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Lou Dobbs Tonight

Showdown: War Funding Feud; GOP Base Supports Bush; Alberto Gonzales Under Fire

Aired March 30, 2007 - 18:00   ET

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


KITTY PILGRIM, HOST: The White House says the fight over funding the war will put U.S. troops at risk. The Democrats today dispute that claim.
Attorney General Alberto Gonzales today admitted confusion. He still says he doesn't recall being involved in deliberations over the firing of eight U.S. attorneys.

Iran is still holding 15 British sailors and marines captive. Three of them appeared on Iranian TV today. Britain is outraged the detainees are being used for propaganda.

We'll have those stories and much more straight ahead tonight.

ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate and opinion for Friday, March 30th.

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

PILGRIM: Good evening, everybody.

The Democrats today deny the White House charge that their funding bill will put U.S. troops at risk.

And the attorney general today repeating his defense. He says he doesn't recall being involved in deliberations over the firing of eight U.S. prosecutors.

Dana Bash reports on a study released by the Democrats that says the military has the flexibility to transfer money to where it's needed most.

Bill Schneider reports on what Republican voters have to say about the political standoff over Iraq.

Kelli Arena reports on the attorney general's attempt at damage control a day after his chief of staff testified that Gonzales had been involved in the decision process of firing U.S. attorneys.

But first we turn to Dana Bash on Capitol Hill -- Dana.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well, Kitty, Democrats know that the administration's argument that they will put troops in the field at risk is about as powerful a political argument as they come, and today they got some help with a counter-argument.

(BEGIN VIDEOTAPE)

BASH (voice over): Democrats say a new nonpartisan analysis undermines White House claims that the fight over funding the Iraq war will soon put combat troops at risk. The Congressional Research Service says even without additional funding, the Army could finance the war for several more months, through most of July 2007. The report also says the Pentagon does have flexibility to transfer money from elsewhere for urgent requirements.

KATHLEEN HICKS, CENTER FOR STRATEGIC & INTERNATIONAL STUDIES: The process is that you rob Peter to pay Paul. Lower priority items will start to lose funding in order to pay for overseas contingency costs.

BASH: Democrats hope the new study helps rebut a powerful Bush argument in a standoff centered on Democrats' demonstrations that Iraq War funding be tied to a deadline for withdrawal.

America's top military officer warns if the Pentagon doesn't get $100 billion in war funding by April 15th, the Army will have to curtail Reserve and Guard training. Quality of life initiatives like barrack upgrades would be reduced and equipment repairs suspended.

And by May 15th, General Pace warns, deployments to Iraq could be delayed. Troops in Iraq would have to stay longer.

UNIDENTIFIED MALE: So you're saying there's a chain reaction?

GENERAL PETER PACE, JOINT CHIEFS CHAIRMAN: There is, sir. And there are other things. I'll stop there.

SEN. HARRY REID (D-NV), MAJORITY LEADER: Whose fault is that? Whose fault is that? We have waited for months and months and months to get this appropriation bill.

BASH: Democrats blame the president for mismanaging the war and weakening the military, and say the Pentagon and White House are using scare tactics to try to get Democrats to back down in their push for a deadline for troops to come home.

REP. NANCY PELOSI (D-CA), SPEAKER OF THE HOUSE: And what the president is saying, give me the money but don't expect me to be accountable.

(END VIDEO TAPE)

BASH: Congress has now gone home for spring break and weeks away from even getting this bill to the president's desk, when they know he will veto. So the big question is, how and when will the standoff end? How will both sides come together and perhaps find a compromise, one on the whole issue of timetables for troops in the field when it comes to funding them as well?

Kitty.

PILGRIM: Thanks very much. Dana Bash.

Well, the White House today criticizing House Speaker Nancy Pelosi's planned trip to Syria. The State Department is also critical of this trip.

Pelosi is currently in Israel with a congressional delegation, and they plan to meet with Israeli and Palestinian officials before heading to Syria. The speaker's office late today said that the speaker was following the recommendations of the Iraq Study Group, and those recommendations included meeting with representatives of governments in the region, including Syria.

Insurgents in Iraq have killed one more of our troops. The soldier was killed during a combat patrol in southern Baghdad.

Eighty of our troops have been killed so far this month. 3,246 of our troops have been killed since this war began. 24,314 of our troops have been wounded, 10,841 of them seriously.

The Democratic leadership and the president are at odds over Iraq, and the congressional Republicans continue to back the president. But what about Republican voters?

Now Bill Schneider reports on where the president stands with the Republican base.

(BEGIN VIDEO TAPE)

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): In the standoff between Congress and President Bush, where's the public?

By nearly two to one, Americans want their representatives to vote for a bill setting a deadline for the withdrawal of U.S. troops from Iraq.

REID: We feel extremely comfortable because we're speaking for the American people.

SCHNEIDER: Meanwhile, President Bush invited the entire House Republican membership to the White House to back up his threat to veto such a bill.

BUSH: We stand united in saying loud and clear that when we've got a troop in harm's way, we expect that troop to be fully funded.

SCHNEIDER: Republicans are standing with President Bush despite public opinion. That's a dangerous thing to do in a democracy, as Republicans learned last November.

So why are they doing it? For one thing, their base is with them. Republican opinion on Iraq is almost exactly the reverse of the country as a whole. A Republican strategist argues that with a new commander, David Petraeus, Republicans see a change of direction in Iraq. DAVID WINSTON, REPUBLICAN POLITICAL CONSULTANT: I would suggest that this is more about Petraeus than the president in this particular case.

SCHNEIDER: Republicans don't see the Democratic alternative as compelling.

WINSTON: You're not seeing any clear consensus, even on the Democratic side, in terms of what direction, policy-wise, they want to go on the war either.

SCHNEIDER: Actually, the prevailing public view is that Democratic Congressional leaders are about right or have not gone far enough in challenging President Bush. Republicans are standing with the president.

The question is, for how long?

WINSTON: There has to be some results at the end here and he's got to -- the president has to provide them. If he doesn't, I think you're going to see Republicans begin to rethink their positions, quite clearly.

(END VIDEO TAPE)

SCHNEIDER: It's a basic fact of politics. President Bush never has to face the voters again. Republicans in Congress do -- Kitty.

PILGRIM: Thanks very much.

Bill Schneider.

Attorney General Alberto Gonzales again defending his actions, and he says he doesn't recall being involved in the process that led to the firings of eight U.S. attorneys.

As Kelli Arena reports, the attorney general's remarks come the day after damaging testimony from his former chief of staff.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice over): If at first you don't succeed, try, try again.

ALBERTO GONZALES, ATTORNEY GENERAL: I don't recall being involved in deliberations involving the question of whether or not a U.S. attorney should or should not be asked to resign.

ARENA: But his former chief of staff told Congress Gonzales was involved in the process from the get-go. Justice officials say it comes down to two words, discussions, which they admit the attorney general was involved in, and selections, which they contend he wasn't involved in.

It's enough to make your head spin. SEN. ARLEN SPECTER (R-PA), RANKING MEMBER, JUDICIARY COMMITTEE: It's an old story in Washington. What was done wasn't really so bad, but handling it improperly and not leveling is -- is very bad. And Attorney General Gonzales has his work cut out for him.

ARENA: For now, there hasn't been an increase in the number of lawmakers calling for Gonzales' resignation, but even his supporters are stunned that this has escalated into such a crisis, with no solid evidence yet of any wrongdoing.

SEN. ORRIN HATCH (R-UT), JUDICIARY COMMITTEE: It was badly mishandled. There's no question about that.

ARENA: Gonzales is scheduled to testify before the Senate Judiciary Committee on April 17th, but the pressure is getting intense, and Justice officials may push for an earlier date.

(END VIDEOTAPE)

ARENA: Gonzales' fate ultimately lies with one man, the president. The White House spokeswoman said today that President Bush still has confidence in Gonzales, but admits that he's got a lot of work to do -- Kitty.

PILGRIM: Thanks very much.

Kelli Arena.

Well, joining me now with his perspective on this growing controversy is Jonathan Turley, law professor at George Washington University.

And thanks for being with us, sir.

JONATHAN TURLEY, GEORGE WASHINGTON UNIVERSITY: Thanks, Kitty.

PILGRIM: How serious is this discrepancy in recollection?

TURLEY: Well, it's very serious, indeed. I mean, first of all, we've had almost a stratographic record of statements and then withdrawal of statements, then corrections, then clarifications. Most people don't have this much trouble just telling what role they had. And it really does strain one's, you know, belief that the attorney general would have such poor recollections about what would be one of the most important decisions that would occur on his watch as attorney general, the removal of the highest-ranking DOJ officials in these areas.

PILGRIM: Do you believe it speaks to deeper issues than just poor recollection?

TURLEY: Well I think it does. I mean, look, the attorney general at this point is probably damaged beyond repair. I don't know what's worse for the White House.

It may be worse if he does survive because he's in such bad shape, but, you know, the hearing with Kyle Sampson has laid a pretty good groundwork for the Senate to move forward and demand the testimony of White House officials. Because the person that pled the Fifth Amendment just a few days ago, Monica Goodling, happens to be the bridge between the White House an DOJ. So, the only people now that can answer those questions are likely to be those White House officials.

PILGRIM: Now, we've had this release of documents. Let's listen to what the attorney general had to say about that for a second.

(BEGIN VIDEO CLIP)

GONZALES: I've directed that 3,000 pages of documents be released by the Department of Justice. I've directed that DOJ employees come forward and present information and testimony to the Congress. I asked the Office of Professional Responsibility -- just to be sure, I asked the Office of Professional Responsibility to look into this matter and to work with the Office of Inspector General to ensure that nothing improper happened here.

(END VIDEO CLIP)

PILGRIM: Now, this gives the appearance of cooperation, although some have criticized it as a document dump.

What's your opinion of this?

TURLEY: Well, frankly, I don't think the attorney general has performed well at all. I mean, the most important information that we have had thus far has been misinformation. I mean, I think that the critics of the White House have gained a lot of ground, particularly yesterday.

You know, Kyle Sampson could not explain why some of these people were fired. And, in fact, we found out yesterday that people like Iglesias from New Mexico was added right before the election, and Sampson couldn't really come up with a reason why he was terminated or why he would be terminated if he could do it again. And someone like Carol Lam in California was shown to be an all-star who was never even told that they wanted her to increase her immigration cases.

It was a very bad day for the White House. And right now, they seem to be living in denial that at some point they're going to catch some traction here, but it doesn't look like it's happening.

PILGRIM: As these details come out, it becomes even more interesting.

Thanks very much for joining us with your analysis tonight.

Jonathan Turley.

TURLEY: Thanks, Kitty.

PILGRIM: And coming up, our panel of distinguished political analysts will discuss the controversy surrounding the attorney general.

And is Congress hearing the voice of the people or the voice of special interests? Lobbyists are spending billions to make their voices heard.

We'll have a special report on the best government money can buy.

President Bush visits Walter Reed and apologizes to wounded troops who endured dilapidated conditions at the hospital.

We'll have a report.

And more worry for pet owners tonight. The pet food recall expands.

We'll have the details of that.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: It's been a week since Iran seized 15 British marines and sailors in the Persian Gulf. And today Iranian state TV aired new statements from the British captives.

As Matthew Chance reports, there are questions whether the statements were genuine or were made under duress.

(BEGIN VIDEOTAPE)

NATHAN SUMMERS, BRITISH SEAMAN: Since we've been arrested in Iran, our treatment has been very friendly. We have not been harmed at all.

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT (voice over): Another propaganda salvo, another disturbing confession, possibly made under duress, in Britain's escalating standoff with Iran. This is Nathan Thomas Summers, one of the 15 British sailors being held and now being paraded on Iranian television as well.

SUMMERS: I'm grateful no harm has come to us. Just, I'd like to apologize for entering your waters without any permission. I know it happened back in 2004, and our government promised that it wouldn't happen again. And again, I deeply apologize for entering your waters.

CHANCE: But this statement, and the other images broadcast of the captives, has angered the British authorities. Military officials deny the patrol was in Iranian waters when it was intercepted. The British Foreign Office says it's outraged that British detainees are being used by Iran for propaganda. And the British prime minister, furious over the latest developments, says Iran is only damaging itself.

TONY BLAIR, BRITISH PRIME MINISTER: I really don't know why the Iranian regime keep doing this. I mean, all it does is enhances people's sense of disgust at captured personnel being paraded and manipulated in this way. It doesn't fool anyone. And what the Iranians have to realize is that, if they continue in this way, they will face increasing isolation.

CHANCE: But Iran shows little sign of easing the pressure. There's been a third handwritten letter released from the only female captive, Faye Turney, addressed to the British people. It says she's been sacrificed due to the intervening policies of the Bush and Blair governments. "It's now time," the letter goes on, "to ask our government to make a change to its oppressive behavior towards other people."

(on camera): Watching this crisis develop with concern, British officials say neither the letter nor the televised confession will deflect them from trying to find a diplomatic solution. Prime Minister Tony Blair distancing himself from any talk of a military response. The best outcome, he says, is for all British personnel being held by Iran to be released safe and sound.

Matthew Chance, CNN, London.

(END VIDEOTAPE)

PILGRIM: President Bush made his first visit to the Walter Reed Medical Center. It's been six weeks since reports surfaced on the deplorable conditions at the facility. The president today apologizing for those conditions there.

Brianna Keilar has more on today's visit -- Brianna.

BRIANNA KEILAR, CNN CORRESPONDENT: Kitty, it was President Bush's first visit to Walter Reed Army Medical Center since the scandal broke about six weeks ago. But White House Deputy Press Secretary Dana Perino, citing the replacement of officials at the hospital and the formation of a bipartisan presidential commission, rejected the notion that President Bush took too long to make an appearance.

Now, some of the soldiers that he visited with today included those who had lived in the infamous building 18, those living quarters that were in particular disrepair and also had mold and rodent infestations.

(BEGIN VIDEO CLIP)

BUSH: Americans must understand that the problems recently uncovered at Walter Reed were not the problems of medical care. The quality of care at this fantastic facility is great, and it needs to remain that way.

(END VIDEO CLIP)

KEILAR: It's an uncharacteristic move that the White House allowed a news camera to capture President Bush's visits with wounded soldiers. We saw Mr. Bush test out the new prosthetic arm of one man. He admired another man's tattoo. And he held the baby of an Army sergeant who is one of many soldiers ajusting to life as a war-wounded amputee.

And after visiting with those patients, President Bush addressed doctors and nurses, and he told them that they're providing excellent medical care and that the failures at the hospital were bureaucratic and administrative ones -- Kitty.

PILGRIM: Brianna Keilar reporting.

The Bush administration today took a small step in fixing the huge trade imbalance with China. Commerce Secretary Carlos Guitierrez announced the U.S. will impose duties on imports of coated paper from China in an effort to protect American paper producers.

(BEGIN VIDEO CLIP)

CARLOS GUTIERREZ, COMMERCE SECRETARY: Today, I am announcing the Commerce Department's preliminary decision to apply the U.S. anti- subsidy law to imports from China.

(END VIDEO CLIP)

PILGRIM: Now, this action reverses a 23-year policy that protected China's subsidized goods from U.S. duties. And last year, the U.S. imported almost $288 billion worth of goods from China.

Today's action by the Commerce Department will barely dent that. The coated paper category represents less than -- listen to this -- .0778 percent of our total deficit with China. The Commerce Department calls that progress.

The deadly pet food recall expands to include another brand of dry food. Now, this comes as the FDA confirmed a toxic chemical imported from China has been linked to the contamination.

The FDA says the toxic agent melamine caused the death of at least one cat. Now, this chemical is also believed to have caused other animals to become sick.

Melamine was found in a wheat gluten, which is an additive in wet pet food. It's a chemical commonly used to make fertilizers and plastic utensils.

All in all, 14 animals have been killed and hundreds have been sickened by the contaminated food.

Still ahead, the White House is working behind the scenes for immigration reform, but can it get Republicans to agree?

Outrage and protests on Ellis Island as Congress takes its plan for immigration reform to Ellis Island.

And big business is spending big bucks to make sure its interests are served on Capitol Hill.

We'll tell you who is spending the most money, and we'll have all of those stories and more when we come back. (COMMERCIAL BREAK)

PILGRIM: Money talks in business and in politics. Special interest groups spend millions of dollars each year trying to influence lawmakers in Washington.

Lisa Sylvester has more on the biggest spenders on Capitol Hill.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice over): In Washington, special interests shell out millions to get their message to lawmakers.

MASSIE RITSCH, OPENSECRETS.ORG: Money speaks with a very loud voice in Washington. And for the biggest interests, they spoke a lot louder in 2006 than some of the smaller interests. And whenever the big interests speak louder, that often means that it drowns out the voices of the average citizen.

SYLVESTER: The largest interest groups increased their lobbying spending by 14.4 percent last year, according to the Center for Responsive Politics. The U.S. Chamber of Commerce topped the list, spending more than $72 million last year. That's $199,000 a day on lobbying for corporate America.

The chamber far and away outspent other groups. The AARP came in second with $23 million. The American Medical Association third, at $19.8 million.

This lobbying bonanza continued even as lobbying scandals made headlines -- Jack Abramoff, Duke Cunningham and Bob Ney.

FRED WERTHEIMER, DEMOCRACY 21: Lobbying organizations, lobbyists can buy access, buy influence with members of Congress who have to decide their fates, and it happens every day in Washington today.

SYLVESTER: The U.S. Chamber of Commerce is pressing Congress on a number of issues -- to legalize millions of illegal aliens and establish a guest worker program; to renew trade promotion authority; to oppose efforts to raise the minimum wage; to reduce the number of weeks workers have available under the Family Medical Leave Act; and to make it harder for businesses to be sued.

RITSCH: The lobbying business may seem very distant to people who don't live in Washington, but it has a real impact on citizens in their pocket books, in their choices, as consumers, and in their lives.

SYLVESTER: It all comes back to money and influence lobbying in Washington.

(END VIDEOTAPE)

SYLVESTER: Last year, special interest groups spent nearly $2.5 billion on lobbying. Now, the Senate passed a sweeping lobbying reform bill that places new curbs and disclosure rules on lobbyists. The House is expected to take up a similar version later in the spring -- Kitty.

PILGRIM: Thanks very much.

Lisa Sylvester.

The Democratic-controlled Congress has yet to agree on a bill raising the hourly minimum wage up from $5.15 an hour, but states continue to act on their own to help the American workers. Now, this weekend, Iowa joins the list of states increasing the minimum wage.

On April 1st, the minimum wage climbs up from $5.15 an hour to $6.20 an hour, and it goes up again on January 1, 2008 to $7.25 an hour.

Twenty-nine states and Washington, D.C., have already increased their hourly minimum wage.

Coming up, Congress and the Bush administration bring their amnesty agenda to an American landmark, a landmark for legal immigration.

We'll have a special report.

America's toughest sheriff takes his illegal alien crackdown to the streets. We'll tell you about Sheriff Joe Arpaio's latest plan to rid his county of illegal aliens.

And the latest on the massive fire burning in the Hollywood Hills tonight. A famous landmark threatened.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: A wildfire is spreading through the Hollywood Hills at this hour. Now, flames can be seen nearing the world famous Hollywood sign. The fire is burning through dry brush areas. No homes or businesses are immediately threatened. About 150 firefighters and several helicopters are fighting those flames.

The White House is making a real behind-the-scenes push to shore up support for immigration reform.

As Christine Romans reports, the Republicans hope to build up a consensus that can stand up to the Democratic majority.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice over): In recent weeks, an aggressive behind-the-scenes push for immigration reform.

DANA PERINO, DEPUTY WHITE HOUSE PRESS SECRETARY: We have been working with Republicans and talking to them about how to get some more cohesion there in order to then go to the Democrats and start working on a bill.

ROMANS: And a homeland security official says a consensus is emerging. A draft of the White House plan circulating on the Hill calls for a new class of visas, granted exclusively for illegal aliens, dubbed Z visas.

After a criminal background check illegal aliens can renew their Z visas every three years for $3,500. Illegal aliens who want a green card must return home and pay a $10,000 fine to get in line.

The proposal calls for a secure border before any new temporary worker program starts, and those workers could not bring their families. The plan allows more green cards for skilled workers by limiting visas for relatives of U.S. citizens. To some, it's too tough and would break up families and does nothing to prevent employers from exploiting temporary workers. To others, it's amnesty.

REP. BRIAN BILBRAY, (R) CA: The president is absolutely so far off base on this that it's astonishing to see that somebody like Mr. Kennedy, who could bad mouth the president at every turn, all at once embrace him over a proposal of, to reward illegal immigration.

ROMANS: The president more aligned with Democrats than his own party.

JOHN GEER, VANDERBILT UNIVERSITY: The president does not want to be a lame duck. He wants to accomplish things and knows that Iraq is, you know the big issue that sits in the room, but he's trying to get something accomplished.

ROMANS: And his window of opportunity is closing.

(END VIDEOTAPE)

ROMANS (on camera): So there is a sense of urgency in this effort. Nearly every day for the past few weeks, White House staffers and Cabinet members have been meeting with Republican senators. Whether it's enough to gain Democratic support, though, remains to be seen, Kitty.

PILGRIM: Christine, some of the fees seem a bit steep.

ROMANS: You're absolutely right. And some of the groups who support open borders, the advocacy groups for illegal immigrants say it's simply unfair to think somebody can spend $3,500 every three years to renew their status under the so-called Z visa or to get in line and pay $10,000 in fines to come here. But this White House document points out if there isn't restitution it's amnesty and they're very careful about making it not look like amnesty.

Also they point out in there that there's already a great deal of money going to smugglers already. Somehow illegal immigrants are coughing up a lot of money to go to smugglers. Why not cough up the money to get on a path here for some sort of a visa.

PILGRIM: And they wouldn't lose it, it would be a legitimate way to do it, too.

ROMANS: Right.

PILGRIM: Thanks very much, Christine Romans.

Well, the House Subcommittee on Immigration held its first meeting of 2007 in New York today. And in a nod to our nation's immigrant past, the committee gathered on Ellis Island. As Bill Tucker reports, they heard testimony. They made a pledge for so- called comprehensive immigration reform.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Members of the House Immigration Subcommittee took their show on the road to Ellis Island. They were greeted by members of the New York Immigrant Coalition who came to protest what they called the president's secret anti-immigrant plan.

But any planned protest turned quiet as they listened to the committee pledge itself to comprehensive immigration reform and they no doubt enjoyed the administration's response about the definition of amnesty.

IGOR TOMOFEYEV, DEPT. OF HOMELAND SECURITY: I mean I would say that the question is maybe not I'm not sure if I want to define the amnesty and give a dictionary definition.

TUCKER: His definition was, if you pay any kind of fine, no matter how small, it's not amnesty. And the committee welcomed news that they have a partner in the White House.

REP. SHEILA JACKSON LEE, (D) TX: That means now we have a partner in what we have been calling and I'm not akin to names, I'll take any name you call t but we've been calling it comprehensive immigration reform. We have a partner. Is that my understanding?

TOMOFEYEV: I think both the president and also certainly the Department of Homeland security, we've been over this area explicit, that this is one of the parts of the president's vision of immigration reform.

TUCKER: It was a far cry from the last Congress and the old House of Representatives who had pushed forward the Sensenbrenner enforcement only bill.

REP. STEVE KING, (R) IA: It is very different and there's full court press here to push their idea of the comprehensive reform bill and I think the answer is go cautiously, not go boldly, but this is a bold committee.

TUCKER: And the witnesses were just as bold.

(END VIDEOTAPE)

TUCKER (on camera): The simple message from three of the panelists was, the more immigration the better, and any attempt at restricting immigration would be bad and have dire consequences on the economy.

And Kitty, the standard for admittance was defined fairly clearly today and very simply, is, if it's better off here than where you live, then you're welcome to come on in.

PILGRIM: That's interesting. Thanks very much, Bill Tucker.

Well, in California today, small groups of students walked out of their classrooms and they marched in Los Angeles, Sacramento, Oakland, other cities and they're calling for Cesar Chavez day to be declared a national holiday.

Chavez, who died in 1993, was the founder of the United Farm Workers' Union. And his efforts which included a nationwide boycott of grapes led to improved working conditions for thousands of migrant workers in California in the 1960s.

Well, the man who calls himself America's toughest sheriff is becoming even tougher on illegal aliens and as Casey Wian reports, he's doing it with the help of the federal government.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Arizona sheriff Joe Arpaio giving new orders to the first three dozen deputies graduating from immigration law enforcement training.

JOE ARPAIO, ARIZONA SHERIFF: If they come across any illegals, you will arrest them and you will bring them to jail.

WIAN: The Maricopa County Sheriff's Department already checks immigration status of all prisoners in its jail. It's also the only Arizona law enforcement agency enforcing a state law that prosecutes illegal aliens determined to be paying smugglers.

Now 160 Phoenix area sheriff's deputies and detention officers will broaden their illegal alien crackdown to include traffic stops and other routine police activities.

DET. CARLOS RANGEL, MARICOPA COUNTY SHERIFF'S DEPT.: We're just going to go out as normal everyday responding to different calls, domestic violence, and DUIs, accidents, based on the information that the suspect or the person making contact provides Mexican license, doesn't speak English, tells us straight out "Hey, I was born in Mexico.

Then from there we'll start initiating our investigation to determine if they're illegals or not.

WIAN: Critics complain that the new policy will encourage racial profiling and discourage all immigrants from cooperating in police investigations. Arpaio rejects that.

ARPAIO: First of all these people are here illegally. They violated a law by coming into the United States, a federal law and a state law now here in Arizona, and we're just going to do our job and use probable cause and make the arrests and we do get information from illegals on crimes, so I don't go along with that theory.

WIAN: Alonzo Pena, head of Immigrations and Customs Enforcement in Arizona negotiated the new policy with Arpaio. He says talks are under way with several other police agencies in Arizona.

(END VIDEOTAPE)

WIAN (on camera): Dozens of cities nationwide are in the process of implementing their own immigration enforcement programs and for now at least, ICE says it does have the resources to handle the additional flow of apprehended illegal aliens.

Kitty?

PILGRIM: Thanks very much. Casey Wian.

Well, that brings us to the subject of tonight's poll. Should local law enforcement take on a greater roll enforcing federal immigration laws? Yes or no? Cast your votes at loudobbs.com.

We'll bring you the results a little bit later in the broadcast.

Authorities in Mexico have arrested human smugglers suspected of trying to bring dozens of illegal aliens from Central America to the United States. Ten Mexican smugglers and 42 illegal aliens were caught in the city of New Laredo across the border from Laredo, Texas, they were caught yesterday.

Mexican officials say the illegal aliens were from El Salvador, Guatemala and Honduras.

Coming up, Alberto Gonzales defends himself against damaging testimony on Capitol Hill. Three of the nation's leading political analysts join us to debate whether the attorney general still has the support of the White House.

And a hero finally honored for his bravery in battle more than 60 years after serving his country. We'll bring you his story. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: I am joined by three of the best political analysts in the country.

Former White House political director Ed Rollins, Democratic strategist Robert Zimmerman and from the "New York Daily News" Michael Goodwin. Thanks for being here.

Let's start with Gonzales. Has pretty much dominated the week in Washington and he is to testify on April 17th. Do you believe that things will heat up so much that he might have to resign, maybe in advance of that testimony? ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: Well, Democrats have offered to allow him to testify earlier if he was ready but doesn't seem to be anxious to get him to come to the Congress and testify. It's not even about Gonzales. Do I think he's going to resign? Yes, I do. Do you think it's stopping at Gonzales? Absolutely not.

It's important to understand not just how focused Democrats are on this issue and also about the incredible number of misstatements if not out and out deceitful statements designed to really cover up the blatant political manipulation of the U.S. Attorneys' Office by the White House.

All roads lead to the political operation of the White House on this one.

PILGRIM: Michael?

MICHAEL GOODWIN, "NEW YORK DAILY NEWS": We talked about this a couple of weeks ago for the first time. I thought that it was premature. I think we're clearly getting closer. I think that Gonzales, the heat is on him. I think the testimony yesterday was very hard on him, the notion that he was involved despite what he said.

And I think that's not just semantics. I think that he clearly misled the Congress. The "I don't recall" stuff about these sorts of things, and even at the very best, it shows that he was not involved in running the department, these are important decisions that the attorney general should be making and to say he wasn't involved is as damning as the potential lies.

So I think it's clearly a very difficult process for him and I think he's going to have to leave sooner or later.

PILGRIM: Let's turn to something he said. We do have a comment from him. Let's listen to that.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, U.S. PRESIDENT: The problems at Walter Reed were caused by bureaucratic and administrative failures. The system failed you, and it failed our troops. And we're going to fix it.

(END VIDEO CLIP)

PILGRIM: All right, we are listening to the wrong sound bite. Let's listen to the right one.

(BEGIN VIDEO CLIP)

ALBERTO GONZALES, ATTORNEY GENERAL: At the end of the day, I know what I did, and I know the motivations for the decisions that I made were not based upon improper reasons. But I think it's important for the American people to be satisfied as well.

(END VIDEO CLIP) PILGRIM: All right.

ED ROLLINS, REPUBLICAN STRATEGIST: The bottom line is that the man's credibility is, has been obviously affected by all of this, and even though you serve at the pleasure of the president you also have to decide whether you can serve him well and I think the attorney general has reached a point where he can't serve his department well and can't serve the president well and he would do the president a great service if he would resign and move on.

I agree with Robert, it's not going to stop there, but I think to a certain extent it will take a lot of the heat away from it.

PILGRIM: Mm-hum. Let's move on to another big contentious issue, the Iraq spending bill. Where are we headed with the showdown in Congress, Bob?

ZIMMERMAN: What we're facing right now is that President Bush is prepared to veto the legislation approved by Congress, so therefore, President Bush is going to be blocking funding for our troops, blocking funding for -- to protect our soldiers in battle for the sake of his own very, very stubborn and failed strategy.

The American people have been very clear that they want a different mission in Iraq. The Congress reflects it. This president is sacrificing our troops' safety for his own political judgment.

PILGRIM: And Peter Pace is weighing in saying the troops are going to have difficulties with their deployments if ...

ROLLINS: Do you want me to hit him or you?

ZIMMERMAN: I wanted to see if both of you gentlemen were listening, that's all.

GOODWIN: Look, I admire Robert's tenacity in trying to make that point but I don't think it's very credible that it's Bush's fault here. I just think that doesn't wash. It's very clear all along Bush was going to veto. So when Congress sends him a bill it knows he's going to veto he's hardly to blame.

I think Congress needs to send - I think we have two distinct things here we need to do separately, if we can't do them together. We should have a real debate with Congress if it's resolutions or whatever about withdrawal but spending and funding should be cleanly done so that the troops are not in question and in doubt in the field.

PILGRIM: Yeah.

ROLLINS: Once again, the president -- the troops are going to be there for the next to two years, as long as this president is in office he's going to keep the troops there, he's going to finish the obligation he feels that we've made to the Iraqi people. If the Democrats, basically, cut off the funding, if he vetoes it they're not gong to be able to override it. If they cut off the funding which I don't think they will, they're going to pay a heavy price. If they don't cut off the funding they'll basically be going along with what the president wants and that's where we are.

PILGRIM: All right. Let's move on to the British captives in Iran and it's been a difficult thing to watch all week. Tony Blair saying that Iran is increasing its isolation, that still doesn't resolve the issue and it's raising a good bit of alarm over what this might devolve into. Robert, what do you think?

ZIMMERMAN: Obviously it's a tragic situation. You watch the treatment of the British soldiers there and it clearly reflects just how bankrupt and how corrupt the Iranian government is.

It of course brings to mind the fact that this administration's got to engage its allies in the region to further isolate Iran because they're just not fit to be with, to be in the body of nations.

But I do believe is, as frustrating as the situation is, there has to be a dialogue to bring Iran into a dialogue, because the sanctions have been having an impact. We see the Iranian government has to ration gasoline because there's no place to refine it. And we're seeing the Iranian president lose more and more ground in municipal elections.

PILGRIM: And we saw some of the European nations resisting sanctions against Iran and this may bring it home this is indeed a dire situation.

Michael?

GOODWIN: I think it's sort of the Iranian wag the dog episode where they're trying to distract attention from what's going on at the United Nations and I think they're also worried about the emergence of Saudi Arabia and its stepped up role in Mid-East diplomacy and it's a Sunni/Shia split writ large and I think those are the two main opposing powers on that issue and so I think that the Iranians are trying to distract everyone, trying to kind of beat their chest and show that they're still a big player in the region. No one doubts that.

But I think, as Robert said, they are isolating themselves and giving even China and Russia reasons to back tougher sanctions.

ROLLINS: This was an act of war. And if the British Navy can't basically respond, there's a big navy sitting 50 miles right off of the coast of Iran right today. I'm not advocating we bomb them but there is two carrier groups, many ships, 100 jet airplanes, and we could take out their nuclear capacity, we could do whatever.

And sooner or later Iran has to understand that people are only going to tolerate so much and it may not be us, it may be someone else, but there's a lot of forces out there that basically are getting very frustrated with this. PILGRIM: We played this comment from President Bush about Walter Reed Army Medical Center earlier. And he said that they were bureaucratic and administrative problems. Do you think this is at least a closed chapter in the sort of episodes of scandals that have hit Capitol Hill lately?

ZIMMERMAN: No, it's just one more cover-up from this White House. Walter Reed is about the Bush administration and the Republican Congress not providing the proper financial support for our veterans facilities and Walter Reed being a flagship focal point was also under-funded severely.

And this is just typical of the pattern of the White House, whether it's veterans' care, whether it's the FBI acknowledging they broke the laws in their conduct. It's been ...

GOODWIN: Your turn.

ROLLINS: I just want to ask Robert the billion-dollar, billion and a half dollars that the Democrats added to the war supplemental act for public assistance housing, if that's what they mean for Walter Reed or something like that, I didn't see any money in there for Walter Reed.

ZIMMERMAN: Actually ...

ROLLINS: I think there's great rhetoric on the Democrats' part but I think that the bottom line is that the Congress and the White House probably share responsibility and our troops had better be treated better than they have.

PILGRIM: Ed, I'm going to give you the last word tonight. Thank you very much, gentlemen.

Ed Rollins, Robert Zimmerman, Michael Goodwin. Thank you.

A reminder now to vote in tonight's poll. Should local law enforcement take on a greater role enforcing federal immigration laws? Yes or no, cast your vote at loudobbs.com, we'll bring you the results in just a few minutes.

And coming up, a war veteran finally honored, 60 years after serving his country. We'll bring you the story.

And also, seven months after leaving for Iraq, a father's emotional reunion with his son. All that and more.

(COMMERCIAL BREAK)

PILGRIM: Now "Heroes," it's our weekly tribute to the men and women who served this nation in uniform. Tonight's hero, 83-year-old Paul Baker, the former sailor is finally being honored for heroism, more than 60 years after the Battle of Iwo Jima. Barbara Starr has his story.

(BEGIN VIDEOTAPE) BARBARA STARR, CNN CORRESPONDENT (voice-over): In Upstate New York a small gathering to honor a hero, 62 years late.

PAUL BAKER, WWII NAVY VETERAN: I'll never forget this day. Thank you all.

STARR: Paul Baker, finally has his Bronze Star from the Navy, after years of lost paperwork, honoring his service as a corpsman. The official citation says he saved several marines and sailors during the landmark Battle of Iwo Jima, despite being badly wounded himself. Nineteen-year-old Baker was on board a ship as the battle began. It was hit by Japanese artillery.

BAKER: One of the first things in my mind when I woke up, what a place to die. Blood was gushing out of my boot.

STARR: Baker began to tend some of the hundreds of wounded as the battle raged. He remembers one buddy.

BAKER: He had a large piece of shrapnel as big as my hand embedded under his skull in the back of his neck

STARR: Baker kept on working.

BAKER: (inaudible) and I was scared.

STARR: He kept trying to stop the young Marines from bleeding to death.

BAKER: The Marine says "You watch my back, I'll watch your back." They're truly a band of brothers you die for them, just like your own brother.

STARR: Only after all the wounded Marines were treated did Baker allow his wounds to be taken care of. From the safety of a hospital ship, he saw the American flag raised on Mt. Suribachi.

BAKER: Everybody was cheering and yelling.

STARR: Now, more than half a century later, the cheering is for Paul Baker, as his friends and family remember a long ago battle on a Pacific island. Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

PILGRIM: Six thousand Americans died, some 20,000 wounded in the 36-day battle for Iwo Jima, before the U.S. took control of the island from the Japanese. Paul Baker, we salute you.

An emotional reunion for a sailor and his six-year-old son in Washington state. Petty Officer First Class Bill Hawes surprised his son, John, at school recently.

Hawes is back home after serving seven months in Iraq, and a teary John introduces dad to his kindergarten class. The class sent Hawes care packages and letters of encouragement in Iraq throughout the school year.

Coming up at the top of the hour THE SITUATION ROOM WITH WOLF BLITZER. Wolf?

BLITZER: What a nice story that is. Thanks, Kitty.

The Bush administration slamming the House Speaker Nancy Pelosi tonight over her upcoming trip to Syria. We're going to find out why officials are so angry and what Pelosi hopes to accomplish in Damascus.

President Bush visits Walter Reed Army Medical Center and apologizes for the poor conditions in some facilities. Will veterans accept his apology? I'll ask former Democratic senator and long time Walter Reed patient Max Cleland.

Plus, important new developments in that recall of poison pet food. It's being expanded to include some dry food. We're going to have some information pet owners need. All that coming up, Kitty, right here in THE SITUATION ROOM.

PILGRIM: Thanks, Wolf.

Still ahead your thoughts on the White House's new amnesty push and also the results of tonight's poll. So stay with us.

(COMMERCIAL BREAK)

PILGRIM: Now the results of tonight's poll. Ninety-five percent of you say local law enforcement should take on a greater role enforcing federal immigration laws.

Time now for some of your thoughts. Hank in Texas wrote to us, "Calling an illegal alien an undocumented immigrant is like calling a drug dealer an unlicensed pharmacist."

Karen in Florida wrote to us, "The Bush administration has let the middle class down by not securing our borders. This has placed a large burden on American taxpayers. The only people to gain are the businesses who make money off of these people at our expense."

And John in Florida wrote to us. "Isn't it ironic how the Congress is irate over the White House's disregard for Iraq when the Congress is completely disregarding the American people on a multitude of issues, including our borer security."

And Terral in Florida. "Senor Bush, Senor Gonzales and the Department of Homeland Security have allowed up to 20 million illegal aliens into this country. Congress is giving a whole new meaning to the phrase 'congressional oversight.'"

D. in Texas. "I don't think the Mexican government is influencing cases against U.S. law enforcement officers. I think the Mexican government is deciding those cases."

And Allan in California writing in response to the U.S. Justice Department official refusal to testify in the case of eight fired U.S. attorneys. "Maybe you could ask Johnny Sutton to give immunity to Monica Goodling in return for her testimony. Or is that type of offer just for drug smuggling illegal aliens who can give false testimony against Border Patrol agents?"

We love hearing from you. Send us your thoughts at loudobbs.com. Each of you whose e-mail is read here will receive a copy of Lou's book, "War on the Middle Class."

Thanks for being with us tonight. Please join us tomorrow for our special report, "Border Betrayal."

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

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