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Lou Dobbs Tonight

Iran Killing Our Troops; Rescuers Drilling a Hole to Get to Trapped Miners; Investigators Identify Possible Design Flaw in Collapsed Bridge; Endeavour Blastoff This Hour; China Threatens Dollar Crash; Proposal to Split Electoral Votes in California; Critics Cautious of Drug-Fighting Deal with Mexico; Space Shuttle Endeavor Blasts Off; Congressman Warns of Terrorists Crossing Mexican Border

Aired August 08, 2007 - 18:00   ET

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


LOUD DOBBS, CNN ANCHOR: The space shuttle "Endeavour" scheduled to blast off from Cape Canaveral within about 36 minutes. It's "Endeavour's" first mission in almost five years.
We'll have complete live coverage for you of the launch.

Also, the United States could soon give Mexico hundreds of millions of dollars to fight Mexican drug cartels. But some members of Congress are criticizing the deal saying some of that money can be passed onto Mexican drug cartels. We'll have the report.

And an astonishing threat by communist China against the United States. Beijing says it would consider crippling our economy if we were to demand China give up its unfair trade policies. We'll have that report.

And we will examine disturbing new evidence that radical Islamic terrorists are crossing our wide open borders and posing as Hispanics entering this country.

All of that, all of the day's news and much more straight ahead here tonight.

Good evening, everybody. U.S. military officials today declared Iranian weapons are responsible for one-third of recent U.S. combat deaths in Iraq. The number two U.S. commander in Iraq, Lieutenant General Ray Odierno said the number of attacks with Iranian supplied bombs in July reached a record high. As the military released those reports, U.S. troops in Baghdad killed 30 terrorists with ties to Iran. 12 other terrorists were captured. Barbara Starr reports now from the Pentagon on Iran's rising threat to our troops.

Barbara.

BARBARA STARR, CNN CORRESPONDENT: Well Lou, the U.S. military did reveal today it now believes Iranian supplied weapons killed more than 25 U.S. troops alone last month in Iraq.

The military now confirms U.S. troops in Iraq were attacked 99 times in July by EFPs, explosively formed projectiles, the U.S. say were made in Iran and designed to destroy armored vehicles. That's an all-time high. A top U.S. commander says Iran's secretive Al Quds force is behind the attacks and wants to make the security situation look bad before the September assessment so Iran has its own surge.

Lou, I guess we are having some technical difficulties. But let me summarize for everybody what the U.S. military is saying today.

First, last month 99 attacks by these Iranian supplies weapons, 25 U.S. troops died. And they believe Iran is really on its own surge, if you will. Trying to make the security situation in Iraq look as bad as it possibly can before that September assessment.

Now the U.S. says it's doing everything it can. It's going after the networks. It's going after the insurgents, it's trying to build these new armored vehicles that can defeat or at least resist these bomb attacks as much as they possibly can.

But fundamentally, Lou, the bottom line is this, the U.S. has no intention of taking any military actions, direct military action, across the border in Iran. They say they are going to pursue the diplomatic option.

Analysts say it's going to be very tough to find any targets that they can really hit in Iran because what Iran is doing through its secretive Al Quds force is a very savvy operation. They are smuggling weapons into Iraq and they are supporting the Shia insurgency through these networks of terrorist financing. The bottom line is what targets are you going to hit, Lou.

DOBBS: Well Barbara, the United States military then, is there any discussion in the Pentagon of simply withdrawing our troops from Iraq if they are going to permit Iran to provide these explosives and to be actively involved in killing American troops? I mean that's outrageous that the Pentagon would say they have no response available to them.

STARR: Well, I don't think there's any discussion about where they are drawing on U.S. troops on the basis of what Iran is doing. What commanders are saying is they want the diplomatic option to the state department, if you will, to hold Iran's feet to the fire on this but what if Iran --

DOBBS: But Barbara, if I may ask you this. I appreciate that our generals would be concerned about diplomacy. But those generals are charged with the safety of the troops they are leading in Iraq. It is inconceivable that American generals would accept the idea of that the diplomats should be holding a nation's "feet to the fire" rather than demanding an immediate cessation of support for anyone killing our troops. And that this commander in chief would permit such utter -- such an utter travesty.

STARR: You know, I'm going to have to go with what the generals I think would say in response to your question, Lou. They -- in this country, the U.S. military operates at the behest of politically elected leaders. And I think they would say it's up to President Bush at this point for him to decide what to do about Iran. DOBBS: Well it seems to me straightforwardly that if this great sovereign nation cannot defend and protect its own forces under any circumstance and all circumstances that there are only two options available. And that is simple withdrawal from Iraq and a complete apology to the American people for not -- for the conduct of these generals and their failure to respond in support of our troops. But that's just one reporter's opinion.

Barbara, thank you very much, for bringing us up to date.

Insurgents in Iraq have killed two more of our troops meanwhile. One in Baghdad. The other in Al Anbar province. The U.S. military did not say whether either of our troops were kids by an Iranian explosive device. 22 of our troops have been killed so far this month. 3,680 of our troops have been killed since the beginning of the war. 27,104 of our troops wounded, 12,180 of them seriously.

Iran today declared it's helping us establish security in Iraq, even as Iranian intelligence agents continue to try to kill our forces. Iran made the declaration as Iraqi Prime Minister al-Maliki arrived in Tehran to ask for help from Iranian leaders. The Iraqi prime minister's government is on, according to many reports, the verge of outright collapse. Almost half of Iraq's cabinet ministers have either quit the government or they are boycotting meetings of that government.

Turning now to the rescue operation for those six trapped coal miners in Utah. Rescuers today said they drilled to within 1,000 feet of where they believe those miners to be located. The rescuers hope to lower food and water to the trapped men.

Ted Rollins reports from near the scene of that disaster in Huntington, Utah.

Ted.

TED ROLLINS, CNN CORRESPONDENT: Hi Lou.

We have not received an update in the last few hours. So presumably, that drill progress has progressed even more and it should be, at least the drill that they put in from the helicopter on the vertical side, it should be within 500 to 600 feet if it was progressing at the same right.

There is another drill coming from the horizontal side. That's an eight inch pipe. This one, from the vertical, is just a two inch pipe.

They are hoping they can hit this cavern with they believe these miners are. If these miners are alive, they should be able to deliver at least fresh air and water to them.

The bad news here for families is they still have not been able to resume because of the unstable atmosphere within this coal mine, the march into the mines to the point where they can pull the miners out. So whether they can establish contact or get them food and water is one thing, a huge thing for these families of these miners, obviously.

But the reality is, these miners are going to be stuck in there, if they are alive, for at least a week, possibly much more. That according to Bob Murray, CEO of Murray Energy.

Today, Murray updated the families and the media again. Again he said for the last time, I will tell you this was a seismic event and I'm not going to talk about it anymore. He blamed the media for keeping the issue out in the open and says from here on out, I'm going to focus on the families.

Bottom line, progress is being made with the drilling. However, still a lot of uncertainty as the when they will be able to get to these miners, if indeed, they are alive.

DOBBS: At this point, Ted, how close are they right now?

ROLLINS: Well, with the two-inch drill, if you do the math at about 70 feet per hour clip, it should be past 1,000 feet. Meaning there's only about 500 feet to go and that's assuming there's not an update or any snags in the operation. That's a tricky one though. Because if they miss just by an inch, they could go into coal instead of the opening.

The other drill, they are convinced that they have precision. That's the largest hole. They say within two days, now a day and a half, they will be able to make contact with the miners if they are alive.

The tension, as you can imagine for these families, building by the hour. Waiting for the news.

DOBBS: Will they, and point of fact as best we understand the situation, have to actually break through into the area where those miners are presumed trapped in order to begin to set up some sort of communication or listening devices in an effort to either establish communication or to at least listen into determine whether or not those trapped miners remain alive?

ROLLINS: To establish communication, yes, obviously, they're going to have to get all the way down there, unless they can get a microphone close enough. Presumably they can halt drilling, stop and listen with the devices they have. Whether or not they're going to do that, we haven't been updated and what the procedure will be, once they get closer. Right now they're still not close enough to hear because of the amount of rock. But it could come within next day, hopefully come that these miners are alive through some sort of communication.

DOBBS: Ted Rollins, thank you very much, from Huntington, Utah. Thank you, sir.

Police in Minneapolis stepping up security at the site of bridge collapse exactly one week ago. Officers have arrested 16 people for trespassing and charging them with hindering the investigation into the bridge collapse. Meanwhile, investigators say they also identified a possible flaw in the design of that bridge. Investigators declining to give any specifics about that statement.

Five people have been confirmed killed in the bridge collapse. Eight people remain missing.

NASA officials at the Kennedy Space Center tonight are reporting no problems whatsoever with the launch of space shuttle "Endeavour." It's supposed to happen in just about 20 minutes or so.

Miles O'Brien is at the Kennedy Space Center and joins me now with the very latest for us on the countdown. This is an exciting event.

Miles.

MILES O'BRIEN, CNN CORRESPONDENT: Lou, it is exciting. The countdown has gone smoothly, much smoother than the pre-launch publicity, which, of course, a week ago we were talking about that alleged link between drinking and astronauts, astronauts drinking too soon before a flight.

Let's take a look at the launch pad, the space shuttle "Endeavour." As we say, everything is going smoothly. The seven person crew strapped in, ready for their flight to the International Space Station construction mission.

The day went smoothly. They walked out, strapped in according to plan.

And we should tell you that this time line, it has been NASA's sort of primary proof that the allegations in that report on the mental health of astronauts, which indicated that astronauts might have been drinking before going into space shuttle, hard to believe, are not true.

The astronauts woke up at eight o'clock this morning. They launched at 6:36 P.M. Eastern Time, about an 11 hour span. And that's a normal pre-launch schedule.

The NASA administrator says that makes him believe that hearsay allegation in that report is not believable.

MICHAEL GRIFFIN, NASA ADMINISTRATOR: My lack of belief does not mean that we will do anything other than fully investigate the allegations. And if we find there's any truth there, we'll deal with it. But my initial reaction is if you know anything about the time line of working up to a shuttle flight, you look at that and you say that just can't be true.

O'BRIEN: And of course, on board the space shuttle "Endeavour," Barbara Morgan, who 22 years ago was the understudy to Christa McAuliffe to be the first teacher in space. She stuck with it with NASA, a true story of persistence. If all goes well, she will give three lessons to students on the ground from space. Lou.

DOBBS: This mission, construction mission for the space station, is that correct, Miles?

O'BRIEN: Yes. They're going to put a small piece in sort of the back bone of the station. That's the primarily goal of the mission.

DOBBS: And you know you were mentioning with Administrator Griffin that those reports about drinking. You know these astronauts very well, these mission specialists on the shuttle program. It is one of those things, I get to say these things on our air, perhaps you cannot. The quality, the character, the amazing talent of these men and women who are in the astronaut program, as far as I'm concerned, all of those people talking about drinking and disparaging the reputation of these fine men and women are, you know, they are just -- it's an absurdity. And they need to find something else to think and talk about. These are, I think you can weigh on in on this one at least Miles, these are, in my opinion, some of the finest men and women in the country.

O'BRIEN: The truth is, you're right. And it doesn't pass the smell test. You know these astronauts. I know these astronauts. What they want to do is fly. Can you imagine them wanting to have one extra tall boy after closing time, so to speak, and would jeopardize that? It doesn't pass the smell test.

DOBBS: No, absolutely not. And people need to move on from this nonsense. And a lot of other nonsense in this country. This is small potatoes compared to a lot of the other nonsense.

And we are looking for the main event here. It's going to be exciting. Miles O'Brien will be guiding us through the coverage of the launch. He will be here reporting on that launch for us in just about 20 minutes. And we are looking forward to that. I'm getting all excited. Miles, I don't know about you but my guess is you're right there as well.

O'BRIEN: Wish you could be here, Lou.

DOBBS: Me too, partner. Thank you very much. Miles O'Brien, we'll be coming back to you in very short order.

We'll have live coverage of the launch, of course, as it occurs.

And also ahead, communist China threatening to cripple our economy. We will have a special report. New concerns that China is exporting dangerous tires to this country. Well, why not? It's just another import from China. And why not? Our government doesn't much care about American consumers, their safety or well being. We will bring you up to date nonetheless.

And democrats face a major new threat to their hopes of winning the presidential election. We'll have that surprising story for you, all of the day's news and a great deal more straight ahead. Stay with us. We are coming right back. (COMMERCIAL BREAK)

DOBBS: For the past several years on this broadcast, we have been reporting, and reporting extensively on the threat to American economic stability from China's ownership of massive amounts of our debt.

Tonight, there are more bellicose threats from communist China, as China faces rising pressures to become a world fair trading partner. Beijing, in response, threatening to cripple the American economy by selling the U.S. treasuries and currency. Japan still holds the most U.S. treasury bonds, some $615 billion worth. But as Christine Romans reports, China is accumulating bonds faster than any other nation, now holding more than $407 billion.

CHRISTINE ROMANS, CNN CORRESPONDENT: The president with his top economic advisors at the treasury department, playing up the U.S. economy, even as his treasury secretary played down a monetary threat from communist China, that threat, to dump U.S. treasuries. Keep up the pressure on China to reform and a party official in the China daily writes, "The Chinese central bank will be forced to sell U.S. dollars which might lead to a mass depreciation of the U.S. dollar." The U.K. telegraph notes another leader recently called U.S. reserves, "Bargaining chip," dollar sales their "nuclear option."

ALAN TONELSON, U.S. BUSINESS AND INDUSTRY COUNCIL: The Chinese do hold very significant leverage over the U.S. economy because they hold so much U.S. debt. And by holding that U.S. debt, they subsidize American consumption and help keep our living standards artificially high. At the same time, China desperately needs the United States to serve as the market for its manufactured goods.

ROMANS: China holds $1.3 trillion worth of reserves, $407 billion in treasuries. Dumping them would be devastating to the U.S. economy, slamming the dollar and driving up interest rates.

The treasury secretary, just back from meetings with Chinese officials, called reports of the threat "absurd." But what is worrying is there's no way to know how far China would go.

ANDREW BUSCH, BMO CAPITAL MARKETS: We are not talking with a rational capitalist society per se. I mean this is a unique hybrid. So we are not quite sure how decisions are being made. Could they go in and do something like this? It's possible.

ROMANS: Making good on its threat, trade experts say, would hurt both countries.

The Chinese here clearly trying to counter a rising sense in Congress that something has to be done to pressure the Chinese to reform in the wake of product recalls, imported food scares. It's a reminder that the Chinese have enormous leverage over the U.S. economy, Lou.

DOBBS: Well you know this also, and we should explain what is happening, the reason the markets today were -- particularly the credit markets were trembling and why you have a treasury secretary who knows better saying it's nonsense and absurd.

The idea that -- the simple fact is this is the way the Chinese -- communist Chinese government communicates, through its think tanks, putting out these messages, which is precisely what they did. It's more vulnerability. It's more evidence and concerning and troubling evidence of the vulnerability of this economy. And the absolutely horrible leadership of this administration economically to have this economy be dependent. Because that's where we are, not only on the Chinese for their support of our markets, particularly our credit markets, but to provide the clothes we wear.

96 percent of the clothes in the country are foreign made. Almost all of the computers and consumer electronics made. And we have the treasury secretary's response, absurd.

ROMANS: Well, the response to all of those purchases of course, is that huge, huge, foreign reserve that they have, more than $1.3 trillion. Most of in U.S. dollars. A big chunk of that in treasury. That's how it all works.

DOBBS: Well, when we see a bellicose sentiment like this coming out of China, it should be a wake up call to this administration to reform our trading practices, our policies and our strategy. There is really no strategy, but approach.

This administration is creating tremendous vulnerabilities, not only for the economy, but the nation itself, through permitting these kind of relationships.

Now you said, at the same time, they have considerable leverage. I think it's important we all remember, and this administration, please listen up, the Chinese government is also codependent in this relationship and have great need for all of the capital, approaching $300 billion a year, through our deficit that they are using to build up their military and everything else.

Also those 300 million people are unemployed in China might have some negative reaction if we were to curtail significantly our purchase of the Chinese manufactured goods.

ROMANS: The administration is downplaying all of this today, Lou.

DOBBS: This administration downplays reality as a matter of routine course day in and day out. Why should this subject be any different? I can say that. You can't.

ROMANS: That's right.

DOBBS: I did it and you didn't. And we thank you very much for that report, Christine Romans.

Now back to our top story, Iran's efforts to kill our troops in Iraq. That's the subject of our poll tonight. Do you believe the United States should take military action to stop Iran from killing our troops in Iraq? Yes or no? Cast your vote at loudobbs.com. We will have the results later in the broadcast.

Still ahead, a new ballot proposal could help Republicans; Republicans win the White House in 2008. What's going on in this country? What's happening? Politics upside down. We will tell you what's happening. Our Bill Schneider will be here.

And fighting the drug war in Mexico. Is giving Mexico more money the answer? We will have that report.

And the space shuttle "Endeavour" will blast off in just about ten minutes. We'll have the shuttle launch for you live from Cape Canaveral. We'll be right back. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Senator Hillary Clinton is leading her democratic rivals in California, as she is the entire nation. California, however, has voted Democrat over the last four presidential elections. Now there's a new republican-backed proposal that would split California's 55 electoral votes. That's a big deal. As Bill Schneider reports, that ballot measure could give the GOP an advantage in a state that has been traditionally democratic.

BILL SCHNEIDER, CNN CORRESPONDENT: Forget the campaign. The outcome of next year's presidential election could be riding on the California split. California's reliably democratic. Now imagine a law that would give the republican ticket around 20 of California's 55 electoral votes? As many electoral votes as Ohio. That's exactly what would happen if a republican sponsored proposition goes on the state primary ballot next June and passes.

DARRY SRAGOW, DEMOCRATIC STRATEGIST: The republicans are doing this in California because they want a chunk of our vote, never winning the state.

SCHNEIDER: The measure would split California into 53 congressional districts. A presidential candidate would get one electoral vote for each congressional district he or she carries plus two more for carrying the state. If the law had been in effect in 2004, 22 of California's electoral votes would have gone to George W. Bush and 33 to John Kerry.

ALLEN HOFFENBLUM, REPUBLICAN STRATEGIST: This would all but guarantee that the republican nominee would get 20 extra Electoral College votes, which could certainly impact the outcome of the election.

SCHNEIDER: Raw politics. Supporters say a California split would force president candidates to campaign in California. They say it would be fairer.

HOFFENBLUM: If five million republicans -- or five million voters, I should say, decide to vote for the republican nominee for president, why should that vote not be counted?

SCHNEIDER: Because it's not counted in other states, say democrats.

SRAGOW: This is very fair if it's universal around the country. It is patently absurd if it only takes place in certain states.

SCHNEIDER: Actually, two other states split their electoral votes by congressional district, but they are small states, Maine and Nebraska. Could the California split pass next year? Not if democrats rally against it.

HOFFENBLUM: The democrats will say it's a power grab.

SCHNEIDER: Will they?

SRAGOW: But I think this will be viewed as a political power grab and it won't work.

SCHNEIDER: Democrats in North Carolina, a reliably republican state, are considering doing the same thing. But the National Democratic Party is discouraging them. It will be hard for democrats to support that move in North Carolina where it would help them and oppose it in California, where it would hurt them a lot more because California is such a big state.

Lou.

DOBBS: Bill, we are seeing an up-tick in the support for President Bush in "USA Today" Gallup poll. The president is parading up to 34 percent up from 29 percent last month. What's going on?

SCHNEIDER: Well, we don't know exactly. That's a small up tick. It's just within the margin of error. We have to see if it's in other polls, including one what we are doing and will be releasing later in the week. But that same Gallup poll shows an up tick in support for the war in Iraq. You favor removing all troops from Iraq? It's 66 percent who favor that. Still a solid majority but that's down five points from last month. What's going on? We are not sure. It could be greater concern about a terrorist threat, given the warnings, or it could be republicans, given the campaign, are rallying to support the president a little bit more.

DOBBS: And I suppose there are a host of other reasons or possibilities as well.

SCHNEIDER: We don't know.

DOBBS: We thank you very much. When you say it's a small move, I mean, five points from a base of 29 percent, that -- it serves to remind us all that these polls have a wide margin of error typically, anywhere from 3 percent to 5 percent.

SCHNEIDER: That's right.

DOBBS: So -- but it's still interesting, and it looks like, since it's occurred twice over the course of that period of time, two upticks, that it might reflect a trend. Interesting.

Thank you very much, Bill Schneider. We appreciate it.

The Bush administration tonight is nearing an historic agreement with Mexico that would provide hundreds of millions of taxpayer dollars to help fight drug cartels in Mexico.

But as Casey Wian now reports, some U.S. lawmakers are worried that that money would end up in the very wrong hands.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Talks between the United States and Mexico on a deal to provide hundreds of millions of dollars in money and equipment for President Felipe Calderon's war on drug cartels are now pretty well advanced, a senior State Department official tells CNN.

SEAN MCCORMACK, STATE DEPARTMENT SPOKESMAN: President Calderon has taken a brave and firm stance in fighting these drug cartels. And we want to talk to him about how we can support that effort. And that's really the focus of the ongoing discussions. We're engaging Congress on this, briefing them, updating them on where we stand in those discussions.

WIAN: However, an advisor to U.S. Senator Patrick Leahy says lawmakers are not being given enough details. They're worried any cash, technology or weapons the U.S. sends to Mexico could wind up in the hands of the very same narco traffickers both governments are trying to fight.

Mexican law enforcements, from local cops to federal troops, are reputedly infiltrated by drug cartels.

MAUREEN MEYER, WASHINGTON OFFICE ON LATIN AMERICA: If the package is focused on encouraging Mexico to do structure reforms, police reform, tackling corruption, looking at issues of accountability. Those are seen very positively viewed, I think, from both parties.

WIAN: But contentious issues remain. Mexico wants the U.S. to control illegal drug use and weapons trafficking. And any hint of intervention by the U.S. military would likely draw fierce opposition.

So far Calderon's battle against drug cartels is at best a draw. Two drug kingpins have been caught, while nearly 1,300 Mexicans have been executed by the cartels so far this year. That despite the deployment of 24,000 Mexican federal troops to fight drug traffickers.

(END VIDEOTAPE)

WIAN: Presidents Bush and Calderon will meet in Canada at a NAFTA summit in less than two weeks. Expected to discuss the joint effort to battle drug cartels at that time -- Lou.

DOBBS: Casey, thank you very much. Casey Wian from Los Angeles.

Up next here, disturbing new evidence that radical Islamist terrorists are crossing our wide open border with Mexico. Congressman Ed Royce joins me to discuss a new DEA report that is troubling indeed.

And the Shuttle Endeavour cleared for launch. We'll have a live -- our live coverage of that blastoff from Cape Canaveral. It's coming up here in just a few moments. Stay with us. We're coming right back for that.

(COMMERCIAL BREAK)

DOBBS: NASA has cleared the Space Shuttle Endeavour for launch. That launch coming up in just about two minutes. The countdown for blastoff has entered its final moments, of course, as Endeavour is preparing to liftoff for a mission to the International Space Station.

The space shuttle is making a comeback after four and a half years of rebuilding and upgrading the Endeavour. The shuttle, the Endeavour was built to replace the Challenger, which exploded just after liftoff in 1986.

Miles O'Brien is standing by in Cape Canaveral -- Miles.

MILES O'BRIEN, CNN CORRESPONDENT: Lou, it's interesting. Endeavour, of course, built to replace the Challenger. And there's a link to Challenger in another way on this flight. Barbara Morgan, among the seven members of the crew, she was the understudy for Christa McAuliffe in the teacher in space program back in 1985. And of course, Christa McAuliffe on board Challenger in 1986 when it exploded shortly after launch.

We're inside a minute now, and in the final stages of this countdown for Endeavour, what has been all but a flawless countdown, we are listening as they continue this process, inside 30 seconds. Control will move to the Space Shuttle Endeavour to the general purpose computers on there and the final stages of this countdown will occur.

Now there are a couple of voices you'll be hearing. You're going to hear George Diller, who is public affairs officer here in Florida. Followed by Rob Mabius (ph) in Houston. Inside 30 seconds.

And also with us here is Leroy Chiao, a former astronaut. Flew on the space shuttle three times, as well as the Russian Soyuz, a former commander of the International Space Station.

Fifteen seconds to launch. Let's listen as Leroy and the others guide us through this launch.

UNIDENTIFIED MALE: Minus ten, nine, eight, seven, six -- go for eight engine start -- four, three, two, one, zero and liftoff of the Space Shuttle Endeavour, expanding the International Space Station while creating a classroom in space.

UNIDENTIFIED MALE: Houston now controlling the flight of Endeavour. The space shuttle begins its journey back into orbit. Endeavour rolling onto the proper alignment. Heads down, rings level for the 8 1/2 minute ride to orbit, taking aim on the International Space Station for docking on Friday.

Thirty seconds into the flight, the three liquid fuel main engines will soon throttle back to 72 percent of rated performance in the bucket to reduce the stress on the shuttle as it breaks through the sound barrier.

From long-range trackers, now from a camera on the external fuel tank showing the bird's-eye view of Endeavour heading towards space.

Fifty-four seconds into the flight, Endeavour already eight miles down range. Standing by for the throttle up call from Cap Com Chris Ferguson.

UNIDENTIFIED MALE: Endeavour, go with throttle up.

COMMANDER SCOTT KELLY, SPACE SHUTTLE ENDEAVOR: Go with throttle up.

UNIDENTIFIED MALE: The throttle up call acknowledged by Commander Scott Kelly, joined on the flight deck by pilot Charlie Hobaugh, flight engineer Rick Mastracchio and Tracy Caldwell, Dave Williams, Al Drew and Barbara Morgan seated down on the mid deck. Morgan racing towards space on the wings of a legacy.

One minute 30 seconds into the flight. Endeavour currently traveling almost 2,000 miles an hour, 14 miles in altitude, 15 miles downrange from the Kennedy Space Center. Three good fuel cells, three good auxiliary power units, three good main engines.

O'BRIEN: Public affairs officer for NASA in Houston. And with me, beside me here, is Leroy Chiao. Spectacular sight.

Leroy, what are the astronauts feeling right now as they pass through 2,900 miles per hour, altitude of 21 miles in short order? Is there a lot of pressure on them right now?

LEROY CHIAO, FORMER ASTRONAUT: Well, you heard the call to go and throttle up. And at that point -- you're always accelerating, but you definitely feel that. You'll feel a little tail off as they approach 150,000 feet in two minutes just before solid rocket booster.

And you hear the call there. The boosters are off. That's always a good feeling.

O'BRIEN: That's a very key thing, of course. It was those solid rocket boosters that were the source of the trouble with the Challenger disaster. Astronauts do breathe a little sigh of relief.

CHIAO: Yes, we do. Absolutely right. There's certainly still risk as the main engines continue burning. But yes, because we did have an accident with the solids, it's always a bit of a relief to get off of them.

O'BRIEN: Endeavour now, 3,200 miles an hour. There's no sensation of speed really, but there's a constant buildup of pressure, the G forces on the astronauts. What's that like? CHIAO: Well, actually, during this part the flight, the G's aren't too bad. It's more during the later part of the ascent when you're accelerating to orbital velocity. That's when you get to the 3-G throttling. And that's the maximum you'll get. It's just a little bit of pressure on the chest, nothing too uncomfortable. It just takes a little more effort to breathe.

O'BRIEN: Three minutes into the flight now and each -- each inch of altitude, each degree of speed, affords the crew many more options, should something go wrong.

CHIAO: Absolutely.

O'BRIEN: There's a series of aborts. The worst case scenario is they fly back here.

CHIAO: That's right.

O'BRIEN: The second worse is a trip across the pond to what they call a transatlantic abort, then potentially an abort -- so-called abort to orbit. Explain how that goes.

CHIAO: Well, just before four minutes you'll hear the negative return call. And that means they'll have too much down range velocity and distance to be able to turn around and come back.

And that's always a good call to hear, because that means that you're really accelerating. And the most benign abort would be go into orbit and next would be across the Atlantic to the south side (ph), as you mentioned.

The abort to the tail site, that's if you don't have enough speed to get into orbit, you can fly across into the tail site. This time it's Geragos (ph) in Spain, I believe, and land on the runway there.

O'BRIEN: None of those aborts -- there was one abort to orbit years ago, but they ended up completing that mission. They were able to get to an orbit that was useful for them.

Looking at these pictures, the pictures we're seeing right there on the external fuel tank. Ever since Columbia those cameras have been there. Pardon us for the helicopters here. Part of it is, it lets us go along for the ride, but it allows us to see if any debris is off that fuel tank. Tell us about that.

CHIAO: Well, that's one thing we worry about since Columbia is debris that comes off the fuel tank striking the orbiter and causing damage to a wing or another critical piece. So these cameras allow us to make sure that nothing big comes off, and if it does, to make sure it doesn't strike the wing or another critical part.

O'BRIEN: I haven't seen any debris come off and we're past the point where we would be really worried about it. It's debris that falls off when the air is thicker.

CHIAO: Exactly. O'BRIEN: In other words can cause it to smack into that heat shield.

CHIAO: That's right. That's right. Now they're high enough in altitude that the air is thin enough that any piece that comes off won't have that dynamic pressure to accelerate it to a dangerous speed. So anything that comes off will kind of come off more gently than down in the lower part of the atmosphere.

O'BRIEN: We're now five minutes into this flight. It's 8 1/2 minutes to get to -- this 4 1/2 million pound structure into space.

CHIAO: Yes, yes.

O'BRIEN: When you think about that, it's tremendous. It looks like it lumbers as it comes off the pad.

CHIAO: That's right.

O'BRIEN: It really is like a sport car, though, earlier.

CHIAO: Absolutely. It looks like it lumbers off the pad, but by the time it clears the tower, it's already traveling more than 100 miles an hour, and orbital velocity is 17,500 miles an hour. So in 8 1/2 minutes, that's pretty good acceleration.

O'BRIEN: Let's bring in Lou Dobbs into this.

Lou, what a sight so far. So far I haven't seen a single reason to think there's anything wrong with this ascent to orbit.

DOBBS: Miles, the fact is that's what I was going to say. This looks like it is an absolutely picture-perfect launch. And the idea that we can already be at this velocity, it always amazes me.

And sitting there where you gentlemen have the privilege of sitting to feel the shudder, the force of that explosion taking place beneath those astronauts, is a wonderful experience that everyone should be able to share.

Leroy, I wanted to ask you, at this point, what is your reaction to what you've seen so far?

CHIAO: Lou, as you said, Lou, it looks like a picture-perfect launch. I haven't heard any errors or any problems crop up, no alarm signals. So just got the mico (ph) call, which is a great (ph) call, which means you've got the speed and energy now to make it into orbit and these guys are in space.

DOBBS: I don't know about you, Miles. I feel a little guilty about the -- we know the reason for those cameras affixed to the shuttle. They're there for safety, so that everyone can surveil what is happening with greater precision, as you said, after Columbia.

But this is remarkable that all of us sitting here on terra firma can watch these spectacular pictures coming back from Endeavour. O'BRIEN: It is remarkable, Lou. And you're right. It -- it's there for the engineers primarily, but there's certainly a public affairs component to this.

You know, not long ago before Columbia, once they sort of got out of range here, we didn't have any sight. We could listen to the radio calls, but that, really, from about 2 1/2 to 3 minutes in all the way up to 8 1/2 minutes, we just listened. We didn't get a chance to ride along.

CHIAO: That's right.

O'BRIEN: And very soon we're going to see the separation of that tank, which is coming up in about a minute's time. What are the astronauts doing right now, Leroy?

CHIAO: Well, right now, they're into 3-G throttling, so they're under the 3 G's.

O'BRIEN: Three times the normal weight, essentially?

CHIAO: Right. Just a little bit of pressure on your chest. Just -- takes a little bit more effort to breathe. But nothing uncomfortable. And main engine cutoff. Suddenly you'll be weightless. Just -- bang, just like that.

O'BRIEN: Wow, that must be quite a feeling.

CHIAO: It is. In fact, you feel like you're kind of tumbling forward. That's the sensation you have.

O'BRIEN: No wonder people have mal de space, I guess, at that moment. The people might get a little ill.

CHIAO: You can be a little bit disoriented. They feel a little bit dizzy.

O'BRIEN: Lou, it's been a perfect day here so far. It really has. I can't remember a summer launch where we have not had to worry about thunderstorms. It's truly remarkable. It's been -- we can be hot and usually, that means tremendous thunderstorms in the area.

DOBBS: And making every launch problematic there at Cape Canaveral. But to see the countdown go flawlessly, to see the plans go perfectly, the astronauts now precisely where this plan has been about putting them for -- for literally years is -- there's the main engine cutoff, we just heard.

UNIDENTIFIED MALE: External tank separation.

O'BRIEN: All right. Now watch here, Lou. This will be a great shot. This camera is on the external fuel tank.

DOBBS: Right.

O'BRIEN: Off it goes. There goes the shuttle. This tank will breakup, find its way into the Indian Ocean. And it's the only piece of the space shuttle complex, if you will...

UNIDENTIFIED MALE: External tax tank separation confirmed. Endeavour now in preliminary orbit. For Barbara Morgan and her crewmates, class is in session.

CHIAO: You can really inside and feel that clunk when that occurs. It's kind of like a little canon going on.

O'BRIEN: And right now, there's a possibility they're taking pictures of that external fuel tank, as many as they can. Right?

CHIAO: Yes, they will do a touch around of the shuttle and start take photos and video of the tank.

O'BRIEN: Just to see if any debris has come off.

CHIAO: Right.

O'BRIEN: And down that tank will begin its tumble and fall and come out of range in just a little bit. And off they go on their mission. A minimum of 11 days, probably two weeks at the International Space Station.

And we look forward, hey, we can say now after 22 years, a teacher is flying in space, Lou.

DOBBS: And a very patient and dedicated teacher, Barbara Morgan, 22 years to get to this point. Recognized and brought into the shuttle program as the backup to Christa McAuliffe, of course, on the ill-fated Challenger. Made a full -- full astronaut just about nine years ago. This is a remarkable experience, and it's good to see a teacher on their way to space.

It's always, to me at least, extraordinarily exciting. Anything to do with space exploration, space travel. But the idea that we can take teachers to space and to expand the horizons of this program, all the more gratifying and exciting.

Leroy Chiao, Miles O'Brien, we thank you both very much.

And we're going to have, I know, a very interesting two weeks for you, gentlemen. Miles, I suspect you should be suiting up for what will be extended coverage here on CNN of this mission.

O'BRIEN: Absolutely.

DOBBS: Shuttle Endeavour on its way to the International Space Station. We wish them bon voyage, all the best of luck.

Thank you, gentlemen.

We'll have much more on the shuttle Endeavour here later on CNN. Miles O'Brien and our crew in Cape Canaveral covering us all the way.

And up next are radical Islamist terrorists posing as Mexican nationals, illegally entering this country? Congressman Ed Royce joins us for more on a new, disturbing report.

Stay with us. We'll be right back.

(COMMERCIAL BREAK)

DOBBS: Stirring news tonight that our broken borders are potentially a terrorist threat. A DEA report, in fact, showing that radical Islamists in this country linking up with Mexican drug cartels, the very same cartels we reported on here earlier in this broadcast.

Those radical Islamists are entering the United States, posing as Hispanics.

And joining me now with more on this story is Congressman Ed Royce. He's the ranking member of the House Foreign Affairs sub committee on terrorism and nonproliferation.

This -- this news emerging from the "Washington Times", finally gaining access -- access to this DEA report. Your reaction, Congressman?

REP. ED ROYCE (R), CALIFORNIA: Well, Lou, this backs up some of the reporting, some of the testimony that we heard from local law enforcement down in Texas, in Laredo, Texas, about the difficulties they were seeing locally there.

And now the report spells out how people are going to the county court and changing their name, changing their identity from an Arabic background to an Hispanic one, as well as the concerns about these links with the cartels.

DOBBS: You held hearings on the subcommittee on nonproliferation terrorism, foreign affairs. How does what you're learning today differ from the results of that hearing?

ROYCE: Well, I don't think it differs from what we learned in the hearings. And we heard in the past our FBI director Mueller say that there was this phenomenon of people changing their identities who were coming from the Middle East, from Arabic to Spanish.

But it shouldn't surprise us that much. We remember that Khalid Shaikh Mohammad, as well as al-Zarqawi both talked about launching attacks on the soft underbelly of the United States by coming through our borders, our porous borders.

And given that reality, don't you think, Lou, it's time that this government asked why we haven't secured those boarders? Don't you think it's time, when the Border Patrol tells us we have yet to secure our borders, why isn't that fence, that act, that fence security act that we passed in Congress, that we funded last year when the Republicans still had control, why is that not being built right now or being finished right now on that border?

DOBBS: Well, let's explore that. We are documenting from two separate government agencies from the hearings that you held, your subcommittee, of this threat.

But whether -- this says it's -- I mean, this demonstrates that it's real, that it has happened. And the idea that this administration --, I have to ask you this, sir, as a Republican part of the leadership, one of the leading members of Congress, the 109th Congress, now the 110th under Democratic control, why has this Congress, the Republican Party and Democratic Party, not demanded that this president enforce border security?

ROYCE: Well, I think that's -- that's the thing that's most upsetting to me. Because in a way, when we passed that Secure Fence Act, we provided the billion-plus to continue building that fence. We provided that authorization to do that.

DOBBS: Right.

ROYCE: And now we watch as the Democratic Party tries to prevent the funding, as we watch as the president doesn't, with all haste, proceed as though our national security is at risk.

Lou, our national security at risk. The 9/11 Commission is right about that.

DOBBS: As you know, I like to be fair and balanced when it comes to all critical judgment when being applied to partisans in this. The fact is, the Republican secretary of the Department of Homeland Security has refused to move ahead with that fence. Has played every game imaginable to avoid securing that border and has been nothing more than a political functionary in support of this administration rather than a man taking seriously his obligations to the safety and the welfare of the American people.

Do you disagree with that assessment?

ROYCE: Lou, I think this is why it's so important that we remind the American public of what Khalid Shaikh Mohammad and what al-Zarqawi and others in al Qaeda have said about hitting this country.

The American public needs to get behind an effort to get that border fence built quickly and to revise our immigration laws and to enforce those laws. The heat, when they feel the heat, they'll see the light. And it's up to the American public to apply that heat right now.

DOBBS: Well, Congressman Royce is telling it as it is. Contact your congressman. Contact your senator.

By the way, everybody has to be tremendously relieved that, given the issues facing this nation, the Republicans in the Senate, in particular, joining to resurrect comprehensive immigration reform, as they like to call it. The disaster of a piece of legislation.

Now they're going to reform the reformed legislation, they say. Your reaction?

ROYCE: Well, we defeated it once. The American public defeated that, Lou.

DOBBS: Yes.

ROYCE: And with a little help from the broadcast community that got the information out. We need to get the information out again and kill the bad bill and go forward with application of the laws already on the books. That's going to require the American public being -- being as outspoken as you are on this issue. I hope they'll follow suit. Thank you.

DOBBS: Congressman Ed Royce, we thank you, as always, for being here. We appreciate seeing you. Thank you.

ROYCE: Thanks, Lou.

DOBBS: Still ahead, the results of our poll tonight. We'll be right back. Stay with us.

(COMMERCIAL BREAK)

DOBBS: And now the results of our poll. Sixty-two percent of you said the United States should take military action to stop Iran from killing our troops in Iraq.

Time now for just one e-mail, but we wanted to get in some sharing of thoughts here.

Paul in Michigan said, "Lou, thanks for getting my fires burning again! There are so many wrongs to be righted, where do we start? Keep waking up America to the tragedy that is unfolding right under our eyes."

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

Thank you for being with us tonight. Please join us here tomorrow when among our guests with be Senator Byron Dorgan. For all of us, thanks for watching. Good night from New York.

"THE SITUATION ROOM" begins now with Carol Costello -- Carol.

CAROL COSTELLO, CNN ANCHOR: Thank you, Lou.

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