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Lou Dobbs Tonight

Gunman Open Fires In New York City's City Hall; Should Hussein's Sons Been Taken Alive? "American Classic": Gm's Corvette

Aired July 23, 2003 - 18:00 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.

ANNOUNCER: This is LOU DOBBS TONIGHT for Wednesday, July 23. Here now, Lou Dobbs.
LOU DOBBS, CNN HOST: Good evening.

A deadly shooting in New York. A gunman walked into New York's city hall this afternoon and opened fire in the council chamber. Two people are dead, one of them a councilman who campaigned against violent crime.

The gunman is also dead. He was a political rival of the dead councilman. The gunman was shot and killed by a New York police officer. Eyewitness described what happened in the council chamber.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I just heard bang, bang, bang bang, bang, and I thought it was firecrackers, the first three or four, until people started, you know, screaming. That's when a bunch of us went right on the floor.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Somebody screamed "Hit the decks. Crawl under your desks." Sand that's what we all did, was hit the ground and crawl under our desks.

UNIDENTIFIED FEMALE: What was your reaction....

(END VIDEO CLIP)

DOBBS: Michael Okwu is at New York City Hall. Michael, what can you tell us?

MICHAEL OKWU, CNN CORRESPONDENT: You might have to cue me, Vivian. Keep that in mind. I don't hear anything.

UNIDENTIFIED FEMALE: Go.

OKWU: Lou, some...

DOBBS: Michael Okwu obviously having some problems with our audio. We'll be getting back to him.

We want to turn now to Virginia Field. She is Manhattan borough president. She knew Councilman Davis very well. We'll be talking with her.

We're going to go back and see if we've established audio contact with Michael Okwu. Michael, can you hear me now?

OKWU: Lou, I can hear you. I apologize for the little audio difficulty we were having.

But this is not a hearing problem that council members had this morning, this afternoon. They say what they thought was a very loud explosion somewhere in the well of city hall. They said that they thought they were experiencing some sort of a terrorist attack.

In the end, of course, two men were shot dead, the result of an incredibly spectacular shooting incident here at city hall. It happened at about 2:08 this afternoon. Othniel Askew opened fire and killed popular city council member James Davis.

Now, Davis is a former minister and a former police officer in New York City. He was shot when entering the building with Askew. This is what Mayor Michael Bloomberg had to say this afternoon. He will be followed by the New York City Police Commissioner Ray Kelly.

(BEGIN VIDEO CLIP)

MAYOR MICHAEL BLOOMBERG, NEW YORK CITY: It would appear that Mr. Askew shot James Davis, our city council member, and that Mr. Askew was in turn shot by a New York City police officer.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

RAYMOND KELLY, NYC POLICE COMMISSIONER: Witnesses say they saw askew standing over Davis, repeatedly firing shots. A New York City police officer assigned to city hall was down on the main floor of the council chamber as the shooting took place. He drew his weapon and fired six shots up at Askew.

(END VIDEO CLIP)

OKWU: The question that a lot of people had earlier this afternoon is how does someone get into city hall with a gun and then open fire? Mayor Bloomberg answered that very clearly this afternoon at the press conference when he said that both men entered together and that tapes showed that the two men were talking outside of city hall before entering. They were able to go through the magnetometers, as everyone here who's a member of city council can do, without really going through the proper checks. The mayor making it very clear this afternoon that that practice will no longer cease to exist. He will now have to go through the magnetometers, and everyone else employed in this building, Lou, will have to do the same. DOBBS: Michael, have authorities identified the police officer who reacted so quickly, acted so decisively, and effectively in firing on the gunman?

OKWU: Authorities have identified that person. We do not have his name at this point. But they said that this was somebody who was under detail to cover Davis. They work on a rotating basis. They say that he acted very quickly after that first so-called explosion was heard and that other plainclothes officers also arrived on the scene.

Some of the council members, Lou, again, described what they said was something like 15 to 20 rounds of fire. They must have heard bullets ricocheting around the building in what people here described as a very chaotic situation -- Lou.

DOBBS: Michael, thank you very much. Michael Okwu reporting from New York City Hall, the scene of this tragic shooting.

There was also a shooting this afternoon in San Antonio, Texas. Two people were killed, one seriously wounded at a real estate office. Police are searching for an employee of that real estate office. No apparent motive for the shooting. Two people dead, one injured.

Two more American soldiers were killed in Iraq, nine others wounded. One of the soldiers was killed near Mosul, a member of the 101st Airborne Division. The other soldier died near Ramadi. That's about 70 miles west of Baghdad, a member of the 3rd Armored Cavalry Regiment.

Tonight there are graphic new details about the raid in Mosul that led to the death of Saddam Hussein's sons. The coalition commander in Iraq said troops fired 10 anti-tank missiles at the building where Saddam Hussein's sons were hiding.

Barbara Starr reports from the Pentagon.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): It is Monday night when an Iraqi citizen approaches the U.S. military, warning that Uday and Qusay Hussein are hiding in this house in Mosul. All through the night, commanders plan their attack.

At 10:00 Tuesday morning, forces move in. Troops from the 101st Airborne Division, with anti-tank weapons cordoned off the house. An interpreter with a bullhorn tries to get those inside to surrender.

10:10, the first U.S. troops enter the house.

UNIDENTIFIED MALE: Immediately upon entering the building, shots were fired.

STARR: Three soldiers are wounded as they try to advance up a staircase to the second floor, where their targets are barricaded. U.S. forces withdraw and plan their second assault. Heavier weapons are called in to attack the fortified hideout. For the next two hour, sporadic gunfire erupts from the house.

10:45., soldiers get ready for their next assault, firing grenades, rockets, and hundreds of .50-caliber machine gun rounds.

11:22, a second anti-tank platoon moves in.

11:45, more weapons are called in. Helicopters attack with rockets and machine guns.

12:00 noon, U.S. forces re-enter, again drawing fire from the second floor. Again, U.S. forces withdraw.

1:00., U.S. forces continue to fire machine guns and grenades. And then, 10 anti-tank missiles are fired into the house, causing massive damage. Those missiles probably killed the two Husseins and a bodyguard.

1:21, U.S. forces enter the house for the third time. Soldiers receive one last burst of fire from the second floor and kill who they believe is Qusay's teenage son. Shortly after 2:00, the four bodies are removed.

There are still questions about whether U.S. forces should have launched such a violent attack so quickly. Would it have been better to hold off and try to capture the men alive?

LT. GEN. RICARDO SANCHEZ, COALITION COMMANDER IN IRAQ: The commander on the ground made a decision based on the conditions that he was facing and I am in no position to question his decisions.

STARR: Military officials hope killing these men will encourage Iraqis to believe the old regime is gone. But they are still cautious, warning plenty of dangerous days lie ahead.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

DOBBS: President Bush today said the death of Saddam Hussein's sons is the clearest sign yet that the former regime is gone. Thirty- seven of the 55 most wanted Iraqis in that regime are either dead or now in custody.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Saddam Hussein's sons were responsible for torture, maiming and murder of countless Iraqis. Now more than ever, all Iraqis can know that the former regime is gone and will not be coming back.

(END VIDEO CLIP)

DOBBS: Today a Bush administration high-ranking official admitted that mistakes have been made in Iraq, but Deputy Defense Secretary Paul Wolfowitz insists that the overall plan has turned out much better than expected.

Senior Pentagon correspondent, Jamie McIntyre, reports.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): Deputy Defense Secretary Paul Wolfowitz spent a whirlwind four-and-a- half days touring Iraq, and while he insists the rebuilding of the country is progressing much better than many people think, he also now concedes many of the Pentagon's prewar assumptions were mistaken.

PAUL WOLFOWITZ, DEPUTY DEFENSE SECRETARY: There's been a lot of talk that there was no plan. There was a plan. But as any military officer can tell you, no plan survives first contact with reality.

MCINTYRE: Among the things Wolfowitz says the U.S. guessed wrong about, the assumption that some Iraqi army units would switch sides, that the Iraqi police would help maintain security, and that regime remnants would not resort to guerrilla tactics, although Wolfowitz disputes the term "guerrilla war."

WOLFOWTIZ: I believe this will go down as the first guerrilla tactic in history in which contract killings, killings for hire, going out and soliciting young men for $500 to take a shot at an American, was the principal tactic employed.

MCINTYRE: The miscalculations have resulted in a security problem that has forced the army to devise a complicated rotation plan to maintain roughly 150,000 U.S. troops in Iraq until at least late next year, something the army's top officer says is putting a lot of stress on soldiers and their families.

GEN. JOHN KEANE, ACTING ARMY CHIEF OF STAFF: Can we stretch them beyond the limits and impact that virtually on their families? Yes, we can. We could do that, and we don't want to do that. And so we're working very hard to avoid that.

MCINTYRE: The U.S. says it also had no idea how badly Iraq's infrastructure had been neglected over the past three decades. The cost of putting the country back on its feet will be billions.

PAUL BREMER, COALITION PROVISIONAL AUTHORITY: It will take as much as $13 billion to rebuild and meet foreseeable power demands. The United Nations estimates that we will have to spend $16 billion over the next four years just on water, and getting decent water to the population.

(END VIDEOTAPE)

MCINTYRE: But Bremer insists the glass is more than half full and the plan he presented to President Bush in outline this week in Washington, he says he'll get electricity, water, and healthcare in Iraq back to prewar levels within two months -- Lou.

DOBBS: Jamie, thank you. Jamie McIntyre, our senior Pentagon correspondent. Returning to the top story of the evening, the shooting at New York City hall, a gunman shot and killed a city councilman. The gunman shot dead by a plain clothes New York police officer. The gunman was not checked when he passed through security in city hall. And joining me now is Virginia Fields. She is Manhattan borough president , and she knew councilman Davis extremely well. Good to have you with us under these conditions, what Mayor Bloomberg called indeed a sad day for New York. The security here, council people council members entering city hall, the mayor himself entering city hall without going through the metal detectors. Are you surprised at that?

VIRGINIA FIELDS, MANHATTAN BOROUGH PRESIDENT: Well, first of all, let me say this is a real tragedy, a real loss to the city and to New York government. And I certainly do express my condolences to his family. I think it certainly raised serious questions about the enforcement of security going into city hall. And I have experienced it, of course, myself, as an elected official, gone into city hall and not necessarily going through the scanners at times.

So I think that the mayor has said it, and I firmly support him, that everyone, each one of us, no matter who we are, must go through the scanners. If that buzzer goes off, we must be checked out. And I think that's the level of security and safety that we're all looking for because for this to happen here in the center of our government certainly has shaken everyone in terms of, you know, where can we be safe?

DOBBS: A tragedy for New York, Councilman Davis well regarded. You knew the councilman. Do you have any sense of the motive for this tragedy?

FIELDS: This is so very unclear in terms of motive. I know that Councilman Davis was an extremely committed person, very committed to his constituents, and the fact that this was one of his competitors doesn't surprise me in terms of him attempting to befriend him. So motive, I don't understand, at this point, at all. And with both of them we're told now having died, we may never know.

DOBBS: Manhattan Borough President Virginia Fields, we thank you very much for being with us. Thank you so much.

Coming up next, tracking terrorists a startling admission from Iran linking Iraq's neighbor to terror. Kitty pilgrim will have the report.

And new information on two of the September 11 hijackers. Senator Evan Bayh, a member of the Senate select committee on intelligence, joins us to talk about the new developments and the much-anticipated report on the failures leading up to September 11.

Also ahead, total recall. Governor Gray Davis could be only hours away from being recalled. California's governor in serious trouble, fighting back. Judy woodruff will have the latest for us.

Stay with us. (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

QUESTION: ...mobilizing. In their with members of congress about their own people.

DONALD RUMSFELD, DEFENSE SECRETARY: Well, General Keane has been working with us on the forced rotation policy, and he might want to comment on that.

GEN. KEANE, ACTING ARMY CHIEF OF STAFF: Sure, I'd be glad to. We've established a 12-month rotation policy for Iraq. And first in is first out, so the 3rd infantry division of the United States army's coming out in August and September. The remaining marine division is coming out in the same time frame. And then the other units that are currently there will spend a 12-month tour and be replaced by other army units as well as coalition divisions.

QUESTION: Mr. Secretary, can you tell us...

RUMSFELD: Last question.

QUESTION: Did you personally sign off on killing Saddam's sons, or would you have preferred they be taken alive? And can you tell us, are you concerned about second-guessing on that whole equation?

RUMSFELD: The task of the commanders on the ground is to do their job, and their job has been without any ambiguity at all, to try to seek out, find, and capture or kill the senior leadership from Iraq. If a person is determined to fight to the death, then they may very well have that opportunity. It was not a choice that the United States or the coalition made. It was a choice that the people inside that building made.

QUESTION: One other fact on that. From the briefing, as I recall, that was given this morning, those two individuals were killed only after three American soldiers had been wounded. So this was done after Americans had taken fairly substantial casualties from them, they returned fire.

QUESTION: Mr. Secretary, is there any information that you've been able to glean from the materials that were on the persons or in the entourage or with those two sons that has led you any closer to Saddam Hussein?

RUMSFELD: I don't have anything to say on that. Thanks a lot, folks.

QUESTION: Appreciate it.

(END VIDEO CLIP)

DOBBS: Defense Secretary Rumsfeld responding, as well with the defense secretary Duncan Hunter, Congressman Hunter a 12-term Congressman, and the chair of the house armed services committee, which the defense secretary briefed just moments ago.

Turning to Iran. Iran today said it has a number of senior al Qaeda leaders in custody. The White House said the statement by Iran appears to confirm the view that there is a significant al Qaeda presence within Iran. Kitty Pilgrim reports.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNNfn CORRESPONDENT (voice-over): It started this week with President Bush accusing Iran of harboring terrorists.

BUSH: States that support terror will be held accountable.

PILGRIM: Iran is not saying who they have but today said -- quote -- "a large number of small and big-time elements of al Qaeda figures are in our custody" -- unquote.

But there is some skepticism among U.S. officials and experts over who they have.

EVAN KOHLMANN, INVESTIGATIVE PROJECT: One of the rumors that's been floating around is the No. 2 man in al Qaeda, Ayman al-Zawahiri, bin Laden's right-hand man, is one of the individuals supposedly detained by Iran.

Now I would not suggest that that's a likely rumor. I mean, Zawahiri is bin Laden's personal physician, and if I would have to guess I would say he's probably alongside bin Laden in his hiding spot, which is assumed to be, at this point, somewhere in the mountainous region between Pakistan and Afghanistan.

PILGRIM: Al Qaeda terrorists are thought to have fled to Iran from Afghanistan, and some al Qaeda are thought to have fled from the Ansar al Islam strongholds in northern Iraq during the war.

Iran can't afford to defy the United States on terrorism with U.S forces stationed around it in Iraq, Afghanistan, and elsewhere in the Persian Gulf.

White House reaction Wednesday was firm.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: Well, we made that very clear that if they're in custody, they have them, they need to turn them over.

PILGRIM: And clearly exasperated by Iran's cat and mouse game, talking about extraditing terrorists on one hand and ignoring or giving free passage on the other.

RICHARD BOUCHER, STATE DEPT. SPOKESMAN: At some points they said there's nobody here. At other points, they said there are people here, we have them in custody. At other points they've said we have people here, there are people here. We have some of them in custody.

(END VIDEOTAPE) PILGRIM: Now, Iran says the crackdown is not in response to pressure from the United States. But so far their response has been just words, and even then not nearly enough because they are still not saying exactly who they have -- Lou.

DOBBS: Beyond saying that some of them are Saudis.

PILGRIM: Yes. They have said that they're al Qaeda and, yes, they have given some detail, but they have not given enough, nearly enough. And they haven't given names, which is the most important thing.

DOBBS: Kitty, thank you very much. An interesting development. Kitty Pilgrim.

In west Africa, another contingent of Marines today arrived in Liberia. They're reinforce security at the U.S. embassy. About 20 Marines landed by helicopter from neighboring Sierra Leone. President Bush still has not decided whether or not to send U.S. peacekeepers to Liberia. But west African leaders today said they plan to send about 1,000 Nigerian troops.

Coming up next here, Congress fights back against big media. But a battle is shaping up between the White House and Capitol Hill. Peter Viles will have the report.

And conspiracy theory. Gennifer Flowers, Senator Hillary Rodham Clinton -- they're headed back to court. CNN legal analyst Jeffrey Toobin will be here to talk about what is a looming case of deja vu.

And later, total recall. California's governor could well be looking at the prospect of a recall election. Those signatures on that recall petition to be validated within a matter of hours. Judy Woodruff will have the live report for us from Sacramento.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Coming up, intelligence failures. The National Security Agency and the CIA have claimed responsibility for faulty information in the State of the Union. Admiral Bobby Inman, former director of the NSA and former deputy director of the CIA, joins us.

(COMMERCIAL BREAK)

DOBBS: A remarkable development today in the House of Representatives. Lawmakers passed by a huge margin a bill that would reverse the FCC's decision to allow broadcast networks to buy even more television stations.

Peter Viles now on the battle to rein in big media.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: The yeas are 400. The nays are 21, and the bill is passed.

PETER VILES, CNNfn CORRESPONDENT (voice-over): A stunning vote in the House, a huge majority standing up to both broadcast networks and the White House. The House rolling back new FCC rules, reinstating the old 35 percent nationwide coverage cap on TV stations owned by broadcast networks. And hoping to build a vetoproof majority, the House chose not to challenge newspaper companies. They left intact FCC rules that allow newspaper and television cross- ownership.

REP. DAVID OBEY (D), WISCONSIN: We are taking on the media giants of this country. And when you do that, you had doggone well better win.

VILES: Republicans joined Democrats in huge numbers, sticking up for local ownership of TV stations.

REP. RICHARD BURR (R),, NORTH CAROLINA: We want to make sure that independent stations have the ability to determine the value in the communities they serve, because ultimately, they are a piece of that community.

VILES: It's an issue that broadcast networks have been accused of ignoring in their own news coverage. But numerous citizen groups, from the National Rifle Association to the National Organization For Women, are fighting to keep limits on big media.

GENE KIMMELMAN, CONSUMERS UNION: It's not over the national broadcast networks, but there is a visceral public reaction, and I think Congress is getting did. The FCC received more than 2 million correspondence in opposition to relaxing these ownership rules. That's starting to happen in Congress, and Congress is starting to respond.

VILES: Facing what amounted to a no confidence vote on Capitol Hill, embattled FCC Chairman Michael Powell defended his record and stuck up for the broadcast networks, saying -- quote -- "evidence in the FCC record showed that TV networks provided more and better local news than other owners of TV stations."

For now, the White House is backing Powell. The administration saying that if Congress insists on rolling back the ownership limits, the president's senior advisers will recommend that he veto this bill.

(END VIDEOTAPE)

VILES: This fight now moves to the Senate, where in committee there has already been bipartisan support for rolling back the FCC ownership limits and reining in big media before it gets even bigger -- Lou.

DOBBS: Michael Powell, this is an incredible slap in the face to the FCC chairman.

VILES: Not only is it a slap in the face, it was unusual for him to put out this statement on the eve of this big vote against him in the House, basically saying, I'm right. I stand by my decisions. Networks are really good at this and you ought to let them own more stations. A very strange turn of events.

DOBBS: And the networks say they'll guarantee it. Bob Wright, an editorial in "The Wall Street Journal, " pointing out how good big is.

VILES: Yes. The one thing networks will never, do though -- they'll never take their own shows off a local station that they own. And that's one of the things Congressmen think is good.

DOBBS: The clincher for me, Pete, and I think for a lot of people, is when the National Organization For Women and the National Rifle Association team up, there's something going on. Pete, thanks a lot. Peter Viles.

Still ahead here, investigating September 11. A Congressional investigation has uncovered new information. Jonathan Karl will report live from Capitol Hill.

And Senator Evan Bayh, a member of the Senate Select Committee on Intelligence is our guest.

And Gennifer Flowers and Senator Hillary Rodham Clinton. You remember them. Well, they're headed back to court. CNN legal analyst Jeffrey Toobin joins us.

And "American Classics." Tonight, a brand that steered its way through 50 years of American history into the hearts of thousands and thousands. Bill Tucker on the Corvette. Next.

(COMMERCIAL BREAK)

DOBBS: A joint congressional committee that has been investigating the September 11 terrorists releases a final report tomorrow. That report contains shocking new information about what the intelligence community knew months before the attacks. What it could have done about that information is a matter of great speculation and surely will be a great amount of debate over it.

My next guest a member of the Senate Select Committee on Intelligence, which helped compile the report. Senator Evan Bayh has said he expects there will be significant public outcry on this report. Senator Bayh joins us tonight from Capitol Hill. Senator, good to have you with us.

SEN. EVAN BAYH (D), INDIANA: Good to be with you, Lou.

DOBBS: A number of leaks of elements of this report would you characterize, in your words, what you think the significance is of this report?

BAYH: Several significant areas here, Lou. No. 1, as you just said, why information wasn't shared from the intelligence community with the FBI in a more timely manner, why there wasn't better information sharing within the FBI. And one of the great unanswered questions here is we'll never know what would have happened if there had been better processing of information. My guess is we probably would not have been able to stop the attacks, but there will be endless speculation about that one.

A couple of other things. Foreign support for the hijackers. I expect that will continue to be controversial. And our investigative agencies are continuing to follow up on that. And then some internal governmental disputes, the military and how much information they require from the intelligence folks before taking action, and how much authority the intelligence folks think they need from the executive branch before they can take covert action against people like Osama bin Laden.

DOBBS: Osama bin Laden leading those terrorist attacks of September 11 with financial support, significant financial support, from, amongst others, those -- some in Saudi Arabia. Yet 28 pages, as we understand it, redacted as to the role of foreign governments in September 11. Why is that?

BAYH: It continues to be very sensitive, Lou. And there was a big fight on the behalf of the committee staff to try and get more opened up to the public. I can only speculate that this is a very sensitive foreign relations matter and one that for the best interests of our country we need to continue to follow up on because we cannot tolerate countries that pretend to be allies of ours on the one hand, but are involved in financing those who kill Americans on the other.

DOBBS: As I understand it, only the White House and the CIA had the power to redact in this report. Is that correct?

BAYH: Only the White House and the CIA can declassify information, Lou, that's correct, and they continue to be sensitive, I would suppose, about exposing sources and methods, things like that. But you know, more often than not, they err on the side of redaction rather than disclosure.

DOBBS: And that is, of course, sometimes, and I might even say usually an unfortunate propensity or predilection. Is there any way that we are going to learn more soon as a result of your committee's work and that of others about the role of foreign governments and in particular Saudi Arabia on September 11?

BAYH: That's why we have checks and balances, Lou. And I think it's incumbent upon our committee and others to press ahead with the intelligence and the justice department look at how did this money flow to the hijackers, where did it come from, and have the individuals and possibly countries from which the money came really change their ways. Are they really dedicated to no longer funding these radical groups that seek to harm America? That's our job to follow up on that and see to it that we do everything we can to shut that flow, that spigot off.

DOBBS: And how confident are you that at this point that spigot, as you have characterized it, has been shut off?

BAYH: I think that some of the sources of the cash, Lou, have found religion, so to speak, that they know that financing terrorists and radicals not only harms us but in the long run it harms them. I think there are still some others, however, perhaps still a slender majority, that in the long run are not willing, or rather let me put it this way, still want to maintain the deal with the devil they struck some time ago which is to try and accommodate the radicals, hoping that the radicals will turn their violence and anger somewhere else.

That's a losing strategy in the long run, but it's hard to get people to break the habits with which they become comfortable. We have to send an unequivocal signal, though, as a government that we simply won't tolerate that kind of behavior anymore, and that's why we need to follow this trail of evidence to the end of the road, wherever it may lead.

DOBBS: Senator, we look forward to you -- to your efforts, successful efforts on that very important work. And as always, good to talk with you. Thank you for being here tonight. Senator Evan Bayh.

BAYH: Thank you, lou.

DOBBS: An unlikely supporter came forward to the defense of President Bush surrounding the disputed intelligence claim in the president's State of the Union Address. Former president Bill Clinton suggested it's time for Democrats to drop the issue. President Clinton's comments come at a time when many Democrats are attacking the White House on the issue. In a phone interview last night with CNN's Larry King, president Clinton said, we have to move on.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: So I thought the White House did the right thing in just saying, well, we probably shouldn't have said that. And I think we ought to focus on where we are and what the right thing to do for Iraq is now. That's what I think.

(END VIDEO CLIP)

DOBBS: And that sets up the topic of tonight's question. Do you think former president Bill Clinton was right to defend President Bush? yes, maybe, or no? Cast your vote at CNN.com/lou. We'll have the results of the poll later in the show.

The final results of yesterday's poll. The question, how important is it to you that Saddam Hussein be captured or killed? 65 percent responded very. 13 percent somewhat. 22 percent said not at all.

A lawsuit stemming from president Clinton's first White House campaign has found new life in a federal court. Reviewjournal.com reports a federal judge has ruled a former Clinton mistress, Gennifer Flowers, can pursue a defamation lawsuit against former First Lady Hillary Rodham Clinton. Another judge dismissed that case almost three years ago. Flowers, however, filed a fourth version of the lawsuit this year. In it Flowers accuses Hillary Clinton, Senator Clinton, of using campaign aides George Stephanopoulos and James Carville as instruments to defame her.

Joining me now for more on this case, our legal analyst at CNN, Jeffrey Toobin. Jeffrey, this is a remarkable development.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Where are they now? Gennifer Flowers in court with everyone else.

DOBBS: This case, Judge Pro (ph) threw the case out three years ago. Back before him, again out, and now a judge, federal judge in Las Vegas making the decision there is reason to proceed.

TOOBIN: Reason to proceed, and the way it looks now, it's almost certain, I think, that Hillary Clinton will at least have to give a deposition in this case. So she's going to have to give sworn testimony about what she knew during the 1992 campaign. Carville will be deposed, and so will Stephanopoulos.

DOBBS: And senator the proposition at least at this late stage, I take it there are no statutes of limitations on this sort of thing in this country.

TOOBIN: Well, the lawsuit was filed so long ago that it was within the statute of limitations. She keeps amending it. Now the statute has probably lapsed, but she gets -- she's shoehorned in during the old statute.

DOBBS: One can imagine in these partisan, highly charged political times that conservatives, some extreme conservatives are just screaming oh, great. Liberals are say, oh, no, here we go again. And the rest of us are saying probably for the most part, oh, no, here we go again.

TOOBIN: It does seem like another case of lawsuit abuse. I mean, here you have a woman -- I brought with me my props here -- who's written two different books.

DOBBS; You're an avid reader.

TOOBIN: This was my subject. Two different books about her alleged relationship with President Clinton. She's tried to cash in on this. The whole thing started with her giving a paid interview to the "Star" supermarket tabloid.

DOBBS: So what is the view here. How does it -- she's writing about the affair with the former president, before he was president. How is it that she's being defamed by the wife of the man with whom she is having an affair?

TOOBIN: It seems very -- it seems extremely tenuous to me, but the judge says the suit will go forward and so it will.

DOBBS: American justice, not always speedy, not always -- well we better not say, not always, but it is always worth a report. An analysis by our Jeffrey Toobin, thank you. Now for a look at your thoughts. Many of you continue to write about my interview earlier this week with Ann Coulter, the author of the book "Treason".

Celeste of Montgomery, Alabama said, "It is just one small step for her to begin claiming Franco, Mussolini, and Hitler were actually noble statesman merely fighting communism and evil democrats."

James Parsons, of Winston-Salem, North Carolina comes to Ann Coulter's defense. "I find it refreshing," he says, "that Ann says what she means, as proved by the fact, that she stands firm when cross examined about what she's written. I find her comments filled with amusing observations of liberal hypocrisy and equivocation."

And Jeff Cain of Hanover Park, Illinois. "After seeing your interview with Ann Coulter, I immediately went out and bought her book. While I find her vitriolic comments in the book disconcerting. I am extremely impressed with the extensive documentation and referencing she uses to argue her position."

David Uchansky, of Los Angeles, California, wrote about our series of special reports on "American Classics" last night on Levi's. He wrote, "This company closed scores of American factories and put hundreds of American workers out of work only to move those jobs to sweatshops in Asia."

And Candace Drimmer wrote, "Glad to hear that someone besides myself cares about the U.S. government debt we are passing on to our children. Thanks, Lou, for posting the amount." Which we do every evening here. We love hearing from you. Send us your e-mails and your thoughts to loudobbs@cnn.com.

Still ahead -- U.S. Intelligence in question. Former director of the National Security Agency, former deputy director of the CIA Admiral Bobby Inman joins us. He says the CIA's efforts in the war on terror marginal. He joins us.

And in our series of special reports on "American Classics," tonight the Corvette and Bill Tucker. Stay with us.

(COMMERCIAL BREAK)

DOBBS: National security advisers this week said they share the blame for allowing faulty intelligence to appear in the president's State of the Union Address. The controversy surrounds a British report that Iraq tried to buy uranium in Niger in Africa. CIA Director George Tenet recently said he was responsible for that mistake, because his agency cleared the sentence in question. But yesterday National Security Adviser Condoleezza Rice also took responsibility for the error.

My guest now says the president's speech error shows a very sloppy performance on the part of U.S. Intelligence. Our guest, the former director of the National Security Agency, Bobby Inman. Former deputy director of the CIA, joining us tonight from Austin, Texas. Good to have you with us, admiral. ADM. BOBBY INMAN (RET.), U.S. NAVY: Thank you.

DOBBS: This is turning out to be quite a controversy, 16 words.

Is it the fault of the White House?

Is it the fault of the national security adviser and her staff or is it truly the fault of George Tenet and the CIA?

INMAN: Well, everybody shares a little in this one.

What we don't yet know is who was pressing to have this added to the speech?

And I suspect there are third or fourth parties we haven't heard from yet.

DOBBS: You notice one party I didn't mention, the man who delivered the speech, that being the president of the United States.

Should he bear any culpability for the words that flowed from his mouth?

INMAN: Unfortunately, since he articulated them, he carries the -- he will get the political blame. But I feel with great certainty that he had nothing to do with choosing those words to be put in speech as a way to justify going after Iraq.

DOBBS: When you were at National Security, when you were at the CIA serving President Ronald Reagan, did you vet his speeches?

Did you scrub them, as it were?

INMAN: I never read one of the speeches in the 18 months I was there. People at the director of intelligence did as a routine matter, looking for errors. Nothing ever surfaced in those 18 months that were considered to be controversial. If it had, it probably would have come up to me for a second guess, but I never read one. It's not a routine function that George Tenet or his deputy would do.

DOBBS: And in this case do you think that he simply did the honorable thing and took the responsibility for what those in his agency should have done properly?

INMAN: The captain of the ship is responsible for anything that happens to the ship.

DOBBS: And the ultimate captain again, I guess, is the president of the United States. But we're looking early to subordinate captains right now, it appears.

INMAN: He's clearly going to bear the ultimate political cost of the mistakes.

DOBBS: Let's talk about other mistakes. This report coming out on a number of failures, particularly communication failures between the FBI, the CIA in the events leading up to September 11 in that case. All of the failures that surround Iraq, both before the war and following.

What is your assessment of the state of U.S. intelligence today?

INMAN: Underfunded and undermanned with more than a decade of drawing down their overall size. And it's not a faucet you can turn on. As you look at the report coming out on 9/11, what happened after the wake-up call with the attack on the World Trade Center in 1993?

How many new linguists were added in the intelligence agencies?

How many new analysts to go after terrorism in detail?

I suspect the answer we're going to find is none. That in fact, there were further reductions rather than adding. You know, the Cold War was over, we really didn't need to know that much, we didn't need to be alert seven days a week 24 hours a day, five days a week eight hours a day was plenty. And now we're paying a price.

DOBBS: Admiral Bobby Inman, we thank you very much for taking time to be with us. Thanks for sharing your thoughts.

INMAN: Thank you.

DOBBS: When we continue, California's governor faces a total recall. Judy Woodruff will report on efforts to remove Governor Gray Davis from office and to insert a rather well-known figure, amongst others.

And later, an American Classic. Bill Tucker on 50 years of driving the Corvette. Stay with us.

(COMMERCIAL BREAK)

DOBBS: California today moving closer to declaring an unprecedented recall vote against Governor Gray Davis.

Judy Woodruff has more on what has turned out to be a hard-fought battle to unseat Governor Davis.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN CORRESPONDENT (voice-over): How did we get from this...

(SINGING)

WOODRUFF: To this.

UNIDENTIFIED MALE: Somebody save us from Gray Davis.

WOODRUFF: Californians gave Gray Davis a second term last year, but grudgingly. The Republican challenger was weak and the incumbents campaign ferocious. Despite his victories, the governor never really clicked with many constituents. UNIDENTIFIED MALE: He was the best worst choice.

WOODRUFF: Davis presides over a rolling electricity crisis and a staggering $38 billion budget deficit.

These days, barely 20 percent of California voters say he's doing a good job. And last spring a motivated group of activists set out to take him down.

They say they gathered far more than the nearly 900,000 signatures required to put the recall on the ballot.

REP. DARRELL ISSA (R), CALIFORNIA: We have the majority of California's likely voters believing that this governor should go.

WOODRUFF: Millionaire Republican Congressman Darrell Issa has largely bankrolled the recall drive and his hoping to replace Davis in the governors mansion. He may face a ferocious opponent.

ARNOLD SCHWARZENEGGER, ACTOR: Hasta la vista, baby.

WOODRUFF: Yes, Arnold Schwarzenegger's is testing the waters.

And former Los Angeles Mayor Richard Reardon is also in play.

No-star Democrat is publicly weighing a run, although polls show Senator Diane Feinstein would be a top contender.

Got all that? Stay tuned for a real Hollywood ending.

(END VIDEOTAPE)

WOODRUFF: So Lou, while we wait here at the state capitol for the secretary of state of California to certify that there now are enough signatures to force this recall election on the ballot this fall, we see there was a court development today. The governor's efforts to knock this out legally lost another round. They're heading to the state supreme court. Does that sound familiar? To try it one more time. Meantime, both sides are digging in, Lou. If you like politics, it doesn't get any better than this.

DOBBS: And Judy, what is your best judgment as to when we can expect to hear from the secretary of state that there is a valid number of signatures to provoke the recall?

WOODRUFF: I hate to say this, Lou, but I interviewed the secretary of state a few hours ago and he said, well, it could be tonight, it could be in the morning. The bottom line is that he will certify. I don't think there's doubt in anyone's mind anymore that there are going to be enough signatures. It's just a matter of when he certifies it. And then when the lieutenant governor, Cruz Bustamante, sets a date for the election. Probably October.

DOBBS: So it looks all but certain.

Judy, thank you very much. Judy Woodruff tonight in Sacramento, California.

When we continue, we'll have the preliminary results of "Tonight's Poll." Also, an American classic cruising into middle age looking better than ever. Aren't we all?

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Stocks up for a second straight day.

Christine Romans has the market for us -- Christine.

CHRISTINE ROMANS, CNNfn CORRESPONDENT: Slim gains. The S&P not even up a point. Slim volume, not even 1.4 billion shares. But plenty of earnings, Lou. Half the Dow's gain was Eastman Kodak. Now, Kodak rallied 9 percent a day after hitting a 15-year low. It said it will cut up to 6,000 jobs. Amazon rallied sharply after losing less money last quarter. And Sun Microsystems dropped 19 percent. And Lou, AOL Time Warner shares tumbling 7 percent. It was the best quarter since the company's merger. But the SEC still a little concerned about how the company accounted for some revenue to Bertelsmann.

DOBBS: We could have done without the last item, but nonetheless a good day for the market or at least a good day. Christine, thank you very much.

Now the preliminary results of "Tonight's Poll."

Do you think former president Bill Clinton was right to defend President Bush, 47 percent of you say, yes, 8 percent say, maybe, 45 percent say, no.

And finally tonight, our series of special reports on "American Classics." Tonight featuring a brand that has been a driving force in this country.

Bill Tucker reports tonight on a 50-year tradition called the Corvette.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I like the sound of the engines. The rumble that you get when you get in a '67 big block and turn the car on and it's fantastic. It's a feeling that I can't even explain. It just gives you goosebumps all over.

BILL TUCKER, CNN CORRESPONDENT (voice-over): In a country which loves its cars...

UNIDENTIFIED FEMALE: Care for a ride?

TUCKER: And loves to love in its cars -- the corvette stands alone. It transcends the simple idea of transportation. UNIDENTIFIED MALE: Corvettes are something that most boys always dream of as they're growing up. I've wanted one since I was in fifth grade.

TUCKER: It's the coolest car on the road. It's the American sports car.

UNIDENTIFIED MALE: They're just such a great part of America for me. They're part of growing up. That's probably most -- well, I like them so much.

TUCKER: It didn't start out that way. Introduced in 1953, the vet was in danger of disappearing with a loser reputation until General Motors stuck a V-8 under the hood in 1955 in an attempt to compete with Ford's then new coupe the Thunderbird. In 1955 GM sold just 674 Corvettes. One year later with a V-8 and manual three-speed standard equipment, GM sold 3,500, and it's never looked back. GM now makes 35,000 Vettes a year, and in the car's 50-year history the company has produced 1.3 million. Turning out the quintessential American sports car in the land of thoroughbred racing horses, Bowling Green, Kentucky.

(on camera): And this is where they sell more of them than anyone else on the planet. This is the world's largest Corvette dealership, where every available model is on display along with some of the more vintage Corvettes.

CHARLIE KERBECK, CO-PRES., KERBECK CORVETTE: I believe, and my customers believe that attitudes, feelings and opinions are 80 percent of life. The facts are only 20 percent. These cars don't make common sense, but there's more to life than common sense. There's fun, there's passion, there's excitement, and that's what these cars represent.

UNIDENTIFIED MALE: I bought my first car when my wife and I were pretty dirt poor and didn't have the money to buy it but she let me buy it and I told her I'd never buy another one. I've got about 30 now.

TUCKER (voice-over): Some people have trouble making up their mind. But everyone has their favorite. Whether it's the 1957 Corvette, which featured the first commercially available engine with fuel injection, or the 1966 Vette with its 427 engine, or the 2003 50th Anniversary Vette. But this one may be everybody's favorite. It is the holy grail of Corvettes, the EX 122. The first ever built. The hand built prototype for the 1953 Corvette. This is the true mother of all Corvettes.

(END VIDEOTAPE)

TUCKER: Now, the best-selling Corvette of all time was the 1979 Vette, just edging out the 1984 model -- Lou.

DOBBS: I love my 427 model with three deuses. Vintage, now. Vintage, but then again so am I.

Bill, thanks.

That's our show for tonight. Thanks for being with us. For all of here good night from New York.

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

Hussein's Sons Been Taken Alive? "American Classic": Gm's Corvette>

Aired July 23, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is LOU DOBBS TONIGHT for Wednesday, July 23. Here now, Lou Dobbs.
LOU DOBBS, CNN HOST: Good evening.

A deadly shooting in New York. A gunman walked into New York's city hall this afternoon and opened fire in the council chamber. Two people are dead, one of them a councilman who campaigned against violent crime.

The gunman is also dead. He was a political rival of the dead councilman. The gunman was shot and killed by a New York police officer. Eyewitness described what happened in the council chamber.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I just heard bang, bang, bang bang, bang, and I thought it was firecrackers, the first three or four, until people started, you know, screaming. That's when a bunch of us went right on the floor.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Somebody screamed "Hit the decks. Crawl under your desks." Sand that's what we all did, was hit the ground and crawl under our desks.

UNIDENTIFIED FEMALE: What was your reaction....

(END VIDEO CLIP)

DOBBS: Michael Okwu is at New York City Hall. Michael, what can you tell us?

MICHAEL OKWU, CNN CORRESPONDENT: You might have to cue me, Vivian. Keep that in mind. I don't hear anything.

UNIDENTIFIED FEMALE: Go.

OKWU: Lou, some...

DOBBS: Michael Okwu obviously having some problems with our audio. We'll be getting back to him.

We want to turn now to Virginia Field. She is Manhattan borough president. She knew Councilman Davis very well. We'll be talking with her.

We're going to go back and see if we've established audio contact with Michael Okwu. Michael, can you hear me now?

OKWU: Lou, I can hear you. I apologize for the little audio difficulty we were having.

But this is not a hearing problem that council members had this morning, this afternoon. They say what they thought was a very loud explosion somewhere in the well of city hall. They said that they thought they were experiencing some sort of a terrorist attack.

In the end, of course, two men were shot dead, the result of an incredibly spectacular shooting incident here at city hall. It happened at about 2:08 this afternoon. Othniel Askew opened fire and killed popular city council member James Davis.

Now, Davis is a former minister and a former police officer in New York City. He was shot when entering the building with Askew. This is what Mayor Michael Bloomberg had to say this afternoon. He will be followed by the New York City Police Commissioner Ray Kelly.

(BEGIN VIDEO CLIP)

MAYOR MICHAEL BLOOMBERG, NEW YORK CITY: It would appear that Mr. Askew shot James Davis, our city council member, and that Mr. Askew was in turn shot by a New York City police officer.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

RAYMOND KELLY, NYC POLICE COMMISSIONER: Witnesses say they saw askew standing over Davis, repeatedly firing shots. A New York City police officer assigned to city hall was down on the main floor of the council chamber as the shooting took place. He drew his weapon and fired six shots up at Askew.

(END VIDEO CLIP)

OKWU: The question that a lot of people had earlier this afternoon is how does someone get into city hall with a gun and then open fire? Mayor Bloomberg answered that very clearly this afternoon at the press conference when he said that both men entered together and that tapes showed that the two men were talking outside of city hall before entering. They were able to go through the magnetometers, as everyone here who's a member of city council can do, without really going through the proper checks. The mayor making it very clear this afternoon that that practice will no longer cease to exist. He will now have to go through the magnetometers, and everyone else employed in this building, Lou, will have to do the same. DOBBS: Michael, have authorities identified the police officer who reacted so quickly, acted so decisively, and effectively in firing on the gunman?

OKWU: Authorities have identified that person. We do not have his name at this point. But they said that this was somebody who was under detail to cover Davis. They work on a rotating basis. They say that he acted very quickly after that first so-called explosion was heard and that other plainclothes officers also arrived on the scene.

Some of the council members, Lou, again, described what they said was something like 15 to 20 rounds of fire. They must have heard bullets ricocheting around the building in what people here described as a very chaotic situation -- Lou.

DOBBS: Michael, thank you very much. Michael Okwu reporting from New York City Hall, the scene of this tragic shooting.

There was also a shooting this afternoon in San Antonio, Texas. Two people were killed, one seriously wounded at a real estate office. Police are searching for an employee of that real estate office. No apparent motive for the shooting. Two people dead, one injured.

Two more American soldiers were killed in Iraq, nine others wounded. One of the soldiers was killed near Mosul, a member of the 101st Airborne Division. The other soldier died near Ramadi. That's about 70 miles west of Baghdad, a member of the 3rd Armored Cavalry Regiment.

Tonight there are graphic new details about the raid in Mosul that led to the death of Saddam Hussein's sons. The coalition commander in Iraq said troops fired 10 anti-tank missiles at the building where Saddam Hussein's sons were hiding.

Barbara Starr reports from the Pentagon.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): It is Monday night when an Iraqi citizen approaches the U.S. military, warning that Uday and Qusay Hussein are hiding in this house in Mosul. All through the night, commanders plan their attack.

At 10:00 Tuesday morning, forces move in. Troops from the 101st Airborne Division, with anti-tank weapons cordoned off the house. An interpreter with a bullhorn tries to get those inside to surrender.

10:10, the first U.S. troops enter the house.

UNIDENTIFIED MALE: Immediately upon entering the building, shots were fired.

STARR: Three soldiers are wounded as they try to advance up a staircase to the second floor, where their targets are barricaded. U.S. forces withdraw and plan their second assault. Heavier weapons are called in to attack the fortified hideout. For the next two hour, sporadic gunfire erupts from the house.

10:45., soldiers get ready for their next assault, firing grenades, rockets, and hundreds of .50-caliber machine gun rounds.

11:22, a second anti-tank platoon moves in.

11:45, more weapons are called in. Helicopters attack with rockets and machine guns.

12:00 noon, U.S. forces re-enter, again drawing fire from the second floor. Again, U.S. forces withdraw.

1:00., U.S. forces continue to fire machine guns and grenades. And then, 10 anti-tank missiles are fired into the house, causing massive damage. Those missiles probably killed the two Husseins and a bodyguard.

1:21, U.S. forces enter the house for the third time. Soldiers receive one last burst of fire from the second floor and kill who they believe is Qusay's teenage son. Shortly after 2:00, the four bodies are removed.

There are still questions about whether U.S. forces should have launched such a violent attack so quickly. Would it have been better to hold off and try to capture the men alive?

LT. GEN. RICARDO SANCHEZ, COALITION COMMANDER IN IRAQ: The commander on the ground made a decision based on the conditions that he was facing and I am in no position to question his decisions.

STARR: Military officials hope killing these men will encourage Iraqis to believe the old regime is gone. But they are still cautious, warning plenty of dangerous days lie ahead.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

DOBBS: President Bush today said the death of Saddam Hussein's sons is the clearest sign yet that the former regime is gone. Thirty- seven of the 55 most wanted Iraqis in that regime are either dead or now in custody.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Saddam Hussein's sons were responsible for torture, maiming and murder of countless Iraqis. Now more than ever, all Iraqis can know that the former regime is gone and will not be coming back.

(END VIDEO CLIP)

DOBBS: Today a Bush administration high-ranking official admitted that mistakes have been made in Iraq, but Deputy Defense Secretary Paul Wolfowitz insists that the overall plan has turned out much better than expected.

Senior Pentagon correspondent, Jamie McIntyre, reports.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): Deputy Defense Secretary Paul Wolfowitz spent a whirlwind four-and-a- half days touring Iraq, and while he insists the rebuilding of the country is progressing much better than many people think, he also now concedes many of the Pentagon's prewar assumptions were mistaken.

PAUL WOLFOWITZ, DEPUTY DEFENSE SECRETARY: There's been a lot of talk that there was no plan. There was a plan. But as any military officer can tell you, no plan survives first contact with reality.

MCINTYRE: Among the things Wolfowitz says the U.S. guessed wrong about, the assumption that some Iraqi army units would switch sides, that the Iraqi police would help maintain security, and that regime remnants would not resort to guerrilla tactics, although Wolfowitz disputes the term "guerrilla war."

WOLFOWTIZ: I believe this will go down as the first guerrilla tactic in history in which contract killings, killings for hire, going out and soliciting young men for $500 to take a shot at an American, was the principal tactic employed.

MCINTYRE: The miscalculations have resulted in a security problem that has forced the army to devise a complicated rotation plan to maintain roughly 150,000 U.S. troops in Iraq until at least late next year, something the army's top officer says is putting a lot of stress on soldiers and their families.

GEN. JOHN KEANE, ACTING ARMY CHIEF OF STAFF: Can we stretch them beyond the limits and impact that virtually on their families? Yes, we can. We could do that, and we don't want to do that. And so we're working very hard to avoid that.

MCINTYRE: The U.S. says it also had no idea how badly Iraq's infrastructure had been neglected over the past three decades. The cost of putting the country back on its feet will be billions.

PAUL BREMER, COALITION PROVISIONAL AUTHORITY: It will take as much as $13 billion to rebuild and meet foreseeable power demands. The United Nations estimates that we will have to spend $16 billion over the next four years just on water, and getting decent water to the population.

(END VIDEOTAPE)

MCINTYRE: But Bremer insists the glass is more than half full and the plan he presented to President Bush in outline this week in Washington, he says he'll get electricity, water, and healthcare in Iraq back to prewar levels within two months -- Lou.

DOBBS: Jamie, thank you. Jamie McIntyre, our senior Pentagon correspondent. Returning to the top story of the evening, the shooting at New York City hall, a gunman shot and killed a city councilman. The gunman shot dead by a plain clothes New York police officer. The gunman was not checked when he passed through security in city hall. And joining me now is Virginia Fields. She is Manhattan borough president , and she knew councilman Davis extremely well. Good to have you with us under these conditions, what Mayor Bloomberg called indeed a sad day for New York. The security here, council people council members entering city hall, the mayor himself entering city hall without going through the metal detectors. Are you surprised at that?

VIRGINIA FIELDS, MANHATTAN BOROUGH PRESIDENT: Well, first of all, let me say this is a real tragedy, a real loss to the city and to New York government. And I certainly do express my condolences to his family. I think it certainly raised serious questions about the enforcement of security going into city hall. And I have experienced it, of course, myself, as an elected official, gone into city hall and not necessarily going through the scanners at times.

So I think that the mayor has said it, and I firmly support him, that everyone, each one of us, no matter who we are, must go through the scanners. If that buzzer goes off, we must be checked out. And I think that's the level of security and safety that we're all looking for because for this to happen here in the center of our government certainly has shaken everyone in terms of, you know, where can we be safe?

DOBBS: A tragedy for New York, Councilman Davis well regarded. You knew the councilman. Do you have any sense of the motive for this tragedy?

FIELDS: This is so very unclear in terms of motive. I know that Councilman Davis was an extremely committed person, very committed to his constituents, and the fact that this was one of his competitors doesn't surprise me in terms of him attempting to befriend him. So motive, I don't understand, at this point, at all. And with both of them we're told now having died, we may never know.

DOBBS: Manhattan Borough President Virginia Fields, we thank you very much for being with us. Thank you so much.

Coming up next, tracking terrorists a startling admission from Iran linking Iraq's neighbor to terror. Kitty pilgrim will have the report.

And new information on two of the September 11 hijackers. Senator Evan Bayh, a member of the Senate select committee on intelligence, joins us to talk about the new developments and the much-anticipated report on the failures leading up to September 11.

Also ahead, total recall. Governor Gray Davis could be only hours away from being recalled. California's governor in serious trouble, fighting back. Judy woodruff will have the latest for us.

Stay with us. (COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

QUESTION: ...mobilizing. In their with members of congress about their own people.

DONALD RUMSFELD, DEFENSE SECRETARY: Well, General Keane has been working with us on the forced rotation policy, and he might want to comment on that.

GEN. KEANE, ACTING ARMY CHIEF OF STAFF: Sure, I'd be glad to. We've established a 12-month rotation policy for Iraq. And first in is first out, so the 3rd infantry division of the United States army's coming out in August and September. The remaining marine division is coming out in the same time frame. And then the other units that are currently there will spend a 12-month tour and be replaced by other army units as well as coalition divisions.

QUESTION: Mr. Secretary, can you tell us...

RUMSFELD: Last question.

QUESTION: Did you personally sign off on killing Saddam's sons, or would you have preferred they be taken alive? And can you tell us, are you concerned about second-guessing on that whole equation?

RUMSFELD: The task of the commanders on the ground is to do their job, and their job has been without any ambiguity at all, to try to seek out, find, and capture or kill the senior leadership from Iraq. If a person is determined to fight to the death, then they may very well have that opportunity. It was not a choice that the United States or the coalition made. It was a choice that the people inside that building made.

QUESTION: One other fact on that. From the briefing, as I recall, that was given this morning, those two individuals were killed only after three American soldiers had been wounded. So this was done after Americans had taken fairly substantial casualties from them, they returned fire.

QUESTION: Mr. Secretary, is there any information that you've been able to glean from the materials that were on the persons or in the entourage or with those two sons that has led you any closer to Saddam Hussein?

RUMSFELD: I don't have anything to say on that. Thanks a lot, folks.

QUESTION: Appreciate it.

(END VIDEO CLIP)

DOBBS: Defense Secretary Rumsfeld responding, as well with the defense secretary Duncan Hunter, Congressman Hunter a 12-term Congressman, and the chair of the house armed services committee, which the defense secretary briefed just moments ago.

Turning to Iran. Iran today said it has a number of senior al Qaeda leaders in custody. The White House said the statement by Iran appears to confirm the view that there is a significant al Qaeda presence within Iran. Kitty Pilgrim reports.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNNfn CORRESPONDENT (voice-over): It started this week with President Bush accusing Iran of harboring terrorists.

BUSH: States that support terror will be held accountable.

PILGRIM: Iran is not saying who they have but today said -- quote -- "a large number of small and big-time elements of al Qaeda figures are in our custody" -- unquote.

But there is some skepticism among U.S. officials and experts over who they have.

EVAN KOHLMANN, INVESTIGATIVE PROJECT: One of the rumors that's been floating around is the No. 2 man in al Qaeda, Ayman al-Zawahiri, bin Laden's right-hand man, is one of the individuals supposedly detained by Iran.

Now I would not suggest that that's a likely rumor. I mean, Zawahiri is bin Laden's personal physician, and if I would have to guess I would say he's probably alongside bin Laden in his hiding spot, which is assumed to be, at this point, somewhere in the mountainous region between Pakistan and Afghanistan.

PILGRIM: Al Qaeda terrorists are thought to have fled to Iran from Afghanistan, and some al Qaeda are thought to have fled from the Ansar al Islam strongholds in northern Iraq during the war.

Iran can't afford to defy the United States on terrorism with U.S forces stationed around it in Iraq, Afghanistan, and elsewhere in the Persian Gulf.

White House reaction Wednesday was firm.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: Well, we made that very clear that if they're in custody, they have them, they need to turn them over.

PILGRIM: And clearly exasperated by Iran's cat and mouse game, talking about extraditing terrorists on one hand and ignoring or giving free passage on the other.

RICHARD BOUCHER, STATE DEPT. SPOKESMAN: At some points they said there's nobody here. At other points, they said there are people here, we have them in custody. At other points they've said we have people here, there are people here. We have some of them in custody.

(END VIDEOTAPE) PILGRIM: Now, Iran says the crackdown is not in response to pressure from the United States. But so far their response has been just words, and even then not nearly enough because they are still not saying exactly who they have -- Lou.

DOBBS: Beyond saying that some of them are Saudis.

PILGRIM: Yes. They have said that they're al Qaeda and, yes, they have given some detail, but they have not given enough, nearly enough. And they haven't given names, which is the most important thing.

DOBBS: Kitty, thank you very much. An interesting development. Kitty Pilgrim.

In west Africa, another contingent of Marines today arrived in Liberia. They're reinforce security at the U.S. embassy. About 20 Marines landed by helicopter from neighboring Sierra Leone. President Bush still has not decided whether or not to send U.S. peacekeepers to Liberia. But west African leaders today said they plan to send about 1,000 Nigerian troops.

Coming up next here, Congress fights back against big media. But a battle is shaping up between the White House and Capitol Hill. Peter Viles will have the report.

And conspiracy theory. Gennifer Flowers, Senator Hillary Rodham Clinton -- they're headed back to court. CNN legal analyst Jeffrey Toobin will be here to talk about what is a looming case of deja vu.

And later, total recall. California's governor could well be looking at the prospect of a recall election. Those signatures on that recall petition to be validated within a matter of hours. Judy Woodruff will have the live report for us from Sacramento.

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Coming up, intelligence failures. The National Security Agency and the CIA have claimed responsibility for faulty information in the State of the Union. Admiral Bobby Inman, former director of the NSA and former deputy director of the CIA, joins us.

(COMMERCIAL BREAK)

DOBBS: A remarkable development today in the House of Representatives. Lawmakers passed by a huge margin a bill that would reverse the FCC's decision to allow broadcast networks to buy even more television stations.

Peter Viles now on the battle to rein in big media.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: The yeas are 400. The nays are 21, and the bill is passed.

PETER VILES, CNNfn CORRESPONDENT (voice-over): A stunning vote in the House, a huge majority standing up to both broadcast networks and the White House. The House rolling back new FCC rules, reinstating the old 35 percent nationwide coverage cap on TV stations owned by broadcast networks. And hoping to build a vetoproof majority, the House chose not to challenge newspaper companies. They left intact FCC rules that allow newspaper and television cross- ownership.

REP. DAVID OBEY (D), WISCONSIN: We are taking on the media giants of this country. And when you do that, you had doggone well better win.

VILES: Republicans joined Democrats in huge numbers, sticking up for local ownership of TV stations.

REP. RICHARD BURR (R),, NORTH CAROLINA: We want to make sure that independent stations have the ability to determine the value in the communities they serve, because ultimately, they are a piece of that community.

VILES: It's an issue that broadcast networks have been accused of ignoring in their own news coverage. But numerous citizen groups, from the National Rifle Association to the National Organization For Women, are fighting to keep limits on big media.

GENE KIMMELMAN, CONSUMERS UNION: It's not over the national broadcast networks, but there is a visceral public reaction, and I think Congress is getting did. The FCC received more than 2 million correspondence in opposition to relaxing these ownership rules. That's starting to happen in Congress, and Congress is starting to respond.

VILES: Facing what amounted to a no confidence vote on Capitol Hill, embattled FCC Chairman Michael Powell defended his record and stuck up for the broadcast networks, saying -- quote -- "evidence in the FCC record showed that TV networks provided more and better local news than other owners of TV stations."

For now, the White House is backing Powell. The administration saying that if Congress insists on rolling back the ownership limits, the president's senior advisers will recommend that he veto this bill.

(END VIDEOTAPE)

VILES: This fight now moves to the Senate, where in committee there has already been bipartisan support for rolling back the FCC ownership limits and reining in big media before it gets even bigger -- Lou.

DOBBS: Michael Powell, this is an incredible slap in the face to the FCC chairman.

VILES: Not only is it a slap in the face, it was unusual for him to put out this statement on the eve of this big vote against him in the House, basically saying, I'm right. I stand by my decisions. Networks are really good at this and you ought to let them own more stations. A very strange turn of events.

DOBBS: And the networks say they'll guarantee it. Bob Wright, an editorial in "The Wall Street Journal, " pointing out how good big is.

VILES: Yes. The one thing networks will never, do though -- they'll never take their own shows off a local station that they own. And that's one of the things Congressmen think is good.

DOBBS: The clincher for me, Pete, and I think for a lot of people, is when the National Organization For Women and the National Rifle Association team up, there's something going on. Pete, thanks a lot. Peter Viles.

Still ahead here, investigating September 11. A Congressional investigation has uncovered new information. Jonathan Karl will report live from Capitol Hill.

And Senator Evan Bayh, a member of the Senate Select Committee on Intelligence is our guest.

And Gennifer Flowers and Senator Hillary Rodham Clinton. You remember them. Well, they're headed back to court. CNN legal analyst Jeffrey Toobin joins us.

And "American Classics." Tonight, a brand that steered its way through 50 years of American history into the hearts of thousands and thousands. Bill Tucker on the Corvette. Next.

(COMMERCIAL BREAK)

DOBBS: A joint congressional committee that has been investigating the September 11 terrorists releases a final report tomorrow. That report contains shocking new information about what the intelligence community knew months before the attacks. What it could have done about that information is a matter of great speculation and surely will be a great amount of debate over it.

My next guest a member of the Senate Select Committee on Intelligence, which helped compile the report. Senator Evan Bayh has said he expects there will be significant public outcry on this report. Senator Bayh joins us tonight from Capitol Hill. Senator, good to have you with us.

SEN. EVAN BAYH (D), INDIANA: Good to be with you, Lou.

DOBBS: A number of leaks of elements of this report would you characterize, in your words, what you think the significance is of this report?

BAYH: Several significant areas here, Lou. No. 1, as you just said, why information wasn't shared from the intelligence community with the FBI in a more timely manner, why there wasn't better information sharing within the FBI. And one of the great unanswered questions here is we'll never know what would have happened if there had been better processing of information. My guess is we probably would not have been able to stop the attacks, but there will be endless speculation about that one.

A couple of other things. Foreign support for the hijackers. I expect that will continue to be controversial. And our investigative agencies are continuing to follow up on that. And then some internal governmental disputes, the military and how much information they require from the intelligence folks before taking action, and how much authority the intelligence folks think they need from the executive branch before they can take covert action against people like Osama bin Laden.

DOBBS: Osama bin Laden leading those terrorist attacks of September 11 with financial support, significant financial support, from, amongst others, those -- some in Saudi Arabia. Yet 28 pages, as we understand it, redacted as to the role of foreign governments in September 11. Why is that?

BAYH: It continues to be very sensitive, Lou. And there was a big fight on the behalf of the committee staff to try and get more opened up to the public. I can only speculate that this is a very sensitive foreign relations matter and one that for the best interests of our country we need to continue to follow up on because we cannot tolerate countries that pretend to be allies of ours on the one hand, but are involved in financing those who kill Americans on the other.

DOBBS: As I understand it, only the White House and the CIA had the power to redact in this report. Is that correct?

BAYH: Only the White House and the CIA can declassify information, Lou, that's correct, and they continue to be sensitive, I would suppose, about exposing sources and methods, things like that. But you know, more often than not, they err on the side of redaction rather than disclosure.

DOBBS: And that is, of course, sometimes, and I might even say usually an unfortunate propensity or predilection. Is there any way that we are going to learn more soon as a result of your committee's work and that of others about the role of foreign governments and in particular Saudi Arabia on September 11?

BAYH: That's why we have checks and balances, Lou. And I think it's incumbent upon our committee and others to press ahead with the intelligence and the justice department look at how did this money flow to the hijackers, where did it come from, and have the individuals and possibly countries from which the money came really change their ways. Are they really dedicated to no longer funding these radical groups that seek to harm America? That's our job to follow up on that and see to it that we do everything we can to shut that flow, that spigot off.

DOBBS: And how confident are you that at this point that spigot, as you have characterized it, has been shut off?

BAYH: I think that some of the sources of the cash, Lou, have found religion, so to speak, that they know that financing terrorists and radicals not only harms us but in the long run it harms them. I think there are still some others, however, perhaps still a slender majority, that in the long run are not willing, or rather let me put it this way, still want to maintain the deal with the devil they struck some time ago which is to try and accommodate the radicals, hoping that the radicals will turn their violence and anger somewhere else.

That's a losing strategy in the long run, but it's hard to get people to break the habits with which they become comfortable. We have to send an unequivocal signal, though, as a government that we simply won't tolerate that kind of behavior anymore, and that's why we need to follow this trail of evidence to the end of the road, wherever it may lead.

DOBBS: Senator, we look forward to you -- to your efforts, successful efforts on that very important work. And as always, good to talk with you. Thank you for being here tonight. Senator Evan Bayh.

BAYH: Thank you, lou.

DOBBS: An unlikely supporter came forward to the defense of President Bush surrounding the disputed intelligence claim in the president's State of the Union Address. Former president Bill Clinton suggested it's time for Democrats to drop the issue. President Clinton's comments come at a time when many Democrats are attacking the White House on the issue. In a phone interview last night with CNN's Larry King, president Clinton said, we have to move on.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: So I thought the White House did the right thing in just saying, well, we probably shouldn't have said that. And I think we ought to focus on where we are and what the right thing to do for Iraq is now. That's what I think.

(END VIDEO CLIP)

DOBBS: And that sets up the topic of tonight's question. Do you think former president Bill Clinton was right to defend President Bush? yes, maybe, or no? Cast your vote at CNN.com/lou. We'll have the results of the poll later in the show.

The final results of yesterday's poll. The question, how important is it to you that Saddam Hussein be captured or killed? 65 percent responded very. 13 percent somewhat. 22 percent said not at all.

A lawsuit stemming from president Clinton's first White House campaign has found new life in a federal court. Reviewjournal.com reports a federal judge has ruled a former Clinton mistress, Gennifer Flowers, can pursue a defamation lawsuit against former First Lady Hillary Rodham Clinton. Another judge dismissed that case almost three years ago. Flowers, however, filed a fourth version of the lawsuit this year. In it Flowers accuses Hillary Clinton, Senator Clinton, of using campaign aides George Stephanopoulos and James Carville as instruments to defame her.

Joining me now for more on this case, our legal analyst at CNN, Jeffrey Toobin. Jeffrey, this is a remarkable development.

JEFFREY TOOBIN, CNN LEGAL ANALYST: Where are they now? Gennifer Flowers in court with everyone else.

DOBBS: This case, Judge Pro (ph) threw the case out three years ago. Back before him, again out, and now a judge, federal judge in Las Vegas making the decision there is reason to proceed.

TOOBIN: Reason to proceed, and the way it looks now, it's almost certain, I think, that Hillary Clinton will at least have to give a deposition in this case. So she's going to have to give sworn testimony about what she knew during the 1992 campaign. Carville will be deposed, and so will Stephanopoulos.

DOBBS: And senator the proposition at least at this late stage, I take it there are no statutes of limitations on this sort of thing in this country.

TOOBIN: Well, the lawsuit was filed so long ago that it was within the statute of limitations. She keeps amending it. Now the statute has probably lapsed, but she gets -- she's shoehorned in during the old statute.

DOBBS: One can imagine in these partisan, highly charged political times that conservatives, some extreme conservatives are just screaming oh, great. Liberals are say, oh, no, here we go again. And the rest of us are saying probably for the most part, oh, no, here we go again.

TOOBIN: It does seem like another case of lawsuit abuse. I mean, here you have a woman -- I brought with me my props here -- who's written two different books.

DOBBS; You're an avid reader.

TOOBIN: This was my subject. Two different books about her alleged relationship with President Clinton. She's tried to cash in on this. The whole thing started with her giving a paid interview to the "Star" supermarket tabloid.

DOBBS: So what is the view here. How does it -- she's writing about the affair with the former president, before he was president. How is it that she's being defamed by the wife of the man with whom she is having an affair?

TOOBIN: It seems very -- it seems extremely tenuous to me, but the judge says the suit will go forward and so it will.

DOBBS: American justice, not always speedy, not always -- well we better not say, not always, but it is always worth a report. An analysis by our Jeffrey Toobin, thank you. Now for a look at your thoughts. Many of you continue to write about my interview earlier this week with Ann Coulter, the author of the book "Treason".

Celeste of Montgomery, Alabama said, "It is just one small step for her to begin claiming Franco, Mussolini, and Hitler were actually noble statesman merely fighting communism and evil democrats."

James Parsons, of Winston-Salem, North Carolina comes to Ann Coulter's defense. "I find it refreshing," he says, "that Ann says what she means, as proved by the fact, that she stands firm when cross examined about what she's written. I find her comments filled with amusing observations of liberal hypocrisy and equivocation."

And Jeff Cain of Hanover Park, Illinois. "After seeing your interview with Ann Coulter, I immediately went out and bought her book. While I find her vitriolic comments in the book disconcerting. I am extremely impressed with the extensive documentation and referencing she uses to argue her position."

David Uchansky, of Los Angeles, California, wrote about our series of special reports on "American Classics" last night on Levi's. He wrote, "This company closed scores of American factories and put hundreds of American workers out of work only to move those jobs to sweatshops in Asia."

And Candace Drimmer wrote, "Glad to hear that someone besides myself cares about the U.S. government debt we are passing on to our children. Thanks, Lou, for posting the amount." Which we do every evening here. We love hearing from you. Send us your e-mails and your thoughts to loudobbs@cnn.com.

Still ahead -- U.S. Intelligence in question. Former director of the National Security Agency, former deputy director of the CIA Admiral Bobby Inman joins us. He says the CIA's efforts in the war on terror marginal. He joins us.

And in our series of special reports on "American Classics," tonight the Corvette and Bill Tucker. Stay with us.

(COMMERCIAL BREAK)

DOBBS: National security advisers this week said they share the blame for allowing faulty intelligence to appear in the president's State of the Union Address. The controversy surrounds a British report that Iraq tried to buy uranium in Niger in Africa. CIA Director George Tenet recently said he was responsible for that mistake, because his agency cleared the sentence in question. But yesterday National Security Adviser Condoleezza Rice also took responsibility for the error.

My guest now says the president's speech error shows a very sloppy performance on the part of U.S. Intelligence. Our guest, the former director of the National Security Agency, Bobby Inman. Former deputy director of the CIA, joining us tonight from Austin, Texas. Good to have you with us, admiral. ADM. BOBBY INMAN (RET.), U.S. NAVY: Thank you.

DOBBS: This is turning out to be quite a controversy, 16 words.

Is it the fault of the White House?

Is it the fault of the national security adviser and her staff or is it truly the fault of George Tenet and the CIA?

INMAN: Well, everybody shares a little in this one.

What we don't yet know is who was pressing to have this added to the speech?

And I suspect there are third or fourth parties we haven't heard from yet.

DOBBS: You notice one party I didn't mention, the man who delivered the speech, that being the president of the United States.

Should he bear any culpability for the words that flowed from his mouth?

INMAN: Unfortunately, since he articulated them, he carries the -- he will get the political blame. But I feel with great certainty that he had nothing to do with choosing those words to be put in speech as a way to justify going after Iraq.

DOBBS: When you were at National Security, when you were at the CIA serving President Ronald Reagan, did you vet his speeches?

Did you scrub them, as it were?

INMAN: I never read one of the speeches in the 18 months I was there. People at the director of intelligence did as a routine matter, looking for errors. Nothing ever surfaced in those 18 months that were considered to be controversial. If it had, it probably would have come up to me for a second guess, but I never read one. It's not a routine function that George Tenet or his deputy would do.

DOBBS: And in this case do you think that he simply did the honorable thing and took the responsibility for what those in his agency should have done properly?

INMAN: The captain of the ship is responsible for anything that happens to the ship.

DOBBS: And the ultimate captain again, I guess, is the president of the United States. But we're looking early to subordinate captains right now, it appears.

INMAN: He's clearly going to bear the ultimate political cost of the mistakes.

DOBBS: Let's talk about other mistakes. This report coming out on a number of failures, particularly communication failures between the FBI, the CIA in the events leading up to September 11 in that case. All of the failures that surround Iraq, both before the war and following.

What is your assessment of the state of U.S. intelligence today?

INMAN: Underfunded and undermanned with more than a decade of drawing down their overall size. And it's not a faucet you can turn on. As you look at the report coming out on 9/11, what happened after the wake-up call with the attack on the World Trade Center in 1993?

How many new linguists were added in the intelligence agencies?

How many new analysts to go after terrorism in detail?

I suspect the answer we're going to find is none. That in fact, there were further reductions rather than adding. You know, the Cold War was over, we really didn't need to know that much, we didn't need to be alert seven days a week 24 hours a day, five days a week eight hours a day was plenty. And now we're paying a price.

DOBBS: Admiral Bobby Inman, we thank you very much for taking time to be with us. Thanks for sharing your thoughts.

INMAN: Thank you.

DOBBS: When we continue, California's governor faces a total recall. Judy Woodruff will report on efforts to remove Governor Gray Davis from office and to insert a rather well-known figure, amongst others.

And later, an American Classic. Bill Tucker on 50 years of driving the Corvette. Stay with us.

(COMMERCIAL BREAK)

DOBBS: California today moving closer to declaring an unprecedented recall vote against Governor Gray Davis.

Judy Woodruff has more on what has turned out to be a hard-fought battle to unseat Governor Davis.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN CORRESPONDENT (voice-over): How did we get from this...

(SINGING)

WOODRUFF: To this.

UNIDENTIFIED MALE: Somebody save us from Gray Davis.

WOODRUFF: Californians gave Gray Davis a second term last year, but grudgingly. The Republican challenger was weak and the incumbents campaign ferocious. Despite his victories, the governor never really clicked with many constituents. UNIDENTIFIED MALE: He was the best worst choice.

WOODRUFF: Davis presides over a rolling electricity crisis and a staggering $38 billion budget deficit.

These days, barely 20 percent of California voters say he's doing a good job. And last spring a motivated group of activists set out to take him down.

They say they gathered far more than the nearly 900,000 signatures required to put the recall on the ballot.

REP. DARRELL ISSA (R), CALIFORNIA: We have the majority of California's likely voters believing that this governor should go.

WOODRUFF: Millionaire Republican Congressman Darrell Issa has largely bankrolled the recall drive and his hoping to replace Davis in the governors mansion. He may face a ferocious opponent.

ARNOLD SCHWARZENEGGER, ACTOR: Hasta la vista, baby.

WOODRUFF: Yes, Arnold Schwarzenegger's is testing the waters.

And former Los Angeles Mayor Richard Reardon is also in play.

No-star Democrat is publicly weighing a run, although polls show Senator Diane Feinstein would be a top contender.

Got all that? Stay tuned for a real Hollywood ending.

(END VIDEOTAPE)

WOODRUFF: So Lou, while we wait here at the state capitol for the secretary of state of California to certify that there now are enough signatures to force this recall election on the ballot this fall, we see there was a court development today. The governor's efforts to knock this out legally lost another round. They're heading to the state supreme court. Does that sound familiar? To try it one more time. Meantime, both sides are digging in, Lou. If you like politics, it doesn't get any better than this.

DOBBS: And Judy, what is your best judgment as to when we can expect to hear from the secretary of state that there is a valid number of signatures to provoke the recall?

WOODRUFF: I hate to say this, Lou, but I interviewed the secretary of state a few hours ago and he said, well, it could be tonight, it could be in the morning. The bottom line is that he will certify. I don't think there's doubt in anyone's mind anymore that there are going to be enough signatures. It's just a matter of when he certifies it. And then when the lieutenant governor, Cruz Bustamante, sets a date for the election. Probably October.

DOBBS: So it looks all but certain.

Judy, thank you very much. Judy Woodruff tonight in Sacramento, California.

When we continue, we'll have the preliminary results of "Tonight's Poll." Also, an American classic cruising into middle age looking better than ever. Aren't we all?

Stay with us.

(COMMERCIAL BREAK)

DOBBS: Stocks up for a second straight day.

Christine Romans has the market for us -- Christine.

CHRISTINE ROMANS, CNNfn CORRESPONDENT: Slim gains. The S&P not even up a point. Slim volume, not even 1.4 billion shares. But plenty of earnings, Lou. Half the Dow's gain was Eastman Kodak. Now, Kodak rallied 9 percent a day after hitting a 15-year low. It said it will cut up to 6,000 jobs. Amazon rallied sharply after losing less money last quarter. And Sun Microsystems dropped 19 percent. And Lou, AOL Time Warner shares tumbling 7 percent. It was the best quarter since the company's merger. But the SEC still a little concerned about how the company accounted for some revenue to Bertelsmann.

DOBBS: We could have done without the last item, but nonetheless a good day for the market or at least a good day. Christine, thank you very much.

Now the preliminary results of "Tonight's Poll."

Do you think former president Bill Clinton was right to defend President Bush, 47 percent of you say, yes, 8 percent say, maybe, 45 percent say, no.

And finally tonight, our series of special reports on "American Classics." Tonight featuring a brand that has been a driving force in this country.

Bill Tucker reports tonight on a 50-year tradition called the Corvette.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I like the sound of the engines. The rumble that you get when you get in a '67 big block and turn the car on and it's fantastic. It's a feeling that I can't even explain. It just gives you goosebumps all over.

BILL TUCKER, CNN CORRESPONDENT (voice-over): In a country which loves its cars...

UNIDENTIFIED FEMALE: Care for a ride?

TUCKER: And loves to love in its cars -- the corvette stands alone. It transcends the simple idea of transportation. UNIDENTIFIED MALE: Corvettes are something that most boys always dream of as they're growing up. I've wanted one since I was in fifth grade.

TUCKER: It's the coolest car on the road. It's the American sports car.

UNIDENTIFIED MALE: They're just such a great part of America for me. They're part of growing up. That's probably most -- well, I like them so much.

TUCKER: It didn't start out that way. Introduced in 1953, the vet was in danger of disappearing with a loser reputation until General Motors stuck a V-8 under the hood in 1955 in an attempt to compete with Ford's then new coupe the Thunderbird. In 1955 GM sold just 674 Corvettes. One year later with a V-8 and manual three-speed standard equipment, GM sold 3,500, and it's never looked back. GM now makes 35,000 Vettes a year, and in the car's 50-year history the company has produced 1.3 million. Turning out the quintessential American sports car in the land of thoroughbred racing horses, Bowling Green, Kentucky.

(on camera): And this is where they sell more of them than anyone else on the planet. This is the world's largest Corvette dealership, where every available model is on display along with some of the more vintage Corvettes.

CHARLIE KERBECK, CO-PRES., KERBECK CORVETTE: I believe, and my customers believe that attitudes, feelings and opinions are 80 percent of life. The facts are only 20 percent. These cars don't make common sense, but there's more to life than common sense. There's fun, there's passion, there's excitement, and that's what these cars represent.

UNIDENTIFIED MALE: I bought my first car when my wife and I were pretty dirt poor and didn't have the money to buy it but she let me buy it and I told her I'd never buy another one. I've got about 30 now.

TUCKER (voice-over): Some people have trouble making up their mind. But everyone has their favorite. Whether it's the 1957 Corvette, which featured the first commercially available engine with fuel injection, or the 1966 Vette with its 427 engine, or the 2003 50th Anniversary Vette. But this one may be everybody's favorite. It is the holy grail of Corvettes, the EX 122. The first ever built. The hand built prototype for the 1953 Corvette. This is the true mother of all Corvettes.

(END VIDEOTAPE)

TUCKER: Now, the best-selling Corvette of all time was the 1979 Vette, just edging out the 1984 model -- Lou.

DOBBS: I love my 427 model with three deuses. Vintage, now. Vintage, but then again so am I.

Bill, thanks.

That's our show for tonight. Thanks for being with us. For all of here good night from New York.

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Hussein's Sons Been Taken Alive? "American Classic": Gm's Corvette>