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Lou Dobbs Tonight

Crackdown on Myanmar Protesters Intensifies; Are Chinese Toys Safe?

Aired September 27, 2007 - 18:00   ET

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


KITTY PILGRIM, CNN ANCHOR: Tonight: more recalls of toxic toys imported from communist China. Will these huge recalls ever stop? We will have a special report.
Also, the government of Mexico is again threatening our sovereignty. Mexico now accuses one U.S. community of racism for simply enforcing our laws.

And a rare victory for our embattled middle class. President Bush signs legislation for the biggest single investment in higher education since the G.I. Bill. The author of that legislation, Congressman George Miller, will join us, and he will tell us how the bill will help poor and middle-class students go to college.

All that and much more straight ahead tonight.

ANNOUNCER: This is LOU DOBBS TONIGHT: news, debate, and opinion for Thursday, September 27.

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

PILGRIM: Good evening, everybody.

The bloody crackdown on pro-democracy protesters in Myanmar intensified today. For a second consecutive day, troops and police opened fire on demonstrators. The government says nine people were killed. Witnesses say the death toll is higher.

President Bush issued a stern warning to the military regime. He said the American people stand in solidarity with the protesters. At the same time, the administration also announced new sanctions again the government of Myanmar.

First, Dan Rivers reports from Thailand on the violence in Myanmar -- Dan.

(BEGIN VIDEOTAPE)

DAN RIVERS, CNN CORRESPONDENT: Kitty, another black day in Yangon, as the authorities try to crack down on this open defiance, sending hundreds of riot police and soldiers into the crowds, firing indiscriminately, according to witnesses, leaving many dead.

(voice-over): Running for their lives, as troops open fire. This was the moment one of the main boulevards in Yangon was filled with tear gas and brutally cleared by the junta. It didn't take long. Those that didn't run fast enough were caught and led away.

One protester posted a video of the protests on the Internet. It shows how the day started peacefully, with crowds singing in front of the city's famous Sule Pagoda.

A man bearing a placard supporting the main opposition party, the National League for Democracy, is enthusiastically applauded.

But then soldiers arrive in trucks. The atmosphere changes, and the crowd starts jeering.

And soon, the shooting starts. The man holding the camera runs for cover. Among those hit, a Japanese journalist filming nearby. A western tourist told me what he saw.

UNIDENTIFIED MALE: That was the most scary point for me. The most scary, and the most terrible for me was -- was this little -- this little guy. This soldiers are all over -- I think they were 18 years old or something, so young, only young -- young men come here and they are going to shoot on these kids.

RIVERS: One woman also told of the moment she saw fellow protesters shot dead.

UNIDENTIFIED FEMALE: They shot the crowd. So we ran, and I ran, as well. And I saw one guy, he is running. He was running at the middle of the street, and he was shot.

RIVERS: State-run television has admitted nine people were killed. But with monasteries being raided and the floors soaked with blood, the death toll may already be much higher. And the monks are noticeably absent from the crowds of protesters now.

(on camera): And it will be interesting to see whether the absence of those monks, so many of whom have been now been rounded up and presumably sent to prison, will lessen the impacts of these huge demonstrations as they continue into their 11th day -- Kitty.

(END VIDEOTAPE)

PILGRIM: Thank you, Dan.

President Bush today said the United States feels admiration and compassion for the pro-democracy protesters in Myanmar.

Meanwhile, the Treasury Department announced new sanctions against the top officials in the Myanmar government.

Ed Henry reports from the White House -- Ed.

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Kitty, the president pushing that military-run government on a number of fronts today, first of all, issuing a written statement in which he declared -- quote -- "The world is watching the people of Burma take to the streets to demand their freedom. The American people stand in solidarity with these brave individuals." Now, the White House is trying to put some teeth behind these words announcing economic sanctions today against 14 senior officials of that government in Myanmar. This freezes the assets of any money basically that these officials have any in either U.S. banks other financial institutions under American jurisdiction.

The White House spokeswoman, Dana Perino, also prodding the military-run government from the White House podium.

(BEGIN VIDEO CLIP)

DANA PERINO, WHITE HOUSE PRESS SECRETARY: we call on the junta to allow the U.N. special envoy, Mr. Gambari, full access to all relevant parties while he is in Burma beginning tomorrow. This includes those jailed by the junta, religious leaders and Aung San Suu Kyi.

(END VIDEO CLIP)

HENRY: Now, on that point today, President Bush had a brief meeting with the Chinese foreign minister here at White House. Mr. Bush thanking China for facilitating this visit for the United Nations special envoy. But also, the White House indicating they would like China to do more. The president basically saying he wants China to use its influence in the region to try to bring out and bring about a peaceful transition to democracy -- Kitty.

PILGRIM: Ed, the timing on this is very critical because this is an active protest, correct?

HENRY: That's right. And that's why it's critical and that's you are seeing the president trying to address this on a number of fronts, not just with words, but also with these sanctions -- Kitty.

PILGRIM: Thanks very much, Ed Henry -- Ed Henry reporting from the White House.

The State Department today also demanded that communist China help stop the bloodshed in Myanmar. The United States and Europe have called on the United Nations Security Council to introduce tough sanctions against Myanmar. But the United Nations Security Council remains deadlocked on this issue, and that's because communist China has refused to agree to any sanctions again Myanmar's government.

Beijing today called on all parties in Myanmar to exercise restraint. But China did not single out Myanmar's military government for any criticism at all. One reason perhaps the close political and economical ties between Myanmar and China. Myanmar is am important source of raw materials for China, particularly energy. Myanmar's armed forces also have links with China's military. China is the biggest supplier of weapons to Myanmar.

Well, the Pentagon tonight remains focused on the war in Iraq and future troop levels is. Defense Secretary Robert Gates appears to be planing for a long-term U.S. military presence in Iraq. Gates is not giving a figure on the force levels, but tens of thousands of our troops could be in Iraq for years.

Jamie McIntyre reports from the Pentagon.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT (voice-over): Defense Secretary Robert Gates says he was just trying to reassure Americans that eventually there will be a much smaller U.S. force in Iraq when he gave this off-the-cough estimate to Congress.

ROBERT GATES, SECRETARY OF DEFENSE: In my head, we're looking at a force that is, in terms of combat brigades, a fourth or so of what we have now.

MCINTYRE: A day later, Gates stressed he gave the forecast of a 75 percent cut off the top of his head, not after any thoughtful analysis. Still, it's not hard to do the math under his hopeful scenario.

The current 20 combat brigades, along with support troops, equals roughly 160,000 troops. When the surge ends in July, there will be 15 brigades, and as many as 140,000 troops, including all the support. If all goes well, by 2009, the U.S. in theory, could be down to 10 brigades, with a total of 100,000 or so. So, five brigades, the 75 percent reduction Gates suggested, could be as low as 30,000 or as high as 70,000 troops, depending on the number of support personnel.

GATES: The last thing I'm going to do is give a number.

MCINTYRE: Iraq doesn't quite fit the Korea model where for more than half a century, some 35,000 U.S. troops stood guard against an invasion from the north.

In Iraq, even a smaller U.S. force will still have to hunt for al Qaeda and Iranian terrorists as well as train Iraqi forces.

(END VIDEOTAPE)

MCINTYRE: Meanwhile, the Army wants to speed up its plan to increase the size the Army by some 75,000 troops. That was going to take five years. They now say they think they can do it in four years.

And Secretary Gates says they will give them permission to try, so long as they don't further lower the recruiting standards -- Kitty.

PILGRIM: Jamie, I understand this is General Pace's last briefing?

MCINTYRE: Yes, it was a remarkable day today. General Pace, after the briefing, shook hands with every single member of the press corps, as well as all the camera people.

He was cheered in the hallway by his staff and other Pentagon employees. He went back to his office. And probably the most interesting thing he said was -- about the value of free press, he said, given a choice between a strong military and a free press, he would choose the free press. He thinks it's that important.

PILGRIM: Wouldn't we all? And that's nice of him to say.

Thanks very much, Jamie McIntyre.

Joining me now for more on the war in Iraq and our impact on the military is General David Grange, one of the country's most distinguished former military commanders.

And, General grange, it's very nice to you have here in New York with us tonight.

BRIGADIER GENERAL DAVID GRANGE (RET.), CNN MILITARY ANALYST: Yes, thank you. I had the opportunity to go to the U.S. Military Academy at West Point. The sad occasion was General Downing's memorial service and funeral today.

He was commander of the Special Operations Command. He did the Khobar Towers investigation, named the Downing Report. And also he was a counterterrorism adviser to the president, so a great loss to this nation of a soldier and a citizen.

PILGRIM: A great American.

Let me ask you about Iraq. The U.S. military has said that 19,000 insurgents have been killed since the beginning of the insurgency. What kind of number does that suggest? Does that have any real meaning in this war?

GRANGE: You know, it seems odd that you don't say, OK, how many you have destroyed or captured isn't serious or has -- has any meaning. But, really, it doesn't. Those that deserve to be killed should be and more. But what's more important is winning over the support of the population and then providing security.

You're really saving lives, not taking lives. So the goal is not to kill as many people as you can. It's to save as many people as you can.

PILGRIM: Yes. And the political solution is part of this whole operation.

GRANGE: Yes, obviously.

PILGRIM: General George Casey told Congress yesterday the Army is stretched too thin, and he said we probably are unable to handle a conflict in another area at this point.

Let's listen to what he said and get your reaction.

(BEGIN VIDEO CLIP)

GENERAL GEORGE CASEY, COMMANDER, MULTINATIONAL FORCE IN IRAQ: We're out of balance. There's no question about it. Out of balance is not broken. And I came into hollow. I know what hollow is, and we're not there.

(END VIDEO CLIP)

PILGRIM: This is disturbing. How upset are you over this?

GRANGE: Well, I'm disturbed about the size of the military and the challenges we have ahead.

I would say that I agree with General Casey. It's not a hollow Army. He's talking about right after Vietnam. I remember those days quite well. And it's not broken, because it's such a tough institution for our nation.

But it is stretched thin. And the problem is, you can't maintain the cycle of rotations with the sizes that is there now indefinitely. It's impossible. The Army is too small. We should kick ourselves in the rear for taking down the military to such a small number after the Cold War. That's where it all began.

PILGRIM: You know, the Pentagon is requesting $190 billion to fund another year of the war in Iraq. They're also including $11 billion for these mine-resistant vehicles.

But the military is asking -- had initially asked for 20,000, and they're not getting nearly that number. Is that a worry for our troops?

GRANGE: Well, anything we can do for our soldiers with these vehicles with regards to improvised explosive device, we have to do. It's the biggest killer of soldiers and usually they're in vehicles when it happens. And so these things have to be done, even if you use multiple contractors to produce them in a surge to get them over there. So pay the bill. Do it.

PILGRIM: Yes. I would say so, too.

Thank you very much, General David Grange. Thank you.

GRANGE: My pleasure.

PILGRIM: Still to come, the scandal over toxic toys from communist China. That scandal escalates. Are any Chinese toys safe? We will talk about it.

Also, congressional investigators confirm what we have been reporting for years, that our borders are wide open to terrorists.

And fury, insults from the government of Mexico over one community's efforts to enforce immigration laws. We will tell you all about it.

(COMMERCIAL BREAK)

PILGRIM: There were protests last night in Irving, Texas, over the deportation of illegal aliens caught in the city. And the Mexican consul general in Dallas is advising Mexican nationals to stay away from Irving. He says the city is practicing -- quote -- "racial profiling."

Irving is located between Dallas and Fort Worth. It handed over about 2,000 illegal aliens to immigration officers as part of their criminal alien program.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): About 2,000 protesters came to city hall in Irving, Texas, angry over the city's policy of checking the immigration status of people arrested by the police. The language of the protest was largely Spanish. And it was peaceful, for the most part.

Passions were fueled by speakers and a warning to Mexicans from the Mexican consul in Dallas to stay away from Irving because of the police campaign it calls racial profiling, a criticism that the consul is not apologizing for, saying -- quote -- "I have the right and the duty to advise our people when there is such a campaign, when even the smallest infraction can and will translate into a family being separated."

Irving is one of the largest cities in Texas, and 40 percent of its population Hispanic. People who are citizens are here legally. Its Web site is in English and Spanish. The city's mayor strongly denies that the immigration crackdown is in any way racially motivated.

UNIDENTIFIED MALE: The only reason people get deported by the federal government is if they're in the country illegally. The people that we're putting in our jails have committed crimes in our community.

TUCKER: Not having a valid driver's license or other documentation when stopped for a traffic offense is reason for arrest under the new policy.

The city began cooperating with Immigration and Customs Enforcement last September. Since then, more than 1,600 have been turned over to ICE to be deported. Opponents for the policy openly admit they don't accept immigration law as valid.

CARLOS QUINTANILLA, ACCION AMERICA: You are not necessarily an illegal once you are here in the United States. It may be illegal to come into the United States, but it is not illegal per se to be here.

TUCKER: And, as such, he says, the police are harassing Hispanic immigrants.

QUINTANILLA: They're being arrested simply because they don't have immigration documents, because they're not here legally, as the pundits say.

TUCKER: Which, according to the law as it's generally understood, is a deportable offense. (END VIDEOTAPE)

TUCKER: Now, the city of Irving is not operating under what's known as 287-G authority, a program that we have reported on extensively here on the program.

Instead, Irving is working with ICE under what's known as the Criminal Alien Program. The difference there, Kitty, is that the local police are not being deputized. ICE agents are in the jail to run status checks as people are being arrested and brought to the jail.

PILGRIM: You know, I have to say that this explanation lacks sense, that you're not necessarily illegal, but you have -- you don't have legal documents and you're illegally.

TUCKER: What he's doing is, he's quoting a ruling, incredibly, by the Kansas Supreme Court, which said just because you came in illegally does not mean that you're here illegally.

And that ruling has sparked an enormous amount of controversy. We have talked about it on this show before, but it only serves to obfuscate this whole debate and blur all kinds of lines.

PILGRIM: It sure does.

Thanks very much, Bill Tucker. Thanks, Bill.

And that brings to us the subject of tonight's poll. Are you outraged by the Mexican consul's suggestion that enforcement of U.S. immigration laws is racist, yes or no? Cast your vote at loudobbs.com. And we will bring you the results a little bit later in the broadcast.

Illegal aliens from Mexico have plenty of places to go for help here in the United States. The Mexican government has consulates across the country to help its citizens, legal or illegal. There are 48 Mexican consulates across the U.S.

A spokeswoman for the Mexican Embassy in Washington told us, the bulk of them are in California and other border states. Now, in contrast, the U.S. has just nine consulates in Mexico serving the needs of American citizens there.

Government investigators have found something that we have been reporting on this broadcast here for years. Our borders both north and south remain wide open to smugglers and even terrorists.

Now, the Government Accountability Office sent out teams to test security along unmanned sections of our borders with Canada and Mexico. According to that report, at the northern border, the teams found -- quote -- "A determined cross-border violator would likely be able to bring radioactive materials or other contraband undetected across the border from Canada" -- unquote.

Safety concerns at the southern border prevented the GAO investors from performing the same type of assessment they did in the north. However, they did find potential security vulnerabilities, such as deserted roads, boat slips for travel across the Rio Grande, and many of the very same things this broadcast reports on regularly.

Coming up, a retraining program for some of America's workers who lose their jobs, now that program is about to expire. Can Congress manage to renew it? We will have a report.

And yet another recall of children's products made in communist China. And, this time, it's children's playpens. We will have the very latest on that.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Another massive recall of dangerous imports to report tonight.

About 425,000 infant playpens are being pulled from the stores after the death of a 10-month-old child. Now, this recall involves 12 models of Kolcraft's Playard brand playpens. The company says the playpens are deadly because of a design flaw.

But, like millions of other toys and children's products already recalled, these playpens were manufactured in communist China.

(BEGIN VIDEOTAPE)

PILGRIM (voice-over): Six hundred thousand more toys and children's jewelry made in China have been recalled for high levels of lead in paint, as well as excessive lead in some metal parts. The recalls include some 200,000 Thomas & Friends railway products, in addition to the 1.5 million recalled in June.

Other recalls include 350,000 children's gardening tools and chairs solid by Target, and 23,500 Toby & Me jewelry sets sold by Toby NYC of New York.

In Beijing, the Chinese government says its attitude has been consistent and that -- quote -- "We will take every effort to resolve the problem seriously and responsibly, according to the facts, even if there's only been one problem in 1,000 products."

The Consumer Product Safety Commission says this is not the end of the recalls. There have now been 50 lead-based recalls so far this year. Congress has held hearings about the dangers and potential new requirements for toys, but says the CPSC has to do more.

SEN. RICHARD DURBIN (D), ILLINOIS: We need a much more aggressive attitude at this commission. They just wait around too long, for the news stories and for the heat to build up, before they take action. And we have to do a lot more to be kind of assertive and imaginative and make sure consumers across America have confidence in what's being sold.

PILGRIM: Durbin added that he's telling families with toddlers, it doesn't hurt to buy an American toy.

(END VIDEOTAPE)

PILGRIM: Congress is calling for tougher laws and penalties on companies to make sure there is timely reporting on the dangers.

Now, despite all of the recalls, a new report finds there are still plenty of lead-contaminated toys on the store shelves. A coalition of consumer interest groups says it recently tested 50 children's toys sold at Target, Toys "R" Us, Walgreens, and Wal-Mart. The coalition found 11 of those toys, some made of vinyl, were contaminated with lead.

Two of the toys contained extremely high levels of lead. Now, the coalition is calling on the stores to recall the toys. Toys "R" Us and Wal-Mart did not comment on this report. Target could not be reached for a response.

Coming up, is the federal government turning its back on workers hurt by this country's so-called free trade policies? We will have a special report.

And it's being called the single largest investment in higher education since the G.I. Bill -- why your children may receive more money for college.

And, later, Michelle Obama says it's do or die for her husband, Senator Barack Obama, in Iowa.

Those stories and more. We will be right back.

(COMMERCIAL BREAK)

PILGRIM: While Congress is focusing on passing new trade deals, like the Peru Free Trade Agreement, a federal program that helps workers who have lost their jobs to these trade deals is set to expire.

Labor groups and Democrats are trying to expand and renew this program.

But, as Lisa Sylvester now reports, not everyone on Capitol Hill supports the idea.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Workers in Kannapolis, North Carolina, are back in the classroom, retraining after losing their textile jobs to overseas markets.

Some of them are getting help from the federal government to be here, but not all of them. The federal government has a program called Trade Adjustment Assistance. It helps laid-off employees transition into new industries. But the program is set to expire this month. Lawmakers are wrangling over who should receive future benefits and how much. MARCUS COURTNEY, WASHINGTON ALLIANCE OF TECHNICAL WORKERS: Some of the frustration for workers advocates have is the fact is that Congress has been focusing a lot on passing failed trade agreements instead of focusing on passing legislation that will directly benefit American workers.

SYLVESTER: Policymakers have not decided how best to cushion the blow for workers who are losing their jobs to trade, even as Congress considers four new trade agreements with Peru, Panama, Colombia and South Korea. The current assistance program includes only workers who manufacture a good, not those who provide services -- including laid off software engineers, designers and other professionals. It also does not apply for jobs shipped to certain countries, like China. Overhauling the program could raise the cost from just over $1 billion to $4 billion. Some Republicans have reservations about the price tag.

REP. KEVIN BRADY (R), TEXAS: This an expensive program, costing taxpayers nearly $1 billion while providing assistance to about 54,000 workers per year.

Representative Sandy Levin says it's only fair to expand the program to all workers who have been harmed by globalization.

REP. SANDER LEVIN (D), MICHIGAN: You have to look at the cost -- the human cost and the economic cost to people, to families, to communities.

SYLVESTER: For now, Congress passed a stop gap measure extending the current program through December.

(END VIDEO TAPE)

SYLVESTER: Representative Sandy Levin will circulate draft legislation next week, but he acknowledged expanding the program to include service workers is a bit of an uphill climb. Similar legislation never went anywhere in the last several Congresses. Now he's hoping with Democrats in control, that will change things -- Kitty.

PILGRIM: That's a bit of a disaster, Lisa, given the size of our service economy in our country.

SYLVESTER: It is. And it's a gaping hole. There are so many workers out there who work in the service industry. These are professionals, for the most part. And they have not been eligible, up until -- expecting we don't exactly what Congress is going to do here -- but they have not been eligible for any of this trade assistance.

PILGRIM: Thanks very much.

Lisa Sylvester.

Thanks, Lisa.

Coming up, there are new developments in the case of the six African-American teenagers charged with beating a white classmate in Jena, Louisiana. Seventeen-year-old Mychal Bell, one of the Jena 6, as they've come to be known -- and let's listen in right now.

REVEREND. AL SHARPTON, CIVIL RIGHTS ACTIVIST:

When Mychal got out, we would do -- Mychal said the first thing he wanted to do was pray.

UNIDENTIFIED SUPPORTERS: Amen.

SHARPTON: And Reverend Moran and I will do that and make sure he has prayer.

The second thing he said is he wanted some ribs. His mother is going to have to take care of that.

Let us pray.

Dear God, we thank you...

UNIDENTIFIED MALE: Thank you.

SHARPTON: ...for hearing the prayers and the cries of people all over this land. Last Thursday, tens of thousands were in front of this courthouse, not asking for favors, but for justice, asking for an even praying field. We do not condone violence of any kind, but we ask that people be given a fair and even chance at the bar of justice. And when it is tilted, it is no longer a bar of justice. It becomes a station of injustice.

We thank you for sparing Mike Mychal's life.

UNIDENTIFIED SUPPORTERS: Yes.

SHARPTON: ...Through 10 long, arduous months of incarceration that we feel was unfair. But he found the strength to endure it. And because of that, maybe it will bring light on many around this country that has also endured such injustice.

We thank you for his parents, who found the strength to keep fighting and to keep it out front.

We thank you for the other five and the other five parents.

We really thank you for these lawyers -- Attorney Scott and Attorney Powell Lexing, people that came up and got law degrees as a result of people marching and didn't forget where they come from, but thought it not robbery (ph) to help some of those behind them just get a fair shot. And you gave them the skill and the wherewithal that helped to bring us to this now.

Now let us not leave here prideful, but focused, and leave here knowing upon this young man's shoulders is a symbol of a movement that acts for fairness. If we do wrong, we should fairly face it. If we are done wrong, society must also fairly face that. And we will be careful to give your name to praise.

Let Dr. King know his son was here almost from the beginning and that the nonviolent movement is still on the move. And Martin and many of us of the generation of now and generations behind us will not stop until justice rolls down like waters and righteousness like a mighty stream.

These blessings we ask for your name in thy sake (ph). Amen.

UNIDENTIFIED SUPPORTERS: Amen.

SHARPTON: Let me first say that to -- certainly to Mychal's parents and to Melissa and Marcus, when I first was called by them and I first saw Marcus, this day almost seemed like it would not come. I must say that he was very depressed that day. I guess he was wondering why they even brought him over to the courthouse. And now, after thousands -- tens of thousands of people marched -- he is free.

I want to particularly give thanks to his attorneys, who have worked around the clock at no cost and who has, in my judgment, vindicated the sacrifices the civil rights movements of the '60s, way before our time, that made it possible for blacks to have law degrees in the South. And they took their degree and put it on the line. And what Attorney Scott and Powell Lexing have done has been, in my judgment, a testimony to the skill of attorneys. I would let them represent me anywhere because they have a combination of being passionate, yet meticulous at the same time.

Let me say that we are grateful to the local leadership, Reverend Moran and all of the local clergy that fought way before this ever got national attention. And we want you to know that when his parents called us, we came in to help you because we felt that you would do the same for us.

We thank all of the national organizations -- everybody that joined in. Certainly, Martin Luther King III and I believe that if it hadn't been for the participation of everyone, from the NAACP, the Rainbow/PUSH, to all of the clergy, everybody played a role.

But this is only the beginning. Marcus has now the right to go home and the right to resume his education. But he will still have to face his juvenile hearings at trial. The other five still face what has to be in the criminal court.

So these lawyers still have mountains to climb. But at least this is closer to an even playing field.

We thank the governor for interceding and showing leadership.

We thank those present here in this parish for some sober thinking. Now is not a time for high-fiving, it's a time for contemplation and saying that we must have a nation that has one law for everybody. There should not be different laws for Mychal Bell than anyone, his age of a different color. And that's why we came to Jena. And let Jena represent equal protection under lot.

I want to, in conclusion, thank Miss. Darlene Garrison, who stepped forward as the bondsperson and posted the bond to make today possible. We are going to also -- yes, we -- doctor -- also, we want to thank Dr. Ayers, Dr. A-Y-E-R-S, who wrote the check and said whatever the amount and let tonight -- tonight Mychal can go home.

But Mychal is not out of the juvenile process. He goes home because a lot of people left their home and stood up for him. Let America know we are not fighting for the right to fight in school. We're not fighting for the right for kids to beat each other.

We're fighting to say that there must be one level of justice for everybody and you cannot have adult attempted murder for some and a fine for others and call that equal protection under the law. Two wrongs don't make one civil right.

That is why Martin King III and I and others spent some time in Jena and will continue to come as long as we're necessary.

Attorney Scott wanted to thank some people.

ATTORNEY LEWIS SCOTT: Yes.

Although me and Carol Powell are the lawyers here, there were other lawyers fighting for Mychal. We have three other lawyers on our team, also. We have a lawyer, Miss. Carol Kolinchak from New Orleans who did quite a bit of work for us.

Also, I want to thank all of the workers, Miss. Beverly Hines (ph) who ran up and down the street, probably -- or down the road to Jena probably...

PILGRIM: Seventeen-year-old Mychal Bell, one of the Jena 6, as they've come to be known has been released from prison. The district attorney says he will allow Mychal be tried in juvenile court. Seventeen-year-old Michael was convicted as an adult, but earlier this month, a judge tossed out his conviction, saying the case should have been tried in juvenile court.

We see him now being released.

We turn now to Sean Callebs in Jena, Louisiana with the very latest -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Well, Kitty, what we're seeing out here today really represents a lot of work. And it came down very rapidly today.

It began with Mychal Bell's attorneys filing a couple of motions with the appellate court early today, one to immediately have Bell moved from the adult facility -- the adult correction jail where he had been held for the past nine months -- to a juvenile facility. And that happened.

And, secondly, they tried to get bond for Mychal Bell, as well. Ever since the appellate court vacated the conviction of Mychal Bell, threw out the conviction of Mychal Bell, the district attorney has had the opportunity to re-file charges as an adult. Well, earlier today, the district attorney, Reed Walters, in this case, said he would not pursue charges against Bell, who is now 17, as an adult, instead saying it is a case that will go through the courts in the juvenile system.

Now, Bell is one of the so-called Jena 6, accused of savagely beating a white high school student at Jena High School last year, in 2006.

The way the D.A. spells it out, as soon as Justin Barker walked out, then Mychal Bell went up and cold-cocked Justin Barker, knocking him out. Then other members of the Jena 6 began kicking him.

Initial, the D.A. had pursued attempted murder charges, saying that their feet were dangerous weapons. Those charges were later pared back.

And what we're seeing right now, Mychal Bell tasting freedom for the first time in nearly 10 months, surrounded by his mother, his father, his attorneys, the Reverend Al Sharpton, Martin Luther King III.

And it's interesting, last Thursday, when the massive demonstration -- civil rights demonstration -- unfolded on the streets of Jena -- somewhere between 15,000 and 20,000 people here -- well, today, as Mychal Bell walks free, there may be two dozen family members and friends gathered here to watch him walk out of the door of the correction facility -- Kitty.

PILGRIM: Sean, I understand that District Attorney Reed Walters commented on the demonstrations and the part they played, or did not play, in influencing his opinion in this case.

CALLEBS: Exactly. It was a news conference at about 2:00 Eastern today. And what happened was that the courthouse was filled with maybe 50 to 75 supporters of the district attorney during that news conference. And he started out saying that he wanted to thank the police for their involvement, helping keep everything very orderly. That drew a round of applause from the supporters of the district attorney.

But then Walters went on to say that he believed the reason everything was so peaceful -- no trouble, no arrests, no broken windows, no incidents of any kind -- was because Jesus had intervened. That drew another round of applause from his supporters.

However, there were members of the black clergy inside at the time and they weren't too thrilled. We spoke with one member who actually challenged the district attorney during the news conference and said, look, that was a peaceful demonstration because the people who came here that day wanted nonviolence. They wanted to have a peaceful demonstration.

And he went on to say that he believes it was an insult -- that the district attorney insulted the 15,000 or so people who came to Jena by saying it was Jesus who kept things peaceful that day.

This is a town, a very small town -- about 3,000 people, 85 percent white. It has been racially divided over the past seven months. And what we're hearing from members of the black clergy, by bringing religion into this argument, there are concerns that maybe this area will become even more polarized than it has been in the past, which is actually hard to believe, considering just how polarized this community has been -- Kitty.

PILGRIM: Thanks very much.

Sean Callebs from Jena, Louisiana.

And to recap, 17-year-old Mychal Bell, one of the Jena 6, has been leased from prison. He was to be tried in juvenile court.

Up next, the president signs a law for a massive new investment in higher education. The Congressman who led that fight for the law joins me.

Also, Congresswoman Marcy Kaptur joins us for more on the country's so-called free trade agreements and their impact on American workers.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: A major victory for our nation's middle class today. President Bush signed into law the College Cost Reduction Act. Now, this new law is the single largest investment in higher education since the G.I. Bill and it comes at no cost to taxpayers.

One of the architects and true champions of this bill is Congressman George Miller.

And he joins us now from Capitol Hill.

Congressman Miller, thank you so much.

This -- you know, college costs have risen 40 percent in the last five years. This provides $20 billion in financial aid to U.S. students.

This is amazing news for American middle class kids, isn't it?

REP. GEORGE MILLER (D-CA), EDUCATION AND LABOR CHAIRMAN: It's very exciting. It's absolutely fantastic that we were able to -- to take $20 billion and dedicate it to low income and middle income students and their families so they could have greater access to education so that they would save money. Pell grant recipients, over the next five years, are going to get a $1,000 increase. In that period of time, we're going to cut the interest rate in half, from 6.8 to 3.4 percent. That saves students about $4,400 over the life of their loans.

We put a cap on how much they'll have to pay back -- no more than 15 percent of their adjusted gross income in any given year. That means that they can take jobs with maybe lower wages at an entry level. And if they go into public service -- a nurse, a firemen, a policeman, a public defender, a public prosecutor, people working with special ed, a teacher -- after 10 years in that field, their loans are forgiven. And that could be worth thousands of dollars to these individuals.

For high performing college students, if they want to go into teaching and they pledge to go into teaching, we'll give them $4,000 in up front tuition assistance while they're in college, not waiting until after.

So it's really a very substantial amount of money that's put into the pockets of these students and these families who are struggling. It's very exciting.

PILGRIM: Tell us how you managed to do it at no cost to the American taxpayer.

MILLER: We took the $20 billion in excessive subsidies that were being paid to the lenders and to the big banks in the federal student loan program, and we took that $20 billion and we recycled it for the benefit of the students and their families. And that's how we were able to do it. We did it on a pay as you go basis. We pledged that we wouldn't add new deficit spending in this Congress with these kinds of programs. So this one is completely paid for over the program. It's very exciting.

PILGRIM: If you're a student listening tonight, how soon can you take advantage of this?

MILLER: Students can start taking advantage of this on July 1 in terms of income contingency and payments. Public service begins in October of this year, the tenure starts to begin. And for students taking out new loans, the interest rates will start taking effect and will -- over the next four years, those interest rates will be cut in half. So it's right away and it's real money in their and their family's pockets.

PILGRIM: This a real victory for American students.

MILLER: Yes.

PILGRIM: Thank you very much.

MILLER: Thank you.

PILGRIM: Representative George Miller.

MILLER: Thank you.

PILGRIM: Coming up, a so-called free trade deal that could cost many Americans jobs. It's moving ahead in Congress. A Democratic opponent of that deal, Congresswoman Marcy Kaptur, will join us.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Coming up at the top of the hour, "THE SITUATION ROOM WITH WOLF BLITZER" -- Wolf.

WOLF BLITZER, HOST, "THE SITUATION ROOM": Thanks, Kitty.

Secret negotiations with Saddam Hussein -- he said he'd leave Iraq for a very high price. Tonight, there are new details emerging of his demands.

Could it have prevented the war?

Also, mayhem on a passenger jet -- hundreds of people trapped on an airplane not allowed to leave. Tonight, video of their ordeal, the revolt and why armed guards had to board the flight.

And Al Qaeda is after her, but she says she's not afraid. Tonight, my exclusive interview with the former leader of Pakistan. It's one you're going to want to see.

All that, plus the latest on what's happening in Jena, Louisiana. That's coming up right at the top of the hour -- Kitty.

PILGRIM: Thanks, Wolf.

The House Ways and Means Committee is backing the administration's free trade pact with Peru and it will soon head to the full House.

But some Democrats are concerned this agreement will cost American jobs. And there are still other trade agreements in the pipeline, negotiated before the president's fast tract authority expired back in June.

Now, Congresswoman Marcy Kaptur is opposed to these so-called free trade deals and she joins me now.

And thanks for being with us.

REP. MARCY KAPTUR (D), OHIO: Thank you, Kitty.

PILGRIM: You know, we...

KAPTUR: And we hope Lou joins you soon.

PILGRIM: Oh, we do, too.

Thank you.

Peru, Panama, Colombia and South Korea -- these are all negotiated by the Bush administration before the fast track expired. They're pushing hard on Peru.

What's the problem?

KAPTUR: The problem is that we already have growing trade deficits with Peru. This agreement contains 75 percent of the language, as NAFTA did. And there is no provision in the agreement that gives any comfort that it will yield anything else than more outsourced jobs, more Peruvian farmers thrown off their land, just like Mexican farmers were, more illegal immigration.

We don't see any provisions in this that would actually help to correct the growing deficits with Peru. In the environmental area, we're already rejecting over 27 percent of the antibiotics that are coming into this country that we know are from Peru. And there are real environmental differences that this accord does not satisfy.

In the labor area some, people claim oh, it does so much better. There are no enforceable provisions in this. All they do is quote some hortatory language from the declaration, not the actual enforceable provisions in the Ayalo (ph) conventions.

So people like to make it look nice, but the fact is that this is NAFTA plus and it happens to be for Peru this time.

PILGRIM: Now, a deal has been reached by House leaders and President Bush in -- to incorporate environmental and labor provisions into these so-called free trade deals.

But do they really work?

And are they a way to excuse passing these without regard for American workers and the jobs that are being lost?

KAPTUR: You know the old expression, you can put lipstick on a pig, but it's still a pig?

They can try to make this look good, but if you really do a side by side of the language in NAFTA and the language in this Peru agreement, you will find them very similar. The investment provisions are the same. In fact, in this -- this one is even worse than NAFTA in that the buy American provisions are excluded from it. And there is no worker nor farmer readjustment. You just had a news show about adjustment.

Adjustment to what, when your region is losing thousands and thousands and thousands of jobs?

One of our members yesterday just lost another clothing plant. There's only one left in his district now in Illinois. People are feeling this directly and these NAFTA-like trade agreements have to be substantially changed. In fact, we have to go renegotiate NAFTA, because it's produced so many lost jobs. We have to correct that agreement and then redo CAFTA and agreements like this one so it can result in trade surpluses and growing jobs in the United States.

PILGRIM: You know, is this a case of corporate interests holding sway in Congress?

KAPTUR: Absolutely. You really have an agreement that benefits the elites in both countries. Wall Street is outsourcing so much of our production because of the bad shape of our economy, with a $10 trillion debt hanging over us, and with nearly, now, a trillion dollar trade deficit. That has to be monetized somehow. And people are pawning off our assets. Just yesterday it was revealed that the Nasdaq, one of our major stock exchanges, would sell a third of itself to the UAE.

PILGRIM: Yes...

KAPTUR: United Arab Emirates.

PILGRIM: We reported extensively on that.

Representative Kaptur, we appreciate so much you coming on the program.

KAPTUR: Thank you.

PILGRIM: And we appreciate your efforts, also, on this issue.

KAPTUR: Thank you.

PILGRIM: Still ahead, your thoughts and the results of tonight's poll.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Now, the results of tonight's poll -- 97 percent of you are outraged by the Mexican consul's suggestion that enforcement of immigration laws is racist.

We do have time for some of your thoughts.

Judy in Wisconsin wrote to us: "I hear that Iran is closing its border with Iraq. Quick -- send someone there to see how it's done."

Many of you are writing in to wish Lou a speedy recovery from his tonsillectomy.

So Pamela in Tennessee wrote: "We miss you, Lou. No one gets our deadbeat government hopping like you do."

And Linda in Florida wrote: "Here's wishing you a speedy recovery. I want to stop these withdrawal symptoms that I keep getting while you're away. This country needs you, Lou." Thanks for being with us tonight.

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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