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Lou Dobbs Tonight

White House Refuses To Pardon Two Border Patrol Agents; Federal Government On A Spending Spree; Outrage Continues Over Remarks About Muslims Elected To Congress; Space Shuttle Discovery Touched Down At Kennedy Space Center; Venezuela Selling American Voting Machine Company; Captain Smiley's Dedication To Service Now Inspiring Fellow Soldiers

Aired December 22, 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: Thanks, Wolf.
Tonight, President Bush prepares to meet with his top national security advisors to discuss the war in Iraq. Will the president order thousands more of our troops to Iraq?

The White House pardons drug dealers and other criminals, but, still, refuses to pardon two border patrol agents who shot a Mexican drug smuggler. All of that straight ahead.

ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate and opinion for Friday, December 22. Live, in New York, sitting in for Lou Dobbs, Kitty Pilgrim.

PILGRIM: Good evening, everybody. President Bush, tomorrow, will discuss his next moves in Iraq with senior members of his national security team. The meeting comes amid rising U.S. casualties in Iraq and growing concern about the possibility of all-out civil war.

President Bush is considering sending as many as five additional U.S. combat brigades to Baghdad. That is nearly 20,000 extra troops. Suzanne Malveaux reports from the White House -- Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Kitty, as you know, the president has an enormous task over the holiday season, this next couple weeks or so, to come up with an Iraq policy, a successful one that will work, the American people will back and ultimately bring U.S. troops home.

That is why at Camp David tomorrow he's going to be sitting down with his new defense secretary, Bob Gates, who just came back from Iraq, a two-day mission. He is going to get a briefing from the discussions that took place with the commanders on the ground, as well as the troops.

Also in this rare weekend high-level meeting will be his international security adviser Steven Hadley, Secretary Rice and many others. And then, after Christmas, this is going to be at the Crawford ranch. He is, again, going it be sitting down with the top national security advisors for consultations, Kitty. They say no decisions have been made yet, but certainly one strategy they're looking at, the possibility of adding a surge of U.S. troops temporarily in Baghdad while the Iraqi government gets its political house in order.

All of this, of course, comes at a time when President Bush under tremendous pressure to show that the U.S. mission was well worth it.

The president today visited at Walter Reed Army Medical Center. And this is where a White House photo showing -- issuing these photos to us. The president sitting down at bedside, visiting with at least 38 patients. Many of them amputees, seriously wounded from the Iraq war.

The president today presented 16 Purple Hearts and tried to show that he appreciates what they're doing and genuine thankfulness at the mission.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATED: I want all our fellow citizens to understand that we're lucky to have men and women who have volunteered to serve our country, like those who wear our uniform. We're lucky to have their families support them so strongly. We owe them all we can give them, not only for when they're in harm's way, but when they come home. To help them adjust, if they have wounds or help them adjust after their time in service. We owe a huge debt of gratitude for incredible men and women.

(END VIDEO CLIP)

MALVEAUX: And, Kitty, we expect President Bush will be back here at the White House, the first of January, the New Year. We're told by senior advisors he's expected to address the nation on that new Iraq policy some time perhaps the first week of January. May slip into the second week, but, certainly very shortly -- Kitty.

PILGRIM: Thanks very much, Suzanne Malveaux.

Defense Secretary Robert Gates is refusing to say whether He supports the idea of sending more troops to Iraq. This question was the top item on Gates' agenda during his visit to Baghdad this week. Jamie McIntyre was the only network TV correspondent traveling with the president. And he reports from Baghdad.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): Defense Secretary Robert Gates wrapped up his three-day tour of Iraq and headed back to Washington armed with conflicting military assessments about the advisability of a surge of additional U.S. forces to bring violence here in Baghdad under control.

Gates found popular support for the idea from a select group of low-ranking U.S. soldiers who serve on the front lines. And CNN has learned at least some mid-level commanders support the idea, as well. One American Army general told CNN in private, quote, "It would make a real difference in Baghdad. It would help set conditions for a political solution."

The officer, who commands troops in Baghdad, said the option currently given serious consideration calls for five U.S. brigades and three Iraqi brigades to be sent into Baghdad early next year. That would provide a surge of roughly 30,000 troops, including the several thousand Iraqi army troops.

The most senior commanders here continue to express reservations about the concept, fearing, unless a surge is linked to a clear military objective, says helps Iraq take control, it will only be a temporary success and ultimately counterproductive.

ROBERT GATES, SECRETARY OF DEFENSE: I'm quite confident that what I've heard from their plans this week that we will be able to-- that together and with them in the lead, we will be able to make an improvement in the security situation here in Baghdad.

MCINTYRE: Gates said he never discussed specific troop numbers with Iraq's Prime Minister Nouri al-Maliki, and insists he has not made up his mind if a surge is the way to go.

Gates will be able to report to President Bush that opposition to the surge option is not universal among U.S. commanders. And that if he adopts it, the president can say, what he's doing is what some generals think is best.

Jamie McIntyre, CNN, Baghdad.

(END VIDEOTAPE)

PILGRIM: The military has announced the death of five more of our troops in Iraq. Four were killed in al-Anbar Province west of Baghdad. One was killed near the Iraqi capital. Seventy-three of our troops have been killed or have died in Iraq so far this month. And that is already the third-highest monthly highest total of the year.

Two thousand, nine hundred, sixty-two of our troops have been killed or have died since this war began. Another 22,401 of our troops have been wounded, 10,050 of them so seriously they could not return to duty within three days.

The war in Iraq has raised fears the federal government may reintroduce the draft. The Selective Service system is planning a major test of its procedures. But officials insist that the test is not a sign the draft is about to return. Barbara Starr reports from the Pentagon.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): It's an enduring symbol of the Vietnam War, protesters burning their draft cards. Could the draft now be coming back? The secretary of Veterans Affairs has some people worried. JAMES NICHOLSON, VETERANS AFFAIRS SECRETARY: That is a real advantage of the draft because it does bring people from all quarters of our society together in the common purpose of serving for a while in uniform.

STAFF: Nicholson say he isn't calling for a draft. But the Selective Service announced it will test the national system for running a draft, to ensure it can readily locate all draft-eligible men, aged 18 to 25.

The military insists no draft is planned. A Pentagon spokesman says that this statement, by then-Defense Secretary Donald Rumsfeld still holds.

DONALD RUMSFELD, FORMER SECRETARY OF DEFENSE: There is no need for it at all. The disadvantages of using compulsion to bring in to the armed forces the men and women needed are notable.

STAFF: Experts say a draft leads to troops who don't want to be there, who will only stay for a short time and be poorly trained.

Since the draft ended in 1973 and the military became an all- volunteer force, enough people, experts say, have volunteered for duty. So that a draft simply isn't need.

But Congressman Charles Rangel says a draft would make the rich and poor alike share the sacrifice of going to war.

REP. CHARLES RANGEL (D), NEW YORK: If we had a draft when the president made the decision to go to war, he wouldn't have made it, because there would have been a protest. He would never be able to say, bring them on with other people's children.

STARR: Even the Selective Service said its test, scheduled for 2009, is uncertain.

DICK FLAHAVAN, SPOKESMAN, SELECTIVE SERVICE: Now, depending between now and then whether budget is cut or staff is seriously curtailed, then the whole thing may be canceled.

(END VIDEOTAPE)

STARR: Kitty, because of all the press reports, the Selective Service system finally put a statement on their website today saying that no draft is planned. And that the public should not be alarmed. It's only a test -- Kitty.

PILGRIM: Well, this is not a subject to be taken lightly. I'm glad they clarified. Thanks very much, Barbara Starr.

The president's conduct of the war in Iraq has led to a sharp decline in his poll numbers this year. A new CNN opinion poll says nearly two-thirds of voters now believe that the president does not inspire confidence. Bill Schneider has our report.

(BEGIN VIDEOTAPE) WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): What kind of a year has it been for President Bush? Don't ask. OK, we asked. His party lost Congress. He acknowledged Iraq is not going well.

BUSH: We're not succeeding nearly as fast as I wanted.

SCHNEIDER: And his image has taken a tumble. Character played a big role in the 2000 campaign.

BUSH: So when I put my hand on the Bible, I will swear to not only uphold the laws of our land, I will swear to uphold the honor and dignity to the office to which I have been elected, so help me God.

SCHNEIDER: For his first five years in office, most Americans regarded President Bush as honest and trustworthy. Now, most don't. The values issue was essential to Bush's re-election in 2004.

BUSH: Most families do not look to Hollywood as a source for values.

SCHNEIDER: But most Americans no longer believe President Bush shares their values.

After 9/11, President Bush established an image of resolve.

BUSH: And the people, who knocked these buildings down, will hear all of us soon.

SCHNEIDER: But resolve has come to look like stubbornness in Iraq. Most Americans no longer regard President Bush as a strong and decisive leader. Most damaging? Only 37 percent of Americans say President Bush inspires confidence. That's only half as many as felt that way after 9/11.

BUSH: I'm not going to make predictions about what 2007 will look like in Iraq.

SCHNEIDER: Democrats are not holding back on their predictions.

REP. NANCY PELOSI (D-CA), INCOMING HOUSE SPEAKER: And we are pledging to uphold the highest ethical standards, the most honest, the most open Congress in history.

SCHNEIDER: Does the public share that optimism? Yes. But the excitement has diminished a bit since the election last month.

(END VIDEOTAPE)

SCHNEIDER: Can President Bush regain the confidence of the American People? Sure. President Clinton did after 1994, his annuls horribilis or terrible year. It takes hard work, good luck and the ability to change direction without worrying about being called a flip-flopper -- Kitty.

PILGRIM: And perhaps a smidgen of bipartisan cooperation, Bill. SCHNEIDER: That would also be helpful. And the Democrats seem to be aware of that. They're all talking about bipartisanship, which could help both sides.

PILGRIM: Thanks very much, Bill Schneider.

Still to come, President Bush pardons drug dealers and other criminals, but he refuses to pardon two border patrol agents who shot a Mexican drug smuggler.

Also, the federal government is on a huge spending spree. Hard- pressed middle-class families will pay the price.

And a Virginia congressman refuses to back down after strongly criticizing the first Muslim to be elected to Congress.

(COMMERCIAL BREAK)

PILGRIM: Federal and state governments often fail to support those working to solve this nation's illegal immigration crisis. Bill Tucker reports on the new governor of Massachusetts, who will cancel a plan to train state troopers to help enforce immigration laws.

And Casey Wian reports on why the White House can pardon drug dealers and other criminals, but not two border patrol agents who are about to serve lengthy prison terms. We begin tonight with Bill Tucker -- Bill?

BILL TUCKER, CNN CORRESPONDENT: Kitty, a couple of governors are, in fact, beginning to try and back away from enforcement of immigration law.

Iowa Governor Bill Vilsack is angry at Immigration and Customs Enforcement. The presidential candidate threatening that his state won't cooperate with the federal agency any longer.

And Massachusetts Governor-elect Deval Patrick says he will rescind the agreement between this state and the federal Department of Homeland Security.

(BEGIN VIDEOTAPE)

TUCKER: Will they or won't they be trained to help enforce immigration law? Massachusetts Governor-elect Duval Patrick says, no.

Outgoing Governor and potential presidential candidate Mitt Romney hopes that, before any final decision is made, that the new governor sits down and talks to federal authorities.

MITT ROMNEY, FORMER MASSACHUSETTS GOVERNOR: This program is not a highway program. The state troopers aren't going to stop people on the highways. They're not going into people's homes. This is, instead, during the investigation of crimes and that kind of circumstance, having this additional authority is something, which I think makes a great deal of sense. TUCKER: Massachusetts Governor-elect Patrick doesn't think so. Even as he's promising to end the cooperative agreement with the Department of Homeland Security, officials in the Hawkeye State are threatening to no longer cooperate with Immigration and Customs Enforcement.

In a letter to Homeland Secretary Michael Chertoff, Iowa Governor Tom Vilsack, and the head of Iowa's National Guard, Major General Ron Dardus (ph), complained of the lack of communication by ICE officials, going so far as to say that the raids on Iowa's meat packing plants led to a resentment and further mistrust of government.

As a result, quote, "this lack of coordination among law enforcement and military authorities is completely unacceptable. The Iowa National Guard will now require proper notification to the governor and appropriate law enforcement before we, again, agree to provide space for future actions by operations of ICE."

The response from ICE is simple, the National Guard was briefed. In fact, a $32,000 contract was signed for the use of three dorms at their base in Iowa, which were to be used to house aliens. The contract even details the number of bed linens and wash towel sets needed -- 1,100. The contract is dated December 4th.

REP, STEVE KING (R), IOWA: Judging by the phone calls my office is getting and the e-mails and communications that my office is getting, this letter of Governor Vilsack does not speak for the will of the people. It speaks for the political aspirations of the governor.

TUCKER: The letter from Tom Vilsack covers a lot of ground.

(END VIDEOTAPE)

TUCKER: Including a complaint that there was a complete lack of a media plan, which they say created, quote "an information vacuum," which is an interesting complaint, Kitty, because considering all the wide-spread media coverage that these raids receive when they happen.

PILGRIM: They certainly did. This letter raises humanitarian concerns, Bill. What is ICE's response?

TUCKER: Well, ICE was shocked by that. I spoke with ICE today. And I should say that we did call the governor's office and asked them for a response and requested an interview. And they declined.

But I said they're shocked, because they let loose -- they released more than 100 people when they were arrested -- after they were arrested and interrogated and learned that they had kids at home that needed to be -- someone needed to get home and take care of them. So ICE says they did address that. And they were shocked at the governor's allegations.

PILGRIM: OK. Thanks very much, Bill Tucker.

That does bring us to the subject of tonight's poll. Do you think state and local police officers should help enforce immigration laws? Yes or no. Cast your vote at LouDobbs.com. We'll bring you results later in the broadcast.

President Bush, this week, pardoned 16 criminals, including several drug dealers. But the president still refuses to pardon two border patrol agents. Ignacio Ramos and Jose Compean are about to start serving lengthy prison terms for shooting an illegal alien drug smuggler. Casey Wian reports.

(BEGIN VIDEOTAPE)

WIAN: It's another set back for former border patrol agents Ignacio Ramos and Jose Compean. They're seeking a presidential pardon for their convictions in the shooting and wounding of a Mexican drug smuggler in Texas last year.

They were sentenced to 11 and 12 years in prison for failing to report the shooting. Supporters say, except for that, the agents were merely trying to do their jobs, protecting one of the most dangerous sections of the U.S.-Mexico border.

While the White House has failed to take action in the case, the president, this week, did see fit to pardon 16 criminals, including five drug dealers.

T. J. BONNER, NATIONAL BORDER PATROL COUNCIL: There is a palpable sense of outrage and betrayal. Here, you have five convicted drug dealers being pardoned, and two border patrol agents, who were doing their job, fighting the war on drugs on the front lines, and they're going to prison. And the president just sits back and allows that to happen.

WIAN: During his first six years in office, President Bush has pardoned 113 criminals, from moon shiners to tax cheats, and commuted the sentences of three others. President Clinton granted four times as many during his eight years in office.

The only post-war president granting fewer pardons than President Bush was his father.

Even so, supporters of Ramos and Compean say their case deserves special attention. One hundred and sixty thousand U.S. citizens and 55 members of Congress have signed petitions requesting a presidential pardon.

REP. DANA ROHRABACHER (R), CALIFORNIA: What the president is doing is putting in jeopardy the good Relationship he's had with People like me, who supported his policies. Because now, we have a doubt as to what his motives are, if he is going to pardon, you know, drug dealers and other criminals, but ignore the pleas for a pardon for two of the people who have been protecting us at the border.

WIAN: One day before Thursday's rally supporting the agents, Rohrabacher and other lawmakers received a letter from an acting assistant attorney general saying the agents used excessive force and received a fair trial. A separate letter stonewalled the request for a pardon, recommending the agents contact the same Justice Department that aggressively prosecuted their cases.

But Ramos and Compean are running out of time. They're scheduled to report to prison January 17.

(on camera): Family members and supporters say their best hope remains with the El Paso judge who handed down the agents' convictions. She could allow them to remain free on bail while their convictions are appealed.

Casey Wian, CNN, Los Angeles.

(END VIDEOTAPE)

PILGRIM: An 8-year-old boy, tonight, is being used as a political pawn by the illegal alien movement, and his mother. Now, Elvira Arellano an illegal alien, took refuge in a Chicago church in August. She sent her son, Saul, an American citizen, to Washington this week to lobby to have her deportation order lifted.

The boy has made several other trips out of town, including one to Mexico on behalf of his mother and pro-illegal alien groups.

Coming up, if you want to know how much the Iraq war costs, don't look at the federal budget. It is not there. We'll have a report on how hidden government spending hurts America's middle class.

A remark about the Muslim faith by an incoming congressman is still creating controversy. The congressman who made the remark is not backing down. We'll have a report.

And Denver's airport reopens, but travel delays will not ease up any time soon. We'll have the details on that.

(COMMERCIAL BREAK)

New concerns, tonight, about the way Washington is manipulating what you know about the federal budget. Now, some believe the Bush administration is deliberately hiding monumental costs, costs that will eventually fall on those who are, or aspire to be, members of the middle class. Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): The Iraq war is costing the American taxpayer $8 billion a month, according to congressional researchers. And the Pentagon is readying yet another supplemental spending bill to pay for the war. This one just shy of $100 billion.

REP. IKE SKELTON (D), MISSOURI: We'll review it and scrutinize it very closely. As to the figures, I'm just sure it is going to be a real challenge for us. SYLVESTER: Democrats want a better accounting of the war costs. Even as some lawmakers accuse the Bush administration of obscuring the true costs by not including war expenses in the regular budget.

The ballooning war bill is helping fuel the national debt. Along with entitlement spending, it is creating a growing financial burden on middle class families. This year alone the federal government added another $248 billion to the federal debt.

RUTH WOODEN, PUBLIC AGENDA: We probably could not run our household that way, not for very long. It's a little bit akin to maxing out your credit cards and then eventually you're going to have to pay down your long-term debt.

SYLVESTER: Nearly half of the U.S. federal budget are for items that are in the Have-To-Pay category, 20 percent of the budget for Social Security, another 20 percent for Medicare and Medicaid and 7 percent for debt payments.

ALICE RIVLIN, FORMER CLINTON BUDGET DIRECTOR: I don't think people are sufficiently aware of our long-term commitments. When the president sends a budget up, it will include the entitlements, but only for the next five years. The big crunch on Social Security and Medicare comes after that, as the baby boom generation retires and medical costs go on rising.

SYLVESTER: People, who are not old enough to vote, will be stuck with the tab. Eyes may glaze over when they see the budget numbers, but consider this. The amount the U.S. government spends paying off the interest to loan on the federal debt is seven times greater than what's spent on education.

(END VIDEOTAPE)

SYLVESTER: The current debt levels mean tough choices ahead that will undoubtedly affect most middle class families. It could mean future tax increases or cuts in Medicare and Social Security services.

A group of liberal and conservative think tanks has launched a campaign to face up to the nation's finances and address these issues here and now, instead of pushing it off on future generations -- Kitty.

PILGRIM: Very important topics. Thanks very much, Lisa Sylvester.

An independent audit, tonight, says lack of financial controls at the Department of Homeland Security leave it open to error and also fraud. Now, auditing firm KPMG says the department is vulnerable, at least four of its biggest units, the Coast Guard, the Federal Emergency Management Agency, the Transportation Security Administration, and Immigration and Customs Enforcement. All of those agencies that are essential to protecting our national security.

The report blamed Congress for creating the Homeland Security Department without allowing for adequate financial management. Let's take a look at some of your thoughts. We love doing that.

Stephanie in California wrote to us. "I can't think of a better way to destroy American security, punish the people trying to protect the United States and let drug dealer criminals go free."

And Aline in New York, "If two border patrol agents are sent to jail, all border patrol agents should resign in mass. And maybe that would wake up the Administration."

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

And coming up, the federal government is dropping its investigation of a U.S. voting machine company with ties to Venezuelan interests. We'll tell you why.

A Virginia congressman under fire for remarks about Muslims in Congress wins some support. We'll have a report.

And the space shuttle Discovery, after a few delays, finally makes a landing. We'll have the details on that.

(COMMERCIAL BREAK)

PILGRIM: Now our top stories. President Bush will meet senior members of his national security team at Camp David tomorrow. They will discuss U.S. strategy in Iraq with Defense Secretary Robert Gates. He has just returned from a visit to Baghdad.

Now, the president is considering whether to sharply increase the number of U.S. troops in Iraq. One option is to send as many as five additional combat brigades to Baghdad, that's nearly 20,000 troops.

And two border patrol agents will soon begin long jail sentences for shooting a Mexican drug smuggler. President Bush is refusing to pardon the agents, but the president has pardoned many drug smugglers and other criminals.

Outrage continues tonight over remarks about Muslims elected to Congress. Now, Virginia Congressman Virgil Goode said Muslims in Congress pose a serious threat to the nation. Muslim groups and Democrats, among others, condemn those remarks, but not everyone is criticizing the congressman.

Brian Todd reports -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Well, Kitty, this all started when Congressman Virgil Goode recently slammed the Muslim holy book, the Koran, after incoming congressman Keith Ellison said he would use the Koran at his unofficial swearing in.

Now this is the kind of fire that Congressman Goode is now facing here in Washington. Take a look at this editorial in today's Washington Post. It has the headline, "A Bigot in Congress." But if you drive four-and-a-half hours south of here, it is a different story.

We were in Goode's hometown of Rocky Mount, Virginia earlier today. We spoke to people all over town and at a popular breakfast restaurant called the Hub Restaurant, everyone, everyone stood by Virgil Goode.

Does that make them racist? Not necessarily. What they said reflects the real gray areas of race, religion and demographics in small town America. Here is a sampling about their feelings of Keith Ellison.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I don't find anything wrong with either converting to Islam or necessarily wanting to include the Koran in his activities. However, he should already know by now that the American tradition is to include the Bible.

UNIDENTIFIED MALE: I don't have a problem with Muslims coming in the country, but I think that we should expect them the same as any other immigrants to assimilate and adapt the values of this country, if they choose to live here.

(END VIDEO CLIP)

TODD: Now, of course, Goode is standing by his remarks and refuses to apologize. And that does not seem to be hurting him politically. The local newspaper editor tells us they have received absolutely no calls of complaint against Goode since this erupted. Goode's office tell us the calls and e-mails are overwhelmingly positive -- Kitty.

PILGRIM: Thanks very much Brian Todd.

Well, prosecutors have dropped rape charges against three Duke University lacrosse players. And the three were accused by the woman hired as a stripper for a team party in March. The players still face kidnapping and sexual assault charges.

Now, in dropping the rape counts, prosecutors cite a lack of DNA evidence against the players and variations in the alleged victim's story in discussions with investigations.

A huge storm system is delaying frustrating travelers nationwide. Some may not make it home in time for Christmas. Now, the Denver International Airport is open again, but officials say it could be days before they could clear the back log.

A massive blizzard forced the airport to close on Wednesday, stranding passengers over the country. And that huge weather system is now bearing down on the Eastern seaboard. It is expected to cause further travel woes all the way up from the southern tip of Florida all the way to the Canadian border.

A $5 billion damage award in the Exxon Valdez oil spill was cut in half today by a federal judge. The 1989 spill tainted 1,500 miles of the Alaska Coast. A jury awarded the punitive damage to thousands of Alaskans who lost their property and their livelihoods. ExxonMobil earned $36 billion last year, by the way. That's the most ever by any U.S. corporation.

The Space Shuttle Discovery touched down on the long runway at the Kennedy Space Center just about an hour ago. And John Zarrella reports from there with the very latest -- John.

JOHN ZARRELLA, CNN CORRESPONDENT: Hi, Kitty. Well, I tell you that we never really expected it to come back here to Kennedy Space Center. That same weather system you have been talking about approaching here the east coast and brought cloud cover and chances of rain showers here today.

But, right now you can see on the runway here, the Space Shuttle Discovery all basking in the giant lights, the glow of the lights, waiting for the crew to come out now. An hour after the touchdown here at Kennedy Space Center.

It was iffy all day. At first we thought they might be going to Edwards Air Force Base in California, but then high winds, cross winds, there scrubbed that. We thought maybe they would be going out to the middle of the United States out to White Sands, but that didn't happen.

At the last minute they decided they were going to give it a shot here at the Kennedy Space Center and they started on home.

Mark Polansky, the commander, saw the vehicle down, come down in his head's up display, lining up with the runway here. The vehicle, of course, flaring out over the shuttle landing facility here. And then landing right on the money down the center line.

This is a really good mission for NASA to end the year successfully. The first couple of missions this year really dedicated to making sure that there were no issues with the vehicles in the wake of the Columbia accident. And issues with the foam coming off of the shuttle. This one was a very clean mission.

They did perform a fourth spacewalk, of course, on Monday, which extended the mission by a day. And that spacewalk, in order to be able to retrack the bulky solar array on the International Space Station, that was successfully accomplished along with rewiring of the shuttle.

So again, a very successful mission for NASA. They were able to get this one in to end the year and then move on now to next year and more scheduled launches of the shuttles in order to complete the assembly of the International Space Station.

They wanted to get home, Kitty, for Christmas, in time for the holidays. And in fact, the vehicle landing back here at the Kennedy Space Center again about an hour ago. And we're waiting again for the astronauts to emerge from the shuttle. Certainly happy campers that they were able to come here to the Kennedy Space Center -- Kitty.

PILGRIM: John, it was really a beautiful sight watching that thing land.

On a practical note, though, it's much less expensive for everything if they landed in Florida than if they ended at Edwards or White Sands, right?

ZARRELLA: No question about it. It reduces the cost dramatically. The fact that they have to piggy back and bring it back on a 747 from Edwards would take about a week. And if they had gone to White Sands, Kitty, 45-60 days turnaround time because they just don't have the infrastructure there.

So they wanted to come home to Kennedy. And fortunately, the weather cooperated just enough so they can get in here to Kennedy -- Kitty.

PILGRIM: John, you know the number better than I, but they haven't used White sands, only once, right? And that was several decades ago.

ZARRELLA: Yes, in 1982, on STS3, a flight of Columbia -- one of the early test flights during the shuttle program. That was the only time they went to White Sands. It's either been Kennedy -- and this was the 64th landing at Kennedy. So, it's either been Kennedy or out at Edwards, were the two that they used almost exclusively.

PILGRIM: Well, Merry Christmas to all. It's been a wonderful, wonderful landing. Thanks very much, John Zarrella.

ZARRELLA: My pleasure.

PILGRIM: Federal officials are dropping investigation into the sale of a U.S. voting machine company to Venezuelan businessmen.

Now, the Venezuelans have been under intense pressure to prove that their company did not have ties to the anti-American Chavez government. So, the Venezuelans decided to sell the U.S. company off rather than face more scrutiny.

(BEGIN VIDEOTAPE)

PILGRIM (voice-over): Running for the exits, Venezuelan owned Smartmatic is selling Sequoia, the American electronic voting machine company, and selling it quickly. Under intense review by the Treasury Department for buying the American company, the Venezuelan businessmen suddenly this week, a day before the Christmas weekend, decided it's better to sell than face additional questions.

The timing of the announcement clearly calculated to generate the least press.

DOBBS: Critics of the deal say our nation's very democracy is now for sale.

PILGRIM: For the last six months, this program has challenged the Venezuelan ownership of the third largest voting machine company in America. That furor intensified when it was reveal that Smartmatic is a bewildering corporate structure of multiple holding companies and shell operations all set up off shore for tax reasons.

Though Smartmatic denies any connections to the rogue regime of President Hugo Chavez, even after investigations, the early funding for Smartmatic and connections to Chavez were still unclear. The Treasury Department was investigating.

The Venezuelans say they're selling because of public scrutiny, stating, quote, "given the current climate of the United States, so much public debate over foreign ownership of firms in an area as critical to U.S. infrastructure, electronic technology, we feel it is in the company's best interests to move forward as separate entities without ownership."

Congresswoman Carolyn Maloney, who demanded the investigation, says that's nonsense.

REP. CAROLYN MALONEY (D), NEW YORK: What we're talking about here is a company that invested in the critical infrastructure of our country, in this case voting machines, which is a national security issue. And a company that was unwilling to be transparent about their ownership.

If this company could have proved their ownership, they would not be selling it today.

(END VIDEOTAPE)

PILGRIM: Now, the Treasury Department said today that it will monitor the sale of Sequoia, paying very close attention to the buyer, as well as to the terms of any potential deal.

Coming up, the latest polls, bad news for President Bush. Not great news for the Democrats either. Our political panel will join us.

And "Heroes" -- tonight we'll profile a soldier who refused to discharge when he had every right to take one and established an army first. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Joining me tonight on our political roundtable is syndicated columnist Miguel Perez. We have Michael Goodwin of the "New York Daily News" and James Taranto, editor of Opinionjournal.com. And thanks for being with us, gentlemen.

Let's start with Defense Secretary Robert Gates. Went to Iraq, met with Prime Minister Nuri al-Maliki, and he is now back. Now, al- Maliki said he has decided, the Iraqis have decided, to leave the big decisions to the U.S. forces, especially in terms of, you know, sort of a strategy or sort of an attempt to start sort of -- well, what am I thinking -- that he should leave the increased troop strength to the U.S. forces.

Do you think that that's an intelligent and good way to go forward, given that the entire time we've been talking about this we've been saying, let's turn it over to the Iraqis?

JAMES TARANTO, OPINIONJOURNAL.COM: Well, I think it is the only way to go forward until the Iraqis have the troops who are trained to handle the job.

MICHAEL GOODWIN, "NEW YORK DAILY NEWS": Yes, I mean, it's probably a recognition of reality that he knows better than anyone that his own troops are not ready, and also I just think politically it takes the burden off of him. There's a -- it kind of stops the clock. There's no ticking clock now on when he has to achieve it, as long as the Americans are going to do it.

PILGRIM: You know, I think I was trying to get to that articulation. It does take the burden off the Iraqis and we're trying so very desperately to hand it off to them. It seems like a verbal tug of war.

MIGUEL PEREZ, SYNDICATED COLUMNIST: But what about the pressure he's going to feel from his fellow Shiites who are -- don't want to see any more Americans there? That is another political consideration that he has to consider.

PILGRIM: Now, the president has said that he does not want the decision to increase the military dictated by the military. He wants an independent decision on this. Do you think that he can stay independent of all the pressures that are on him from the military?

TARANTO: Well, I think he, obviously, has to take into account the tactical and strategic advice that the military gives him, but we do have civilian control of the military in this country, and if this is what the president has said, I think it's probably a good thing given that the forcing of Rumsfeld's resignation was, in a way, a blow against civilian control of the military because we heard about all these generals who were against Rumsfeld. So if we're reasserting that, that's very good.

GOODWIN: I agree with James. I mea, I think for a long time now, Bush has kind of hid behind this notion that whatever the generals want the generals will get. But as Lou Dobbs has made the point many times, the generals have not been delivering a victory.

So, finally, I think we are having a reassertion of the president's prerogative. The president is responsible. He is the commander in chief, he has to be responsible for the decisions, so he should make them.

PILGRIM: Yes, well, heeding the commanders on the ground has been his watch word. But still, if you do not heed commanders on the ground, isn't there an inherent risk?

PEREZ: It's kind of interesting to see the president, after saying for so long that he's going to follow whatever the generals tell him, go against the generals now. That's number one. Number two, the generals are saying, look, unless you have a strategic plan for increasing the troops, don't go in with any more troops. So why are we considering when the president, obviously, still doesn't know what he's doing?

PILGRIM: You know, we've been talking about the Defense Department's side of this whole thing. Let's -- we had some comments from Secretary Rice and it's interesting to get the State Department's side in this. Let's listen for a second.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: The president went into this phase with the same conviction and the same commitment that he's held throughout this war.

and that is that the decision to go into Iraq was because it was in the interest and the security interest of the United States to do so, and that failure in Iraq would have grave circumstances, grave consequences for American interests, for the interests of our friends and allies in the region and, indeed, for global security. So that is not going to change.

(END VIDEO CLIP)

PILGRIM: Now, this is State Department straight party line. This is what has been said all along. We had the defense state split under the Rumsfeld regime. Do you think we'll still have this going forward?

TARANTO: Well, I think there will always be splits between different agencies and the government because they have different prerogatives, different interests. But, you know, this is also the one good thing the Iraq Study Group said, that simply pulling out would have catastrophic consequences. I think this is more or less a consensus now, even among many Democrats.

GOODWIN: I think that's right, and I agree with James, again, that that is a good thing that has come out of all this. The problem is, what do we do now if we know we can't pull out -- which everyone seems to or most people seem to agree on -- what do we do? Do we surge the troops? And how long do we stay? Do we make it sort of an open-ended commitment? I think there's still a lot of questions very much that are open.

PILGRIM: And this troop surge, you know, potentially, could be huge, tens of thousands of people.

PEREZ: And what could they do? In Tehran, for example, when you have this in-fighting among Iraqis, would be policing. It would be policing a civil war. Is that a good idea to put Americans in between Iraqis who are fighting a civil war?

GOODWIN: I think one of the things that is clear, though, in recent days and weeks is that the attempt to get the Iraqi government to kind of broaden its own coalition, to do more politically to try to stop some of the violence is the sign that the Americans would be in there not to achieve military victory, but buy more time for the Iraqi government. So I think that's the plan that is taking shape.

PILGRIM: All right, well, we will know after the break and after all this consensus is put together.

Talking about the overstretch on U.S. troops, the Selective Service System is planning it test the draft system, in case it's ever needed. This is a startling comment just before Christmas. This gets everyone's attention. What do you think of this?

TARANTO: I think it's very unlikely that there is going to be a draft, unless we have the kind of war that requires massive manpower along the lines of World War II. Look, the one group that never talks about wanting a draft is the military leaders. They like working with people who want to be there, who are motivated, who are professional.

All of this talk about the draft, I mean, it's mostly Democratic scare tactics. You had a segment earlier in the show about Charlie Rangel who a couple of years ago, proposed a draft. The Republicans brought it to a vote in Congress. The vote was 402-2 against. Rangel voted against his own proposal.

PILGRIM: But it was to make a social point, I think, right?

TARANTO: But a false point. I mean, it's not true that only people with no opportunities are -- serve the military. I've had letters since I started talking Rangel. I've been publishing letters in my online column from people when are very accomplished who have gone into the military who are just outraged by what Rangel said.

And, by the way, if Rangel is so eager that the children of the elite serve in the military, why didn't he support the Solomon Amendment which required schools that received federal funding to allow ROTC and allow military recruiters on campus?

GOODWIN: I think the larger issue with the draft is do we have a big enough military, and as we grow it, can we grow it through an all- volunteer army fast enough? And I think that's a real doubt. That is one of the reasons I think a draft should be debated, because when you look at the numbers, we had during the Vietnam era 1.5 million active duty Army troops alone.

It fell down to 485,000 by September 11th. So, now, we're inching our way back up, but it's clearly not enough to do what we need to do. It should be based on our needs, not on some arbitrary number. So, I think we need to debate the question of a draft.

TARANTO: But there are tens of millions of people of draft age. You're only going to use a small fraction of them, and, you know, most of these proposals are for some sort of national service. So basically what you're talking about is an enormous boondoggle, putting tens of millions of young people in make-work government jobs. It's a terrible idea.

PILGRIM: Miguel.

PEREZ: I agree. It's a terrible idea. We shouldn't even be talking about it. The American people would be scared to death about their children going there. You know, it's great to have a volunteer Army and it's great to defend ourselves with people who really want to do it. We do not want to go back to the mentality of the Vietnam war.

PILGRIM: James makes a great point, that they're dedicated professionals, and that's very considerable, and their efforts are very, very welcome.

Anyway, gentlemen, thank you. Merry Christmas to you all and thanks for being here.

Coming up at the top of the hour, "THE SITUATION ROOM" with Wolf Blitzer -- Wolf.

WOLF BLITZER, CNN ANCHOR: Kitty, thank you. Why did the Democratic senator do what the White House won't do? Talk to Syria about the Iraq problem? I'll ask Senator Bill Nelson about bucking the president, and what, if anything, he accomplished.

We'll also take you to the home town of a congressman taking aim at Islam, the Koran and a new colleague. Are constituents behind Virgil Goode or are they blasting him?

And perhaps the most traditional of institutions, the British monarchy. Now it's racing into the future with a whole new way to celebrate Christmas. All that, Kitty, coming up right here on "THE SITUATION ROOM."

PILGRIM: Thanks, Wolf.

Coming up next, this soldier saved the lives of his platoon in Iraq at a tremendous personal cost. We'll have the remarkable story of Army Captain Scott Smiley, next. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Now, "Heroes," our weekly tribute to the men and women in uniform, who serve this country. And tonight, we have Army Captain Scott Smiley. He is an Iraq veteran, who was seriously wounded in combat. Captain Smiley's dedication to service is now inspiring his fellow soldiers, also NBA stars.

John King has his story.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (voice-over): Gilbert Arenas is an NBA star, and, to many, a role model. Nimble under the basket, and always a threat to pull up and launch a three.

UNIDENTIFIED MALE: Good work, Gilbert. What's the score now?

KING: Among those on hand this night is Scott Smiley, a man Arenas considers a friend, a more appropriate role model and a hero.

GILBERT ARENAS, WASHINGTON WIZARDS: I don't know if I would have had the courage to do what he did, and you know, just to give, you know, your body, you know, to help your soldiers, your teammates, you know, that's just amazing. KING: Captain Scott Smiley is 26, a West Point grad, an Iraq war veteran whose tour ended on an April morning when a suspicious vehicle approached his platoon in Mosul.

CAPT. SCOTT SMILEY, U.S. ARMY: I then shot out a warning round in front of his vehicle, and at this time I didn't know that he was a terrorist. He stopped, raised his hands up again, and then began to point forward. I then shot another round, and he exploded. I received shrapnel in both of my eye sockets.

KING: The eyes that sparkled at the sight of Tiffany or the chance to hold an Iraqi baby were destroyed.

SMILEY: I was probably not the nicest person in the hospital.

KING: The military offered a discharge, but Smiley said no. And the first blind man to serve in the active duty Army now counsels soldiers and their families on the stress of war.

SMILEY: I have a purpose in life, and I signed a contract with the United States Military Academy. It is a little different than being an infantry officer and shooting guns and driving vehicles around, but I'm still able to do a lot of things for the Army.

KING: Scott first met Arenas and other NBA stars last summer, when he was invited to address team USA before practice.

SMILEY: Appreciate you guys having us. You know, we all look up to you, you guys are doing awesome.

KING: Arenas and Miami Heat star Dwayne Wade wore microphones so Captain Smiley could listen in during drills.

SMILEY: Oh, it was excellent. No, you did awesome.

KING: A bond was formed, and Arenas and the NBA invited the Smileys to a recent Washington Wizards game.

ARENAS: You guys have a happy holiday.

UNIDENTIFIED FEMALE: Thank you.

ARENAS: You, too. Appreciate it, man.

KING: With opposition to the war at record highs, Arenas says he worries the troops are underappreciated.

ARENAS: You know, it is kind of sad that, you know, our role models are people who entertain, you know, but at the end of the day, there are people who are the real heroes of the world. There's you know, people like Scott that's going out there and fighting for our freedom.

KING: Smiley wants to get his MBA, perhaps teach at West Point. He still sky dives and has learned to surf -- yes, surf. A determined hero who has lost his sight, but not his way. John King, CNN, Washington.

(END VIDEOTAPE)

PILGRIM: Captain Smiley is a participant in the Hoops for Troops program. It is a collaboration between U.S.A. Basketball and the Department of Defense to show our support for our troops.

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

(COMMERCIAL BREAK)

PILGRIM: Eighty-six percent of you say that state and local police should help enforce immigration laws.

And we have time for one more email, so we'll do it quickly. Rick in Minnesota: "Virgil Goode said that Muslims like Congressman Ellison are a risk to national security. I think the real risk is people like Virgil Goode."

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

Thanks for being with us tonight. For all of us here, have a great weekend and merry Christmas. Good night from New York. "THE SITUATION ROOM" starts right now with Wolf Blitzer -- Wolf.

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