of the joint chiefs of staff, which are independent and report to the president. Certainly he tried to micromanage this war. He certainly didn't take the gameplans that had been laid in place by prior generals in how to fight Iraq and I think to a certain extent his legacy will be a very, very sorry one, and I think that's a tragedy.

ZIMMERMAN: And let's not forget, he is not acting unilaterally. His legacy is in fact the Bush administration's foreign policy legacy. And that's truly the great tragedy of the situation.

I still have not seen signs yet that the Bush Administration realizes that stay the course doesn't work. We're hearing a lot of rhetoric, but we're not hearing a change in policy.

PILGRIM: Right. And now there's this delay while the president considers his options.

ROLLINS: I don't argue with the delay, I still think it's very important because there is a new secretary of defense coming in that we really -- we have one more shot at this thing and I would hope that Democrats will basically collectively come in here and look at this thing hard with the president and whatever the decision is to move forward, we try and do it collectively and supportively and take one more good shot at it.

ZIMMERMAN: I think we're seeing that. We're witnessing the Democratic Congress working with the president bipartisanly. What we're not seeing though is the fact that the president recognizes that in fact we need a political solution in Iraq, not the military one.

GOODWIN: I don't think that's true at all. I think, clearly the president has been talking about a political solution. I think everybody -- that's why Cheney went to Saudi Arabia. I mean, I think that's what everyone is talking about. No one is talking exclusively ...

PILGRIM: We had a flurry of Iraqis coming through Washington.

GOODWIN: Sure, Sure. No one is talking ...

ZIMMERMAN: We also had a flurry of military officials testifying at Capitol Hill, talking about bringing more troops into the region.

GOODWIN: But that doesn't, but that -- those are not exclusive issues, military and political. I mean, you've got to do both. You've got to have some kind of a military ...

(CROSSTALK)

ROLLINS: This is like getting kids out of a pool, if you blew the whistle today, you can't get our troops out for a substantial period of time and you can't leave a vacuum and we've had this discussion many times and I don't think it's necessary to repeat it tonight.

The president is going to keep our troops there for a substantial period of time. He thinks he has to level the playing field. It is a political solution, but I think you can't have chaos no matter what -- and you can't run this thing by polls and you can't run it by elections and I think this president basically he sees this as his last legacy and it's not just about legacy, it's about what's the right thing to do.

(CROSSTALK)

PILGRIM: Robert, let me just bring up a comment by Tony Snow today which really speaks to Ed's point.

(BEGIN VIDEO CLIP)

TONY SNOW, WHITE HOUSE PRESS SECRETARY: You've got to understand that the president is the person responsible for making the decision. So, it will be the president's decision, and there will be many people that have input, so, I think the most important thing is the president does, of course, accept responsibility for crafting a new way forward.

(END VIDEO CLIP)

PILGRIM: This is in no way a comfortable Christmas for President Bush. He has a very heavy weight on his shoulders.

ZIMMERMAN: No, and I wouldn't wish that on anyone. But I think the difference here is that we now have military leaders like Lieutenant General -- like for example Brigadier General John Custer who is in charge of intelligence in Iraq, saying sectarian violence is going to go on for generations and General Corelli (ph), Peter Corelli whose come forward and said additional troops are not the answer. This requires political solution and diplomacy.

PILGRIM: 20,000 more troops perhaps?

GOODWIN: Well, look again, I think that these are not mutually exclusive, you may need more troops in the short term, but I think the question is if you can get a bit of a halt in the violence or stamp it down in some way, then what happens?

I mean, one of the things, I think that is most persuasive about the Iraq Study Group is the poor state of reconstruction, the graft, the oil issues, the infrastructure. I mean, so all of those things would have to take place if you had some kind of a respite in the violence. If you can't first get the respite, you can't get those things done, but if you get the respite, can you get those things done? That's where the politics have to work in tandem with the military.

PILGRIM: You know, one of the things we saw very clearly was a very clear response by Secretary Rice on talks with Iran and Syria, she said absolutely no way. The Iraq Study Group came out with that suggestion. It was absolutely put out in black and white, do not, we do not do this for the reason that they will extract too high a price for this.

ROLLINS: First, they have not been good neighbors, and I think her point is, they have an interest in peace in the Middle East and they certainly have made no efforts whatsoever to try and be good neighbors.

They have both been involved in sponsoring terrorism, and I think they have to take some steps and I think for us to basically go reward them by saying you're a part of the process, and what about Israel that is our ally in all of this? How do they feel about Syria that sponsored terrorism and sponsored Hezbollah or Iran that has been threatening us with nuclears? I think it's just absurd to get into that process.

ZIMMERMAN: Ed, they are terrible neighbors, there's no question about it, but one of the consequences of Bush's war in Iraq, and the result of it is, Israel is in fact more threatened than ever before because of the war in Iraq and one of the consequences is Iran and Syria are now more empowered. If we can't bring them into a regional discussion, we are never going to ...

ROLLINS: I would argue very strenuously and I would predict to you anyone in Israel strenuously that Syria and Iran were going to be long-term enemies of Israel no matter whether there was a war in Iraq or not.

GOODWIN: I also want to say to your report earlier, Kitty, about the freelancing. I think it's outrageous. I really do think it does undercut the president. It makes the president look very weak. And I think it's very hard, it's like kids playing soccer, everybody runs for the ball.

I think this really does have to be a foreign policy directed by the White House with input from Congress, but this freelancing is outrageous.

PILGRIM: It's politically motivated.

(CROSSTALK)

ZIMMERMAN: Senator John Warner who pointed out is chairman of Armed Services, that one of the great tragedies was Congress did not do its due diligence before it went to war in Iraq and now one of his committee reports showed that hundreds of thousands of American weapons are missing. So the point is we do need to have, Congress does need to pursue proper oversight, investigate ... GOODWIN: But oversight is not going to Syria to negotiate with Syria by John Kerry.

ROLLINS: They are not there looking for weapons, they are basically trying to get headlines and I think it's ridiculous. I think they are sending wrong signals at a very critical time. I think that's a great disservice to the country.

PILGRIM: All right, we'll leave it there. Thank you very much. Ed Rollins, Robert Zimmerman, and Michael Goodwin. And coming up shortly here on CNN, "THE SITUATION ROOM" with Wolf Blitzer -- Wolf.

WOLF BLITZER, CNN ANCHOR: Thanks very much, Kitty. Killing the death penalty, we'll have late-breaking developments on decisions in both Florida and California today, and we're going to find out what this means for the rest of the country.

Also, "The Purpose-Driven Life" -- Pastor Rick Warren is here in "THE SITUATION ROOM" to discuss religion, politics and Senator Barack Obama.

Also Castro, life after death, U.S. officials are preparing for some worst-case scenarios.

And public-private disconnect? President Bush weighing on the vice president's daughter raising a baby with her girlfriend. All that coming up right here in "THE SITUATION ROOM" -- Kitty.

PILGRIM: Thanks, Wolf.

A reminder now to vote in tonight's poll. And the question is, do you believe the Native-American community has the right to prevent the National Guard from patrolling a section of our southern border with Mexico? Yes or no. Cast your vote at LouDobbs.com. We'll bring you the results in just a few minutes.

Coming up, "Heroes." Tonight, we profile an airman whose life took a surprising twist when he was serving in Iraq. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Now, "Heroes," our weekly tribute to America's men and women in uniform. Our hero tonight is Airman First Class Brandon Byers. He joined the Air Force expecting to complete a four-year stint and then return to civilian life. Now he is recovering from serious wounds he sustained in Iraq.

Casey Wian reports.

(BEGIN VIDEOTAPE)

AIRMAN 1ST CLASS BRANDON BYERS, 99TH SECURITY FORCES SQUADRON: I decided to join the Air Force. I wanted to be a patriot.

CASEY WIAN, CNN CORRESPONDENT (voice-over): Airman First Class Brandon Byers doesn't regret that decision, even as he struggles to recover from nearly fatal injuries.

BYERS: I was scared, nervous, and proud at the same time. I'm proud to be able to say that I was over there and when I was over there, I felt a sense of pride, knowing that I was protecting my family and my friends.

WIAN: Only a month before our visit, he was manning a 50-caliber machine gun in southern Iraq, patrolling for IEDs.

BYERS: I remember a very big, large bang, a big cloud of dirt, and a small, orange light. I was slightly dazed, confused.

CASEY: His Humvee was hit by an IED, apparently planted moments earlier. Byers was just a few weeks from completing his Iraqi tour.

BYERS: After I realized what had happened and after I had gone through my anger, I had realized I had pain in my leg and my hands, and I looked down and my leg was bleeding profusely. And my hands were also bleeding.

When I first saw the dust and the flash, my -- I -- just initial reaction was to put my hands up. It probably would have gotten my face had I not put my hands up. It blew out a great deal of bone and muscle tissue.

CASEY: Now Byers faces a long, painful rehabilitation, and the realization that his hands and foot may never fully recover. Still, he's fortunate to be alive and says it's a blessing just to be able to walk his daughter to school. And he no longer wants to leave the Air Force after his four-year enlistment.

BYERS: After this experience, I plan on staying in. I want to be able to eventually become an instructor and teach other airmen on how things go down there. I'm just coping with things like this.

WIAN: Casey Wian, CNN, Nellis Air Force Base, Nevada.

(END VIDEOTAPE)

PILGRIM: Brandon says he would like to see those responsible for the attack held accountable, but he says he doesn't wish them any harm, and he doesn't want anyone to suffer the way he has suffered, and we certainly wish him well.

Still ahead, the results of tonight's poll, more of your thoughts. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Now the results of tonight's poll. Eighty-six percent of you say the Native-American community does not have the right to prevent the National Guard from patrolling a section of our southern border with Mexico.

And that is a little bit more time for your thoughts. Mike in Nebraska: "Now, I sent a piece of my mind to the White House and DOJ about selling out our border patrol agents. Shame on the White House and shame on the DOJ."

John in Illinois wrote to us, it's good to hear President Bush is on a listening tour for the war in Iraq. Is there a chance he'll do a listening tour on the war on the middle class next?"

And John in Pennsylvania writes, "Political correctness is out of control. What next? Will I offend anyone if I say God bless you when they sneeze?"

Bobbi in Illinois: "Crack down on lobbyists? I think we should eliminate them. Our elected officials should listen to the people that elected them and not special interest groups who buy their votes."

Dennis in Montana: "I finally figured out what the U.S. Congress is good at -- giving themselves pay raises."

We love hearing from you. Send us your thoughts at LouDobbs.com.

Thanks for being with us tonight. Please join us tomorrow and Sunday for "LOU DOBBS THIS WEEK" at 6:00 p.m. Eastern. For all of us here, have a great weekend. Good night from New York. "THE SITUATION ROOM" starts right now with Wolf Blitzer -- Wolf.

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