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Lou Dobbs Tonight

Brazen Assault in Iraq; Iran's Meddling; Al Qaeda Terror Warning

Aired February 19, 2007 - 18:00   ET

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


CHRISTINE ROMANS, CNN ANCHOR: Tonight, one of the biggest insurgent assaults on a U.S. military outpost in Iraq in months. Nearly 20 Americans are killed or wounded.
We'll have a special report from Baghdad.

Also, "The War Within." We'll tell you who is spending millions of dollars to legalize marijuana in this country.

And an astonishing statement by Federal Reserve chairman Ben Bernanke. He refuses to acknowledge the true impact of illegal aliens on hard-working Americans.

(BEGIN VIDEO CLIP)

BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: They don't take jobs in -- the labor market does adjust to the number of people available to work.

(END VIDEO CLIP)

ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate and opinion for Monday, February 19th.

Sitting in for Lou Dobbs, Christine Romans.

ROMANS: Good evening, everybody.

Insurgents in Iraq today tried to overrun a U.S. military outpost north of Baghdad. As many as 50 insurgents attacked the base after a suicide bomb attack.

Two of our soldiers were killed repelling that attack. Four other troops were killed elsewhere in Iraq today.

Meanwhile, U.S. officials say Iranian naval forces are stepping up their activities near the Iraqi coast. Those officials say Iranian patrol boats are probing defenses around offshore oil installations.

Arwa Damon reports from Baghdad on the brazen insurgent assault on our troops.

Barbara Starr reports from the Pentagon on Iran's escalating naval threat.

And Dana Bash reports from Capitol Hill on new steps tonight in the political battle over Iraq.

We turn first to Arwa Damon -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: Christine, it was a coordinated attack that left two U.S. soldiers dead, another 17 wounded against a U.S. military outpost north of the capital, Baghdad, initiated by a suicide car bomber. Now, Iraqi officials are telling us that it was three suicide car bombers followed by an attack by some 50 gunmen using small arms fire and grenades. The location was about 25 miles north of Baghdad in a predominantly Sunni area.

In the days after a government announcement that violence in the capital had decreased by some 80 percent because of this crackdown that we're seeing, insurgents struck once again just today, killing at least 20 Iraqis, following one the most deadliest days this week where 60 Iraqis died after two car bombs exploded in a busy Baghdad commercial marketplace. U.S. officials are saying they wish that the Iraqi government had not made such a premature statement just yet.

One of the additional Iraqi brigades has arrived in the capital. The second is still to come. But the U.S. military saying the initial indications are that the Iraqis are performing alongside their U.S. counterparts. One of the main aims of this operation is to fully embed U.S. and Iraqi forces just so that the Iraqis don't have to carry out the task of securing Baghdad on their own. But also, that the U.S. military can make sure that the Iraqis are getting the job done and not conducting any sort of unilateral operations -- Christine.

ROMANS: Arwa Damon reporting from Baghdad.

New evidence tonight of Iran's meddling in Iraq. U.S. military officials tell CNN that Iranian patrol boats have been testing defenses around Iraqi oil installations. One week ago, the United States also said Iran was supplying advanced weapons to insurgents in Iraq.

Barbara Starr reports from the Pentagon.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice over): CNN has learned that in the past 10 days, Iranian boats have crossed into Iraqi waters at the northern end of the Persian Gulf, sailing near Iraq's offshore oil terminals, perhaps trying to gauge the military response.

The offshore complex is Iraq's economic lifeline. Every second, $18,000 worth of crude oil is pumped into wading tankers. And that makes this a potential target. Which is why the U.S. military is trying to figure out what Iran may be up to.

Officials say the Iranians are not being aggressive. After staying inside Iraqi waters for about 10 minutes, they turned back after being told to leave by Iraqi security forces. Probes by Iran have occurred in the past, but one official says the encounters increased after the U.S. military accused Iran of shipping advanced weapons into Iraq.

The U.S. military strategy? To ratchet down tensions.

ROBERT GATES, DEFENSE SECRETARY: For the umpteenth time, we are not looking for an excuse to go to war with Iran. We are not planning a war with Iran.

STARR: But there are worries. U.S. officials say Iran's navy has expanded its operating areas in the Gulf, raising questions. Is Iran's real intention to demonstrate it has the ability to shut off the flow of oil shipment through the Strait of Hormuz?

(on camera): Officials say shutting off the Strait of Hormuz would not be a one-sided situation. Iran needs that waterway opened as well. It's one reason the major effort now is to keep things calm.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

ROMANS: Iran today began its biggest war games in almost a year. The exercises include a series of missile tests by Iran's Revolutionary Guard. As many as 60,000 troops are taking part in the maneuvers. The war games follow earlier Iranian exercises involving air and naval units.

In Afghanistan, the military's investigating the cause of a Chinook helicopter crash that killed eight of our troops. Another 14 troops were injured when the Chinook came down near the main highway between Kabul and Kandahar yesterday. It was the worst helicopter accident in Afghanistan since last May. Seven U.S. helicopters have been shot down in Iraq since the end of January.

More than five years after the United States defeated al Qaeda in Afghanistan, a new warning tonight about al Qaeda's increasing strength in Pakistan. U.S. officials say al Qaeda has established compounds in Pakistan to train radical Islamist terrorists for strikes against targets in Europe and elsewhere.

Jamie McIntyre reports from the Pentagon.

Jamie, why are we hearing about this now?

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Christine, this is not something that the U.S. just woke up to and dawned on them this morning. This is something that has been building over the last several months.

Intelligence indicating that al Qaeda is in fact operating in some capacity in northern Pakistan, along the Afghanistan border. The so-called north Waziristan area.

These are not big training camps, but a U.S. intelligence official told CNN last month that those training camps are full. These are small camps that are operating sort of out of the sight of overhead imagery. And it is believed, based on what the U.S. intelligence has put together, that al Qaeda is number one, Osama bin Laden and his deputy, Ayman al-Zawahiri, are, in fact, to some level of degree, directing and inspiring some of these other operatives to train people inside Pakistan who could mount attacks not just across the border in Afghanistan, but even other places in the world.

And again, this is something that Pakistan denies. And they say they're doing everything they can. But it's also in an area, frankly, where they don't have the Pakistani government. That is, doesn't have much control -- Christine.

ROMANS: Jamie, meanwhile, how about U.S. troops and what they're trying to do -- I mean, I guess to get bin Laden or to get the al Qaeda leadership here?

MCINTYRE: Well, one of the things that the U.S. could do is mount some sort of crossborder strike if they have enough intelligence to try to take out some of these camps, but that creates a whole host of problems. In the past when the U.S. has operated across the border into Pakistan, they've always given Pakistan the credit because it causes a big problem for Pakistani president Pervez Musharraf if it appears that the U.S. is operating unilaterally inside Pakistan.

ROMANS: Meanwhile, the Pakistanis say they are defending their own border there. But we know that those tribal areas -- I mean, it's a very, very dangerous situation.

MCINTYRE: Well, really the question is -- you know, as the Pakistani ambassador said earlier on CNN, easier said than done to go into those areas.

ROMANS: Right.

MCINTYRE: And Pakistan makes the case that it is a strong ally of the United States and has been taking a lot of action against al Qaeda and the Taliban. The question just is how effective it can be.

ROMANS: All right. Jamie McIntyre at the Pentagon.

Thanks, Jamie.

Still to come tonight, Senate Democrats concern new tactics to force President Bush to change his strategy in Iraq.

We'll have a special report from Capitol Hill.

Also, President Bush's amnesty agenda for illegal aliens appears to win the support of the chairman of the Federal Reserve.

We'll have that story.

And you'll never believe who's supporting efforts to decriminalize marijuana in this country and spending millions of dollars to do so. We'll have that special report and a whole lot more straight ahead.

(COMMERCIAL BREAK)

ROMANS: Senate Democrats tonight are considering new tactics in their battle to stop President Bush's troop increase in Iraq. Democrats may introduce a resolution placing restrictions on the president's conduct of the war. It follows the Democrats' failure to win the fight to hold a Senate vote on Iraq.

Dana Bash reports from Capitol Hill.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (voice over): The Senate may still be deadlocked...

UNIDENTIFIED MALE: The motion is not agreed to.

BASH: ... but Democrats insist they have momentum, since seven Senate Republicans broke ranks and voted against the president.

SEN. CHUCK SCHUMER (D), NEW YORK: Just like in the days of Vietnam, the pressure will mount and the vast majority of our troops will be taken out of harm's way and come home.

BASH: Like the days of Vietnam, the Democrats' plan is to move step by step to force a change in Iraq strategy.

UNIDENTIFIED MALE: While patrolling international waters in the Gulf of Tonkin...

BASH: In 1970, Congress repealed the Gulf of Tonkin Resolution used to authorize the war in Vietnam. Now CNN is told that top Senate Democrats met late last week and tentatively agreed to try to modify the broad authorization for war in Iraq that Congress passed in 2002.

SEN. JOSEPH BIDEN (D), DELAWARE: Saddam Hussein is no longer there. The 2002 authorization in my view is no longer relevant.

BASH: Democratic sources say the Senate Foreign Relations and Armed Services chairman are now writing a resolution reauthorizing the war but limiting U.S. troops in Iraq to a support, not a combat role.

SEN. JACK REED (D), RHODE ISLAND: We have to start thinking hard about a changed mission in Iraq for our military forces, support them in that mission. But not in an open-ended commitment to the Iraqis.

BASH: In a phone interview from Iraq, GOP senator Jon Kyl told CNN that limiting the mission there "... would be a huge mistake...when we are just beginning to execute a new strategy."

Republicans from the president on down are taunting Democrats, saying if they really want to change the mission, they should take a political risk and cut the money for it. SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: Have the courage of your convictions to stop this war by cutting off funding.

(END VIDEOTAPE)

BASH: In the House, Congressman John Murtha has a plan to set strict conditions on new $93 billion war-funding request. The goal there is to try to force the president to eventually bring troops home from Iraq. But in the Senate, Christine, Democrats are lukewarm to that idea at best.

ROMANS: So, Dana, if the Democrats weren't able to push even a symbolic measure through -- through the Senate, I mean, what's the chance of being able to get past anything with teeth ultimately?

BASH: That is a very good question that I haven't been able to find a Democrat in the Senate to really answer.

In the House, of course, the rules are such that if Democrats can galvanize between -- behind one idea -- and that is a big "if," especially when it comes to the issue of funding -- they can pass pretty much anything. But the Senate, as we've learned over the past two weeks, because it's been deadlocked, as you mentioned, on just the non-binding resolution, it's a bigger question.

What Democrats that I have talked to today say that a lot of it just depends on what's going to happen on the ground. That the momentum is such that public pressure is mounting against the war and it's against Republicans here in the Senate. If that continues, Democrats think that they might have a better chance.

And one Democrat I talked to today pointed to a poll in the Senate Republican leader's home town, Mitch McConnell, in his home state paper of Kentucky. And even that poll said that 52 percent of his constituents want him to try to press the president to change course in Iraq. The Democrat I talked to today said that in and of itself is pretty telling.

ROMANS: All right. Dana Bash.

Thanks so much, Dana.

BASH: Thank you.

ROMANS: President Bush today compared the war on terror with America's long struggle to win independence from Great Britain. The president made his remarks in Mount Vernon, Virginia, in a ceremony to mark the Presidents Day holiday.

Suzanne Malveaux reports from White House -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Christine, some see that comparison as somewhat of a stretch. But the point that the president was making today is that he really draws some parallels. He sees some similarities between his own presidency, the struggles that he has as a wartime president, one who's making unpopular decisions, not that different than some of his predecessors. He often draws parallels with the administrations of Democrat Harry Truman, who ushered in the Cold War, the late Gerald Ford, who dealt with Vietnam, who ultimately, history shows, was vindicated. And today President Bush used the occasion of Presidents Day to pay tribute to the first, and to make the case that it is history, not opinion polls, that shape the chief of staff's (sic) legacy.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: With the advantage of hindsight, it is easy to take George Washington's successes for granted and to assume that all those events were destinned to unfold as they did. Well, the truth is far different. America's path of freedom was long and it was hard. And the outcome was really never certain.

(END VIDEO CLIP)

MALVEAUX: And what's also uncertain is of course this president's legacy, commander in chief, not chief of staff. And it is largely being criticized at this point by members of Congress and many Americans.

So, Christine, it'll be very interesting to see how history treats Mr. Bush -- Christine.

ROMANS: All right. We knew what you meant.

Thanks, Suzanne.

Suzanne Malveaux.

Coming up, the chairman of the Federal Reserve with some surprising words on illegal alien workers.

We'll have a report.

Rescuers fight high winds and blowing snow to reach climbers trapped on Oregon's Mt. Hood.

We'll have the latest there.

And a new call for airline passengers' rights after some were stranded on planes for hours in last week's storms.

We'll have a special report.

(COMMERCIAL BREAK)

ROMANS: The head of the Federal Reserve defending the hiring of illegal aliens in this country. Ben Bernanke told a House finance committee there would be disruptions and labor shortages without illegal aliens. Kitty Pilgrim reports.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice over): Fed chairman Ben Bernanke told the House Financial Services Committee he celebrates immigrants.

BERNANKE: All of my grandparents were immigrants, and they came and they had new lives and they -- and they contributed to our economy.

PILGRIM: But the committee was trying to draw him into a political discussion on illegal aliens.

REP. EMANUEL CLEAVER II (D), MISSOURI: I'm more interested in finding out whether or not you believe that immigration has a positive or negative impact on our economy.

PILGRIM: A grudging acknowledgement.

BERNANKE: Immigrants are playing a major role in our economy. There's no question about that.

PILGRIM: Low-skilled American workers have lost their jobs to illegal immigration in the last decade, but the head of the Federal Reserve won't admit it.

BERNANKE: They don't take jobs in that -- the labor market does adjust to the number of people available to work. We have had a lot of immigration. The unemployment rate is quite low.

PILGRIM: Half jokingly, the House Finance Committee had asked if he had seen the movie "A Day Without a Mexican."

BERNANKE: I have seen it, yes.

UNIDENTIFIED MALE: Would you recommend that for all members of Congress and people running for public office?

Thank you very kindly.

PILGRIM: He finally admits American industry is addicted to illegal alien labor.

BERNANKE: A lot of immigrant workers, many of them undocumented who are working in various industries ranging from manufacturing, to agriculture, to lessure and hospitality and other construction and other areas. And if they were all to leave immediately, then there would be obviously disruption in those industries and labor shortages in those industries.

PILGRIM: Would he also admit the influx of large numbers of people would drive down wages? A straight labor supply question. He was not ready to go that far.

BERNANKE: Most estimates are that those are pretty small effects, but they may be some effects.

(END VIDEOTAPE)

PILGRIM: As head of the Fed, Bernanke is supposed to be apolitical. And he struggled against supporting any particular policy decision, but by saying that illegal alien labor was necessary to the economy, it was a tacit endorsement of the administration's guest worker program -- Christine.

ROMANS: He steered clear of specific immigration policy questions completely.

PILGRIM: He said, "I do not want to get into any specific policies. It's up to Congress to take the lead on this, to decide how many people and under what circumstance they are admitted."

ROMANS: All right. Kitty Pilgrim.

Thank you, Kitty.

The National Guard spent $9 million -- that's $9 million -- in hotel costs and food for troops deployed in Arizona over a six month period last year. The Guard troops support the Border Patrol's effort to protect our border with Mexico.

Some of that money was spent housing troops at Tucson-area resorts and spas. An Arizona Guard spokesman defended the costs, saying the Guard had to find lodging for large numbers of troops on short notice.

Time now for some of your thoughts tonight.

Jeanette in Washington, "Is it possible that George Bush's plan for a 'North American Union' has already taken hold? We're having to share our hard-earned benefits with illegals. Broken laws and fraudulent IDs are going to be forgiven and rewarded with citizenship. Now our Border Patrol officers are going to prison on the word of Mexican drug and human smugglers."

Ron in Nevada, "How interesting that Iraq is going to secure its borders. Maybe it's time for President Bush to take a trip to Iraq to learn how it's done."

Sriram in Virginia, "One of the most important debates of the decade, and Republican senators have cut and run. They can run, they can hide, but if the last midterms were of any indication, they'll be taught a few abject lessons in 2008."

E-mail us at loudobbs.com. We'll have more of your thoughts later on in the broadcast.

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

Tomorrow is Mardi Gras, the final splurge for those celebrating Carnival. Rio de Janeiro has one of the most famous celebrations. Thousands come form across Brazil and around the world to attend. That's despite daily violence as gangsters, militias and police fight for supremacy in the city's slum areas.

New Orleans, meanwhile, is trying to resurrect the former glory of its Mardi Gras celebration. Officials hope the festivities bring tourists back to a city still reeling from Hurricane Katrina. A recent spike in crime in New Orleans also a concern.

Coming up, "The War Within." We'll have a special report on who supports the lobby to legalize marijuana in this country. Some of the names just might surprise you.

And a dramatic rescue on Mt. Hood as three climbers and a Labrador retriever are found after tumbling 100 feet.

We'll update you their condition.

And as JetBlue tries to regain its customers' trust, lawmakers consider a passenger bill of rights.

We'll have that story and much more. Please stay with us.

(COMMERCIAL BREAK)

ROMANS: It was a race against time and fierce weather on Oregon's Mt. Hood. But three climbers and a dog are safe tonight. The climbers tumbled at least a hundred feet off a snowy ledge yesterday and spent the night huddled in sleeping bags.

Chris Lawrence joins us now from the scene with the story -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Yes, that's right. They are -- the three climbers who were stranded up there who had slipped over the ledge are now making their way down the mountain with a Labrador retriever. They all huddled together overnight waiting for those rescue teams to get them.

Now, they're on their way down, but they're not out of the woods just yet. They probably have a three to four-mile hike through avalanche country, trudging through some very thick-blowing snow. It's extremely cold and extremely windy. So there is some still some danger as they try to make their way down the mountain with the help of the rescue teams.

Again, they huddled overnight with the Labrador retriever named Miss Velvet. But the rescue team said the reason they were able to locate them so quickly was because they had an electronic locator which allowed them to pinpoint their location.

(BEGIN VIDEO CLIP)

LT. NICK WATT, CLACKAMAS COUNTY SHERIFF'S DEPT.: They were found via an MLU, a mountain locator unit. Everything they did was right. In fact, everything the climbers did in this occasion was right, which makes the big difference between a rescue, a successful rescue, and a recovery.

(END VIDEO CLIP)

LAWRENCE: Now, no state requires climbers to carry these electronic locators, but several Oregon legislators have proposed legislation that would make it mandatory for climbers to carry it above 10,000 feet. Some the climbers have resisted that, saying it would legislate the adventure and the thrill of the sport out of it.

ROMANS: Chris, 70-mile-per-hour winds, what does that do to hamper something like this? And as far as we know, these three people are coming down on their own two feet and they're all coming down on their own at this point, right, with the help of rescuers?

LAWRENCE: That's right, they are able to walk down. I think one woman had a slight head injury, but they're able to walk down. So the rescue teams are guiding them down.

And as they get down to certain points, there are other rescue teams there who will assist them as well. But again, it's very treacherous up there.

It's not like they are coming down on a straight line. They're having to zig left and right. They're having to cross over some gullies, trudge through the snow.

So there are a lot of obstacles as they make their way down. And I could tell you just from the wind and the snow here, you can barely see, you know, 20, 30 feet ahead of you sometimes it's so -- it's so bad out here.

ROMANS: All right. Chris Lawrence on Mt. Hood.

Thank you so much for joining us, Chris.

The wild weather on Mt. Hood is the result of a Pacific storm pushing onshore. It's expected to produce widespread rain and snow at higher elevations in the northwest and the northern Rockies.

Elsewhere in the country, something of a break from the deep freeze. Tomorrow, low pressure could bring a wintry mix of snow and freezing drizzle to the Great Lakes, and the western part of New York may see more of that lake effect snow.

High winds fanned a fast-moving fire that threatened homes in Oklahoma. The flames broke out about ten miles northwest of Oklahoma City. The local fire chief says they came within 100 feet of homes, forcing firefighters to take up defensive positions. Winds were gusting up to 40 miles per hour. But crews managed to contain the blaze to about 350 acres.

Bad weather may have contributed to a scary landing for an airliner arriving in Cleveland, Ohio. That plane skidded off the end of a runway and crashed through a fence. It ended up with its nose resting on a road about 100 feet past the end of the runway. Heavy snow was falling. Winds were about 20 miles per hour. Seventy passengers and four crew were on board, but no one was hurt.

Budget airline JetBlue today still has not gotten back to normal as frustrated travelers recover from a week now of canceled flights and long delays. Thousands were inconvenienced as winter storms created serious problems for the airline and its passengers.

Our Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): JetBlue's passengers were living the blues. Monday the airline canceled a quarter of its flights. This comes after a fiasco last week. JetBlue customers were forced to sit on planes on the tarmac at Kennedy Airport, some for up to ten hours without food or water. The airline is still trying to find its bearings.

UNIDENTIFIED MALE: Then I called JetBlue, and I couldn't even get anyone on the phone. I was on hold for, like, an hour. And then I called back again, and they said they weren't even accepting phone calls.

SYLVESTER: JetBlue's CEO David Neeleman said he was horrified by what happened. And is promising the company's own passenger bill of rights.

But it may not be enough to win over customers and Congress. Lawmakers appear ready to move on a federal bill of rights that would limit the amount of time a boarded plane can sit on the ground.

KATE HANNI, AIRLINE PASSENGER BILL OF RIGHTS ADVOCATE: We don't believe the airlines will police themselves or have, even remotely, our well-being or best interests at heart.

SYLVESTER: In 1999 and 2001, federal lawmakers debated a similar passenger bill of rights. The airline industry lobbied against it and promised voluntary regulations.

But a 2006 Department of Transportation inspector general report found since then, airlines have not set targets to reduce delays and cancellations as they'd promised. The report also found that only five of the 18 major U.S. air carriers have customer quality assurance plans and audit themselves to make sure they're in compliance.

(END VIDEOTAPE)

SYLVESTER: The air transport association that represents the major airlines declined an interview. But in an op-ed, the ATA's president said, quote, "One thing we all want to avoid is the imposition of inflexible government standards. We know we messed up and we apologize," end quote.

But for those passengers who said they felt like they were prisoners on the planes, on the tarmac, a little regulation, Christine, does not sound like a bad idea -- Christine.

ROMANS: All right, Lisa Sylvester. Thank you, Lisa in Washington.

The war on drugs in this country is being fought at the federal, state and local level as law enforcement officials try to crack down on drug smuggling and drug sales.

But what you might find surprising is what's happening in some of the wealthiest circles in this country. Private donors are spending millions of dollars to promote the decriminalization and legalization of marijuana.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): It's just a plant, that's all. Not a dangerous drug. It's a children's book, where farmers grow it and parents, doctors, mayors, even presidents use marijuana. It's aimed at 6- to 12-year-olds.

The publisher says the book is not intended to promote marijuana use but to create dialogue between kids and their parents about "the plant."

DAVID KRAHL, DRUG-FREE AMERICA FOUNDATION: It's just a plant. That completely normalizes and completely neutralizes any message that there might be anything hazardous associated with using.

TUCKER: The self-published book was funded with partially provided by the Marijuana Policy Project.

Decriminalization or outright legalization of marijuana has some colorful and very high profile people on its list of supporters. John Sperling, head of the largest online university in the world, the University of Phoenix. Financier George Soros, who provides roughly one-third of the funding for the Drug Policy Alliance's $7 million a year budget. He supports decriminalization and medical marijuana.

Peter Lewis, chairman of Progressive Auto Insurance, who supplies about one half of the funding for the Marijuana Policy Project's $8 million a year annual budget supports legalization and regulation along the lines of tobacco and alcohol.

Opponents of drug legalization are quick to point out the deep pockets of the pro-pot side of the argument, which is equally quick to respond.

ROB KAMPIA, MARIJUANA POLICY PROJECT: I have to laugh when people think that we're a well-funded legalization machine. My response to that is hey, I would take the government's budget over our budget any day.

TUCKER: At total, Kampia estimates that about $25 million is spent advocating on behalf of marijuana every year.

(END VIDEOTAPE) TUCKER: As of today, marijuana is legal for medical use in 11 states, and Christine, another dozen states are expected to soon be considering legislation that would make it legal in their states, as well.

ROMANS: OK, so where does the -- I've heard it called the anti- prohibition movement, the pro-pot lobby.

TUCKER: Right.

ROMANS: Where does this lobby fit, I guess, on the political spectrum?

TUCKER: On the political spectrum, it probably would surprise a lot of people. These groups do give money to candidates. They go to Democratic, by and large, get the majority of them. But a number of Republicans on that list, as well.

And tomorrow night, we're going to take a look at the list of who is getting money from these groups and supporting them in their pro, you know, drive to push this legislation through.

ROMANS: And the folks who are really pushing to sort of end drug use among our youth, do they say that by having this pro-pot lobby out there, that it's somehow hampering what they're trying to do?

TUCKER: Well, yes. And they're very disturbed. Because, as you would expect, the Nancy Reagan crowd, in essence...

ROMANS: Right.

TUCKER: ... the just say no group. And when you say to them, but there's 100 -- we spend $100 billion at the federal and state level right now, fighting the war on drugs.

ROMANS: Right.

TUCKER: Their response is that's not enough money. We need to be spending more money, and we need to be educating people about the dangers of these drugs. And we should not be moving in the direction that a lot of the country is in fact moving in, which seems to be a friendlier stance toward marijuana.

ROMANS: All right, Bill Tucker, thanks so much. We'll look forward to that tomorrow. Thanks, Bill.

That brings us to the subject of tonight's poll. Do you believe marijuana should be legalized in this country? Yes or no? Cast your vote at LouDobbs.com. We'll bring you the results later on in the broadcast.

Tonight there is clear evidence of how our broken border with Mexico is an integral part of the country's drug problem. A Mexican man was arrested at the Nogales point of entry into this country after authorities found more than 2,700 pounds of marijuana hidden among produce pallets on his truck. The driver was a member of the Free and Secure Trade Program, which makes it easier for so-called low-risk participants to transport goods and services across the border quickly. The driver's credentials for that program have now been revoked.

Coming up next, the political battle over this country's policy in Iraq is in force as Democrats square off against the White House. We'll have a special report.

We'll discuss the race for 2008 and much more with three of this country's top political journalists and strategists. Stay with us.

(COMMERCIAL BREAK)

ROMANS: House Democrats took the first step in their opposition to the president's Iraq policy. They passed a nonbinding resolution against sending more troops to Iraq. But in the Senate, Democratic leaders couldn't overcome Republican opposition.

Now Democrats in both chambers are planning their next steps.

Bill Schneider reports -- Bill.

(BEGIN VIDEOTAPE)

BILL SCHNEIDER, CNN POLITICAL ANALYST: Christine, the Iraq resolution that passed the House of Representatives, and didn't quite make it to a vote in the Senate, pitched conventional Democrats squarely against President Bush.

(voice-over) Americans side with the Democrats in Congress over President Bush on Iraq. But resolution doesn't really do much to stop the president.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: My hope, however, is that this nonbinding resolution doesn't try to turn into a binding policy that prevents our troops from doing that which I have asked them to do.

SCHNEIDER: House Democrats insist they will not cut off funding for the troops. But they are talking about imposing tougher standards for training and equipping the troops. The idea is give the troops more support in order to stop the build-up.

REP. JOHN MURTHA (D), PENNSYLVANIA: What we're saying, it would be very hard to find fault with. We're supporting the troops. We're protecting the troops, but on the other hand, we're going to stop this surge.

SCHNEIDER: That sets up a challenge to the president's powers as commander in chief.

STEPHEN HESS, BROOKINGS INSTITUTION: This starts to sound as if they're really trying to micromanage a war. And then the Republican argument will be, "Hey, we've got troops on the ground. Are you really telling us that we can't replace them?" SCHNEIDER: Well, yes, if that will change U.S. policy in Iraq. But it could also provoke a constitutional showdown. Will it come to that?

HESS: The Senate knows how to put sand in the gears, and of course, they've got the filibuster. If in some strange way they could get over that hurdle, then the president has his veto power.

SCHNEIDER (on camera): Democrats argue they're not undermining the troops; they're undermining the president's war power. Because that's what they believe Americans voted to do back in November -- Christine.

ROMANS: All right, Bill Schneider reporting.

Joining me now, three of our best political analysts, Democratic strategist Hank Sheinkopf, columnist for the "New York Daily News", Errol Louis, and from Washington, columnist for the "Washington Times", Diana West. Thank you, everyone, for joining us.

I guess I'll start with you, Hank. Are they micromanaging a war in Iraq? Is that what Democrats are trying to do?

HANK SHEINKOPF, DEMOCRATIC STRATEGIST: Ridiculous. What they're doing is what the people want and frankly, if you looked at 50 years of public opinion in this country, politicians tend to follow public opinion or they pay a terrible price for it.

ROMAN: Errol, I'm wondering, though, are the politicians following public opinion? The public watching this, I mean, they're debating about whether to have a debate and the politics of it all.

ERROL LOUIS, COLUMNIST, "NEW YORK DAILY NEWS": They're following public opinion cautiously, knowing that it could flip at a moment's notice. I mean, a couple of years ago, it was unthinkable to take some of the stances that some of the Democrats are taking now.

The public opinion wanted to support the president doing exactly what he wanted to do in Iraq. And woe to the Democrat who tried to fight against it, as Senator Kerry found out. And changing your position wasn't acceptable either.

So I think what you've got are a lot of politicians in Washington that are going to be very gun shy. They know that where they're going could take them into a very difficult place and that public opinion that's at their back right now could flip in just a moment's notice.

ROMANS: Diana, the Democrats insist they're not trying to cut funding for our troops. But people who support the president say it's a slippery slope when you're even talking about nonbinding resolutions. What do you think?

DIANA WEST, COLUMNIST, "WASHINGTON TIMES": Well, we're all sitting here calmly discussing this. I think if I weren't on television, I'd be tearing my hair out. I don't think we've ever seen anything like this. Not for maybe 150 years or so. To see Congress attempting to micromanage a battle that is underway. I think this is something extraordinary in our history.

And I think what's doubly extraordinary is that the Democrats are not offering a strategy. They're -- they are trying to undermine this new strategy by the president, which personally, I don't agree with. I personally would rather see something even more powerful and more higher scope.

LOUIS: Diana.

WEST: Yes.

LOUIS: Would you agree that by putting forward these nonbinding pieces of legislation, they're shying away from doing exactly that? They don't want to micromanage this. They don't want responsibility for it.

WEST: Well, I don't think so. Only because, Errol, I think that what we're going to see next month is something more solid. What is promised, what Jack Murtha is promising, is to attach so many restrictions to the defense appropriations bill, which is coming up next month in March, that it will in effect...

SHEINKOPF: That's exactly. That's exactly what...

WEST: ... micromanage and defund or draw down the troops, because there are going to be so many restrictions on their presence and their deployment to Iraq, that it will have the same effect.

And he's quite open about this, which is another shocking thing. Because there's a sense of perfidy about this. I mean, this is just an incredible grab for power.

SHEINKOPF: Wait a second. What's the surprise here? Jack Murtha said that's exactly what he was going to do here. There's nothing new here. And that's what the American public wants. They want this stopped. They want the troops home. They want to see some conclusion.

WEST: We all want some conclusion. We all want the troops home. It's not like anyone is fighting to keep something terrible from happening. But I think what you also have to remember is that some of those new Democrats even campaigned to protect and support the troops.

LOUIS: But that's what they're doing here.

WEST: I don't think so. The House resolution said that you know, that they were opposed to the deployment of additional troops and they supported the troops already on the ground there. There's a disconnect. There's a logical and political and strategic disconnect there that is not being taken into consideration.

ROMANS: Dana, I want to bring in some numbers here. This Princeton/"Newsweek" survey, showing you know, who has -- who has the public's confidence in handling the situation in Iraq right now. Do you trust more on Iraq policy, President Bush, 32 percent. The Democratic leaders in Congress.

I mean is this a reflection? Are these numbers what we're seeing happening right now? I mean, is this why we're having this debate?

LOUIS: That's the most frightening number I've seen in a while.

ROMANS: Which one?

LOUIS: That 55 percent for Democratic leaders in Congress.

Look, here's what's going to happen at most. Even if they step forward with serious binding resolutions and try to gum up the works so far as the build-up, it's going to happen anyway.

The Pentagon will send its troops. It will run deficits if it has to, if there are funding questions involved. We learned this 10 years ago with the shutdown of the federal government. In a showdown between a very powerful executive and Congress, the executive wins.

ROMANS: Yes.

SHEINKOPF: Look, it's real simple. The public wants this brought to resolution, and it's going to happen, or congressmen and senators may be out of work. So there you have it. They're not going to be out of work. They'll figure out how to resolve it.

ROMANS: Diana, quick last word before we go to break?

WEST: Well, that 55 percent is scary. Because again the Democrats are not offering a strategy. A withdrawal is not a strategy.

ROMANS: All right, Diana West. Thanks everybody.

We have more with our panel in a minute, so don't go away.

First, a reminder to vote in tonight's poll. Do you believe marijuana should be legalized in this country? Yes or no? Cast your vote at LouDobbs.com. We'll bring you the results in just a few minutes.

And we'll be back with our panel, so stay with us.

(COMMERCIAL BREAK)

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

WOLF BLITZER, CNN ANCHOR: Thanks very much, Christine.

Race, religion and romance. A Washington power couple talks to me about facing down discrimination and what other people should know about following their heart. And is al Qaeda gaining some fearsome new strength? I'll talk with Pakistan's ambassador to the U.S. about the terror network and whether it's training new fighters inside his country.

And could Mitt Romney's religion cost him the presidency? The former Massachusetts governor gets heckled for being a Mormon. Find out how he responded.

All of that coming up right here in "THE SITUATION ROOM" -- Christine.

ROMANS: All right, thanks, Wolf. We're back with our panel: Democratic strategist Hank Sheinkopf, columnist for "The New York Daily News", Errol Louis. And from Washington, columnist for "The Washington Times", Diana West.

Let me ask you first, Hank. Hillary Clinton, she's proposing introducing a bill to call for a 90-day deadline for pulling the troops out of Iraq. But meantime, every place on the campaign trail, people are hammering her about apologizing for her vote to get us in the Iraq war. You say it's not even fair to be asking her that question.

SHEINKOPF: This is a double standard she's being held to. It's not fair. Others took the vote, others have called for withdrawal of the troops or cutbacks and a timetable for doing so. Why is she being held to a higher standard? If I were her I would fire right back and say, "This isn't fair. I'm doing what the people want, so there."

ROMANS: How would you handle it?

LOUIS: The thing is, most of those others are not running for president of the United States. So she's going to have the same problem that John Kerry had. The same problem that John Edwards has right now. Either you say that you made a mistake in case you look a little weak, like you're not quite decisive and you didn't have information. And how come you didn't have that information?

Or you sort of stand tough, as she does. And she's going to get pounded week after week. And I think that's where that 90-day proposal came from. She just kind of threw that in the mix to try to quiet some of the criticism because it's following her everywhere.

WEST: I think Errol's right about that. I think she's coming up against it, though. Because she was prominently pro-war when the numbers were -- and the polls were pro-war. And now she's prominently anti-war, and the numbers down. And so she's facing prospective primary voters who are traditionally very left wing. So of course, they want a mea culpa from her. That's the constituency.

ROMANS: Diana, what about McCain's denial over the weekend? He wasn't there for that Senate vote. How is he shaping up on the war issue, at least?

WEST: Well, a lot will depend on how the war goes. He's staking his claim to being staunch and even being -- going beyond the president in his staunchness for some of these policies.

I think so far as his timbre goes, his presidential timbre that is, I think he's looking very good in the sense of being true to his word. I think that carries some weight. If things go even further south in Iraq, though, that won't look so good.

ROMANS: Hank?

SHEINKOPF: McCain has another built-in problem. He's on the wrong side of the war issue. His arguments don't ring true with the conservatives. He has too many -- to many Bushnicks around. The institutional Republicans don't like the Bushnicks, don't like Karl rove, are not happy with him. How he gets to the finish line despite the war is another question.

ROMANS: Talk about Giuliani quickly. If we're talking about the Republican field. Giuliani, how is he going to square some of sort of his social stances? I mean, how is that shaping up?

LOUIS: I think what really works to Giuliani's advantage is that Iraq and the war are the issue. And Senator McCain is on the wrong side of it. So Giuliani can sort of tout his homeland security credentials, which are impeccable at this point, nationally. And get past the primaries. I mean, everybody forgets that. It is really, you know, you've got to sort of do this at a phase at a time.

So to get through the first round of primaries, then raise some money, get your momentum, make it through the convention and then fight the national general election. Giuliani's perfectly positioned. And he won't be undone by events in Iraq, unlike Senator McCain.

ROMANS: Diana?

WEST: Yes, well, I think that Giuliani has taken some big steps to warm himself up to conservatives by promising to appoint strict constructionists to the Supreme Court.

I think a lot of the social issues that he supposedly has problems with, because he's more liberal than a lot of conservative primary voters would be, are -- it's ameliorated because these are issues that a lot of conservatives don't want to see legislated, don't want to see handled by the Constitution. So I think in that sense, that may diffuse a lot of these problems for him.

SHEINKOPF: Yes, but you know what? Luck is with him, too. As more states move their primaries further -- more northern states, more industrial states move their primarily further up into the calendar earlier, he can get some momentum going into the south where social issues will matter more, with less of a problem.

ROMANS: That will make it a little different this time around. We're starting the whole process earlier with this field of candidates, but then primaries are going to be completely different. It's really going to be different to gauge it.

LOUIS: California moving up is probably the biggest change. And it's going to be a knockout blow for so many candidates. Because you cannot campaign in a state where all those major markets, different television markets, 28 million people you've got to try and reach. If you don't have marquee name recognition going in, you could be finished right then and there in February.

ROMANS: WE have to leave it there. Errol Louis, "New York Daily News", thanks so much for joining us. Hank Sheinkopf, thanks a lot, Democratic strategist. And from the "Washington Times", columnist there Diana West.

WEST: Thank you.

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

(COMMERCIAL BREAK)

ROMANS: And now the results of tonight's poll. Three quarters of you say marijuana should be legalized in this country. Twenty- seven percent say no.

Time now for more of your thoughts.

Leslie in Maryland: "We are so anxious to try and fix the rest of the world's problems, while our country is in shambles and our government is a sham. Isn't it there for us to put our own house in order before we attempt to fix the world?"

Mary Ann in Tennessee: "Please don't see this as an endorsement of drug use. It is intended as a realistic look at the failures of prohibition and recognition of American's appetite for mind-altering drugs. It is clear that as long as there is such demand for drugs, legal or illegal, there will be supply. The question is do we continue doing what we know has not worked or will we take a different path?"

Devin in Missouri: "The greater part of the war on drugs would be over if our lawmakers would adopt a sane approach to the decriminalization and regulation of marijuana. It's time to stop letting the pharmaceutical, tobacco and alcohol lobbies set drug policies in the U.S."

Ron in Ontario: "I think we should be more outraged that roughly 20 percent of parents have no control over their children's activities. Everyone blames the tobacco companies for teenagers smoking, the alcohol manufacturers for teenagers drinking, the drug pushers for drug abuse. It's about time someone starts blaming adults for bad parenting."

Jonathan in British Colombia: "If those under the age of 21 are classified as children when examining sales of alcohol I must admit to some confusion. How can the large society accept these 'children' as being old enough to fight and die in their country's military yet not old enough to legally purchase a beer?"

We love hearing from you. Send us your thoughts at LouDobbs.com. Thanks for being with us tonight.

Please join us tomorrow. Among our guests, Congressman Barney Frank of Massachusetts. He wants to put an end to this administration's free trade agenda.

For all of us here, thanks for watching. Good-night from New York. "THE SITUATION ROOM" starts with Wolf Blitzer right now -- Wolf.

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