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Inside Politics

John Kerry Picks up new Endorsement; Clark Campaign Shopping for Supporters; '04 Candidates Prepare for Debate; New Judge to be Assigned in Scott Peterson Case

Aired January 22, 2004 - 15:30   ET

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

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


(BEGIN VIDEOTAPE)
ANNOUNCER: John Kerry's campaign is cooking in New Hampshire.

SEN. JOHN KERRY (D-MA), DEMOCRATIC PRESIDENTIAL CANDIDATE: What I want New Hampshire voters to understand is that I'm prepared to vote to fight for them in the White House.

ANNOUNCER: Can he seal the deal at tonight's Democratic debate?

HOWARD DEAN (D), DEMOCRATIC PRESIDENTIAL CANDIDATE: I'm a little hoarse. It's not because of the Iowa screech. I actually have a cold.

ANNOUNCER: Howard Dean searches for his political voice after crashing in the caucuses. We'll talk to campaign strategists about Dean's fall, Kerry's rise and Tuesday's primary.

Wesley Clark tries to bag more New Hampshire supporters, faced with fresh signs that his campaign has stalled.

(END VIDEOTAPE)

ANNOUNCER: Now, live from Exeter, New Hampshire, JUDY WOODRUFF'S INSIDE POLITICS.

JUDY WOODRUFF, HOST: Thank you for joining us.

We are on the campus of Phillips Exeter Academy, the prominent preparatory school here in New Hampshire. Well, here in Exeter and all across the state, voters are giving some of the Democratic presidential candidates a second look and having second thoughts about others.

Tonight, all seven candidates will be on stage in Manchester for their first debate since John Kerry's upset win in Iowa. It may be their last good chance to sway voters before Tuesday's first-in-the- nation primary.

Our daily New Hampshire tracking poll out this hour shows John Kerry moving ahead of Howard Dean, 30 percent to 25 percent. Wesley Clark has 18 percent. John Edwards 11 percent. The poll was taken over three days, two of them after the Iowa caucuses.

As you can see, Kerry and Edwards have been gaining in our tracking poll this week. Kerry, the most dramatically.

Dean's support, meantime, has fallen and Clark's has slipped somewhat. Well, even as Kerry's fortunes are improving here in New Hampshire, he also has picked up an important endorsement in South Carolina. That's the next key battleground state. CNN's

CNN's Kelly Wallace covering the Kerry campaign. Kelly, it's a nice announcement for them to have to make.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Yes, certainly good news for the Kerry campaign. Fritz Hollings, the longtime Democratic Senator from South Carolina, just about 15 minutes from now will hold a news conference in Columbia, South Carolina, to announce he is endorsing John Kerry.

We are told that Senator Kerry will be calling in to that news conference. A Kerry campaign adviser saying this is an incredibly important endorsement, calling Senator Hollings one of the most popular, if not the most popular, politician in South Carolina. And this is another sign that the Kerry campaign, which had put most of its resources into Iowa and into New Hampshire, is looking ahead to those February 3r primaries, including South Carolina, the first primary in the South. A Kerry campaign adviser also telling us that Senator Hollings will be in New Hampshire tomorrow to be on the stump with Senator Kerry and other Vietnam veterans, again to campaign on his behalf.

Now, Senator Kerry today talked to some reporters aboard his bus. And he was asked, of course, about tonight's debate. He said he is going to be prepared for anything, but he also indicated he wants to stick to the same game plan that he says led him to victory in Iowa.

(BEGIN VIDEO CLIP)

KERRY: I have no expectations about tonight except that I'm going to continue to put a positive vision out to the country. That's what I did in Iowa. That's what I'm doing everywhere.

You've heard me in my (UNINTELLIGIBLE). And that's what I'm going to do tonight. I'm perfectly for anything. But I'm looking forward to a discussion about the future of the country.

(END VIDEO CLIP)

WALLACE: And the senator talking to reporters en route to Laconia, New Hampshire, northern New Hampshire, where he talked with several hundred voters. He seemed very energized and he also did something else. He introduced himself to the crowd as an underdog. And he said until the voters go to the polls, he will continue to fight for every vote.

So Judy, despite the polls, which show him with a lead that is widening over Howard Dean, Senator Kerry says he is still the underdog here. And he goes into tonight's debate with that approach -- Judy.

WOODRUFF: All right. Kelly Wallace, following John Kerry. Thanks, Kelly.

For his part, Howard Dean spent some of this day explaining his fiery, some say over-the-top, concession speech in Iowa. Dean says that he was responding to "the passion" of his volunteers.

(BEGIN VIDEO CLIP)

DEAN: Now, I'm not a perfect person. I've got plenty of warts. I say what I think, I lead with my heart.

All I can promise you is that I'm going to deliver on what I say. I can promise you that I may wear the wrong suits. I may say the wrong thing. But you are always going to know who I am and what I believe in. And what I believe in is you.

(END VIDEO CLIP)

WOODRUFF: Aides say that Dean plans to get out and meet voters as part of his re-tooled New Hampshire strategy, including going door- to-door and perhaps having dinner with supporters. Dean and his wife also will appear in a rare joint interview on ABC tonight. After that he'll appear on "Late Night with David Letterman." A lot to look for tonight.

Well, many New Hampshire Democrats find themselves shopping around for a candidate five days before the primary. With that in mind, Wesley Clark may have found a fitting place to visit today.

CNN's Dan Lothian covering the Clark campaign.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: General Clark, to the front to bag, please. General Clark.

DAN LOTHIAN, CNN CORRESPONDENT: Shopping for supporters at the grocery store, retired General Wesley Clark tried to bag votes, along with milk and coffee.

WESLEY CLARK (D), DEMOCRATIC PRESIDENTIAL CANDIDATE: Paper or plastic?

LOTHIAN: Clark, who had New Hampshire almost to himself, while the other candidates were caught in the Iowa caucuses, is now back in the fray. But unconcerned, he says, about, his third place showing in the latest Granite State polls.

CLARK: I'm not paying any attention to the polls. I'm looking at what I see in the voters. I shake hands, look people in the eye. And I feel very good about New Hampshire and about all of the race across this country.

LOTHIAN: At an education forum in Manchester today, the retired general promised a universal grant of $6,000 over two years to help middle income families pay for college.

CLARK: If you don't have a good education, you can't get the kind of job you need to support a family.

LOTHIAN: Just down the road, speaking to women at a Planned Parenthood event marking the 31st anniversary of Roe v. Wade, Clark, who played up the fact that he's pro-choice, took a swipe at President Bush.

CLARK: And for three long years, George W. Bush has been chipping away at reproductive choice.

LOTHIAN: Clark continues to draw crowds. But pollsters say his support in New Hampshire has been flat in recent weeks. Aides tell CNN there are no plans to change strategy, just stay on message and continue to pound home the fact that their candidate is the best Democrat in the race to beat President Bush.

(END VIDEOTAPE)

LOTHIAN: Tonight, an aide telling me that Clark will continue to point out the differences between his campaign and President Bush, and they said he will not be going after Senator John Kerry. He wants to keep a positive message focused on issues -- Judy.

WOODRUFF: Thank you, Dan. It will be interesting to see if all the candidates can stay positive. Something else to look for. Dan, thank you very much.

Well, checking in on the other Democratic hopefuls in our "Campaign News Daily," John Edwards scheduled a radio interview and a rally at Dartmouth before tonight's big debate. At an appearance last night, Edwards referred to Howard Dean's much maligned speech on Monday night. But Edwards stopped short of offering his own analysis of Dean's performance.

Like most of the other candidates Joe Lieberman is keeping a light schedule ahead of tonight's showdown. Lieberman spoke to the Manchester area College Breakfast Forum this morning. He also plans a rally with supporters after tonight's debate.

Dennis Kucinich scheduled perhaps the busiest campaign day. He started with a speech to the Manchester Chamber of Commerce this morning, followed by campaign stops in three other cities around the state.

President Bush also was reaching out to voters today in New Mexico. During a speech about the war on terror, Mr. Bush announced an increase in government-wide funding for homeland security in his 2005 budget. Democrats have criticized Mr. Bush for what they call his vast under-funding of homeland security.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm going to submit a budget to Congress next month which will include spending of $30 billion for homeland security. That's more than $30 billion. Almost three times the amount that we were spending prior to September 11, 2001. (END VIDEO CLIP)

WOODRUFF: The specifics of the funding increase still are not known.

Well you can be sure the Democratic strategists are working overtime now that the presidential race has undergone an extreme makeover. Up next, we will ask top campaign players what their candidates have to do in tonight's debate and how important their performance will be come primary day.

Plus, what do Bill and Hillary Clinton now have in common with Howard and Judy Dean?

And later, abortion protests and politics on the anniversary of Roe v. Wade.

(COMMERCIAL BREAK)

WOODRUFF: Most of the Democratic presidential candidates now are off the campaign trail this afternoon, preparing for tonight's big two-hour debate.

Joining me from Watertown, Massachusetts is Steve Grossman. He's Howard Dean's national campaign chairman.

Steve Grossman, a major Howard Dean supporter told me this afternoon that the next six hours of television for Howard Dean are the biggest -- if you add up the debate, the two television appearances tonight, the biggest six hours of his political career. Is that true?

STEVE GROSSMAN, DEAN CAMPAIGN CHAIRMAN: I wouldn't dispute that. I think tonight is the night when Howard needs to build a relationship with the people of New Hampshire and talk about the things that got him into this race in the first place. And how he, as a former governor is going to deal with the quality of life issues that they're worried about: economic insecurity, health care insecurity, the things that were Howard's home court advantage when he was governor of Vermont.

WOODRUFF: What is he going to say or do to address the Monday night outburst, if you will, in Iowa?

GROSSMAN: Oh, I think if he's asked about it I think he would probably, you know, raise his hand and say, you know, I plead guilty to irrational exuberance, to quote Alan Greenspan, and say, let's talk about health care and let's talk about the things that matter. And let's talk about those new moms in Vermont that I home visited because of my leadership, and how we reduce sexual abuse of children and child abuse so dramatically when I was governor.

This is a doctor who has delivered for the people of Vermont. Because long before Howard Dean was a politician, long before he was a governor, he was a doctor, he was in family practice with his wife, Judy. He got into this race, Judy, ironically, not because of the war, but because he believed that it was morally reprehensible that we were asking seniors in this country to cut their pills in half and have to choose between health care and their rent and their food. So I think we go bang to basics and back to the things that make Howard a leader and make him the human being that he is.

WOODRUFF: But Steve Grossman, Governor Dean told some reporters today that he wants to show a different side of himself tonight in this interview with his wife. If he's showing a different side, how can that be genuine, if it's different from the side he's already shown the public?

GROSSMAN: I think what Howard means is he's going to show a different side than unfortunately turned out to be what the Iowa caucuses were all about. Judy, we got into an Iowa caucus which was kind of negative and harsh and vitriolic. The people of Iowa said, we don't like negative campaigning. We want to know who you are, what you stand for, the kind of leadership you want to provide. What have you done and how are you going to deal with the basic human needs in our lives?

I think Howard Dean will say to the people of New Hampshire, you know me, I was across the border for 12 years. I know you. You're fair-minded independent people, I trust your judgment. And my campaign will rise and fall on how well I do next Tuesday. And there's no group of people he would rather trust than the voters of the state of New Hampshire.

WOODRUFF: A quick last question about money, Steve Grossman. We are hearing that the Dean campaign is low on money, that a win or a very good showing in New Hampshire is essential going forward. What is the state of the campaign's finances?

GROSSMAN: We're in good shape. We've had some very, very big days on the Internet, which has obviously been one of the significant sources of our revenue. But there's no question Howard Dean needs to do very well next Tuesday. And anybody who suggests that isn't telling it the way it is.

Howard's got to come out of New Hampshire in solid shape. He's got to do well. And as I said, he will not put -- he was happy to put his trust in the hands of the people of New Hampshire and be guided by their judgment next Tuesday at the polls.

And that's what tonight's all about, showing the human face, showing the doctor who has delivered. Showing the human side of a man who unfortunately did not get that side of himself out as much as he would have liked in Iowa.

WOODRUFF: Describe in a word how he's looking forward to tonight. Calm, or what word would you use?

GROSSMAN: Look, Howard said a long time ago, you can't win if you're afraid to lose. He said, "This campaign is not about me, it's about the future of this country and it's about my being able to go to Washington and deliver for the people of this country." He knows he can do the job. It's not lost on me, Judy, that four of the last five presidents have been governors. People want strong, decisive, executive leadership. That's what Howard Dean can give them. That's what he did in Vermont. That's the side of himself he needs to show tonight, and I'm confident he can do that.

WOODRUFF: All right.

GROSSMAN: Thanks, Judy.

WOODRUFF: Steve Grossman, chairman of the Howard Dean campaign for president. Thank you, Steve. We appreciate it.

GROSSMAN: Thanks for having me, Judy.

WOODRUFF: Appreciate it.

Well now let's bring in some representatives of both the John Kerry and the Wesley Clark campaigns. Jamie Rubin is a senior foreign policy adviser to the Clark team. Michael Meehan is a Kerry campaign senior adviser.

Gentlemen, thank you both for joining us.

Jamie Rubin, to you first. Wesley Clark had expected to face Howard Dean here in New Hampshire. But now it's pretty clear he's got a deal very much with John Kerry and even with John Edwards. What is the tact, the approach that your candidate is going to take tonight?

JAMES RUBIN, FMR. ASSISTANT SECRETAR OF STATE: Well, yes, Judy, he recognizes that John Kerry is the senator, longtime senator from Massachusetts' neighboring state. Governor Dean is a longtime governor of Vermont, neighboring state. These are two of the most well known politicians to the people of New Hampshire.

I think when he looked at Iowa and he's now spent time here in New Hampshire, he concluded that the voters want to beat George Bush and they want a candidate who has national security experience, who served in Vietnam, as John Kerry did. And they also want the positive vision and the southern roots of John Edwards.

Wes Clark is the only guy in this race who has all of those qualities. And so while he knows that the two front-runners, Dean and Kerry, are going to do very well here, as long as he can project those four qualities I mentioned I think he'll be satisfied.

WOODRUFF: Michael Meehan, with the Kerry campaign, there's some expectation tonight the other candidates are going to come after your candidate. What is he going to do if that happens?

MICHAEL MEEHAN, SR. ADVISER, KERRY CAMPAIGN: Well, I think John Kerry tonight is going to tell the people of New Hampshire his plans to restore some of the job loss that's happened under the Bush administration. Seventy-five thousand jobs have been lost here in New Hampshire. South Carolina's had three straight years of job loss under the Bush administration, the first time in decades. John Kerry has a plan to get the jobs back, get health care costs down. He has a plan to keep middle class tax cuts in place and lower taxes. You're going to hear that from John Kerry tonight.

He looks forward to standing on the stage with all the candidates, and let people in New Hampshire decide who they want to be their president. I think you're going to see a John Kerry ready up to that challenge tonight.

WOODRUFF: Jamie Rubin, in the last couple of days your candidate, Wesley Clark, has mentioned several times that he outranked John Kerry, in effect, pointing out his long service in the military. He was a general, of course, when he retired, while John Kerry was just a lieutenant. Is he going to continue to stress this?

RUBIN: Look, Wes Clark respects, deeply respects John Kerry's service. They both served in Vietnam. They both won Silver Stars.

Wes Clark stayed in the military and ended up as a four-star general. That's a fact. But that's not really the point.

The point is, is that the American people, it seems, want a president who can walk into the Oval Office and help deal with the mess in Iraq. And there is no candidate on that stage tonight who's better equipped, who's been in the arena, who's actually done the negotiating and the leading of an international coalition as Wes Clark did when he took a principled stand on Kosovo.

There's no candidate who has the real executive experience, who's actually been involved, sat at the table with Tony Blair, Jacques Chirac, Chancellor Schroeder and can help us get us out of this mess in Iraq with help from the rest of the world. That's what he'll be emphasizing tonight.

WOODRUFF: And Michael Meehan, if that's what Wesley Clark is saying, what is the rejoinder from Senator Kerry?

MEEHAN: Well, John Kerry's got a 35-year public service experience. He started out with enlisting in the Navy in the '60s, and going to Vietnam. He came home, he was a prosecutor, he spent 20 years in the United States Senate, elected four times over in Massachusetts.

We went out to Iowa and brought our case to the Iowans. They gave us a first-place ticket out of Iowa to send us here to New Hampshire.

The process here in the Democratic Party is that you go to all the states. And you go to all the Democrats and you ask them for your endorsement. So John Kerry day has prepared day one. No on-the-job training will be needed when he's president one year and two days ago from now.

WOODRUFF: Very quickly to both of you the same question. Jamie Rubin first. Do these candidates tonight have to draw a contrast with one another in a sharp way? Or is there a risk in going negative, Jamie?

RUBIN: Well, Wes Clark is going to run a positive campaign. He's done that all along. He'll return fire if he's attacked. But I think he wants to demonstrate to the people of New Hampshire and the country who are now watching that he's the only candidate who can really stand up to George Bush and bring the Democratic Party back to the White House this fall.

WOODRUFF: And Michael Meehan, what do you expect? Do you expect everybody's going to stay positive?

MEEHAN: Oh, I think that John Kerry's going to lay out his positive case why he should be the president. I think the people of New Hampshire have to take a good, hard look at you. They come out, they check you once, they check you twice. They bring their notebooks, they ask you questions.

And I think tonight is the last chance for us to make the case why John Kerry should move on from New Hampshire with their support and head to the South and to the West and to the Southwest for a bunch of states that begin in February. And he has a plan that will keep health care costs down, that will get companies to buy in, that will make it easier for families here who are struggling to keep those health care costs down.

He has a plan to keep middle class taxes cut and low. And he believes that no Democrat can be nominated and beat George Bush that wants to raise taxes.

WOODRUFF: Right. I hear both of you, I think, saying there's a risk in going negative. But we'll sure find out in a few hours.

Jamie Rubin, Michael Meehan, good to see both of you. Thanks very much for talking with me.

RUBIN: Thanks, Judy.

MEEHAN: Good to be with you, Judy. Take care.

WOODRUFF: Well, 31 years after the Supreme Court's Roe v. Wade decision, the abortion issue remains a political divide in the United States. Coming up, Bruce Morton looks at the presidential candidates' positions on this highly controversial issue.

(COMMERCIAL BREAK)

WOODRUFF: The campus of beautiful Phillips Exeter Academy in Exeter, New Hampshire.

The issue of abortion is never far from the surface in presidential campaigns. And today's anniversary of Roe v. Wade highlights the political divide between President Bush and his Democratic rivals.

Here now, CNN's Bruce Morton.

(BEGIN VIDEOTAPE)

BRUCE MORTON, CNN NATIONAL CORRESPONDENT (voice-over): The 31st anniversary of the Supreme Court's Roe v. Wade decision legalizing abortion saw, like other anniversaries, a massive anti-abortion protest on the Mall. Earlier, during the morning rush hour, abortion rights advocates from Planned Parenthood carried signs, "Honk for Choice." And many did.

UNIDENTIFIED FEMALE: I'm here because it's an important day for women's lives, for (UNINTELLIGIBLE) freedom and for access to family planning.

MORTON: But this was the anti-abortion forces' day. They heard from the president, who spoke to them by fell phone from New Mexico.

BUSH: We must continue with civility and respect to remind our fellow citizens that all life is sacred and worthy of protection.

MORTON: Mr. Bush, who favors abortion only in cases of rape or incest or when the woman's life is in danger, reminded the demonstrators of their successes this past year, including congressional passage of a bill banning an abortion technique opponents call partial birth abortion. All of his potential Democratic rivals are on the other side, favoring abortion rights.

Howard Dean opposes the ban on the partial birth technique. In the Senate, John Kerry and Joe Lieberman voted against it. John Edwards didn't vote. Dean, Kerry and Dennis Kucinich have said they would only nominate Supreme Court candidates who favored abortion rights.

The ban on so-called partial birth abortions is headed to the court, which in the past has upheld restrictions on abortion, a waiting period, for instance. But has also upheld a woman's right to have one. And the voters, in a CNN-"USA Today" Gallup Poll last fall, 26 percent said abortion should be legal in all circumstances, 14 percent in most circumstances, 40 percent in few circumstances, and 17 percent under no circumstances.

(on camera): Democratic and Republican presidential candidates have disagreed on this issue in recent elections. Al Gore and President Bush, Bob Dole and President bill Clinton. But it hasn't been a big issue in those campaigns.

Bruce Morton, CNN, Washington.

(END VIDEOTAPE)

WOODRUFF: Democratic presidential candidates getting ready for yet another debate. Coming up, I'll ask an expert exactly what's involved in getting ready for one of these high-stakes encounters.

And later, Bob Novak opens his notebook for the "Inside Buzz" about Howard Dean's high volume speech to supporters on Monday in Iowa.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

ANNOUNCER: The Democrats gear up for debate night in New Hampshire. Who has the most at stake? Who's likely to take the hardest blow? And has the campaign's self-proclaimed nice guy taken a turn for the negative?

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: I take full responsibility for anything that happened in my campaign.

ANNOUNCER: Howard and Judy Dean follow in Bill And Hillary Clinton's footsteps. But is a prime time TV appearance enough to make Dean a comeback kid? The other primary race, we'll meet one of President Bush's little known rivals in New Hampshire.

UNIDENTIFIED MALE: If I don't at least show, then that dream is over.

ANNOUNCER: Now live from Exeter, New Hampshire, JUDY WOODRUFF'S INSIDE POLITICS.

(END VIDEOTAPE)

WOODRUFF: Welcome back to New Hampshire. Many of the '04 Democrats have cut back their campaign schedules this afternoon in the Granite state to get ready for the big debate in Manchester just about four hours from now. The new front-runner in the state is John Kerry. He's sounding upbeat about tonight's face-off and about Tuesday's primary. He says he's trying to prove to voters here that he's a fighter.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: What I want New Hampshire voters to understand is that I'm prepared to vote -- to fight for them in the White House, just as hard as I fought in Iowa for their support and just as hard as I'm going to fight in New Hampshire for their support. They need to know that the president they're electing is going to pour out his heart and energy on their behalf to make things happen.

(END VIDEOTAPE)

WOODRUFF: Adding to Kerry's momentum, he now has the endorsements of two of his home state newspapers the "Boston Globe" and the "Boston Herald." And he won the backing today of Senator Ernest Hollings of South California, one of the important February 3 primary battlegrounds.

Well, as we have been reporting, Kerry has taken the lead in most tracking polls also here in New Hampshire. Our CNN/USA Today/Gallup survey shows Kerry five points ahead of Howard Dean. This poll was taken over a three-day period, two of those days after the Iowa caucuses. A "Boston Globe" survey taken entirely after Kerry's Iowa victory gives the senator a ten-point lead over Governor Dean. John Edwards also is making gains in New Hampshire polls, albeit not as dramatically as John Kerry. And Kerry's endorsement by Senator Hollings could be seen as a blow to Edwards. He's a Senate colleague from neighboring North Carolina. Let's get an update now on the Edwards campaign from CNN's Jeanne Meserve -- Jeanne.

JEANNE MESERVE, CNN CORRESPONDENT: Judy, New Hampshire needs some sunshine at this time of year. And John Edwards is doing his very best to provide it. He's stuck with his themes of optimism and unity in a town hall meeting this afternoon on the campus of Dartmouth college. He stuck with his playbook and did not criticize his Democratic opponents. Just slinging a few barbs at the man he hopes to run against in November.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: We want to create wealth. But unlike Bush who only wants to create wealth for people who already have wealth, we want to create some financial security for all those families who have nothing to protect. Simple things, yes.

(END VIDEO CLIP)

MESERVE: But John Edwards' Mr. Clean image has a bit of a smudge. A memo has surfaced which was distributed to his precinct captains in Iowa. In it they are advised to characterize Howard Dean as an elitist from Park Avenue and to characterize John Kerry as having been part of the failed Washington politics for too long. Last night, Edwards responded.

(BEGIN VIDEO CLIP)

EDWARDS: I take full responsibility for anything that happened in my campaign. I didn't know this. It's wrong. And I have given them instructions it's not ever to happen again.

(END VIDEO CLIP)

MESERVE: Edwards' signature was on the memo. But an official from the campaign says it was put there with an auto pen. The official says that the individual responsible for the memo has been admonished but does remain with the campaign. Meanwhile, the campaign says that since Iowa it has raised $350,000 over the Internet. They hope to continue to rise in the polls here in New Hampshire. But they are predicting that John Kerry will win here. Back to you.

WOODRUFF: Jeanne, are they saying anything yet? Have they had time to react to the -- to word that South Carolina Senator Ernest Hollings is endorsing John Kerry?

MESERVE: As far as I know, there has been no reaction from the campaign to that endorsement. We've been on the road, and out of cell phone range and away from the campaign. We haven't been able to get a reaction. Sorry, Judy.

WOODRUFF: OK. Jeanne, I know you're going to keep looking into that. We appreciate it. Jeanne Meserve.

Meantime over at the Dean campaign, the candidate and his strategists trying to come up with ways to make a better impression on voters. Don't be surprised to see, we are told, a more subdued Dean at tonight's debate. And then there's Dean's rare primetime television interview tonight with his politically reclusive, you might say, wife. It all has our Bill Schneider thinking about campaign rescue attempts of the past.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Right now Howard Dean is hemorrhaging support in New Hampshire. There are two models for what could happen to him. One good, one bad. The bad one is Edmund Muskie. The good one, is Bill Clinton. In 1972, Democratic front-runner Edmund Muskie held a fateful press conference on the steps of the "Manchester Union Leader." He accused the publisher of the newspaper of maligning his wife's reputation and at one point appeared to break into tears.

SEN. EDMUND MUSKIE (D), 1972 PRESIDENTIAL CANDIDATE: Attacking me, attacking my wife, is proof itself to be a gutless coward. Fortunately for him, he's not on this platform beside me.

SCHNEIDER: A man crying? How unpresidential. That's the way people saw it in those days. Muskie lost New Hampshire and was finished. On Monday night, voters saw Howard Dean break into a tirade. For many voters around the country, this was their first impression of Dean. Very unpresidential. Was this his Edmund Muskie moment?

HOWARD DEAN (D), PRESIDENTIAL CANDIDATE: And then we're going to Washington, D.C. to take back the White House! Yes!

SCHNEIDER: Time for damage control. Meet the all-time champion of damage control, Bill Clinton. The first impression voters got of Clinton in 1992 came from Gennifer flowers.

GENNIFER FLOWERS, PERFORMER: Yes, I was Bill Clinton's lover for 12 years.

SCHNEIDER: So Bill and Hillary Clinton went on CBS "60 Minutes" following the Super Bowl broadcast to defend their relationship. If it didn't bother her, why should it bother anybody else? Bill Clinton ended up coming in second in the New Hampshire primary, and proclaimed himself...

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: And New Hampshire tonight has made Bill Clinton the comeback kid.

SCHNEIDER: An interview with Howard Dean and his wife will air tonight, following the New Hampshire Democratic debate on ABC Primetime. Dean's wife has not been seen much in this campaign. JUDY DEAN, HOWARD DEAN'S WIFE: For those who might be wondering, my name is Judy Dean.

SCHNEIDER: Tonight, she can tell the world that the Howard Dean they saw on Monday night was not the Howard Dean she's been married to for 22 years.

DEAN: One of the things that I think was enormously helpful to me is to show that there's another side of me that people haven't seen.

(END VIDEOTAPE)

SCHNEIDER: Will it work? There's one big difference. This time, the voters saw the candidate's behavior with their own eyes -- Judy.

WOODRUFF: You might say there's a lot of pressure on Judy Dean tonight as well.

SCHNEIDER: There certainly is.

WOODRUFF: OK. Bill Schneider, thanks.

So, what do the Democratic candidates need to accomplish during tonight's debate and how can they do it? Coming up, I'll talk with someone who has coached past candidates, including Bill Clinton and Lloyd Bentsen.

Later, Bob Novak has the inside buzz on reaction to Howard Dean's dramatic performance in Iowa.

And we'll also meet a colorful character who's challenging George W. Bush in New Hampshire's Republican primary.

(COMMERCIAL BREAK)

WOODRUFF: It's taken awhile, but the Senate today finally approved a massive spending bill that keeps the government going. Literally. The $373 billion bill pays for agriculture, veterans, and other federal programs. The measure was held up for months by Democrats opposed to some of the measures.

Meantime, the "Boston Globe" reports today that Republican staff members on the Senate judiciary committee infiltrated Democratic staff members' computer files for over a year. The newspaper says the Republican staff members monitored secret Democratic strategy memos, and occasionally passed them on to the news media.

INSIDE POLITICS will be right back.

(COMMERCIAL BREAK)

WOODRUFF: We know the presidential candidates cannot afford a slip-up any time they debate, but the stakes seem especially high for tonight's New Hampshire engagement. Attorney Robert Barnett has coached a number of prominent candidates before debates, including Bill Clinton, Lloyd Bentsen, Michael Dukakis, Walter Mondale and others.

Bob Barnett joins me from Washington. Bob, first of all, do the stakes get any higher than this? I mean, is this -- is this the most pressure a candidate can feel in a campaign?

ROBERT BARNETT, FORMER DEMOCRATIC STRATEGIST: Short of a general election debate, this is about as big as it gets. First of all, there's a very close contest going on. Second, all the polls seem to indicate that a whole lot of the voters are still willing to switch. And third, for a couple of these people, this is really their first voting test in the context of this cycle.

WOODRUFF: All right. And I want to ask you about that. But before I do, very quickly, what do you -- you've coached so many candidates, Democrats who've gone on to win, what are they doing right now? We're about hour hours before this debate. What are the candidates doing right now?

BARNETT: If I were advising one of these candidates I would say they should be doing three things. First, they should define what their strategy and goal is here. What do they want to accomplish? Second, I try to anticipate the questions. It's not that hard. And have your answers ready. Memorized, short, punchy with topic sentences. And third, some of these people tonight will be on the defensive. And so they should be preparing to play some defense tonight, too, in addition to offense.

WOODRUFF: All right. Let's go down these candidates one by one, Bob. Start with Howard Dean. He may have the toughest job tonight.

BARNETT: Yes. I think that he has to walk this fine line between being an insurgent. But being reassuring. I think that his best bet tonight would be to stay pretty much away from some of the things he talked about early on, the war, and really talk about how he's going to fix the system and how he has shown, with his really very good record in Vermont, how he can be a chief executive.

WOODRUFF: Let's talk about Wesley Clark. He didn't compete in Iowa. And he's facing candidates he really didn't expect to have to face here.

BARNETT: That's right. I think that John Kerry has to be a big threat to Wesley Clark. I think what Wesley Clark is going to have to do is to show, first of all, that he can convince people that he's the best person to run against the incumbent president.

Second, that he has a strong and complete grasp of domestic policy issues and I think he also has to show that he's a Democrat because, of course, with his admirable career in the military he hasn't been in partisan politics. This is a Democratic primary. This is a Democratic primary process. And he has to show that he's worthy of the Democratic party's nomination.

WOODRUFF: Very quickly, what about John Edwards? BARNETT: I think John Edwards should probably do what he's done so successfully over the last couple weeks. And that's stay above the fray. Show a positive face. Show, again, electability. When you look at that red and blue state map, there's some states where he can make a persuasive argument that he could be more competitive than the others. His biggest challenge is to show capability. Because, of course, he's been in national politics a relatively short time.

WOODRUFF: And finally, John Kerry?

BARNETT: John Kerry's people should be looking very carefully at the analysis of Iowa. What worked? And then taking into account the peculiarities of this being a very different state, sound those same themes. He also, I'm sure, will want to concentrate on the fact that he, again, as well as or better than the other candidates, can go head-to-head with the incumbent president on issues of national security and foreign policy. But his biggest challenge tonight will be probably being on the defensive. If I had to predict, I would think there will be some people coming after him tonight.

WOODRUFF: Bob, you think they're cramming or napping right now?

BARNETT: I would hope they're napping. These people have been through a long process, many debates. Hopefully they've done their polishing this morning and they're resting now.

WOODRUFF: OK. Bob Barnett who has coached many a Democrat going into many a debate. Thanks a lot. Good to see you. We appreciate it.

BARNETT: Thank you, Judy.

WOODRUFF: And Bob Novak joins me next with his inside buzz. He'll tell us what Dean's advisers told their candidate just before Dean delivered the speech that has everybody talking.

Also ahead, is that President Bush in the next booth? Talking baseball and eating nachos on the president's trip out west.

(COMMERCIAL BREAK)

WOODRUFF: This just in. In the trial of Scott Peterson accused of murdering his pregnant wife Laci, a new judge will be named to the high profile case after the district attorney challenged the appointment of Judge Richard Arnason. The D.A. accused Arnason of being prejudiced against the prosecution. Arnason was assigned to the case yesterday after it was moved from Modesto to San Mateo county. California's chief justice is expected to assign a new judge next week, meaning a delay in the trial which had been scheduled to begin on Monday.

Bob Novak joins us now from Manchester. Back to politics. With some inside buzz. All right, Bob, I understand you've found out some of the major Democratic contenders having some money problems.

ROBERT NOVAK, "CHICAGO SUN-TIMES": Yes, indeed. One thing that everybody thought that Howard Dean had as an asset no matter how much he damaged himself with his rant was money. All that money he raised on the Internet. Well, I am told by sources inside the Dean camp that they have overspent themselves in Iowa, around the country, they're going to be OK and fine in spending in New Hampshire, but they are out of dough for the February 3 primaries, which is a real shock.

WOODRUFF: Now separately, Bob, you've been looking into some of the folks who have been working for Dick Gephardt before he got out of the race joining the Edwards campaign. What about that?

NOVAK: They were all set to go to Edwards, particularly one, I can't mention his name, but one very well-known Gephardt operative. But there was a problem there. Edwards, although he claimed they really stepped up on the fund-raising, doesn't have the money to pay a new bunch of staffers. So until they can find something -- these people have to live, you know, Judy. Unless they can find some -- they're not volunteers -- unless they can find some way to get money to them, the Gephardt transfer over to the Edwards campaign is postponed indefinitely.

WOODRUFF: They don't do it for free. All right, Bob, speaking of staff, and advisers, you've been looking into who advised Howard Dean before he gave his concession speech on Monday night in Iowa.

NOVAK: I am told that, you know, usually the staff likes to say that we just can't do anything with that candidate. He went out there and made a fool of himself. But I am told that his staff advised Governor Dean to really give them hell. To pick up his supporters, to lift their spirits, let it all out, Howard. And he did, and it is one of the colossal political blunders I have ever seen in more than 40 years of doing this, Judy. And he can blame the staff.

WOODRUFF: Very quickly, Bob. What's this about Wesley Clark in North Dakota?

NOVAK: Yes, he's been -- he's got people up there working for some time. That's one of the February 3 primaries. Who's going to campaign in North Dakota when there's seven primaries? But Clark thinks he has an edge there. I don't know, maybe you and I could go up there, Judy, to North Dakota and find out if it's really true, if that's Clark country.

WOODRUFF: I'm ready to go to Fargo. All right. Bob Novak. Thanks very much. Bob Novak joining us from Manchester. We appreciate it.

Now checking the sports section of our campaign news daily. John Kerry plans to take to the ice and show off his hockey skills this Saturday in Manchester, New Hampshire. Kerry plans to hold a charity hockey game with former star of the Boston Bruins. Ray Bourque and Cam Neely are among the Boston legends expected to take part.

John Edwards knows the Patriots are first in the hearts of New Hampshire residents so he had to make a tough call when he was asked if he backs New England or his home state Carolina Panthers in the Super Bowl. (BEGIN VIDEO CLIP)

EDWARDS: They already told me time for no more questions. I'll probably get mobbed going out of here, but I'm for the Panthers. I'm for the Panthers. I'm sorry. I'm sorry.

(END VIDEO CLIP)

WOODRUFF: He said what he thought. All right, President Bush got to hang out with some of his friends from major league baseball last night in Phoenix. Mr. Bush organized dinner at a Mexican restaurant with the owners of the Arizona Diamondbacks, and the Anaheim Angels. The president, of course, is a former managing partner of the Texas Rangers.

It's easy to forget but, you know, the Republicans are also holding a vote next Tuesday. Up next, we're going to meet one of the 14 relative unknowns challenging President Bush in the New Hampshire Republican primary.

(COMMERCIAL BREAK)

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: I'm Rhonda Schaffler at the New York Stock Exchange, where stocks edged lower in choppy trading. Shares of Eastman-Kodak surged $3.50. The photo giant says it will cut up to 15,000 jobs in an effort to cut costs as it shifts its focus to digital imaging. Kodak's gains helped keep the Dow afloat just barely.

The Dow edging up less than -- or rather closing less than half point lower. Nasdaq lost one percent. And just crossing the wires, Microsoft's quarterly net fell from a year ago. Results still better than expected. "Judy Woodruff's Inside Politics" continues right after this.

(COMMERCIAL BREAK)

WOODRUFF: More pictures of the beautiful campus of Phillips Exeter Academy. You know, those New Hampshire Republicans, it turns out, who are unhappy with President Bush, have other options in Tuesday's GOP primary. We caught up with one of the unknowns mounting a long-shot campaign to take the nomination from the sitting president.

(BEGIN VIDEOTAPE)

Listen, I haven't got time today to talk to you. OK? Call me after the election.

WOODRUFF (voice-over): Dick Bosa is a busy man. Running for president will do that to you.

DICK BOSA (R), PRESIDENTIAL CANDIDATE: New Hampshire knows me. I'm a native son. I am going to win.

WOODRUFF: Bosa is one of 14 dark horse candidates running against George W. Bush in Tuesday's Republican primary.

BOSA: If he wants to come into my state, then he has to earn it. WOODRUFF: He bought himself a spot on the ballot and now he's fighting for a little attention.

BOSA: I'm the mayor.

WOODRUFF: And so he was. Of Berlin, New Hampshire. Now he sells Italian ceramics and strides through the state in big black cowboy boots, pushing his longest of long-shot campaigns. We met him here at a local radio station.

UNIDENTIFIED MALE: We're going to do City Hall. I'll introduce him around.

WOODRUFF: He said he'd take us to meet the Mayor of Manchester. Didn't happen. Bosa wasn't exactly a welcome face at City Hall. To his credit, Bosa's got a platform, one he repeats to anyone who will listen.

BOSA: The real issue here is the loss of manufacturing and jobs, national loss of housing. That's the issue in New Hampshire.

WOODRUFF: Strong message, right messenger?

BOSA: I'm running for president against Bush.

UNIDENTIFIED FEMALE: I'm not interested.

BOSA: You know the government's interested in you, though.

WOODRUFF: He tried to make his case to a more established candidate.

BOSA: Spread the word.

SEN. JOE LIEBERMAN (D-CT), PRESIDENTIAL CANDIDATE: I am, I am.

WOODRUFF: But Joe Lieberman wasn't having it. So Bosa's boots kept walking. Right over to his Cadillac where he bid our producer a gracious farewell.

BOSA: You know my number, Clare (ph), in case you get lonesome tonight.

WOODRUFF: Classy guy.

(END VIDEOTAPE)

WOODRUFF: Apparently so. Well that's it for now. We'll be back here in New Hampshire tomorrow in Portsmouth with the fallout from tonight's Democratic debate. And I'll be talking with Senator Joe Lieberman. I'm Judy Woodruff. "Crossfire" starts right now.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Shopping for Supporters; '04 Candidates Prepare for Debate; New Judge to be Assigned in Scott Peterson Case>


Aired January 22, 2004 - 15:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
ANNOUNCER: John Kerry's campaign is cooking in New Hampshire.

SEN. JOHN KERRY (D-MA), DEMOCRATIC PRESIDENTIAL CANDIDATE: What I want New Hampshire voters to understand is that I'm prepared to vote to fight for them in the White House.

ANNOUNCER: Can he seal the deal at tonight's Democratic debate?

HOWARD DEAN (D), DEMOCRATIC PRESIDENTIAL CANDIDATE: I'm a little hoarse. It's not because of the Iowa screech. I actually have a cold.

ANNOUNCER: Howard Dean searches for his political voice after crashing in the caucuses. We'll talk to campaign strategists about Dean's fall, Kerry's rise and Tuesday's primary.

Wesley Clark tries to bag more New Hampshire supporters, faced with fresh signs that his campaign has stalled.

(END VIDEOTAPE)

ANNOUNCER: Now, live from Exeter, New Hampshire, JUDY WOODRUFF'S INSIDE POLITICS.

JUDY WOODRUFF, HOST: Thank you for joining us.

We are on the campus of Phillips Exeter Academy, the prominent preparatory school here in New Hampshire. Well, here in Exeter and all across the state, voters are giving some of the Democratic presidential candidates a second look and having second thoughts about others.

Tonight, all seven candidates will be on stage in Manchester for their first debate since John Kerry's upset win in Iowa. It may be their last good chance to sway voters before Tuesday's first-in-the- nation primary.

Our daily New Hampshire tracking poll out this hour shows John Kerry moving ahead of Howard Dean, 30 percent to 25 percent. Wesley Clark has 18 percent. John Edwards 11 percent. The poll was taken over three days, two of them after the Iowa caucuses.

As you can see, Kerry and Edwards have been gaining in our tracking poll this week. Kerry, the most dramatically.

Dean's support, meantime, has fallen and Clark's has slipped somewhat. Well, even as Kerry's fortunes are improving here in New Hampshire, he also has picked up an important endorsement in South Carolina. That's the next key battleground state. CNN's

CNN's Kelly Wallace covering the Kerry campaign. Kelly, it's a nice announcement for them to have to make.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Yes, certainly good news for the Kerry campaign. Fritz Hollings, the longtime Democratic Senator from South Carolina, just about 15 minutes from now will hold a news conference in Columbia, South Carolina, to announce he is endorsing John Kerry.

We are told that Senator Kerry will be calling in to that news conference. A Kerry campaign adviser saying this is an incredibly important endorsement, calling Senator Hollings one of the most popular, if not the most popular, politician in South Carolina. And this is another sign that the Kerry campaign, which had put most of its resources into Iowa and into New Hampshire, is looking ahead to those February 3r primaries, including South Carolina, the first primary in the South. A Kerry campaign adviser also telling us that Senator Hollings will be in New Hampshire tomorrow to be on the stump with Senator Kerry and other Vietnam veterans, again to campaign on his behalf.

Now, Senator Kerry today talked to some reporters aboard his bus. And he was asked, of course, about tonight's debate. He said he is going to be prepared for anything, but he also indicated he wants to stick to the same game plan that he says led him to victory in Iowa.

(BEGIN VIDEO CLIP)

KERRY: I have no expectations about tonight except that I'm going to continue to put a positive vision out to the country. That's what I did in Iowa. That's what I'm doing everywhere.

You've heard me in my (UNINTELLIGIBLE). And that's what I'm going to do tonight. I'm perfectly for anything. But I'm looking forward to a discussion about the future of the country.

(END VIDEO CLIP)

WALLACE: And the senator talking to reporters en route to Laconia, New Hampshire, northern New Hampshire, where he talked with several hundred voters. He seemed very energized and he also did something else. He introduced himself to the crowd as an underdog. And he said until the voters go to the polls, he will continue to fight for every vote.

So Judy, despite the polls, which show him with a lead that is widening over Howard Dean, Senator Kerry says he is still the underdog here. And he goes into tonight's debate with that approach -- Judy.

WOODRUFF: All right. Kelly Wallace, following John Kerry. Thanks, Kelly.

For his part, Howard Dean spent some of this day explaining his fiery, some say over-the-top, concession speech in Iowa. Dean says that he was responding to "the passion" of his volunteers.

(BEGIN VIDEO CLIP)

DEAN: Now, I'm not a perfect person. I've got plenty of warts. I say what I think, I lead with my heart.

All I can promise you is that I'm going to deliver on what I say. I can promise you that I may wear the wrong suits. I may say the wrong thing. But you are always going to know who I am and what I believe in. And what I believe in is you.

(END VIDEO CLIP)

WOODRUFF: Aides say that Dean plans to get out and meet voters as part of his re-tooled New Hampshire strategy, including going door- to-door and perhaps having dinner with supporters. Dean and his wife also will appear in a rare joint interview on ABC tonight. After that he'll appear on "Late Night with David Letterman." A lot to look for tonight.

Well, many New Hampshire Democrats find themselves shopping around for a candidate five days before the primary. With that in mind, Wesley Clark may have found a fitting place to visit today.

CNN's Dan Lothian covering the Clark campaign.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: General Clark, to the front to bag, please. General Clark.

DAN LOTHIAN, CNN CORRESPONDENT: Shopping for supporters at the grocery store, retired General Wesley Clark tried to bag votes, along with milk and coffee.

WESLEY CLARK (D), DEMOCRATIC PRESIDENTIAL CANDIDATE: Paper or plastic?

LOTHIAN: Clark, who had New Hampshire almost to himself, while the other candidates were caught in the Iowa caucuses, is now back in the fray. But unconcerned, he says, about, his third place showing in the latest Granite State polls.

CLARK: I'm not paying any attention to the polls. I'm looking at what I see in the voters. I shake hands, look people in the eye. And I feel very good about New Hampshire and about all of the race across this country.

LOTHIAN: At an education forum in Manchester today, the retired general promised a universal grant of $6,000 over two years to help middle income families pay for college.

CLARK: If you don't have a good education, you can't get the kind of job you need to support a family.

LOTHIAN: Just down the road, speaking to women at a Planned Parenthood event marking the 31st anniversary of Roe v. Wade, Clark, who played up the fact that he's pro-choice, took a swipe at President Bush.

CLARK: And for three long years, George W. Bush has been chipping away at reproductive choice.

LOTHIAN: Clark continues to draw crowds. But pollsters say his support in New Hampshire has been flat in recent weeks. Aides tell CNN there are no plans to change strategy, just stay on message and continue to pound home the fact that their candidate is the best Democrat in the race to beat President Bush.

(END VIDEOTAPE)

LOTHIAN: Tonight, an aide telling me that Clark will continue to point out the differences between his campaign and President Bush, and they said he will not be going after Senator John Kerry. He wants to keep a positive message focused on issues -- Judy.

WOODRUFF: Thank you, Dan. It will be interesting to see if all the candidates can stay positive. Something else to look for. Dan, thank you very much.

Well, checking in on the other Democratic hopefuls in our "Campaign News Daily," John Edwards scheduled a radio interview and a rally at Dartmouth before tonight's big debate. At an appearance last night, Edwards referred to Howard Dean's much maligned speech on Monday night. But Edwards stopped short of offering his own analysis of Dean's performance.

Like most of the other candidates Joe Lieberman is keeping a light schedule ahead of tonight's showdown. Lieberman spoke to the Manchester area College Breakfast Forum this morning. He also plans a rally with supporters after tonight's debate.

Dennis Kucinich scheduled perhaps the busiest campaign day. He started with a speech to the Manchester Chamber of Commerce this morning, followed by campaign stops in three other cities around the state.

President Bush also was reaching out to voters today in New Mexico. During a speech about the war on terror, Mr. Bush announced an increase in government-wide funding for homeland security in his 2005 budget. Democrats have criticized Mr. Bush for what they call his vast under-funding of homeland security.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm going to submit a budget to Congress next month which will include spending of $30 billion for homeland security. That's more than $30 billion. Almost three times the amount that we were spending prior to September 11, 2001. (END VIDEO CLIP)

WOODRUFF: The specifics of the funding increase still are not known.

Well you can be sure the Democratic strategists are working overtime now that the presidential race has undergone an extreme makeover. Up next, we will ask top campaign players what their candidates have to do in tonight's debate and how important their performance will be come primary day.

Plus, what do Bill and Hillary Clinton now have in common with Howard and Judy Dean?

And later, abortion protests and politics on the anniversary of Roe v. Wade.

(COMMERCIAL BREAK)

WOODRUFF: Most of the Democratic presidential candidates now are off the campaign trail this afternoon, preparing for tonight's big two-hour debate.

Joining me from Watertown, Massachusetts is Steve Grossman. He's Howard Dean's national campaign chairman.

Steve Grossman, a major Howard Dean supporter told me this afternoon that the next six hours of television for Howard Dean are the biggest -- if you add up the debate, the two television appearances tonight, the biggest six hours of his political career. Is that true?

STEVE GROSSMAN, DEAN CAMPAIGN CHAIRMAN: I wouldn't dispute that. I think tonight is the night when Howard needs to build a relationship with the people of New Hampshire and talk about the things that got him into this race in the first place. And how he, as a former governor is going to deal with the quality of life issues that they're worried about: economic insecurity, health care insecurity, the things that were Howard's home court advantage when he was governor of Vermont.

WOODRUFF: What is he going to say or do to address the Monday night outburst, if you will, in Iowa?

GROSSMAN: Oh, I think if he's asked about it I think he would probably, you know, raise his hand and say, you know, I plead guilty to irrational exuberance, to quote Alan Greenspan, and say, let's talk about health care and let's talk about the things that matter. And let's talk about those new moms in Vermont that I home visited because of my leadership, and how we reduce sexual abuse of children and child abuse so dramatically when I was governor.

This is a doctor who has delivered for the people of Vermont. Because long before Howard Dean was a politician, long before he was a governor, he was a doctor, he was in family practice with his wife, Judy. He got into this race, Judy, ironically, not because of the war, but because he believed that it was morally reprehensible that we were asking seniors in this country to cut their pills in half and have to choose between health care and their rent and their food. So I think we go bang to basics and back to the things that make Howard a leader and make him the human being that he is.

WOODRUFF: But Steve Grossman, Governor Dean told some reporters today that he wants to show a different side of himself tonight in this interview with his wife. If he's showing a different side, how can that be genuine, if it's different from the side he's already shown the public?

GROSSMAN: I think what Howard means is he's going to show a different side than unfortunately turned out to be what the Iowa caucuses were all about. Judy, we got into an Iowa caucus which was kind of negative and harsh and vitriolic. The people of Iowa said, we don't like negative campaigning. We want to know who you are, what you stand for, the kind of leadership you want to provide. What have you done and how are you going to deal with the basic human needs in our lives?

I think Howard Dean will say to the people of New Hampshire, you know me, I was across the border for 12 years. I know you. You're fair-minded independent people, I trust your judgment. And my campaign will rise and fall on how well I do next Tuesday. And there's no group of people he would rather trust than the voters of the state of New Hampshire.

WOODRUFF: A quick last question about money, Steve Grossman. We are hearing that the Dean campaign is low on money, that a win or a very good showing in New Hampshire is essential going forward. What is the state of the campaign's finances?

GROSSMAN: We're in good shape. We've had some very, very big days on the Internet, which has obviously been one of the significant sources of our revenue. But there's no question Howard Dean needs to do very well next Tuesday. And anybody who suggests that isn't telling it the way it is.

Howard's got to come out of New Hampshire in solid shape. He's got to do well. And as I said, he will not put -- he was happy to put his trust in the hands of the people of New Hampshire and be guided by their judgment next Tuesday at the polls.

And that's what tonight's all about, showing the human face, showing the doctor who has delivered. Showing the human side of a man who unfortunately did not get that side of himself out as much as he would have liked in Iowa.

WOODRUFF: Describe in a word how he's looking forward to tonight. Calm, or what word would you use?

GROSSMAN: Look, Howard said a long time ago, you can't win if you're afraid to lose. He said, "This campaign is not about me, it's about the future of this country and it's about my being able to go to Washington and deliver for the people of this country." He knows he can do the job. It's not lost on me, Judy, that four of the last five presidents have been governors. People want strong, decisive, executive leadership. That's what Howard Dean can give them. That's what he did in Vermont. That's the side of himself he needs to show tonight, and I'm confident he can do that.

WOODRUFF: All right.

GROSSMAN: Thanks, Judy.

WOODRUFF: Steve Grossman, chairman of the Howard Dean campaign for president. Thank you, Steve. We appreciate it.

GROSSMAN: Thanks for having me, Judy.

WOODRUFF: Appreciate it.

Well now let's bring in some representatives of both the John Kerry and the Wesley Clark campaigns. Jamie Rubin is a senior foreign policy adviser to the Clark team. Michael Meehan is a Kerry campaign senior adviser.

Gentlemen, thank you both for joining us.

Jamie Rubin, to you first. Wesley Clark had expected to face Howard Dean here in New Hampshire. But now it's pretty clear he's got a deal very much with John Kerry and even with John Edwards. What is the tact, the approach that your candidate is going to take tonight?

JAMES RUBIN, FMR. ASSISTANT SECRETAR OF STATE: Well, yes, Judy, he recognizes that John Kerry is the senator, longtime senator from Massachusetts' neighboring state. Governor Dean is a longtime governor of Vermont, neighboring state. These are two of the most well known politicians to the people of New Hampshire.

I think when he looked at Iowa and he's now spent time here in New Hampshire, he concluded that the voters want to beat George Bush and they want a candidate who has national security experience, who served in Vietnam, as John Kerry did. And they also want the positive vision and the southern roots of John Edwards.

Wes Clark is the only guy in this race who has all of those qualities. And so while he knows that the two front-runners, Dean and Kerry, are going to do very well here, as long as he can project those four qualities I mentioned I think he'll be satisfied.

WOODRUFF: Michael Meehan, with the Kerry campaign, there's some expectation tonight the other candidates are going to come after your candidate. What is he going to do if that happens?

MICHAEL MEEHAN, SR. ADVISER, KERRY CAMPAIGN: Well, I think John Kerry tonight is going to tell the people of New Hampshire his plans to restore some of the job loss that's happened under the Bush administration. Seventy-five thousand jobs have been lost here in New Hampshire. South Carolina's had three straight years of job loss under the Bush administration, the first time in decades. John Kerry has a plan to get the jobs back, get health care costs down. He has a plan to keep middle class tax cuts in place and lower taxes. You're going to hear that from John Kerry tonight.

He looks forward to standing on the stage with all the candidates, and let people in New Hampshire decide who they want to be their president. I think you're going to see a John Kerry ready up to that challenge tonight.

WOODRUFF: Jamie Rubin, in the last couple of days your candidate, Wesley Clark, has mentioned several times that he outranked John Kerry, in effect, pointing out his long service in the military. He was a general, of course, when he retired, while John Kerry was just a lieutenant. Is he going to continue to stress this?

RUBIN: Look, Wes Clark respects, deeply respects John Kerry's service. They both served in Vietnam. They both won Silver Stars.

Wes Clark stayed in the military and ended up as a four-star general. That's a fact. But that's not really the point.

The point is, is that the American people, it seems, want a president who can walk into the Oval Office and help deal with the mess in Iraq. And there is no candidate on that stage tonight who's better equipped, who's been in the arena, who's actually done the negotiating and the leading of an international coalition as Wes Clark did when he took a principled stand on Kosovo.

There's no candidate who has the real executive experience, who's actually been involved, sat at the table with Tony Blair, Jacques Chirac, Chancellor Schroeder and can help us get us out of this mess in Iraq with help from the rest of the world. That's what he'll be emphasizing tonight.

WOODRUFF: And Michael Meehan, if that's what Wesley Clark is saying, what is the rejoinder from Senator Kerry?

MEEHAN: Well, John Kerry's got a 35-year public service experience. He started out with enlisting in the Navy in the '60s, and going to Vietnam. He came home, he was a prosecutor, he spent 20 years in the United States Senate, elected four times over in Massachusetts.

We went out to Iowa and brought our case to the Iowans. They gave us a first-place ticket out of Iowa to send us here to New Hampshire.

The process here in the Democratic Party is that you go to all the states. And you go to all the Democrats and you ask them for your endorsement. So John Kerry day has prepared day one. No on-the-job training will be needed when he's president one year and two days ago from now.

WOODRUFF: Very quickly to both of you the same question. Jamie Rubin first. Do these candidates tonight have to draw a contrast with one another in a sharp way? Or is there a risk in going negative, Jamie?

RUBIN: Well, Wes Clark is going to run a positive campaign. He's done that all along. He'll return fire if he's attacked. But I think he wants to demonstrate to the people of New Hampshire and the country who are now watching that he's the only candidate who can really stand up to George Bush and bring the Democratic Party back to the White House this fall.

WOODRUFF: And Michael Meehan, what do you expect? Do you expect everybody's going to stay positive?

MEEHAN: Oh, I think that John Kerry's going to lay out his positive case why he should be the president. I think the people of New Hampshire have to take a good, hard look at you. They come out, they check you once, they check you twice. They bring their notebooks, they ask you questions.

And I think tonight is the last chance for us to make the case why John Kerry should move on from New Hampshire with their support and head to the South and to the West and to the Southwest for a bunch of states that begin in February. And he has a plan that will keep health care costs down, that will get companies to buy in, that will make it easier for families here who are struggling to keep those health care costs down.

He has a plan to keep middle class taxes cut and low. And he believes that no Democrat can be nominated and beat George Bush that wants to raise taxes.

WOODRUFF: Right. I hear both of you, I think, saying there's a risk in going negative. But we'll sure find out in a few hours.

Jamie Rubin, Michael Meehan, good to see both of you. Thanks very much for talking with me.

RUBIN: Thanks, Judy.

MEEHAN: Good to be with you, Judy. Take care.

WOODRUFF: Well, 31 years after the Supreme Court's Roe v. Wade decision, the abortion issue remains a political divide in the United States. Coming up, Bruce Morton looks at the presidential candidates' positions on this highly controversial issue.

(COMMERCIAL BREAK)

WOODRUFF: The campus of beautiful Phillips Exeter Academy in Exeter, New Hampshire.

The issue of abortion is never far from the surface in presidential campaigns. And today's anniversary of Roe v. Wade highlights the political divide between President Bush and his Democratic rivals.

Here now, CNN's Bruce Morton.

(BEGIN VIDEOTAPE)

BRUCE MORTON, CNN NATIONAL CORRESPONDENT (voice-over): The 31st anniversary of the Supreme Court's Roe v. Wade decision legalizing abortion saw, like other anniversaries, a massive anti-abortion protest on the Mall. Earlier, during the morning rush hour, abortion rights advocates from Planned Parenthood carried signs, "Honk for Choice." And many did.

UNIDENTIFIED FEMALE: I'm here because it's an important day for women's lives, for (UNINTELLIGIBLE) freedom and for access to family planning.

MORTON: But this was the anti-abortion forces' day. They heard from the president, who spoke to them by fell phone from New Mexico.

BUSH: We must continue with civility and respect to remind our fellow citizens that all life is sacred and worthy of protection.

MORTON: Mr. Bush, who favors abortion only in cases of rape or incest or when the woman's life is in danger, reminded the demonstrators of their successes this past year, including congressional passage of a bill banning an abortion technique opponents call partial birth abortion. All of his potential Democratic rivals are on the other side, favoring abortion rights.

Howard Dean opposes the ban on the partial birth technique. In the Senate, John Kerry and Joe Lieberman voted against it. John Edwards didn't vote. Dean, Kerry and Dennis Kucinich have said they would only nominate Supreme Court candidates who favored abortion rights.

The ban on so-called partial birth abortions is headed to the court, which in the past has upheld restrictions on abortion, a waiting period, for instance. But has also upheld a woman's right to have one. And the voters, in a CNN-"USA Today" Gallup Poll last fall, 26 percent said abortion should be legal in all circumstances, 14 percent in most circumstances, 40 percent in few circumstances, and 17 percent under no circumstances.

(on camera): Democratic and Republican presidential candidates have disagreed on this issue in recent elections. Al Gore and President Bush, Bob Dole and President bill Clinton. But it hasn't been a big issue in those campaigns.

Bruce Morton, CNN, Washington.

(END VIDEOTAPE)

WOODRUFF: Democratic presidential candidates getting ready for yet another debate. Coming up, I'll ask an expert exactly what's involved in getting ready for one of these high-stakes encounters.

And later, Bob Novak opens his notebook for the "Inside Buzz" about Howard Dean's high volume speech to supporters on Monday in Iowa.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

ANNOUNCER: The Democrats gear up for debate night in New Hampshire. Who has the most at stake? Who's likely to take the hardest blow? And has the campaign's self-proclaimed nice guy taken a turn for the negative?

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: I take full responsibility for anything that happened in my campaign.

ANNOUNCER: Howard and Judy Dean follow in Bill And Hillary Clinton's footsteps. But is a prime time TV appearance enough to make Dean a comeback kid? The other primary race, we'll meet one of President Bush's little known rivals in New Hampshire.

UNIDENTIFIED MALE: If I don't at least show, then that dream is over.

ANNOUNCER: Now live from Exeter, New Hampshire, JUDY WOODRUFF'S INSIDE POLITICS.

(END VIDEOTAPE)

WOODRUFF: Welcome back to New Hampshire. Many of the '04 Democrats have cut back their campaign schedules this afternoon in the Granite state to get ready for the big debate in Manchester just about four hours from now. The new front-runner in the state is John Kerry. He's sounding upbeat about tonight's face-off and about Tuesday's primary. He says he's trying to prove to voters here that he's a fighter.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: What I want New Hampshire voters to understand is that I'm prepared to vote -- to fight for them in the White House, just as hard as I fought in Iowa for their support and just as hard as I'm going to fight in New Hampshire for their support. They need to know that the president they're electing is going to pour out his heart and energy on their behalf to make things happen.

(END VIDEOTAPE)

WOODRUFF: Adding to Kerry's momentum, he now has the endorsements of two of his home state newspapers the "Boston Globe" and the "Boston Herald." And he won the backing today of Senator Ernest Hollings of South California, one of the important February 3 primary battlegrounds.

Well, as we have been reporting, Kerry has taken the lead in most tracking polls also here in New Hampshire. Our CNN/USA Today/Gallup survey shows Kerry five points ahead of Howard Dean. This poll was taken over a three-day period, two of those days after the Iowa caucuses. A "Boston Globe" survey taken entirely after Kerry's Iowa victory gives the senator a ten-point lead over Governor Dean. John Edwards also is making gains in New Hampshire polls, albeit not as dramatically as John Kerry. And Kerry's endorsement by Senator Hollings could be seen as a blow to Edwards. He's a Senate colleague from neighboring North Carolina. Let's get an update now on the Edwards campaign from CNN's Jeanne Meserve -- Jeanne.

JEANNE MESERVE, CNN CORRESPONDENT: Judy, New Hampshire needs some sunshine at this time of year. And John Edwards is doing his very best to provide it. He's stuck with his themes of optimism and unity in a town hall meeting this afternoon on the campus of Dartmouth college. He stuck with his playbook and did not criticize his Democratic opponents. Just slinging a few barbs at the man he hopes to run against in November.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D-NC), PRESIDENTIAL CANDIDATE: We want to create wealth. But unlike Bush who only wants to create wealth for people who already have wealth, we want to create some financial security for all those families who have nothing to protect. Simple things, yes.

(END VIDEO CLIP)

MESERVE: But John Edwards' Mr. Clean image has a bit of a smudge. A memo has surfaced which was distributed to his precinct captains in Iowa. In it they are advised to characterize Howard Dean as an elitist from Park Avenue and to characterize John Kerry as having been part of the failed Washington politics for too long. Last night, Edwards responded.

(BEGIN VIDEO CLIP)

EDWARDS: I take full responsibility for anything that happened in my campaign. I didn't know this. It's wrong. And I have given them instructions it's not ever to happen again.

(END VIDEO CLIP)

MESERVE: Edwards' signature was on the memo. But an official from the campaign says it was put there with an auto pen. The official says that the individual responsible for the memo has been admonished but does remain with the campaign. Meanwhile, the campaign says that since Iowa it has raised $350,000 over the Internet. They hope to continue to rise in the polls here in New Hampshire. But they are predicting that John Kerry will win here. Back to you.

WOODRUFF: Jeanne, are they saying anything yet? Have they had time to react to the -- to word that South Carolina Senator Ernest Hollings is endorsing John Kerry?

MESERVE: As far as I know, there has been no reaction from the campaign to that endorsement. We've been on the road, and out of cell phone range and away from the campaign. We haven't been able to get a reaction. Sorry, Judy.

WOODRUFF: OK. Jeanne, I know you're going to keep looking into that. We appreciate it. Jeanne Meserve.

Meantime over at the Dean campaign, the candidate and his strategists trying to come up with ways to make a better impression on voters. Don't be surprised to see, we are told, a more subdued Dean at tonight's debate. And then there's Dean's rare primetime television interview tonight with his politically reclusive, you might say, wife. It all has our Bill Schneider thinking about campaign rescue attempts of the past.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Right now Howard Dean is hemorrhaging support in New Hampshire. There are two models for what could happen to him. One good, one bad. The bad one is Edmund Muskie. The good one, is Bill Clinton. In 1972, Democratic front-runner Edmund Muskie held a fateful press conference on the steps of the "Manchester Union Leader." He accused the publisher of the newspaper of maligning his wife's reputation and at one point appeared to break into tears.

SEN. EDMUND MUSKIE (D), 1972 PRESIDENTIAL CANDIDATE: Attacking me, attacking my wife, is proof itself to be a gutless coward. Fortunately for him, he's not on this platform beside me.

SCHNEIDER: A man crying? How unpresidential. That's the way people saw it in those days. Muskie lost New Hampshire and was finished. On Monday night, voters saw Howard Dean break into a tirade. For many voters around the country, this was their first impression of Dean. Very unpresidential. Was this his Edmund Muskie moment?

HOWARD DEAN (D), PRESIDENTIAL CANDIDATE: And then we're going to Washington, D.C. to take back the White House! Yes!

SCHNEIDER: Time for damage control. Meet the all-time champion of damage control, Bill Clinton. The first impression voters got of Clinton in 1992 came from Gennifer flowers.

GENNIFER FLOWERS, PERFORMER: Yes, I was Bill Clinton's lover for 12 years.

SCHNEIDER: So Bill and Hillary Clinton went on CBS "60 Minutes" following the Super Bowl broadcast to defend their relationship. If it didn't bother her, why should it bother anybody else? Bill Clinton ended up coming in second in the New Hampshire primary, and proclaimed himself...

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: And New Hampshire tonight has made Bill Clinton the comeback kid.

SCHNEIDER: An interview with Howard Dean and his wife will air tonight, following the New Hampshire Democratic debate on ABC Primetime. Dean's wife has not been seen much in this campaign. JUDY DEAN, HOWARD DEAN'S WIFE: For those who might be wondering, my name is Judy Dean.

SCHNEIDER: Tonight, she can tell the world that the Howard Dean they saw on Monday night was not the Howard Dean she's been married to for 22 years.

DEAN: One of the things that I think was enormously helpful to me is to show that there's another side of me that people haven't seen.

(END VIDEOTAPE)

SCHNEIDER: Will it work? There's one big difference. This time, the voters saw the candidate's behavior with their own eyes -- Judy.

WOODRUFF: You might say there's a lot of pressure on Judy Dean tonight as well.

SCHNEIDER: There certainly is.

WOODRUFF: OK. Bill Schneider, thanks.

So, what do the Democratic candidates need to accomplish during tonight's debate and how can they do it? Coming up, I'll talk with someone who has coached past candidates, including Bill Clinton and Lloyd Bentsen.

Later, Bob Novak has the inside buzz on reaction to Howard Dean's dramatic performance in Iowa.

And we'll also meet a colorful character who's challenging George W. Bush in New Hampshire's Republican primary.

(COMMERCIAL BREAK)

WOODRUFF: It's taken awhile, but the Senate today finally approved a massive spending bill that keeps the government going. Literally. The $373 billion bill pays for agriculture, veterans, and other federal programs. The measure was held up for months by Democrats opposed to some of the measures.

Meantime, the "Boston Globe" reports today that Republican staff members on the Senate judiciary committee infiltrated Democratic staff members' computer files for over a year. The newspaper says the Republican staff members monitored secret Democratic strategy memos, and occasionally passed them on to the news media.

INSIDE POLITICS will be right back.

(COMMERCIAL BREAK)

WOODRUFF: We know the presidential candidates cannot afford a slip-up any time they debate, but the stakes seem especially high for tonight's New Hampshire engagement. Attorney Robert Barnett has coached a number of prominent candidates before debates, including Bill Clinton, Lloyd Bentsen, Michael Dukakis, Walter Mondale and others.

Bob Barnett joins me from Washington. Bob, first of all, do the stakes get any higher than this? I mean, is this -- is this the most pressure a candidate can feel in a campaign?

ROBERT BARNETT, FORMER DEMOCRATIC STRATEGIST: Short of a general election debate, this is about as big as it gets. First of all, there's a very close contest going on. Second, all the polls seem to indicate that a whole lot of the voters are still willing to switch. And third, for a couple of these people, this is really their first voting test in the context of this cycle.

WOODRUFF: All right. And I want to ask you about that. But before I do, very quickly, what do you -- you've coached so many candidates, Democrats who've gone on to win, what are they doing right now? We're about hour hours before this debate. What are the candidates doing right now?

BARNETT: If I were advising one of these candidates I would say they should be doing three things. First, they should define what their strategy and goal is here. What do they want to accomplish? Second, I try to anticipate the questions. It's not that hard. And have your answers ready. Memorized, short, punchy with topic sentences. And third, some of these people tonight will be on the defensive. And so they should be preparing to play some defense tonight, too, in addition to offense.

WOODRUFF: All right. Let's go down these candidates one by one, Bob. Start with Howard Dean. He may have the toughest job tonight.

BARNETT: Yes. I think that he has to walk this fine line between being an insurgent. But being reassuring. I think that his best bet tonight would be to stay pretty much away from some of the things he talked about early on, the war, and really talk about how he's going to fix the system and how he has shown, with his really very good record in Vermont, how he can be a chief executive.

WOODRUFF: Let's talk about Wesley Clark. He didn't compete in Iowa. And he's facing candidates he really didn't expect to have to face here.

BARNETT: That's right. I think that John Kerry has to be a big threat to Wesley Clark. I think what Wesley Clark is going to have to do is to show, first of all, that he can convince people that he's the best person to run against the incumbent president.

Second, that he has a strong and complete grasp of domestic policy issues and I think he also has to show that he's a Democrat because, of course, with his admirable career in the military he hasn't been in partisan politics. This is a Democratic primary. This is a Democratic primary process. And he has to show that he's worthy of the Democratic party's nomination.

WOODRUFF: Very quickly, what about John Edwards? BARNETT: I think John Edwards should probably do what he's done so successfully over the last couple weeks. And that's stay above the fray. Show a positive face. Show, again, electability. When you look at that red and blue state map, there's some states where he can make a persuasive argument that he could be more competitive than the others. His biggest challenge is to show capability. Because, of course, he's been in national politics a relatively short time.

WOODRUFF: And finally, John Kerry?

BARNETT: John Kerry's people should be looking very carefully at the analysis of Iowa. What worked? And then taking into account the peculiarities of this being a very different state, sound those same themes. He also, I'm sure, will want to concentrate on the fact that he, again, as well as or better than the other candidates, can go head-to-head with the incumbent president on issues of national security and foreign policy. But his biggest challenge tonight will be probably being on the defensive. If I had to predict, I would think there will be some people coming after him tonight.

WOODRUFF: Bob, you think they're cramming or napping right now?

BARNETT: I would hope they're napping. These people have been through a long process, many debates. Hopefully they've done their polishing this morning and they're resting now.

WOODRUFF: OK. Bob Barnett who has coached many a Democrat going into many a debate. Thanks a lot. Good to see you. We appreciate it.

BARNETT: Thank you, Judy.

WOODRUFF: And Bob Novak joins me next with his inside buzz. He'll tell us what Dean's advisers told their candidate just before Dean delivered the speech that has everybody talking.

Also ahead, is that President Bush in the next booth? Talking baseball and eating nachos on the president's trip out west.

(COMMERCIAL BREAK)

WOODRUFF: This just in. In the trial of Scott Peterson accused of murdering his pregnant wife Laci, a new judge will be named to the high profile case after the district attorney challenged the appointment of Judge Richard Arnason. The D.A. accused Arnason of being prejudiced against the prosecution. Arnason was assigned to the case yesterday after it was moved from Modesto to San Mateo county. California's chief justice is expected to assign a new judge next week, meaning a delay in the trial which had been scheduled to begin on Monday.

Bob Novak joins us now from Manchester. Back to politics. With some inside buzz. All right, Bob, I understand you've found out some of the major Democratic contenders having some money problems.

ROBERT NOVAK, "CHICAGO SUN-TIMES": Yes, indeed. One thing that everybody thought that Howard Dean had as an asset no matter how much he damaged himself with his rant was money. All that money he raised on the Internet. Well, I am told by sources inside the Dean camp that they have overspent themselves in Iowa, around the country, they're going to be OK and fine in spending in New Hampshire, but they are out of dough for the February 3 primaries, which is a real shock.

WOODRUFF: Now separately, Bob, you've been looking into some of the folks who have been working for Dick Gephardt before he got out of the race joining the Edwards campaign. What about that?

NOVAK: They were all set to go to Edwards, particularly one, I can't mention his name, but one very well-known Gephardt operative. But there was a problem there. Edwards, although he claimed they really stepped up on the fund-raising, doesn't have the money to pay a new bunch of staffers. So until they can find something -- these people have to live, you know, Judy. Unless they can find some -- they're not volunteers -- unless they can find some way to get money to them, the Gephardt transfer over to the Edwards campaign is postponed indefinitely.

WOODRUFF: They don't do it for free. All right, Bob, speaking of staff, and advisers, you've been looking into who advised Howard Dean before he gave his concession speech on Monday night in Iowa.

NOVAK: I am told that, you know, usually the staff likes to say that we just can't do anything with that candidate. He went out there and made a fool of himself. But I am told that his staff advised Governor Dean to really give them hell. To pick up his supporters, to lift their spirits, let it all out, Howard. And he did, and it is one of the colossal political blunders I have ever seen in more than 40 years of doing this, Judy. And he can blame the staff.

WOODRUFF: Very quickly, Bob. What's this about Wesley Clark in North Dakota?

NOVAK: Yes, he's been -- he's got people up there working for some time. That's one of the February 3 primaries. Who's going to campaign in North Dakota when there's seven primaries? But Clark thinks he has an edge there. I don't know, maybe you and I could go up there, Judy, to North Dakota and find out if it's really true, if that's Clark country.

WOODRUFF: I'm ready to go to Fargo. All right. Bob Novak. Thanks very much. Bob Novak joining us from Manchester. We appreciate it.

Now checking the sports section of our campaign news daily. John Kerry plans to take to the ice and show off his hockey skills this Saturday in Manchester, New Hampshire. Kerry plans to hold a charity hockey game with former star of the Boston Bruins. Ray Bourque and Cam Neely are among the Boston legends expected to take part.

John Edwards knows the Patriots are first in the hearts of New Hampshire residents so he had to make a tough call when he was asked if he backs New England or his home state Carolina Panthers in the Super Bowl. (BEGIN VIDEO CLIP)

EDWARDS: They already told me time for no more questions. I'll probably get mobbed going out of here, but I'm for the Panthers. I'm for the Panthers. I'm sorry. I'm sorry.

(END VIDEO CLIP)

WOODRUFF: He said what he thought. All right, President Bush got to hang out with some of his friends from major league baseball last night in Phoenix. Mr. Bush organized dinner at a Mexican restaurant with the owners of the Arizona Diamondbacks, and the Anaheim Angels. The president, of course, is a former managing partner of the Texas Rangers.

It's easy to forget but, you know, the Republicans are also holding a vote next Tuesday. Up next, we're going to meet one of the 14 relative unknowns challenging President Bush in the New Hampshire Republican primary.

(COMMERCIAL BREAK)

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: I'm Rhonda Schaffler at the New York Stock Exchange, where stocks edged lower in choppy trading. Shares of Eastman-Kodak surged $3.50. The photo giant says it will cut up to 15,000 jobs in an effort to cut costs as it shifts its focus to digital imaging. Kodak's gains helped keep the Dow afloat just barely.

The Dow edging up less than -- or rather closing less than half point lower. Nasdaq lost one percent. And just crossing the wires, Microsoft's quarterly net fell from a year ago. Results still better than expected. "Judy Woodruff's Inside Politics" continues right after this.

(COMMERCIAL BREAK)

WOODRUFF: More pictures of the beautiful campus of Phillips Exeter Academy. You know, those New Hampshire Republicans, it turns out, who are unhappy with President Bush, have other options in Tuesday's GOP primary. We caught up with one of the unknowns mounting a long-shot campaign to take the nomination from the sitting president.

(BEGIN VIDEOTAPE)

Listen, I haven't got time today to talk to you. OK? Call me after the election.

WOODRUFF (voice-over): Dick Bosa is a busy man. Running for president will do that to you.

DICK BOSA (R), PRESIDENTIAL CANDIDATE: New Hampshire knows me. I'm a native son. I am going to win.

WOODRUFF: Bosa is one of 14 dark horse candidates running against George W. Bush in Tuesday's Republican primary.

BOSA: If he wants to come into my state, then he has to earn it. WOODRUFF: He bought himself a spot on the ballot and now he's fighting for a little attention.

BOSA: I'm the mayor.

WOODRUFF: And so he was. Of Berlin, New Hampshire. Now he sells Italian ceramics and strides through the state in big black cowboy boots, pushing his longest of long-shot campaigns. We met him here at a local radio station.

UNIDENTIFIED MALE: We're going to do City Hall. I'll introduce him around.

WOODRUFF: He said he'd take us to meet the Mayor of Manchester. Didn't happen. Bosa wasn't exactly a welcome face at City Hall. To his credit, Bosa's got a platform, one he repeats to anyone who will listen.

BOSA: The real issue here is the loss of manufacturing and jobs, national loss of housing. That's the issue in New Hampshire.

WOODRUFF: Strong message, right messenger?

BOSA: I'm running for president against Bush.

UNIDENTIFIED FEMALE: I'm not interested.

BOSA: You know the government's interested in you, though.

WOODRUFF: He tried to make his case to a more established candidate.

BOSA: Spread the word.

SEN. JOE LIEBERMAN (D-CT), PRESIDENTIAL CANDIDATE: I am, I am.

WOODRUFF: But Joe Lieberman wasn't having it. So Bosa's boots kept walking. Right over to his Cadillac where he bid our producer a gracious farewell.

BOSA: You know my number, Clare (ph), in case you get lonesome tonight.

WOODRUFF: Classy guy.

(END VIDEOTAPE)

WOODRUFF: Apparently so. Well that's it for now. We'll be back here in New Hampshire tomorrow in Portsmouth with the fallout from tonight's Democratic debate. And I'll be talking with Senator Joe Lieberman. I'm Judy Woodruff. "Crossfire" starts right now.

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