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Lou Dobbs Tonight

Police Arrest Six Terror Suspects in Europe; Millions Shop on Black Friday; Army Reservist Granted Leave To Take Care Of Wife, Newborn Son

Aired November 28, 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.


JOHN KING, CNN ANCHOR: Tonight: Millions of Americans go to the mall, as retailers launch the holiday shopping season. But will the buying frenzy last? Kitty Pilgrim will report.
In Europe, police hunting radical Islamists arrest six people in three countries. One of the suspects may have been planning suicide bomb attacks in Britain.

In "Heroes" tonight, the Army reservist whose duties as a military policeman in Iraq collided with his responsibilities as a new father. Casey Wian will report.

And "Reel World." The big studios open the holiday movie season with a barrage of new films. "Hollywood Reporter" columnist Martin Grove will tell us the likely winners and losers.

ANNOUNCER: This is LOU DOBBS TONIGHT for Friday, November 28. Sitting in for Lou Dobbs, John King.

KING: Good evening from the nation's capital. Lou is off tonight.

One day after President Bush's dramatic visit to Baghdad, a reminder today that the war goes on in Iraq and American troops are being killed almost every day. Insurgents today killed a U.S. soldier in a mortar attack in Mosul. The president visited Iraq, despite the persistent attacks on U.S. troops and on Iraqis. The continuing violence is one of the biggest potential threats to the president's reelection prospects.

White House correspondent Dana Bash reports tonight from near the president's ranch in Crawford, Texas, on the president's dramatic trip and the day-after reaction -- Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, John, the White House is still basking in the glow of what they were able to pull off, the stealth mission, to Iraq, the images it provided, and the buzz surrounding it over the past 24 hours.

But they know all too well, John, from experience, that positive news, positive images are a single event, could not necessarily have staying power. And it is the violence and the president's policies in Iraq that they are most concerned about for the long term.

And Condoleezza Rice, the president's national security adviser, defended the transition plan that they have in place to get Iraqis back into power and for the United States to pull out. That plan has been challenged by some Iraqi leaders.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: I'm quite certain that, in the end, this plan is going to be implemented in a way that really does give to the Iraqi people the kind of voice that they need, recognizing that this is an interim step, that, eventually, they will need to have a permanent constitution and nationwide elections.

(END VIDEO CLIP)

BASH: But, of course, this is, John, an election year. And anything that the president does, whether they say it is -- was for political reasons or not is seen through that prism.

And the White House did focus on the images with the president and the troops. That made it hard for Democrats to criticize. The candidates out on the campaign trail were very careful in saying that they understand it is important for a commander in chief to visit troops abroad, but they also were very careful to quickly try to turn it back to the president's policy in Iraq, Howard Dean saying that the men and women shouldn't be there in the first place, and John Kerry saying that it is a shooting gallery there and that is the issue. It is the president's policy. That's what John Kerry and Howard Dean both said today -- John.

KING: And, Dana, the White House is saying this trip was first conceived when?

BASH: They're saying that this was -- had been kicked around for a while, but this specific trip, to do it on Thanksgiving, they say was conceived in mid-October, that Andy Card, the White House chief of staff, broached it with the president when they were in Asia. And then they started the ball rolling.

His deputy, Joe Hagin, starting getting all the details in place. But they said it wasn't finalized until just a few hours before the president left during a video conference with President Bush at his ranch here, talking to the vice president and other senior advisers. And they all said, go ahead.

KING: Dana Bash, live for us from near the president's ranch in Crawford, Texas, where we assume where the president is, where they say he is, tonight -- thank you, Dana.

And during his visit to Baghdad, the president met with troops from three Army units heavily engaged in the war against insurgents and terrorists. Those units were the 1st Armored Division, the 82nd Airborne Division, and the 2nd Armored Cavalry Regiment. All those units are scheduled to be replaced in the spring, after a year of combat duty.

The president's visit also lifted the morale of troops elsewhere in Iraq, including members of the 4th Infantry Division in Tikrit. (BEGIN VIDEO CLIP)

SPEC. JAMES HILL, 4TH INFANTRY DIVISION: I think that it's good that President Bush came down and showed support for all the troops that are over here fighting.

SPEC. QUINCY FORDE, 4TH INFANTRY DIVISION: I think he showed great support, knowing that we're away from our families. And for him to come over here and be with us during this time shows great support.

(END VIDEO CLIP)

KING: Suicide bombers are one of the biggest threats to U.S. troops and Iraqis. Today, German police arrested an Algerian suspected of recruiting Islamic extremists to carry out suicide attacks in Iraq.

Several other suspect are under arrest in Italy. Separately, British police have arrested a Muslim man who may have been planing a suicide bomb attack in Great Britain.

Matthew Chance reports from Western England.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): British security officials say this could be a major breakthrough in their counterterrorism efforts. Already a small, but significant quantity of high explosives has been seized, enough, say police, for a suicide bomber. Security forces and forensic teams have raided other properties in the search for more.

DAVID BLUNKETT, BRITISH INTERIOR MINISTER: The ongoing investigation will reveal the extent of the nature of the activity of the individual and individuals that have been picked up now. But, obviously, the use of the Terrorism Act 2000 indicates the extent of the concern for the security and counterterrorism branch of the Metropolitan Police.

CHANCE: The 24-year-old terrorism suspect arrested at his family home is said to be British, of Asian origin. Neighbors describe him as an intelligent man who takes his religion seriously. He's believed to have trained in Pakistan as a Muslim cleric.

UNIDENTIFIED FEMALE: We've known them for quite a long time and got on really well with them. They're lovely people.

CHANCE: Britain has proved a haven for a number of militants in the past, most notoriously, Richard Reid, the shoe bomber, sentenced to three life sentences earlier this year for trying to blow up a U.S. airliner. Police say links between suspected British terrorists are under constant scrutiny, but not every terrorist plot can be foiled.

(on camera): The bombing of the British Consulate and a London- based bank in Istanbul earlier this month has heightened fears that Britain itself may be an imminent al Qaeda target. Even police here in Gloucester say their operations are not ended. Nationwide, there could be more raids and more arrests in the days ahead.

Matthew Chance, CNN, Gloucester, in Western England.

(END VIDEOTAPE)

KING: Authorities in Turkey today said they have identified the suicide bomber who detonated a truck bomb outside the London-based HSBC Bank in Istanbul last week. That suspect is a Turkish citizen with a history of ties to radical Islamists. Groups linked to al Qaeda claimed responsibility for the HSBC bombing and three other attacks. Those attacks killed 61 people and wounded more than 700 others.

Mike Boettcher has been following the investigation and joins me now from Istanbul.

Mike, is there any known connection at this point between these attacks in Turkey and the terrorism we see going on inside Iraq?

MIKE BOETTCHER, CNN NATIONAL CORRESPONDENT: That is what is believed by counterterrorism officials in this region.

President Bush said this was a new front on the war on terrorism. They rather think this is an extension of the war in Iraq, to Turkey and to other countries in the region which support the United States, Jordan, Saudi Arabia and also Turkey. The proof is in the groups that conducted what they believe is the attack here in Turkey. One is called Turkish Hezbollah. The other is called Beyyiat el-Imam. And those two groups work rather closely with Ansar al-Islam, which is believed by U.S. officials to be the No. 1 terrorist group in Iraq attacking U.S. soldiers.

So they believe it is an extension of the war in Iraq into Turkey.

KING: You say an extension into Turkey, Mike. Any particular reason why Turkey would be chosen as a place to target?

BOETTCHER: Well, John, if you go back into the al Qaeda manuals -- and we have thousands of pages of their documents -- you can say that, perhaps, they wanted to keep Turkish troops from ever coming in here, although the Turks aren't here now and it doesn't look they will be here.

But, in the documents, al Qaeda is not based on that particular kind of strategy. They're based on the strategy of attacking Westerners in Muslim countries and around the world. And they say in their documents that -- specifically -- that al Qaeda operatives should attack non-Muslims in Muslim countries. And in those documents, they specifically mention banks and they mention religious institutions and other places. And those are precisely the places that were hit in Turkey.

KING: And, Mike, when you talk to your sources in the counterterrorism community, is it their sense that Turkey now, but perhaps a plan to broaden attacks to other countries in the region? BOETTCHER: No, that is the real fear.

We have learned from counterterrorism officials in this region that, already, there is a proliferation of weapons leaving Iraq, going to countries surrounding Iraq. We know that there have been people intercepted who have been trying to smuggle surface-to-air missiles that were part of the former Iraqi arsenal out of Iraq into the region. And there is a real fear that this is spreading to those areas, to our allies, to the United States' allies in that region.

And that would be, specifically, Saudi Arabia, Jordan and Turkey. And Turkey has already suffered from this.

KING: And, Mike, one last question. Any evidence that the wakeup call, if you will, of these terrible attacks in Turkey, has that prompted any new intelligence sharing, any improved intelligence sharing, or did those governments in the region believe they were doing the job even before this happened?

BOETTCHER: The feeling was that the Turkish intelligence agencies actually had been doing a very good job. There had been sharing in the region. The turks are very close to the Israelis, very close to the Jordanians, other nations in the region, also the United States and Europeans. And they had been sharing information.

But the way al Qaeda communicates now is not over telephone and not over radios. They communicate person to person. So, if these groups did communicate that way, it's impossible, really, to stop a suicide attack with that sort of communication. You can have an idea where something is going to happen, but you don't know exactly where it is. And that's what they're facing.

But what it has done is made these intelligence agencies even try to work closer than they have before.

KING: Thank you, Mike -- Mike Boettcher in Istanbul. Thank you again.

Now turning now to the crisis between Israel and the Palestinians, the United Nations secretary-general, Kofi Annan, today said Israel is violating a U.N. resolution to halt construction of a security barrier around the West Bank. Annan said the barrier is a -- quote -- "deeply counterproductive act."

Yesterday, Israeli Prime Minister Ariel Sharon said the barrier essential to Israeli security. But Mr. Sharon said, Israel might give up some occupied land in return for peace.

And coming up: It's make-or-break time for retailer across the country. And so far, things are looking up for the holiday shopping season. Kitty Pilgrim will report from New York's 34th Street. And Kris Osborn is on Chicago's Magnificent Mile.

Then: the movies to hit or miss this Hollywood weekend. Marty Grove of "The Hollywood Reporter" will have a preview for us. And tonight, in our special report, "The Throwaway Society," the dangers of toxic waste and why taxpayers are left to foot the cleanup bill. Lisa Sylvester will report.

(COMMERCIAL BREAK)

KING: Millions of Americans today, myself included, set out to begin their holiday shopping. The day after Thanksgiving is one of the most important shopping days of the year for retailers, viewed as a key test of consumer spending habits.

Tonight, we have reports from two of the busiest shopping areas in the country. Kitty Pilgrim is live on wind-swept -- wind-swept -- wind-swept very much -- look at that -- 34th Street in New York City. And Kris Osborn is indoors -- lucky for him -- at a Westfield shopping center in Chicago.

Let's start in Midtown Manhattan -- Kitty.

KITTY PILGRIM, CNN CORRESPONDENT: Hi, John.

Well, in the retail world, this really is crunch time. Things have to go well. Up to 40 percent of retail sales are made between Thanksgiving and Christmas.

(BEGIN VIDEOTAPE)

PILGRIM (voice-over): And they're off. At the crack of dawn, even before it was daylight, hundreds lined up outside this Wal-Mart near Chicago. The line snakes all around the parking lot. Local police cars line up outside to keep the order. The holiday frenzy started early today, 6:00 a.m., in this case. And shoppers bought into it.

UNIDENTIFIED FEMALE: And you have to be here within the first hour or these things that are really cheap will be gone.

PILGRIM: Sales are now timed to expire at certain deadlines to create frenzy, finely tuned shopping excitement organized and orchestrated.

MARSHAL COHEN, THE NPD GROUP: This year, we're seeing a lot more creative discounts. A lot more of them are on a time schedule. Buy before 11:00 and save 50 percent or today only.

PILGRIM: The National Retail Federation says retail sales are projected to be up this year about 3 to 5 percent. But prices are definitely lower.

The toy wars started early. A few weeks ago, discounter Wal-Mart cut prices on a dozen popular toys, hoping to lure in customers with that, who will purchase other items when they are there. Toys 'R' Us has a coupon book. In the last three years, Toys 'R' Us pulled out big profits in the holiday season.

Target also has been promoting toys for weeks. Big sellers at Christmas, electronics. Already today, the stores were jammed. Despite the effort to generate frenzy, there is plenty of supply. In electronics, the customer can pick and choose and wait out the sales.

STEPHEN MOORE, PRESIDENT, CLUB FOR GROWTH: I wouldn't be surprised if you see that happening by the middle of December, that prices are slashed again if retailers get very nervous about the amount of inventory on their shelves.

PILGRIM: This year, experts say there is no big-must have item. So the consumer is in charge of when and where he purchases.

(END VIDEOTAPE)

PILGRIM: Now, the customer is not completely manipulated. Many have learned in recent years to wait until closer to the holiday to wait for deeper discounts -- John.

KING: And, Kitty, contrary to popular belief, today, Black Friday, as it is called, is not the busiest shopping day of the year, correct?

PILGRIM: That's exactly right, John.

In recent years, it's shifted a bit. And now the Saturday before Christmas is when we have the biggest shopping day of the year, typically. People are really waiting until the very, very last second. But you really wouldn't know it today. We have hundreds of people out on the street in New York. And it's raining, and they didn't stay home.

KING: Kitty Pilgrim, we thank you for waiting in those conditions for us. Get inside. Thank you very much.

And retailers around the country are hoping for equally impressive sales.

Kris Osborn is live from the Westfield shopping center in Chicago.

Kris, how are the crowds out there tonight?

KRIS OSBORN, CNN CORRESPONDENT: Good evening to you, John.

The crowds have steadily been increasing throughout the day. And a question on the minds of many economists at this hour is to what extent will the recent positive economic data translate into revenues at the cash register, something they are very much hoping for and, as Kitty said, something that is very much on the line for them.

Some of the recent numbers include -- the National Retail Federation estimates that consumers will spend as much as $217 billion this holiday season. In addition to that, consumer confidence jumped up 10 points to 91 percent projected for November.

So, for some additional perspective on these issues, we're joined by Gary Levin. He is a partner with Deloitte. Thank you very much for your time.

GARY LEVIN, RETAIL CONSULTANT & PARTNER, DELOITTE: Thank you. Thank you.

OSBORN: Let's start with this. Consumer spending such an engine driving the overall economy. What's your sense of how this holiday season is shaping up?

LEVIN: I think this is going to be one of the better holiday seasons in the last couple years, as consumers are feeling better. The economic figures are showing that by growth in the economy. And they've got more money to spend, after refinancing mortgages the first half of the year.

OSBORN: Now, is this kind of a bellwether, a microcosm for the larger economy? What might it suggest for the economy as a whole overall?

LEVIN: I think this season will be a driver for the economy in '04. And if performance continues to be strong at the retail register, I think you're going to see the economy continue to bode well in '04.

OSBORN: It certainly could build on the recent 8.2, the percentage in growth mentioned. Thank you very much.

LEVIN: Thank you.

OSBORN: Gary Levin from Deloitte, a partner, appreciate your perspective very much.

So, John, some optimism here, at least thus far. A lot of people will be looking at this first weekend to see what kind of numbers are coming in -- back to you.

KING: Kris Osborn in Chicago, looks like a fun night out there. Enjoy.

OSBORN: I will.

KING: Now "The Throwaway Society," our special report on a wasteful nation -- tonight, toxic waste. The problem is spreading, while money for cleanup is disappearing. Lisa Sylvester will report.

And "America's Bright Future" -- tonight, two of the youngest and brightest stars in athletics today.

Those stories and a great deal more still ahead.

(COMMERCIAL BREAK)

KING: Tonight, our special report, "The Throwaway Society." The 230 million tons of garbage that Americans throw away every year isn't our only waste. This country also disposes of 41 million tons of toxic waste from power plants, nuclear reactors and oil and chemical companies.

Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): There's a menacing sign telling homeowners to stay away from the acid waste at this former copper mine in Elizabeth, Vermont. It's one of the hazardous waste sites waiting to be cleaned up under the Environmental Protection Agency's Superfund Program.

But it could be a while. The Superfund trust has virtually run out of money. Next year, taxpayers, not the polluters, will be expected to pay for the lion's share of the EPA cleanup fund, more than $1 billion.

WESLEY WARREN, NATURAL RESOURCES DEFENSE COUNCIL: Where I come from, you're supposed to clean up after yourself. And the oil and chemical companies that have created this problem now are not being expected to pay anything towards the cleanup of the cost of this program.

SYLVESTER: One in four Americans lives within four miles of a toxic waste site, according to Environmental Protection Agency data. During the Clinton years, about 358 toxic sites were decontaminated each year. In the last two years, that number has been cut in half.

The Environmental Protection Agency insists, it is still committed to the Superfund program.

BARRY BREEN, EPA DEPUTY ADMINISTRATOR: What's happened is not that we've changed what we're doing, but that the sites we're now getting to are just those harder ones.

SYLVESTER: Cleaning up toxic oil, lead and acid waste is one problem. An even bigger problem is what to do with radioactive waste. Nevada is fighting a plan that would transport and dump 77,000 tons of the most hazardous nuclear waste under the Yucca Mountain.

UNIDENTIFIED MALE: This battle's not over. This is a skirmish in a war.

SYLVESTER: And this week, the Bush administration announced, it is considering a controversial plan that, for the first time, would allow low-level radioactive material to be dumped in ordinary landfills.

(END VIDEOTAPE)

SYLVESTER: The Environmental Protection Agency is seeking public comments on this proposal. The Bush administration is likely to face a fight over this one. Colorado Senator Ben Nighthorse Campbell has already sent a letter to the new EPA chief, warning that, if this goes through, it will likely undermine the public's confidence in the agency -- John.

KING: Now, Lisa, there was a time when companies had to pick up at least some of the tab. What changed?

SYLVESTER: Well, 1980, Love Canal, you had about 600 families that had to move from their homes in New York. And after that, the philosophy was that polluters should be responsible and polluters pay.

Well, that changed in 1995. Congress essentially changed the rules and no longer required companies to pay into the Superfund program. And that's why we're in the situation where we are in today. The fund is virtually bankrupt and taxpayers are going to have to foot the bill -- John.

KING: And the debate continues.

Lisa Sylvester, thank you.

Coming up: "America's Bright Future" -- tonight, two young people who have accomplished more in just a few years than most will in a lifetime. We'll share their stories next.

And it was supposed to leave no child behind. But is the president's plan to overhaul education in this country living up to its promise? Bill Tucker will report.

(COMMERCIAL BREAK)

KING: Tonight, we begin our series of special reports, "America's Bright Future." Tonight and all next week, we will be inducing you to Americans who have found their life's passion at a very young age. Their extraordinary talent, skill and drive are an inspiration to Americans of all ages.

We begin with profiles of two youngsters making their mark on the sporting world. One of them was barely in school when he mastered a sport that is surging in popularity. Now he's known to fans as Little Tricky.

Katharine Barrett reports.

(BEGIN VIDEOTAPE)

KATHARINE BARRETT, CNN CORRESPONDENT (voice-over): Mitchie Brusco is equal parts grace, grit and the occasional grin in a pint- sized perpetual motion package.

This kindergartner's favorite park is the skateboard park, where he swoops with a focus and precision of those three times his age. Mitchie himself would rather skate than chat.

(on camera): When you've worked really hard and you finally get something that you've been working really hard on, how do you feel?

MITCHIE BRUSCO, SKATEBOARDER: Happy.

BARRETT (voice-over): Since the day he first stepped onto a board at 3 1/2, his skills and childish charm have landed him 13 corporate sponsors. UNIDENTIFIED FEMALE: Within a day, he was dropping into this little 2-foot halfpipe. And I believe, within the one or two days after that, they wanted to sponsor him.

BARRETT: Now, from the top of his sticker-plastered helmet to his temporary Jones Soda tattoo, Lego shirt, and size 1 DC Shoes, Brusco is a walking, wheeling marketing machine.

CASSANDRA HAYWARD, JONES SODA: He's kind of a grown man in a little boy's body. He knows how to talk to people. He knows how to be a kid. He knows how to just do whatever it is that he loves to do the best. The light in his eyes and the excitement that he creates around the brand is wonderful.

BARRETT (on camera): Mitchie's sponsors are hoping to ride along with a skateboard boom. The number of skateboarders has doubled in the past eight years. So has spending on related gear. A rider can spend as much as $60 on his board alone, another several hundred dollars on top-of-the-line titanium ball bearings, wheels and other parts.

(voice-over): The second youngest in his family of five, Mitchie's sponsors have helped fill the Bruscos' fridge with soda, their closets with shoes, clothing and Lego toys.

JENNIFER BRUSCO, MOTHER OF MITCHIE: Being a one-working family, it helps. Back to school, as any parent out there knows, that's a huge impact.

BARRETT: Both Mitchie's parents were college scholarship athletes. They say the choice will be his, but hope his love of this sport gives him an even longer ride.

UNIDENTIFIED MALE: Yes!

MICK BRUSCO, MITCHIE'S DAD: Every kid dreams of being professional baseball player, basketball player. I don't think it's too young to dream. And with Mitch I think it might be more of a reality now at a young age than it really was more me.

BARRETT: But the day we met, this four-wheeled whiz kid said, when he grows up, he wants to be a policeman. Katherine Barrett for CNN, Kirkland, Washington.

(END VIDEOTAPE)

KING: I want a trampoline like that. Like skateboarding, the world of golf is in awe with the talent of another young American. Michelle Wie is called the "Big Wheezey." That's in honor of Ernie Els' nickname "the Big Easy." She's in her first year of high school and already driving for the pros and a green jacket. Peter Viles has the report.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT: Golfers of all ages and sexes eat your hearts out! Michelle Wie hits it long and she hits it straight. She once hit a drive 360 yards. She has a nice touch around the green.

UNIDENTIFIED MALE: This girl's in love with you.

VILES: And she is 14 years old, a freshman in high school, and the talk of golf.

UNIDENTIFIED MALE: Well, she could be the star of the future, Michelle Wie. She's just one of the biggest subjects in all of golf and in sports right now.

VILES: Michelle has played against the pros so many times, including the men, that people forget she is not even a pro yet.

UNIDENTIFIED FEMALE: She's such a professional, even though I'm not allowed to use that word because you're an amateur, but you conduct yourself so perfectly and what a great ambassador to golf.

VILES: Michelle learned golf from her parents but motivates herself. Her goal is audacious, she wants to play in the Masters tournament.

MICHELLE WIE, AMATEUR GOLFER: I don't think I really reached my limit and I don't want to. I just want to practice more. I think that motivates me to go on farther and farther. Like, winning one tournament's not good enough for me, I just want to win more and more.

UNIDENTFIED MALE: Stretch this out. She hit a...

VILES: Just how good can she be? Well her average drive, average, is 290 yards. There are 130 men on the pro-tour who do not hit it that far.

UNIDENTIFIED MALE: Nobody hits it down where she does.

GREG NICHOLS, GM. XO OLINA GOLF CLUB: I think Michelle's potential as a professional golfer is even brighter than Tiger's was at the same age. She has unlimited potential. She can be as good as she wants to be.

VILES: And she even gives lessons.

WIE: I try to move nothing, just my shoulders and my arms. Then I pick the club up and then make it parallel as possible. And then I just go back to step one and then follow through.

VILES: Simple. Just add raw talent, motivation, dedication, and repeat, tens of thousands of times. Peter Viles, CNN.

(END VIDEOTAPE)

KING: Now some of your thoughts. Albert from Pennsylvania writes, "There is lots of media attention focused on Medicare reform, but what good will it do if we continue to have an annual decline of new physicians to care for the growing number of seniors. Many of our best minds that have an interest in becoming doctors are turned off by the government's inability to pass necessary legislation to solve the nation's medical malpractice crisis."

On the president's trip to Iraq, Laurie of Bowerstown, Ohio, who's son is in the Ohio National Guard and heading for Iraq wrote, "We had to borrow a thousand dollars to buy body armor for him so he doesn't go without it. I think the money spent on the president's PR trip should be used to provide proper gear for our soldiers."

Doug Smith of San Francisco wrote, "George Bush is a brave, determined leader flying to Iraq, serving our troops and inspiring them. We will finish this job.

And on a more general note, Frank McShane wrote, "I find your choice of topics refreshing. If only more programs would take your lead and refrain from tabloid news. I wouldn't have to read so many newspapers from half a dozen countries to know what is actually going on in the world.

We thank you for your e-mails. Send them, please, any time at loudobbs@CNN.com. And please include your name and your home town.

The No Child Left Behind Act, designed to reward good schools and penalize substandard ones. But critics say, the act effectively nationalizes the education system and they complain its funding is compromised by President Bush's tax cuts. Bill Tucker takes a look.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): The one thing everyone, critics and proponents alike agree on about No Child Left Behind it brings massive change to our schools. Whether that change will work, is another matter.

DAVID HECKER, AMERICAN FEDERATION OF TEACHERS: If you ask me what are the three things that need to be changed about No Child Left Behind, I would say funding, funding, and funding.

TUCKER: But how much is enough? America spends $480 billion at the federal and local level funding public schools from kindergarten through grade 12, that's more than we spend on defense.

ROD PAIGE, EDUCATION SECRETARY: President Bush has been very aggressive in funding the No Child Left Behind Act. In fact, the resources that we have now would be double what was available in 1996.

TUCKER: But that's about to change. In the 2004 budget request, the president has budgeted a billion dollars less than in fiscal '03 for No Child Left Behind. His critics call that a sacrifice, because of his tax cut. The administration skirts that attack saying the problem with education is not funding. They point to international test scores in science and math where eighth grade Americans ranked 19th in math, 18th in science in the world. There's no doubt that a stronger federal hand in education does not sit well with education traditionalists. CHERI PIERSON YECHE, MINNESOTA DEPT. OF EDUCATION: Certainly there has been some diminishing of local control under No Child Left Behind, but I don't think that necessarily this is a bad thing. We live in a highly mobile society and if we are now to have standards that are grade-level specific in order to bring some consistency to the standards and curriculum across our state, this is a good thing.

TUCKER: Everyone is quick to say they are for teacher accountability, one of the main objectives of No Child Left Behind. It's just the testing that's a problem.

(on camera): Teachers are worried they'll end up teaching to the test. Critics wonder, what's wrong with that? Bill Tucker, CNN, New York.

(END VIDEOTAPE)

KING: Coming up, the president's secret mission to Baghdad, landmark Medicare reform and an economy on the end. This week's newsmakers join us to discuss what it all means leading into an elect year.

And heroes, an American soldier torn between duty to his country and his family. Casey Wian will have that story coming up.

(COMMERCIAL BREAK)

KING: Stocks have one month to go in what could be their first winning year in four. Christine Romans is in New York and has more for us -- Christine.

CHRISTINE ROMANS, CNN FINANCIAL CORRESPONDENT: John, stocks were higher this week, celebrating a great week of economic news. But the month was mixed. Still, on analyst today telling me, investors should buy stocks, not toys right now, because historically, this is the best time of year for the stock market.

Staying invested in stocks from November through May, every year since 1950 has been far more profitable than being in stocks the other six months of the year. Analysts say the hope that that happens again this year is one reason why this eight-month rally has not reversed.

For November, among stocks you might find in your portfolio, Cisco and Time Warner were up sharply. Merck and Wal-Mart were among the biggest losers.

The S&P 500 is now up 13 percent since last November, even as the dollar has fallen and oil and gold have rallied. The dollar hit a record low against the European currency. But for stocks, today was the lightest trading day of the year. No surprise there. All eyes are on next week, more interest expected to be centered around important manufacturing and jobs data. But that's next week -- John.

KING: Christine Romans in New York, thank you very much.

A huge week politically, both home and abroad. President Bush in Iraq. A morale booster? Of course. But will it boost his reelection chances? And do Democrats dare criticize it?

Medicare, a major Bush victory, but it took major arm twisting in Congress to get it. Will Medicare reform affect the race for the White House? And the economy, GDP at a 19-year high, productivity way up. President Bush says, it's thanks to his tax cuts. Will the voters agree?

Let's ask our "Newsmakers." From New York, Steve Forbes of "Forbes" magazine. Jim Ellis of "BusinessWeek" and Bill Powell of "Fortune."

Steve Forbes, let's begin with you. The president makes this trip to Baghdad, the Democrats publicly can't do anything but praise the commander in chief. Privately some are saying, a stunt. Should the president have done this and will it have any affect on the debate about the Iraq policy?

STEVE FORBES, "FORBES" MAGAZINE: I think it was a brilliant move, and the fact that Democrats are wordless I think says it all. He did not say "mission completed." He went and served turkey instead, and so that leaves turkey in the face of the Democrats. And I think it buys him time to get his policy across and build some support for it. It shows he's concerned. It was a great move. Great move.

KING: Jim Ellis, is it, though, proof, as Steve just noted, that the president perhaps cannot say mission accomplished, as the White House did try to say with that banner seven months ago?

JIM ELLIS, "BUSINESSWEEK": Well, I think that anyone who looks at the news on a day-to-day basis and sees that the body count and -- you know, continues to go up knows that there's no end to the conflict there.

I think that the president's done what should be done, which is basically go out and let people know that the commander in chief's not afraid to go there and is willing to stand behind our troops that we've put in harm's way.

But the bigger issue there is that we still have to deal as a nation with an extremely insecure situation, and that basically he's going to have trouble next year if we continue to have, you know, lots of Americans dying in dribs and drabs.

KING: Bill Powell, one of the questions facing this president, is how does he improve the image of the United States, not only in Iraq but across the Arab world and the Muslim world. Any sense from these dramatic pictures, the president with U.S. troops, talking about how the Iraqi people now must step up to the challenge and take over the government? Any sense that perhaps at least a down payment here on the image making work the president needs to do?

BILL POWELL, "FORTUNE" MAGAZINE: Well, I think at best it's a small down payment, John. The proof is going to be in the pudding, not to use a Thanksgiving metaphor, but I think the next three to six months onto next June when the transfer of power is supposed to take place, what the security situation looks like, if it improves or deteriorates, is the critical question. And I don't think the president's trip to Baghdad affects that one way or the other.

KING: Let's move on to this giant landmark Medicare reform bill the president will sign in the very near future. It has a prescription drug benefit for the elderly. The president believes, Steve Forbes, that he has taken away an issue that the Democrats have hammered Republicans with for years, but many conservatives say this bill is a turkey. Your thoughts?

FORBES: Well, there's a lot of bad in that bill, and clearly they did it for political reasons. But the fact of the matter is, there's one hugely positive thing in that bill, John, and that is health savings accounts. Which I think in the years ahead is going to revolutionize health care in America, because it's finally going to allow patients to have control of health care dollars again. We've been making a little bit of progress in that direction, good progress, but when patients control health care spending, you're going to see a very different dynamic. So in that bill, even though a lot of it's garbage, there's that one piece of gold, and that's why I would have supported it.

KING: Jim Ellis, your thoughts on that bill, and specifically on the idea that some of the critics on the Democratic side say it's a giveaway to the drug companies and to the insurance companies?

ELLIS: Well, it's certainly difficult to see -- we've gone through a lot of trouble here. It's very difficult to see, was it really worth it? I mean, basically we probably only had one shot to do this, and we came up with an extremely flawed bill.

I think that what we're going to discover is that by the time the election rolls around next year, a lot of seniors really won't have seen any benefit yet, because the big drug benefit doesn't click in until 2006, and the discount cards that we will probably see before election day are probably not going to be nearly as advantageous as a lot of people expect right now.

KING: Bill Powell?

POWELL: I think the -- again, the unanswered, almost undiscussed question is, how expensive this bill is, particularly in the long run. This is an unfunded effectively entitlement, and no one has a clue how we're going to pay for it.

KING: Let's stick with you, Bill, and we'll move back the other way. A final question, the whole thought of by this time next week, we should know the administration's reaction on the question of steel tariffs. The president, of course, took some steps to protect the U.S. steel industry. The European Union and the World Trade Organization cried foul, said the United States is in violation. What do you anticipate the president will do on this, Bill Powell?

POWELL: Well, anticipate versus what he should do. I think the administration needs to find a graceful way to stand down. The economy is recovering, jobs are starting to be created. There is no reason in the world to go into a presidential election year with a trade war with European trade partners. They've got to find a way to stand down.

KING: No reason, Jim Ellis, except this president would like to win Pennsylvania, Ohio, Michigan, Illinois, big states where the manufacturing economy is hurting.

ELLIS: That's right. But unfortunately, I think that, you know, for an administration that has talked at least in the past a lot about the need for global trade and to pull down global trade barriers, it's a little difficult for them now to say that we should become protectionist ourselves again.

I think that not only with the Europeans, the administration's going to have to find some way to sort of finesse this same trade war with China, and before the elections sort of bring this down.

I know for political reasons they want to sort of raise hell and show that they're out there fighting for American workers. But probably for the long term economy, it's probably best to sort of get rid of some of these trade impediments.

KING: Steve Forbes, the final word, has this administration been in recent weeks perhaps even months a bit protectionist?

FORBES: It certainly has, and what it demonstrates is -- this whole steel thing demonstrates is that protectionism doesn't work. It destroyed three jobs in manufacturing for each job that it saved in steel. The same thing with the trade war in China. We want to be more competitive. There are a lot of things we can do at home, starting with tort reform, controlling health care costs, lowering corporate tax rates. That's how you make us more competitive, not doing these kinds of games. So they've got to get rid of the steel tariffs. Get to the real stuff that does real good for real working Americans.

KING: Gentlemen, we thank you all for your time and your thoughts tonight. Steve Forbes of "Forbes" magazine, Jim Ellis of "BusinessWeek," Bill Powell of "Fortune." Again, thank you for your time tonight.

FORBES: Thank you.

POWELL: Thank you.

KING: And coming up -- the big screen hits and misses this holiday season, from "Elf" to "Bad Santa." Marty Grove of "The Hollywood Reporter" will join us.

And a dog named Dude has earned a place among the U.S. Marines in Iraq. Pentagon correspondent Barbara Starr will have that story from Baghdad just ahead.

(COMMERCIAL BREAK)

KING: There's a feast of films vying for moviegoers' attention this season. Disney's "Bad Santa" is already stirring up controversial. Billy Bob Thornton plays the more naughty than nice Santa Claus. Dr. Seuss "The Cat In The Hat" has already raked in more than $40 million. Although critics were not fans of this tale.

Joining me from Los Angeles is Marty Grove, columnist for the "Hollywood Reporter." Marty, take us this weekend first, what's the big hit, anyone raking in the huge money like we saw Harry Potter last year, for example?

MARTY GROVE, "HOLLYWOOD REPORTER": John, what we're seeing is that "Elf" is standing tallest at the box office this time around. Looks like about $35.5 million for the five-day Thanksgiving period. That's good, but it's not what we saw last year with the top two films which were the Bond film "Die Another Day" and the Harry Potter film each did $46 million.

This year, the business is fragmented quite a lot. So beyond "Elf" you then have a close race for second place between the "Cat In The Hat" and "Haunted Mansion," with Eddie Murphy from Disney. So, both of those are doing about $31.5 million and we'll see who comes out on top when they finally make some official projections on Sunday. Those will be the numbers we'll be talking about on Monday.

KING: Let's talk about this controversy over "Bad Santa." Some people don't think it's good movie making to have a naughty Santa Claus. What are the people buying the tickets think?

GROVE: An R-rated Santa Claus is not for everyone, and this time it doesn't seem to be appealing very broadly. It looks like this picture's going to do around $14 million for the five days it will be well out of the top five, probably seventh the way things look today.

So not a big success story. Certainly kind of alternative approach to holiday movie making.

KING: Alternative approach. Marty if you're looking at the listings today and don't like what you see and you're thinking maybe not Thanksgiving weekend, what are we looking for in terms new entries when we get close closer to Christmas?

GROVE: John, what we can look at right now are two films that are opening in December, December 5, which is this Friday, the Tom Cruise picture the "Last Samurai," that is being sneaked into theaters tomorrow night, Saturday. And tonight you can have a sneak look at the Steve Martin comedy, "Cheaper By The Dozen" that doesn't open until December 25. You can get an early start there.

KING: Martin Grove of "Hollywood Reporter," wish we had more time. We're tight tonight. We'll bring you back during the holiday season.

GROVE: I enjoyed doing it.

KING; And coming up "Heroes," our feature series. Tonight, balancing the demands of country and family. One soldier shares his remarkable story. And the marines at coalition headquartered in Baghdad have a secret weapon. He may not look too intimidating but his special skills come in handy on patrols. Barbara Starr will have that report when we return.

(COMMERCIAL BREAK)

KING: Tonight in "Heroes," army sergeant Chris Carter takes on an entirely new mission which may prove more difficult than guarding roads in Iraq. Casey Wian has the remarkable story of a soldier torn when war and life collide.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Army reservist, Chris Carter has a special connection to the Middle East. His wife, Farah, was born in Iran.

FARAH CARTER, CHRIS CARTER'S WIFE: I understand that the action that he took wasn't against the Iraqi people. I understood that his action was against terrorism. It was very clear to me from the very beginning and I support him 100 percent. What he did had to be done. But of course, I was torn that my husband was going to have go do it.

WIAN: When the call came, the Carters were expecting their first child.

CHRIS CARTER, U.S. ARMY RESERVES: I didn't want to miss the birth of Drake. But you know, when you sign the paper, there's no guarantees. And I just, you know, do what you got to do.

WIAN: While Carter guarded roads for military convoys, his wife struggled back home with painful complications from childbirth.

F. CARTER: It got to a point where it was unbearable. I tried to be as strong as I could be, I tried to be strong for Chris. I didn't want to upset him. It's the last thing that I want to do is be here, you know, whining about, you know, all of the luxuries that I have while he's in the middle of a desert.

C. CARTER: I just come back from a mission and my squad leader pulled me aside and gave me the Red Cross message. Red Cross message is never good. They're like telegrams. They don't deliver good news.

WIAN: The Army gave Carter emergency leave. In 18 hours he went from military policeman to new dad quickly learning an entirely new mission.

C. CARTER: It's tough to be the one that came home. My heart goes out to the families of my fellow soldiers that didn't make it back.

WIAN: Farah has recovered Carter returns to active duty in February.

C. CARTER: The thought of having to go back, to me, is just part of the program. And until I take the uniform off for good, it always will be. That's just the soldier in me that thinks that way and the father in me is torn.

WIAN: Casey Wian, CNN, reporting.

(END VIDEOTAPE)

KING: Finally tonight, Marines in Baghdad have a new member, while he may be small, the Marines in his new unit insist his finely honed sense are an asset on patrols. Here's Barbara Starr from Baghdad.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): At the coalition headquarters in Baghdad, the big guy is a U.S. Marine anti-terrorism expert, on guard 24/7. The little guy, the newest Marine in the platoon. Meet Dude, a three-pound puppy the Marines rescued from abandonment.

UNIDENTIFIED MALE: He protects this whole building.

STARR: At night, Dude goes on patrol with his buddies.

UNIDENTIFIED MALE: He rides in our ATV's with us and checks out the facility and basically at nighttime he sees things before I even see them. He's a good boy to have around.

STARR: The Marines aren't joking. They insist Dude barks at anybody not in a uniform. Dude is a diplomat, making friends with the Iraqis who work at coalition headquarters.

UNIDENTIFIED MALE: Enjoy when they come to work, get to play with dude, too.

STARR: And like most Marines, Dude responds to the ladies.

UNIDENTIFIED MALE: Everybody that comes down to see him gives him a different name, especially the ladies. They come up with girlie names.

STARR: And if you wonder if Dude is being looked after, well, no field rations for him.

UNIDENTIFIED MALE: He eats better than I do most of the time.

STARR: The Marine hope to take Dude back home when their tour is up next year, but he may have to get adjusted.

UNIDENTIFIED MALE: I don't know if he's going to speak in English though, because he's a native dog.

STARR: Barbara Starr, CNN, with Dude, on patrol in Baghdad.

(END VIDEOTAPE) KING: Looks like a great dog. That's our show for tonight. Thanks for being with us. Lou will be back on Monday. For all of us here in Washington and in New York, good night and have a great weekend. "CNN LIVE" in New York with Heidi Collins is next.

END

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on Black Friday; Army Reservist Granted Leave To Take Care Of Wife, Newborn Son>


Aired November 28, 2003 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN KING, CNN ANCHOR: Tonight: Millions of Americans go to the mall, as retailers launch the holiday shopping season. But will the buying frenzy last? Kitty Pilgrim will report.
In Europe, police hunting radical Islamists arrest six people in three countries. One of the suspects may have been planning suicide bomb attacks in Britain.

In "Heroes" tonight, the Army reservist whose duties as a military policeman in Iraq collided with his responsibilities as a new father. Casey Wian will report.

And "Reel World." The big studios open the holiday movie season with a barrage of new films. "Hollywood Reporter" columnist Martin Grove will tell us the likely winners and losers.

ANNOUNCER: This is LOU DOBBS TONIGHT for Friday, November 28. Sitting in for Lou Dobbs, John King.

KING: Good evening from the nation's capital. Lou is off tonight.

One day after President Bush's dramatic visit to Baghdad, a reminder today that the war goes on in Iraq and American troops are being killed almost every day. Insurgents today killed a U.S. soldier in a mortar attack in Mosul. The president visited Iraq, despite the persistent attacks on U.S. troops and on Iraqis. The continuing violence is one of the biggest potential threats to the president's reelection prospects.

White House correspondent Dana Bash reports tonight from near the president's ranch in Crawford, Texas, on the president's dramatic trip and the day-after reaction -- Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, John, the White House is still basking in the glow of what they were able to pull off, the stealth mission, to Iraq, the images it provided, and the buzz surrounding it over the past 24 hours.

But they know all too well, John, from experience, that positive news, positive images are a single event, could not necessarily have staying power. And it is the violence and the president's policies in Iraq that they are most concerned about for the long term.

And Condoleezza Rice, the president's national security adviser, defended the transition plan that they have in place to get Iraqis back into power and for the United States to pull out. That plan has been challenged by some Iraqi leaders.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: I'm quite certain that, in the end, this plan is going to be implemented in a way that really does give to the Iraqi people the kind of voice that they need, recognizing that this is an interim step, that, eventually, they will need to have a permanent constitution and nationwide elections.

(END VIDEO CLIP)

BASH: But, of course, this is, John, an election year. And anything that the president does, whether they say it is -- was for political reasons or not is seen through that prism.

And the White House did focus on the images with the president and the troops. That made it hard for Democrats to criticize. The candidates out on the campaign trail were very careful in saying that they understand it is important for a commander in chief to visit troops abroad, but they also were very careful to quickly try to turn it back to the president's policy in Iraq, Howard Dean saying that the men and women shouldn't be there in the first place, and John Kerry saying that it is a shooting gallery there and that is the issue. It is the president's policy. That's what John Kerry and Howard Dean both said today -- John.

KING: And, Dana, the White House is saying this trip was first conceived when?

BASH: They're saying that this was -- had been kicked around for a while, but this specific trip, to do it on Thanksgiving, they say was conceived in mid-October, that Andy Card, the White House chief of staff, broached it with the president when they were in Asia. And then they started the ball rolling.

His deputy, Joe Hagin, starting getting all the details in place. But they said it wasn't finalized until just a few hours before the president left during a video conference with President Bush at his ranch here, talking to the vice president and other senior advisers. And they all said, go ahead.

KING: Dana Bash, live for us from near the president's ranch in Crawford, Texas, where we assume where the president is, where they say he is, tonight -- thank you, Dana.

And during his visit to Baghdad, the president met with troops from three Army units heavily engaged in the war against insurgents and terrorists. Those units were the 1st Armored Division, the 82nd Airborne Division, and the 2nd Armored Cavalry Regiment. All those units are scheduled to be replaced in the spring, after a year of combat duty.

The president's visit also lifted the morale of troops elsewhere in Iraq, including members of the 4th Infantry Division in Tikrit. (BEGIN VIDEO CLIP)

SPEC. JAMES HILL, 4TH INFANTRY DIVISION: I think that it's good that President Bush came down and showed support for all the troops that are over here fighting.

SPEC. QUINCY FORDE, 4TH INFANTRY DIVISION: I think he showed great support, knowing that we're away from our families. And for him to come over here and be with us during this time shows great support.

(END VIDEO CLIP)

KING: Suicide bombers are one of the biggest threats to U.S. troops and Iraqis. Today, German police arrested an Algerian suspected of recruiting Islamic extremists to carry out suicide attacks in Iraq.

Several other suspect are under arrest in Italy. Separately, British police have arrested a Muslim man who may have been planing a suicide bomb attack in Great Britain.

Matthew Chance reports from Western England.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): British security officials say this could be a major breakthrough in their counterterrorism efforts. Already a small, but significant quantity of high explosives has been seized, enough, say police, for a suicide bomber. Security forces and forensic teams have raided other properties in the search for more.

DAVID BLUNKETT, BRITISH INTERIOR MINISTER: The ongoing investigation will reveal the extent of the nature of the activity of the individual and individuals that have been picked up now. But, obviously, the use of the Terrorism Act 2000 indicates the extent of the concern for the security and counterterrorism branch of the Metropolitan Police.

CHANCE: The 24-year-old terrorism suspect arrested at his family home is said to be British, of Asian origin. Neighbors describe him as an intelligent man who takes his religion seriously. He's believed to have trained in Pakistan as a Muslim cleric.

UNIDENTIFIED FEMALE: We've known them for quite a long time and got on really well with them. They're lovely people.

CHANCE: Britain has proved a haven for a number of militants in the past, most notoriously, Richard Reid, the shoe bomber, sentenced to three life sentences earlier this year for trying to blow up a U.S. airliner. Police say links between suspected British terrorists are under constant scrutiny, but not every terrorist plot can be foiled.

(on camera): The bombing of the British Consulate and a London- based bank in Istanbul earlier this month has heightened fears that Britain itself may be an imminent al Qaeda target. Even police here in Gloucester say their operations are not ended. Nationwide, there could be more raids and more arrests in the days ahead.

Matthew Chance, CNN, Gloucester, in Western England.

(END VIDEOTAPE)

KING: Authorities in Turkey today said they have identified the suicide bomber who detonated a truck bomb outside the London-based HSBC Bank in Istanbul last week. That suspect is a Turkish citizen with a history of ties to radical Islamists. Groups linked to al Qaeda claimed responsibility for the HSBC bombing and three other attacks. Those attacks killed 61 people and wounded more than 700 others.

Mike Boettcher has been following the investigation and joins me now from Istanbul.

Mike, is there any known connection at this point between these attacks in Turkey and the terrorism we see going on inside Iraq?

MIKE BOETTCHER, CNN NATIONAL CORRESPONDENT: That is what is believed by counterterrorism officials in this region.

President Bush said this was a new front on the war on terrorism. They rather think this is an extension of the war in Iraq, to Turkey and to other countries in the region which support the United States, Jordan, Saudi Arabia and also Turkey. The proof is in the groups that conducted what they believe is the attack here in Turkey. One is called Turkish Hezbollah. The other is called Beyyiat el-Imam. And those two groups work rather closely with Ansar al-Islam, which is believed by U.S. officials to be the No. 1 terrorist group in Iraq attacking U.S. soldiers.

So they believe it is an extension of the war in Iraq into Turkey.

KING: You say an extension into Turkey, Mike. Any particular reason why Turkey would be chosen as a place to target?

BOETTCHER: Well, John, if you go back into the al Qaeda manuals -- and we have thousands of pages of their documents -- you can say that, perhaps, they wanted to keep Turkish troops from ever coming in here, although the Turks aren't here now and it doesn't look they will be here.

But, in the documents, al Qaeda is not based on that particular kind of strategy. They're based on the strategy of attacking Westerners in Muslim countries and around the world. And they say in their documents that -- specifically -- that al Qaeda operatives should attack non-Muslims in Muslim countries. And in those documents, they specifically mention banks and they mention religious institutions and other places. And those are precisely the places that were hit in Turkey.

KING: And, Mike, when you talk to your sources in the counterterrorism community, is it their sense that Turkey now, but perhaps a plan to broaden attacks to other countries in the region? BOETTCHER: No, that is the real fear.

We have learned from counterterrorism officials in this region that, already, there is a proliferation of weapons leaving Iraq, going to countries surrounding Iraq. We know that there have been people intercepted who have been trying to smuggle surface-to-air missiles that were part of the former Iraqi arsenal out of Iraq into the region. And there is a real fear that this is spreading to those areas, to our allies, to the United States' allies in that region.

And that would be, specifically, Saudi Arabia, Jordan and Turkey. And Turkey has already suffered from this.

KING: And, Mike, one last question. Any evidence that the wakeup call, if you will, of these terrible attacks in Turkey, has that prompted any new intelligence sharing, any improved intelligence sharing, or did those governments in the region believe they were doing the job even before this happened?

BOETTCHER: The feeling was that the Turkish intelligence agencies actually had been doing a very good job. There had been sharing in the region. The turks are very close to the Israelis, very close to the Jordanians, other nations in the region, also the United States and Europeans. And they had been sharing information.

But the way al Qaeda communicates now is not over telephone and not over radios. They communicate person to person. So, if these groups did communicate that way, it's impossible, really, to stop a suicide attack with that sort of communication. You can have an idea where something is going to happen, but you don't know exactly where it is. And that's what they're facing.

But what it has done is made these intelligence agencies even try to work closer than they have before.

KING: Thank you, Mike -- Mike Boettcher in Istanbul. Thank you again.

Now turning now to the crisis between Israel and the Palestinians, the United Nations secretary-general, Kofi Annan, today said Israel is violating a U.N. resolution to halt construction of a security barrier around the West Bank. Annan said the barrier is a -- quote -- "deeply counterproductive act."

Yesterday, Israeli Prime Minister Ariel Sharon said the barrier essential to Israeli security. But Mr. Sharon said, Israel might give up some occupied land in return for peace.

And coming up: It's make-or-break time for retailer across the country. And so far, things are looking up for the holiday shopping season. Kitty Pilgrim will report from New York's 34th Street. And Kris Osborn is on Chicago's Magnificent Mile.

Then: the movies to hit or miss this Hollywood weekend. Marty Grove of "The Hollywood Reporter" will have a preview for us. And tonight, in our special report, "The Throwaway Society," the dangers of toxic waste and why taxpayers are left to foot the cleanup bill. Lisa Sylvester will report.

(COMMERCIAL BREAK)

KING: Millions of Americans today, myself included, set out to begin their holiday shopping. The day after Thanksgiving is one of the most important shopping days of the year for retailers, viewed as a key test of consumer spending habits.

Tonight, we have reports from two of the busiest shopping areas in the country. Kitty Pilgrim is live on wind-swept -- wind-swept -- wind-swept very much -- look at that -- 34th Street in New York City. And Kris Osborn is indoors -- lucky for him -- at a Westfield shopping center in Chicago.

Let's start in Midtown Manhattan -- Kitty.

KITTY PILGRIM, CNN CORRESPONDENT: Hi, John.

Well, in the retail world, this really is crunch time. Things have to go well. Up to 40 percent of retail sales are made between Thanksgiving and Christmas.

(BEGIN VIDEOTAPE)

PILGRIM (voice-over): And they're off. At the crack of dawn, even before it was daylight, hundreds lined up outside this Wal-Mart near Chicago. The line snakes all around the parking lot. Local police cars line up outside to keep the order. The holiday frenzy started early today, 6:00 a.m., in this case. And shoppers bought into it.

UNIDENTIFIED FEMALE: And you have to be here within the first hour or these things that are really cheap will be gone.

PILGRIM: Sales are now timed to expire at certain deadlines to create frenzy, finely tuned shopping excitement organized and orchestrated.

MARSHAL COHEN, THE NPD GROUP: This year, we're seeing a lot more creative discounts. A lot more of them are on a time schedule. Buy before 11:00 and save 50 percent or today only.

PILGRIM: The National Retail Federation says retail sales are projected to be up this year about 3 to 5 percent. But prices are definitely lower.

The toy wars started early. A few weeks ago, discounter Wal-Mart cut prices on a dozen popular toys, hoping to lure in customers with that, who will purchase other items when they are there. Toys 'R' Us has a coupon book. In the last three years, Toys 'R' Us pulled out big profits in the holiday season.

Target also has been promoting toys for weeks. Big sellers at Christmas, electronics. Already today, the stores were jammed. Despite the effort to generate frenzy, there is plenty of supply. In electronics, the customer can pick and choose and wait out the sales.

STEPHEN MOORE, PRESIDENT, CLUB FOR GROWTH: I wouldn't be surprised if you see that happening by the middle of December, that prices are slashed again if retailers get very nervous about the amount of inventory on their shelves.

PILGRIM: This year, experts say there is no big-must have item. So the consumer is in charge of when and where he purchases.

(END VIDEOTAPE)

PILGRIM: Now, the customer is not completely manipulated. Many have learned in recent years to wait until closer to the holiday to wait for deeper discounts -- John.

KING: And, Kitty, contrary to popular belief, today, Black Friday, as it is called, is not the busiest shopping day of the year, correct?

PILGRIM: That's exactly right, John.

In recent years, it's shifted a bit. And now the Saturday before Christmas is when we have the biggest shopping day of the year, typically. People are really waiting until the very, very last second. But you really wouldn't know it today. We have hundreds of people out on the street in New York. And it's raining, and they didn't stay home.

KING: Kitty Pilgrim, we thank you for waiting in those conditions for us. Get inside. Thank you very much.

And retailers around the country are hoping for equally impressive sales.

Kris Osborn is live from the Westfield shopping center in Chicago.

Kris, how are the crowds out there tonight?

KRIS OSBORN, CNN CORRESPONDENT: Good evening to you, John.

The crowds have steadily been increasing throughout the day. And a question on the minds of many economists at this hour is to what extent will the recent positive economic data translate into revenues at the cash register, something they are very much hoping for and, as Kitty said, something that is very much on the line for them.

Some of the recent numbers include -- the National Retail Federation estimates that consumers will spend as much as $217 billion this holiday season. In addition to that, consumer confidence jumped up 10 points to 91 percent projected for November.

So, for some additional perspective on these issues, we're joined by Gary Levin. He is a partner with Deloitte. Thank you very much for your time.

GARY LEVIN, RETAIL CONSULTANT & PARTNER, DELOITTE: Thank you. Thank you.

OSBORN: Let's start with this. Consumer spending such an engine driving the overall economy. What's your sense of how this holiday season is shaping up?

LEVIN: I think this is going to be one of the better holiday seasons in the last couple years, as consumers are feeling better. The economic figures are showing that by growth in the economy. And they've got more money to spend, after refinancing mortgages the first half of the year.

OSBORN: Now, is this kind of a bellwether, a microcosm for the larger economy? What might it suggest for the economy as a whole overall?

LEVIN: I think this season will be a driver for the economy in '04. And if performance continues to be strong at the retail register, I think you're going to see the economy continue to bode well in '04.

OSBORN: It certainly could build on the recent 8.2, the percentage in growth mentioned. Thank you very much.

LEVIN: Thank you.

OSBORN: Gary Levin from Deloitte, a partner, appreciate your perspective very much.

So, John, some optimism here, at least thus far. A lot of people will be looking at this first weekend to see what kind of numbers are coming in -- back to you.

KING: Kris Osborn in Chicago, looks like a fun night out there. Enjoy.

OSBORN: I will.

KING: Now "The Throwaway Society," our special report on a wasteful nation -- tonight, toxic waste. The problem is spreading, while money for cleanup is disappearing. Lisa Sylvester will report.

And "America's Bright Future" -- tonight, two of the youngest and brightest stars in athletics today.

Those stories and a great deal more still ahead.

(COMMERCIAL BREAK)

KING: Tonight, our special report, "The Throwaway Society." The 230 million tons of garbage that Americans throw away every year isn't our only waste. This country also disposes of 41 million tons of toxic waste from power plants, nuclear reactors and oil and chemical companies.

Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): There's a menacing sign telling homeowners to stay away from the acid waste at this former copper mine in Elizabeth, Vermont. It's one of the hazardous waste sites waiting to be cleaned up under the Environmental Protection Agency's Superfund Program.

But it could be a while. The Superfund trust has virtually run out of money. Next year, taxpayers, not the polluters, will be expected to pay for the lion's share of the EPA cleanup fund, more than $1 billion.

WESLEY WARREN, NATURAL RESOURCES DEFENSE COUNCIL: Where I come from, you're supposed to clean up after yourself. And the oil and chemical companies that have created this problem now are not being expected to pay anything towards the cleanup of the cost of this program.

SYLVESTER: One in four Americans lives within four miles of a toxic waste site, according to Environmental Protection Agency data. During the Clinton years, about 358 toxic sites were decontaminated each year. In the last two years, that number has been cut in half.

The Environmental Protection Agency insists, it is still committed to the Superfund program.

BARRY BREEN, EPA DEPUTY ADMINISTRATOR: What's happened is not that we've changed what we're doing, but that the sites we're now getting to are just those harder ones.

SYLVESTER: Cleaning up toxic oil, lead and acid waste is one problem. An even bigger problem is what to do with radioactive waste. Nevada is fighting a plan that would transport and dump 77,000 tons of the most hazardous nuclear waste under the Yucca Mountain.

UNIDENTIFIED MALE: This battle's not over. This is a skirmish in a war.

SYLVESTER: And this week, the Bush administration announced, it is considering a controversial plan that, for the first time, would allow low-level radioactive material to be dumped in ordinary landfills.

(END VIDEOTAPE)

SYLVESTER: The Environmental Protection Agency is seeking public comments on this proposal. The Bush administration is likely to face a fight over this one. Colorado Senator Ben Nighthorse Campbell has already sent a letter to the new EPA chief, warning that, if this goes through, it will likely undermine the public's confidence in the agency -- John.

KING: Now, Lisa, there was a time when companies had to pick up at least some of the tab. What changed?

SYLVESTER: Well, 1980, Love Canal, you had about 600 families that had to move from their homes in New York. And after that, the philosophy was that polluters should be responsible and polluters pay.

Well, that changed in 1995. Congress essentially changed the rules and no longer required companies to pay into the Superfund program. And that's why we're in the situation where we are in today. The fund is virtually bankrupt and taxpayers are going to have to foot the bill -- John.

KING: And the debate continues.

Lisa Sylvester, thank you.

Coming up: "America's Bright Future" -- tonight, two young people who have accomplished more in just a few years than most will in a lifetime. We'll share their stories next.

And it was supposed to leave no child behind. But is the president's plan to overhaul education in this country living up to its promise? Bill Tucker will report.

(COMMERCIAL BREAK)

KING: Tonight, we begin our series of special reports, "America's Bright Future." Tonight and all next week, we will be inducing you to Americans who have found their life's passion at a very young age. Their extraordinary talent, skill and drive are an inspiration to Americans of all ages.

We begin with profiles of two youngsters making their mark on the sporting world. One of them was barely in school when he mastered a sport that is surging in popularity. Now he's known to fans as Little Tricky.

Katharine Barrett reports.

(BEGIN VIDEOTAPE)

KATHARINE BARRETT, CNN CORRESPONDENT (voice-over): Mitchie Brusco is equal parts grace, grit and the occasional grin in a pint- sized perpetual motion package.

This kindergartner's favorite park is the skateboard park, where he swoops with a focus and precision of those three times his age. Mitchie himself would rather skate than chat.

(on camera): When you've worked really hard and you finally get something that you've been working really hard on, how do you feel?

MITCHIE BRUSCO, SKATEBOARDER: Happy.

BARRETT (voice-over): Since the day he first stepped onto a board at 3 1/2, his skills and childish charm have landed him 13 corporate sponsors. UNIDENTIFIED FEMALE: Within a day, he was dropping into this little 2-foot halfpipe. And I believe, within the one or two days after that, they wanted to sponsor him.

BARRETT: Now, from the top of his sticker-plastered helmet to his temporary Jones Soda tattoo, Lego shirt, and size 1 DC Shoes, Brusco is a walking, wheeling marketing machine.

CASSANDRA HAYWARD, JONES SODA: He's kind of a grown man in a little boy's body. He knows how to talk to people. He knows how to be a kid. He knows how to just do whatever it is that he loves to do the best. The light in his eyes and the excitement that he creates around the brand is wonderful.

BARRETT (on camera): Mitchie's sponsors are hoping to ride along with a skateboard boom. The number of skateboarders has doubled in the past eight years. So has spending on related gear. A rider can spend as much as $60 on his board alone, another several hundred dollars on top-of-the-line titanium ball bearings, wheels and other parts.

(voice-over): The second youngest in his family of five, Mitchie's sponsors have helped fill the Bruscos' fridge with soda, their closets with shoes, clothing and Lego toys.

JENNIFER BRUSCO, MOTHER OF MITCHIE: Being a one-working family, it helps. Back to school, as any parent out there knows, that's a huge impact.

BARRETT: Both Mitchie's parents were college scholarship athletes. They say the choice will be his, but hope his love of this sport gives him an even longer ride.

UNIDENTIFIED MALE: Yes!

MICK BRUSCO, MITCHIE'S DAD: Every kid dreams of being professional baseball player, basketball player. I don't think it's too young to dream. And with Mitch I think it might be more of a reality now at a young age than it really was more me.

BARRETT: But the day we met, this four-wheeled whiz kid said, when he grows up, he wants to be a policeman. Katherine Barrett for CNN, Kirkland, Washington.

(END VIDEOTAPE)

KING: I want a trampoline like that. Like skateboarding, the world of golf is in awe with the talent of another young American. Michelle Wie is called the "Big Wheezey." That's in honor of Ernie Els' nickname "the Big Easy." She's in her first year of high school and already driving for the pros and a green jacket. Peter Viles has the report.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT: Golfers of all ages and sexes eat your hearts out! Michelle Wie hits it long and she hits it straight. She once hit a drive 360 yards. She has a nice touch around the green.

UNIDENTIFIED MALE: This girl's in love with you.

VILES: And she is 14 years old, a freshman in high school, and the talk of golf.

UNIDENTIFIED MALE: Well, she could be the star of the future, Michelle Wie. She's just one of the biggest subjects in all of golf and in sports right now.

VILES: Michelle has played against the pros so many times, including the men, that people forget she is not even a pro yet.

UNIDENTIFIED FEMALE: She's such a professional, even though I'm not allowed to use that word because you're an amateur, but you conduct yourself so perfectly and what a great ambassador to golf.

VILES: Michelle learned golf from her parents but motivates herself. Her goal is audacious, she wants to play in the Masters tournament.

MICHELLE WIE, AMATEUR GOLFER: I don't think I really reached my limit and I don't want to. I just want to practice more. I think that motivates me to go on farther and farther. Like, winning one tournament's not good enough for me, I just want to win more and more.

UNIDENTFIED MALE: Stretch this out. She hit a...

VILES: Just how good can she be? Well her average drive, average, is 290 yards. There are 130 men on the pro-tour who do not hit it that far.

UNIDENTIFIED MALE: Nobody hits it down where she does.

GREG NICHOLS, GM. XO OLINA GOLF CLUB: I think Michelle's potential as a professional golfer is even brighter than Tiger's was at the same age. She has unlimited potential. She can be as good as she wants to be.

VILES: And she even gives lessons.

WIE: I try to move nothing, just my shoulders and my arms. Then I pick the club up and then make it parallel as possible. And then I just go back to step one and then follow through.

VILES: Simple. Just add raw talent, motivation, dedication, and repeat, tens of thousands of times. Peter Viles, CNN.

(END VIDEOTAPE)

KING: Now some of your thoughts. Albert from Pennsylvania writes, "There is lots of media attention focused on Medicare reform, but what good will it do if we continue to have an annual decline of new physicians to care for the growing number of seniors. Many of our best minds that have an interest in becoming doctors are turned off by the government's inability to pass necessary legislation to solve the nation's medical malpractice crisis."

On the president's trip to Iraq, Laurie of Bowerstown, Ohio, who's son is in the Ohio National Guard and heading for Iraq wrote, "We had to borrow a thousand dollars to buy body armor for him so he doesn't go without it. I think the money spent on the president's PR trip should be used to provide proper gear for our soldiers."

Doug Smith of San Francisco wrote, "George Bush is a brave, determined leader flying to Iraq, serving our troops and inspiring them. We will finish this job.

And on a more general note, Frank McShane wrote, "I find your choice of topics refreshing. If only more programs would take your lead and refrain from tabloid news. I wouldn't have to read so many newspapers from half a dozen countries to know what is actually going on in the world.

We thank you for your e-mails. Send them, please, any time at loudobbs@CNN.com. And please include your name and your home town.

The No Child Left Behind Act, designed to reward good schools and penalize substandard ones. But critics say, the act effectively nationalizes the education system and they complain its funding is compromised by President Bush's tax cuts. Bill Tucker takes a look.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): The one thing everyone, critics and proponents alike agree on about No Child Left Behind it brings massive change to our schools. Whether that change will work, is another matter.

DAVID HECKER, AMERICAN FEDERATION OF TEACHERS: If you ask me what are the three things that need to be changed about No Child Left Behind, I would say funding, funding, and funding.

TUCKER: But how much is enough? America spends $480 billion at the federal and local level funding public schools from kindergarten through grade 12, that's more than we spend on defense.

ROD PAIGE, EDUCATION SECRETARY: President Bush has been very aggressive in funding the No Child Left Behind Act. In fact, the resources that we have now would be double what was available in 1996.

TUCKER: But that's about to change. In the 2004 budget request, the president has budgeted a billion dollars less than in fiscal '03 for No Child Left Behind. His critics call that a sacrifice, because of his tax cut. The administration skirts that attack saying the problem with education is not funding. They point to international test scores in science and math where eighth grade Americans ranked 19th in math, 18th in science in the world. There's no doubt that a stronger federal hand in education does not sit well with education traditionalists. CHERI PIERSON YECHE, MINNESOTA DEPT. OF EDUCATION: Certainly there has been some diminishing of local control under No Child Left Behind, but I don't think that necessarily this is a bad thing. We live in a highly mobile society and if we are now to have standards that are grade-level specific in order to bring some consistency to the standards and curriculum across our state, this is a good thing.

TUCKER: Everyone is quick to say they are for teacher accountability, one of the main objectives of No Child Left Behind. It's just the testing that's a problem.

(on camera): Teachers are worried they'll end up teaching to the test. Critics wonder, what's wrong with that? Bill Tucker, CNN, New York.

(END VIDEOTAPE)

KING: Coming up, the president's secret mission to Baghdad, landmark Medicare reform and an economy on the end. This week's newsmakers join us to discuss what it all means leading into an elect year.

And heroes, an American soldier torn between duty to his country and his family. Casey Wian will have that story coming up.

(COMMERCIAL BREAK)

KING: Stocks have one month to go in what could be their first winning year in four. Christine Romans is in New York and has more for us -- Christine.

CHRISTINE ROMANS, CNN FINANCIAL CORRESPONDENT: John, stocks were higher this week, celebrating a great week of economic news. But the month was mixed. Still, on analyst today telling me, investors should buy stocks, not toys right now, because historically, this is the best time of year for the stock market.

Staying invested in stocks from November through May, every year since 1950 has been far more profitable than being in stocks the other six months of the year. Analysts say the hope that that happens again this year is one reason why this eight-month rally has not reversed.

For November, among stocks you might find in your portfolio, Cisco and Time Warner were up sharply. Merck and Wal-Mart were among the biggest losers.

The S&P 500 is now up 13 percent since last November, even as the dollar has fallen and oil and gold have rallied. The dollar hit a record low against the European currency. But for stocks, today was the lightest trading day of the year. No surprise there. All eyes are on next week, more interest expected to be centered around important manufacturing and jobs data. But that's next week -- John.

KING: Christine Romans in New York, thank you very much.

A huge week politically, both home and abroad. President Bush in Iraq. A morale booster? Of course. But will it boost his reelection chances? And do Democrats dare criticize it?

Medicare, a major Bush victory, but it took major arm twisting in Congress to get it. Will Medicare reform affect the race for the White House? And the economy, GDP at a 19-year high, productivity way up. President Bush says, it's thanks to his tax cuts. Will the voters agree?

Let's ask our "Newsmakers." From New York, Steve Forbes of "Forbes" magazine. Jim Ellis of "BusinessWeek" and Bill Powell of "Fortune."

Steve Forbes, let's begin with you. The president makes this trip to Baghdad, the Democrats publicly can't do anything but praise the commander in chief. Privately some are saying, a stunt. Should the president have done this and will it have any affect on the debate about the Iraq policy?

STEVE FORBES, "FORBES" MAGAZINE: I think it was a brilliant move, and the fact that Democrats are wordless I think says it all. He did not say "mission completed." He went and served turkey instead, and so that leaves turkey in the face of the Democrats. And I think it buys him time to get his policy across and build some support for it. It shows he's concerned. It was a great move. Great move.

KING: Jim Ellis, is it, though, proof, as Steve just noted, that the president perhaps cannot say mission accomplished, as the White House did try to say with that banner seven months ago?

JIM ELLIS, "BUSINESSWEEK": Well, I think that anyone who looks at the news on a day-to-day basis and sees that the body count and -- you know, continues to go up knows that there's no end to the conflict there.

I think that the president's done what should be done, which is basically go out and let people know that the commander in chief's not afraid to go there and is willing to stand behind our troops that we've put in harm's way.

But the bigger issue there is that we still have to deal as a nation with an extremely insecure situation, and that basically he's going to have trouble next year if we continue to have, you know, lots of Americans dying in dribs and drabs.

KING: Bill Powell, one of the questions facing this president, is how does he improve the image of the United States, not only in Iraq but across the Arab world and the Muslim world. Any sense from these dramatic pictures, the president with U.S. troops, talking about how the Iraqi people now must step up to the challenge and take over the government? Any sense that perhaps at least a down payment here on the image making work the president needs to do?

BILL POWELL, "FORTUNE" MAGAZINE: Well, I think at best it's a small down payment, John. The proof is going to be in the pudding, not to use a Thanksgiving metaphor, but I think the next three to six months onto next June when the transfer of power is supposed to take place, what the security situation looks like, if it improves or deteriorates, is the critical question. And I don't think the president's trip to Baghdad affects that one way or the other.

KING: Let's move on to this giant landmark Medicare reform bill the president will sign in the very near future. It has a prescription drug benefit for the elderly. The president believes, Steve Forbes, that he has taken away an issue that the Democrats have hammered Republicans with for years, but many conservatives say this bill is a turkey. Your thoughts?

FORBES: Well, there's a lot of bad in that bill, and clearly they did it for political reasons. But the fact of the matter is, there's one hugely positive thing in that bill, John, and that is health savings accounts. Which I think in the years ahead is going to revolutionize health care in America, because it's finally going to allow patients to have control of health care dollars again. We've been making a little bit of progress in that direction, good progress, but when patients control health care spending, you're going to see a very different dynamic. So in that bill, even though a lot of it's garbage, there's that one piece of gold, and that's why I would have supported it.

KING: Jim Ellis, your thoughts on that bill, and specifically on the idea that some of the critics on the Democratic side say it's a giveaway to the drug companies and to the insurance companies?

ELLIS: Well, it's certainly difficult to see -- we've gone through a lot of trouble here. It's very difficult to see, was it really worth it? I mean, basically we probably only had one shot to do this, and we came up with an extremely flawed bill.

I think that what we're going to discover is that by the time the election rolls around next year, a lot of seniors really won't have seen any benefit yet, because the big drug benefit doesn't click in until 2006, and the discount cards that we will probably see before election day are probably not going to be nearly as advantageous as a lot of people expect right now.

KING: Bill Powell?

POWELL: I think the -- again, the unanswered, almost undiscussed question is, how expensive this bill is, particularly in the long run. This is an unfunded effectively entitlement, and no one has a clue how we're going to pay for it.

KING: Let's stick with you, Bill, and we'll move back the other way. A final question, the whole thought of by this time next week, we should know the administration's reaction on the question of steel tariffs. The president, of course, took some steps to protect the U.S. steel industry. The European Union and the World Trade Organization cried foul, said the United States is in violation. What do you anticipate the president will do on this, Bill Powell?

POWELL: Well, anticipate versus what he should do. I think the administration needs to find a graceful way to stand down. The economy is recovering, jobs are starting to be created. There is no reason in the world to go into a presidential election year with a trade war with European trade partners. They've got to find a way to stand down.

KING: No reason, Jim Ellis, except this president would like to win Pennsylvania, Ohio, Michigan, Illinois, big states where the manufacturing economy is hurting.

ELLIS: That's right. But unfortunately, I think that, you know, for an administration that has talked at least in the past a lot about the need for global trade and to pull down global trade barriers, it's a little difficult for them now to say that we should become protectionist ourselves again.

I think that not only with the Europeans, the administration's going to have to find some way to sort of finesse this same trade war with China, and before the elections sort of bring this down.

I know for political reasons they want to sort of raise hell and show that they're out there fighting for American workers. But probably for the long term economy, it's probably best to sort of get rid of some of these trade impediments.

KING: Steve Forbes, the final word, has this administration been in recent weeks perhaps even months a bit protectionist?

FORBES: It certainly has, and what it demonstrates is -- this whole steel thing demonstrates is that protectionism doesn't work. It destroyed three jobs in manufacturing for each job that it saved in steel. The same thing with the trade war in China. We want to be more competitive. There are a lot of things we can do at home, starting with tort reform, controlling health care costs, lowering corporate tax rates. That's how you make us more competitive, not doing these kinds of games. So they've got to get rid of the steel tariffs. Get to the real stuff that does real good for real working Americans.

KING: Gentlemen, we thank you all for your time and your thoughts tonight. Steve Forbes of "Forbes" magazine, Jim Ellis of "BusinessWeek," Bill Powell of "Fortune." Again, thank you for your time tonight.

FORBES: Thank you.

POWELL: Thank you.

KING: And coming up -- the big screen hits and misses this holiday season, from "Elf" to "Bad Santa." Marty Grove of "The Hollywood Reporter" will join us.

And a dog named Dude has earned a place among the U.S. Marines in Iraq. Pentagon correspondent Barbara Starr will have that story from Baghdad just ahead.

(COMMERCIAL BREAK)

KING: There's a feast of films vying for moviegoers' attention this season. Disney's "Bad Santa" is already stirring up controversial. Billy Bob Thornton plays the more naughty than nice Santa Claus. Dr. Seuss "The Cat In The Hat" has already raked in more than $40 million. Although critics were not fans of this tale.

Joining me from Los Angeles is Marty Grove, columnist for the "Hollywood Reporter." Marty, take us this weekend first, what's the big hit, anyone raking in the huge money like we saw Harry Potter last year, for example?

MARTY GROVE, "HOLLYWOOD REPORTER": John, what we're seeing is that "Elf" is standing tallest at the box office this time around. Looks like about $35.5 million for the five-day Thanksgiving period. That's good, but it's not what we saw last year with the top two films which were the Bond film "Die Another Day" and the Harry Potter film each did $46 million.

This year, the business is fragmented quite a lot. So beyond "Elf" you then have a close race for second place between the "Cat In The Hat" and "Haunted Mansion," with Eddie Murphy from Disney. So, both of those are doing about $31.5 million and we'll see who comes out on top when they finally make some official projections on Sunday. Those will be the numbers we'll be talking about on Monday.

KING: Let's talk about this controversy over "Bad Santa." Some people don't think it's good movie making to have a naughty Santa Claus. What are the people buying the tickets think?

GROVE: An R-rated Santa Claus is not for everyone, and this time it doesn't seem to be appealing very broadly. It looks like this picture's going to do around $14 million for the five days it will be well out of the top five, probably seventh the way things look today.

So not a big success story. Certainly kind of alternative approach to holiday movie making.

KING: Alternative approach. Marty if you're looking at the listings today and don't like what you see and you're thinking maybe not Thanksgiving weekend, what are we looking for in terms new entries when we get close closer to Christmas?

GROVE: John, what we can look at right now are two films that are opening in December, December 5, which is this Friday, the Tom Cruise picture the "Last Samurai," that is being sneaked into theaters tomorrow night, Saturday. And tonight you can have a sneak look at the Steve Martin comedy, "Cheaper By The Dozen" that doesn't open until December 25. You can get an early start there.

KING: Martin Grove of "Hollywood Reporter," wish we had more time. We're tight tonight. We'll bring you back during the holiday season.

GROVE: I enjoyed doing it.

KING; And coming up "Heroes," our feature series. Tonight, balancing the demands of country and family. One soldier shares his remarkable story. And the marines at coalition headquartered in Baghdad have a secret weapon. He may not look too intimidating but his special skills come in handy on patrols. Barbara Starr will have that report when we return.

(COMMERCIAL BREAK)

KING: Tonight in "Heroes," army sergeant Chris Carter takes on an entirely new mission which may prove more difficult than guarding roads in Iraq. Casey Wian has the remarkable story of a soldier torn when war and life collide.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Army reservist, Chris Carter has a special connection to the Middle East. His wife, Farah, was born in Iran.

FARAH CARTER, CHRIS CARTER'S WIFE: I understand that the action that he took wasn't against the Iraqi people. I understood that his action was against terrorism. It was very clear to me from the very beginning and I support him 100 percent. What he did had to be done. But of course, I was torn that my husband was going to have go do it.

WIAN: When the call came, the Carters were expecting their first child.

CHRIS CARTER, U.S. ARMY RESERVES: I didn't want to miss the birth of Drake. But you know, when you sign the paper, there's no guarantees. And I just, you know, do what you got to do.

WIAN: While Carter guarded roads for military convoys, his wife struggled back home with painful complications from childbirth.

F. CARTER: It got to a point where it was unbearable. I tried to be as strong as I could be, I tried to be strong for Chris. I didn't want to upset him. It's the last thing that I want to do is be here, you know, whining about, you know, all of the luxuries that I have while he's in the middle of a desert.

C. CARTER: I just come back from a mission and my squad leader pulled me aside and gave me the Red Cross message. Red Cross message is never good. They're like telegrams. They don't deliver good news.

WIAN: The Army gave Carter emergency leave. In 18 hours he went from military policeman to new dad quickly learning an entirely new mission.

C. CARTER: It's tough to be the one that came home. My heart goes out to the families of my fellow soldiers that didn't make it back.

WIAN: Farah has recovered Carter returns to active duty in February.

C. CARTER: The thought of having to go back, to me, is just part of the program. And until I take the uniform off for good, it always will be. That's just the soldier in me that thinks that way and the father in me is torn.

WIAN: Casey Wian, CNN, reporting.

(END VIDEOTAPE)

KING: Finally tonight, Marines in Baghdad have a new member, while he may be small, the Marines in his new unit insist his finely honed sense are an asset on patrols. Here's Barbara Starr from Baghdad.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): At the coalition headquarters in Baghdad, the big guy is a U.S. Marine anti-terrorism expert, on guard 24/7. The little guy, the newest Marine in the platoon. Meet Dude, a three-pound puppy the Marines rescued from abandonment.

UNIDENTIFIED MALE: He protects this whole building.

STARR: At night, Dude goes on patrol with his buddies.

UNIDENTIFIED MALE: He rides in our ATV's with us and checks out the facility and basically at nighttime he sees things before I even see them. He's a good boy to have around.

STARR: The Marines aren't joking. They insist Dude barks at anybody not in a uniform. Dude is a diplomat, making friends with the Iraqis who work at coalition headquarters.

UNIDENTIFIED MALE: Enjoy when they come to work, get to play with dude, too.

STARR: And like most Marines, Dude responds to the ladies.

UNIDENTIFIED MALE: Everybody that comes down to see him gives him a different name, especially the ladies. They come up with girlie names.

STARR: And if you wonder if Dude is being looked after, well, no field rations for him.

UNIDENTIFIED MALE: He eats better than I do most of the time.

STARR: The Marine hope to take Dude back home when their tour is up next year, but he may have to get adjusted.

UNIDENTIFIED MALE: I don't know if he's going to speak in English though, because he's a native dog.

STARR: Barbara Starr, CNN, with Dude, on patrol in Baghdad.

(END VIDEOTAPE) KING: Looks like a great dog. That's our show for tonight. Thanks for being with us. Lou will be back on Monday. For all of us here in Washington and in New York, good night and have a great weekend. "CNN LIVE" in New York with Heidi Collins is next.

END

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on Black Friday; Army Reservist Granted Leave To Take Care Of Wife, Newborn Son>