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Lou Dobbs Tonight

Suspected Al Qaeda Links in Madrid Bombing; Astronomers Make Huge Discovery

Aired March 15, 2004 - 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.


(BEGIN VIDEOTAPE)
JOHN KING, CNN ANCHOR (voice-over): Tonight: a crack in the coalition. President Bush congratulates Spain's newly elected prime minister. Jose Luis Rodriguez Zapatero calls the war in Iraq a disaster and vows to bring Spanish troops home. White House Communications Director Dan Bartlett will be our guest.

New links to radical Islamic terrorists. Investigators in Madrid say there's growing evidence that al Qaeda was behind the train bombings that killed 200 people. We'll have a live report from Madrid.

"Exporting America." A growing number of American companies say the wave of offshore outsourcing has left them with few options.

UNIDENTIFIED MALE: I had to go to China or close the business.

KING: And a whole new world in outer space. Astronomers say they've made their biggest discovery since they spotted Pluto more than 70 years ago. Astrophysicist Charles Liu will be our guest.

(END VIDEOTAPE)

ANNOUNCER: This is LOU DOBBS TONIGHT for Monday, March 15. Sitting in for the vacationing Lou Dobbs for an hour of news, debate and opinion, John King.

KING: Good evening.

Tonight, the United States-led coalition in Iraq is in danger of losing one its strongest allies. Spain's newly elected Socialist prime minister said he will draw his country's support for the war. Jose Luis Rodriguez Zapatero said Spanish troops should come home from Iraq and he called the war and the occupation disastrous.

White House correspondent Dana Bash is live at the White House now with the latest on how the Bush administration is facing this new challenge -- Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): Well, John, the Bush administration's strained today to accentuate the positive on the situation.

Mr. Bush did made a brief congratulatory call to the new prime minister-elect to Spain. We're told that the call was limited to discussing the war on terrorism. And we're also told from a senior official that the president, although he didn't himself speak about this issue today, his message to his top aides was that he wants to make clear that just because a key ally in the war on terror and the war in Iraq was defeated, it should not be said or shown that terrorists have won.

(BEGIN VIDEO CLIP)

J. ADAM ERELI, STATE DEPARTMENT SPOKESMAN: The party leader, Mr. Zapatero Rodriguez, has said his first priority would be fighting terror and that Spain will continue to fight groups that direct violence towards other countries. We stand ready to support his government and Spain's people in that effort.

(END VIDEO CLIP)

BASH: Now, Jose Maria Aznar, the outgoing prime minister of Spain, was a very important -- has been an important ally of Mr. Bush. He stood side by side with him almost exactly a year ago in the Azores. He sent troops, of course, into Iraq, those troops that the incoming prime minister wants to take back.

And the White House, though, has been insisting all day today, though, John, that just because this -- Aznar was defeated, because there are so many complicating factors on the ground, because of the terrorist attacks last week, you cannot draw any conclusions about what this election means in terms of Mr. Bush's policies, whether or not it was actually a slap at Mr. Bush.

KING: And, Dana, the administration has -- the administration responding aggressively today in this entire controversy over Senator John Kerry, the president's Democratic opponent, who, of course, has been saying that foreign leaders around the world have bee telling him that they want the president defeated, so they get a new strategy in the war on terrorism. What was the new approach from the White House today and why?

BASH: Well, clearly, the White House understands that John Kerry is trying to paint the president as a unilateralist.

And they also understand that the fact that Jose Maria Aznar's successor failed in the election could help that argument by John Kerry. Today, Scott McClellan, the White House spokesman, answered questions about John Kerry's comments just a week ago that foreign leaders were talking him that Mr. Bush should be defeated. What Scott McClellan said is that John Kerry, if he has these allegations that he knows these leaders, he should say them.

And if he doesn't say who they are, then it should be clear to the American people that John Kerry simply made those leaders up, made this information up. And the Kerry campaign is responding that, if Scott McClellan wants to talk about the campaign, perhaps he shouldn't be doing it on the White House payroll -- John.

KING: Dana Bash at the White House, thank you very much. And the governments of other coalition countries are not siding with Spain's newly elected prime minister. Poland is leading the international coalition. And its prime minister today said pulling troops out at this point -- quote -- "would be to admit that the terrorists are stronger and that they are right."

There are 120,000 U.S. forces, 9,000 British troops and 23,000 international forces in Iraq. The Spanish troops may leave Iraq on June 30. Spain had been due to take over command of that international division on July 1.

There's mounting evidence tonight linking al Qaeda conducting to the massacre in Spain. CNN has learned that one of the five men arrested in the Madrid bombings has ties to an al Qaeda-linked bombing in Morocco last year.

Brett Sadler is live in Madrid and joins us now with the latest -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Thanks, John.

Pretty soon after last Thursday 's bomb blasts, Spanish investigators here picked up a total of five individuals, including three Moroccans. Now, one of those Moroccans, a 30-year-old male, has connections, say investigators here, to an al Qaeda chief now in jail. He was picked up after the 9/11 attacks on America, the chief of al Qaeda, it's alleged, who was also indicted, along with Osama bin Laden two years ago, as part of those two-year-old investigations.

Also, the Spanish are now working with Moroccan investigators, because that same individual allegedly had ties to the suicide bombers who delivered devastating attacks last May against two targets, Jewish and Spanish, in Casablanca. CNN has also obtained documents from al Qaeda posted on the Internet last December that really paints a very detailed strategy, a violent agenda to force a change of government here in Spain. That could possibly lead, says al Qaeda, to the removal of Spanish troops in Iraq. That was with hindsight a telling message -- John.

KING: And, Brent, are we seeing ramifications across Europe, or are the political ramifications limited to Spain at the moment?

SADLER: Well, vast political fallout here in Spain, and the new designate prime minister has made quite clear, not mincing his words at all today, that he will change Spain's policies, look for Spain now moving away from the close proximity we saw with Spain and the United States and Great Britain vis-a-vis the war on Iraq. Look for Spain turning to more traditional allies, France and Germany, two countries that also oppose the war.

The Spanish here certainly appear to have punished heavily the outgoing government by going over the heads of as many of 90 percent of Spaniards who were dead against that conflict last year -- John.

KING: Brent Sadler live for us in Madrid -- Brent, thank you very much. And joining me now to discuss how Spain's dramatic election results will impact U.S. strategy in Iraq and perhaps play out in the campaign here at home is White House Communications Director Dan Bartlett. He joins us now from the White House.

Dan, let me begin with the ramifications with the U.S.-led coalition. Is Spain the only country that will pull out or will others get a political message and follow suit, in your view?

DAN BARTLETT, WHITE HOUSE COMMUNICATIONS DIRECTOR: Well, John, I think it's important, first and foremost, to again express our sympathies for the people in Spain, but also resolve and determination the United States and other coalition partners have when it comes to helping Spain find who's responsible for these terrorist attacks.

I think it's very important to understand that al Qaeda has proven once again that they are willing to indiscriminately kill innocent people regardless of their affiliation, regardless of their ethnicity, regardless of their participation. And I think it shows once again that the civilized world must come together and defeat terrorism. And we think that the coalition in the war on terror will remain strong.

KING: But, Dan Bartlett, Romano Prodi, the former prime minister of Italy, now a senior official in the European Union, he said today that the Spain attack is proof to him that force is not working as a tactic against terrorists. He said there are more terrorists today than there were a year ago. Is that a repudiation of President Bush's strategy?

BARTLETT: I don't think so. I think it's a fundamental misunderstanding of how the war on terror is being fought and won, for that matter.

The war on terror has been successful. More than two-thirds of the al Qaeda leadership that is known has been rounded up or otherwise dealt with. We're rolling back the financing of terrorists. Intelligence and law enforcement agencies throughout the world are doing a good job busting up cells. But it was all very clear and a grim reminder last week that we have more work to do. But that can't stop our determination or our resolve to fight the terrorists.

KING: A tragedy abroad, Dan Bartlett, but also ramifications in the presidential campaign here at home.

I want you to listen to something Senator John Kerry said today, the president's Democratic rival, in a speech in which he also said that this administration is -- quote -- "big on bluster, short on action" when it comes to homeland security. Listen to Senator Kerry.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: This administration has put a tax giveaway for the very wealthiest of our nation over making sure that we do all that we can to win the war on terror here at home. They have no problem giving Halliburton a fat no-bid contract, while only soldiers and firefighters and police officers are asked to give their sacrifice. I think this administration has it just plain backwards. President Bush says we can't afford to fund homeland security. I say we can't afford not to.

(END VIDEO CLIP)

KING: Dan Bartlett, a chance for you to respond.

BARTLETT: Well, Senator Kerry has some nice sound bites during the presidential campaign. But when Senator Kerry had an opportunity as senator to show his support for creating a Department of Homeland Security, he voted against it not one time, not two times, but six different times he voted against the creation of the Department of Homeland Security. So his rhetoric is not really matching his record.

And we have found that to be the case in many different areas. Look, President Bush and Senator Kerry have a fundamental different approach to fighting and winning the war on terror. It's a choice that the American people have to make. The president's going to remain on offense. He's going to remain protecting the homeland. We've had a four-fold increase in homeland security funding. So I think the sound bites are catching up with Senator Kerry's record.

KING: Why did the White House today essentially say put up or shut up to Senator Kerry on this whole issue of his comments that other foreign leaders have told him they want him to win so that President Bush is essentially evicted from the White House? Why that strategy from the White House?

BARTLETT: Well, Senator Kerry has a choice here. He either comes clean with these sources, so-called sources, or it's very clear that the fact of it is, is that he's making it up.

And this is a very serious charge. It's a very serious accusation to make, or an opportunity for him to attack the president. And you can't just be quoting unknown sources from foreign governments. And this is not the first time he has done this. He's done this when it comes to saying that he heard from sources about claiming that we held a deal with Libya for political gain. That wasn't the case.

He says he has sources saying that we could have gotten France on board before the Iraq war, despite the fact that Chirac and Villepin were saying that there was no way they were going to participate. He now has sources telling him, in this case, that he has foreign leaders supporting his candidacy. That's a very serious charge. And the fact that he can't back it up only can let you come to the conclusion that he's making it up. So he ought to come clean or admit that he's making it up.

KING: And, Dan Bartlett, let me ask you in closing about a new number in the Gallup poll today that has to be troubling to the president; 60 percent of the people surveyed in the new national Gallup poll say they are dissatisfied with the direction of the country. If you are an incumbent, that has to scare you a bit.

BARTLETT: Well, I think the poll said dissatisfied with where we are today.

And, in fact, just for a little bit of a history lesson, when President Clinton was voted into office for a second time in 1996, that same number was at 39 percent. So I don't think -- I think that's more a snapshot of what people might feel about a certain issue. But that doesn't mean that they necessarily agree that the president is not the right person to solve that issue.

So the president's going to keep focusing on the policies that's helping turn our economy around, that's winning the war on terror and protecting the homeland. And those are the issues in which he will be reelected on.

KING: White House Communications Director Dan Bartlett, we thank you for your time tonight.

BARTLETT: Thanks, John.

KING: Thank you.

And still ahead, train stations around the country are on a higher state of alert tonight after the Madrid attacks. Former New York City Police Commissioner Bernard Kerik will be our guest next.

Plus, the White House today unveiled boxes and boxes of materials collected in Libya that it says could have been used to build a nuclear bomb. We'll have a special report.

And then new evidence tonight that Americans are less than convinced the economy is improving.

That and much more just ahead. Stay with us.

(COMMERCIAL BREAK)

KING: State and local officials across this country are on a heightened state of alert in the wake of the Madrid bombings. Security has been increased at train stations and mass transit hubs from New York to San Francisco. Homeland Security Undersecretary Asa Hutchinson today outlined some of the increased security measures.

(BEGIN VIDEO CLIP)

ASA HUTCHINSON, UNDERSECRETARY FOR HOMELAND SECURITY: We've increased the explosive detection teams that are present in the stations. We're increasing our deterrence. And the public announcements are very important, alerting the public that you need to look for unattended bags, for suspicious items to report to law enforcement. They're our greatest tool.

(END VIDEO CLIP)

KING: My next guest says everything that can be done to secure the mass transit system is already being done. But he says there are no guarantees.

Joining me now, Bernard Kerik, the former New York City police commissioner.

There are no guarantees. Anything else that could be done to step up, anything that you can learn just from watching what you've seen in Madrid the last few days that can be translated here at home?

BERNARD KERIK, FORMER NEW YORK CITY POLICE COMMISSIONER: Honestly, John, you have to be realistic.

You can bring CTX scanners and scan every piece of cargo or every bag or briefcase or suitcase going onto a train in the mass transit system, for example, but you wouldn't get -- for example, in New York City, you wouldn't get the million people that ride that system on a daily basis through the system. So you have to be realistic.

I think, for the most part, we're doing everything we can physically. But you have to keep in mind, you're not going to prevent every attack.

KING: For better or worse, this debate is playing out in this country in the middle of a presidential campaign. Senator Kerry today saying that President Bush has shortchanged the first-responders, the folks you used to represent, the policemen, the firefighters. He says they're not getting the money they need to help prevent attacks like this. Fair?

KERIK: No, I don't think it's fair.

And I think you have to go back to September 10, 2001. What we have today in the creation of Homeland Security and the merging of the 22 agencies and the creation of the central clearinghouse for information, and the Patriot Act that today allows the CIA to talk to the FBI and helps that coordination of communication, we are far better today than we were in September of '01. And it's getting better on a daily basis.

KING: In the interest of full disclosure, you worked for the administration in Iraq, so I should make that clear. You're a fan of this president.

KERIK: Absolutely.

KING: Fair enough.

I want to ask you a tactical question. When you see the bombing in Madrid so close to the election, one has to assume that was done on purpose.

KERIK: Absolutely.

KING: Any sense that that is a tactic we could see, God forbid, here in the United States or perhaps elsewhere in the world? Is that a new tactic, if you will?

KERIK: It's not a new tactic and it's something that people should not be surprised about. You know, this is a religious war. This is -- and I agree with the president wholeheartedly. This is not a law enforcement matter. This is a war. This is a religious war. The people that hit us on September 11 are the same that hit us in '93. They are the same that hit Madrid five days ago. They see the reaction and the response from Spain. If they believe that that could happen here, they'll be here to do it as well. And we have to be prepared for that.

KING: I want to shift our focus a bit. You went to Iraq on behalf of this president to help train and bring up to speed the Iraqi police force.

KERIK: Right.

KING: Last week, there were reports and accusations from the United States military that Iraqi police forces had been infiltrated and that some of those infiltrators were in fact responsible for murders. What is your sense of the depth of the problem, if you will, and what can be done?

KERIK: Well, I think it still hasn't been determined whether that's true or not. But we have to keep in mind, it all stems on the leadership in Iraq.

We have to make sure that the leaders in the Iraqi police, the Iraqi military and the Iraqi civil defense forces are the right people, because, if they're not, if they're going to bring back Saddam loyalists, if they're going to bring back the Baathists, then we're going to have continued problems. So it really stems on the leadership.

KING: And if there's a question today, perhaps it's an allegation, but a question today of corruption and infiltration in the Iraqi police force, is June 30 still a realistic date for the United States to say, here, this is your country now; you're in charge?

KERIK: Well, I think we've seen three or four examples of problems like this over the last week or two.

I think, you know, it's farfetched to say it's a systemic problem and it's something that would prevent us on June 30 from moving forward, but it has to be looked at.

KING: Bernard Kerik, former New York City police commissioner, thank you, sir, very much for your time.

KERIK: Thanks, John.

KING: Thank you.

And still to come, nuclear show and tell. The Bush administration draws back the curtain on Libya's confiscated weapons of mass destruction.

And "Exporting America" tonight, inside one small business that says the decision to outsource came down to do or die. (COMMERCIAL BREAK)

KING: Three American civilian workers were killed and two wounded in a drive-by shooting in Iraq. The attack took place in the northern city of Mosul.

The military said the five civilians were members of a private volunteer organization and they were in Iraq to deliver relief supplies. An Iraqi police officer found the bullet-riddled car shortly after the shooting and transported the two wounded civilians to an Iraqi hospital. They have since been moved to a U.S. Army field hospital in Mosul.

Pakistani police in Karachi defused a large bomb left in a stolen minivan outside the walls of the U.S. consulate today. The consulate was closed as a result of that threat. The U.S. State Department praised law enforcement and security personnel for -- quote -- "detecting and responding to what could have been a horrific explosion." U.S. Secretary of State Powell is expected to visit Pakistan's capital, Islamabad, on Wednesday.

The Bush administration today played host to an unusual display of show and tell. A planeload of reporters traveled to the federal nuclear weapons complex in Tennessee to view equipment retrieved from Libya late last year.

David Ensor was among that group and has this report.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): Behind lines of security men with M-4 assault rifles, the Bush administration unveiled some of the fruits of its successful diplomacy with Libya, 48 crates and boxes of sensitive nuclear weapons program components loaded into a C-17 transport plane in Libya and delivered to Oak Ridge, Tennessee.

SPENCER ABRAHAM, ENERGY SECRETARY: All of the ingredients were available for a weapons program to be developed.

ENSOR: On show in a tent were gas centrifuge casings sold as part of a $100 million deal to Libya by the black market network of Pakistani scientist Dr. A.Q. Khan. Inside the crates are the rotors and other key parts. In all, 4,000 centrifuges are coming out of Libya, officials say, along with Scud missiles.

JAMES WILKINSON, DEPUTY NATIONAL SECURITY ADVISER FOR COMMUNICATIONS: There's a lot more that's on a ship on the way over here right now that is due to dock at an East Coast port in the coming days.

ENSOR: Colonel Moammar Gadhafi apparently decided to come clean on his WMD programs in the hopes of getting American oil companies back into his country. While the secret diplomacy leading to the breakthrough started well before the Iraq war, Energy Secretary Abraham Spencer argues, the war must have been a factor. ABRAHAM: I think he recognized the United States was unwavering in our willingness to do what we have to do to protect this country just world from rogue nations or people obtaining weapons of mass destruction.

ENSOR (on camera): The show-and-tell was notable for what we're not setting as well as what was shown. Officials assure us that inside these crates are critical components of gas centrifuges for making bomb-grade uranium. Secretary Abraham says they're not revealing for fear of helping others to figure out more about how to make a bomb.

David Ensor, CNN, at the national security complex in Oak Ridge, Tennessee.

(END VIDEOTAPE)

KING: In Haiti, gunmen ambushed a group of U.S. Marines and shot one in the arm. It's the first casualty in Haiti since the Marines landed there two weeks ago. Also for the first time in two weeks, ousted Haitian President Jean-Bertrand Aristide returned to the Caribbean. Aristide today arrived in Jamaica, where he's expected to stay for several weeks to visit family. Haiti's new interim leader responded to the visit by recalling Haiti's ambassador to Jamaica.

When we return, growing anxiety over the state of the economy and the staggering lack of new jobs, a special report tonight.

Then, a crack in the U.S.-led coalition in Iraq. Spain's new leadership vows to pull out. Former presidential adviser David Gergen will be my guest.

And a national water hazard, contaminated water supplies across the country and the hundreds of billions of dollars it will cost to clean it up.

(COMMERCIAL BREAK)

KING: Fresh evidence today that Americans are feeling anxious about the economy despite a pickup in economic growth.

Peter Viles has more on the latest Gallup poll.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): President Bush campaigning in Pennsylvania arguing that the economy has turned the corner.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The economy is strong and getting stronger. The manufacturing report today was very positive, another indication of the economy strengthening. Unemployment's dropping here in the state of Pennsylvania. There's still people looking for work, make no mistake about it. But it's getting better.

VILES: His commerce secretary today making the same point, that things are looking up.

DON EVANS, COMMERCE SECRETARY: Look, you have to stay very focused on the trends. And the trend of this economy is very, very strong.

VILES: But a new Gallup poll says many Americans believe otherwise. Only 44 percent believe the economy is -- quote -- "getting better." And that's down from 66 percent just two months ago. Behind that steep drop-off in optimism, anemic job creation, a spike in gas prices, rising concerns about outsourcing.

Another Gallup poll earlier this month found 41 percent of Americans are very concerned that their job could be exported, another 20 percent somewhat concerned -- and another factor, months of relentless Democratic attacks on the president's economic policies.

KERRY: Here in Ohio, where people have lost so many jobs in manufacturing, so many jobs in steel, so many jobs in labor, this president hasn't even used the mechanisms available in the trade laws to stand up to other countries and fight for the American worker. I will.

VILES: A political argument, but underneath is an economic question -- is the global economy really working for American workers. And will President Bush continue to defend globalization.

CHRIS EDWARDS, CATO INSTITUTE: He's got to go to the factories that are exporting goods. He's got to go to some of those companies that are not outsourcing, but some of the companies that are insourcing. Some of the companies that are getting more jobs from abroad.

(END VIDEOTAPE)

VILES: The administration has been touting the benefits of trade recently, but has also backed off its own analysis that outsourcing is just another kind of trade, and probably a good thing for the economy -- John.

KING: So, Pete, the president says the economy is coming back and that his tax cuts are one big reason Senator Kerry appears to be winning the debate by saying, no, look, where are the jobs.

Any chance for the president to turn the tide?

VILES: Sure. In April we always talk more taxes in this country. We'll here more reports in the media, and the tax refunds this big, will be bigger because of the tax cuts. Certainly in April we'll have more discussion of taxes and tax cuts than we've had in the past couple of months.

KING: The president you can bet will talk about the refunds.

Peter Viles, thank you very much.

KING: Economic anxiety is not the only challenge President Bush faces as the November election draws closer. Former I'm joined by David Gergen, former adviser to four presidents with over 30 years of political service. He joins me now from Cambridge, Massachusetts.

David Gergen, thank you for joining us. I want to begin with your thoughts on what happened over the weekend in Spain. Obviously the tragic bombing, but then the political fallout from it.

Is that a in part a repudiation of President Bush's leadership in on war on terrorism?

And if you believe it to be, does it have any impact on the political climate here at home?

DAVID GERGEN, FORMER PRESIDENTIAL ADVISER: John, it's clear that there was a major reversal in Spanish opinion, Just before the elections the conservative party, which was in power, was ahead in the poll by 3 to 5 points, and the opposition party won by 5 to 6 points. So, you've got a major swing there. I think in reality, part of that swing is due to the fact that the conservative government after the bombings essentially was seen as lying or trying to cover up who was responsible. They tried to point the finger at internal Basque terrorists as responsible as opposed to al Qaeda. And I think the country, a lot of voters were very angry at them.

The problem for the Bush administration is, while that may have been a major factor in what turned the tide to the other party. The perception is taking hold very rapidly. There's a real rush to judgment on the part of the media, not only in this country, but overseas. That in fact this was -- that the out party won because they were so angry at the al Qaeda terrorists and thought the government had been too close to the Bush administration. So it's being interpreted -- the interpretation it's a rejection of the Bush policy in Iraq. And that is damaging to the Bush administration and to keeping unity among the allies in Iraq.

KING: David, it comes on the wake -- in the wake of Senator Kerry saying that other foreign leaders have told him that they want Bush out of the White House. They want him to win. The White House essentially today and over the weekend said, put up or shut up. Name names.

Is this silly season or does this matter in the campaign debate?

GERGEN: It's one of those -- John Kerry, who's run a pretty flawless campaign since Iowa, I think on this one instance he really made a mistake. And the Bush administration sees an opening here and they're pounding him on it. It's very unconventional, in fact it's ill advised to try to say, well, overseas, here's what they want. That's exactly what Americans don't like to hear. They don't like to have their votes dictated by foreign public opinion. And the Bush administration is going to whack him on it.

But will this be a lasting issue? No, I don't think so. I think the issue of jobs is far more important. The story of what's happening on the unemployment side. The jobs not coming back is a -- becoming a transcended issue. And increasingly, though, this situation in Iraq, which once looked like it was going to be very much in the president's favor, there's a sense, John, not only that it's turning sour, but what we all assumed was that the president would be able to be in charge of events. He would shape the landscape going into this election on both economy, that he would peak economically, and in Iraq, that he would be able to turn over power smoothly. Increasingly, it looks like he is becoming hostage to events he's not controlling. And that is not -- that's not a pleasant place to be if your in the White House. You want to be in control, not a hostage to events.

KING: You say not a pleasant place to be. You have served in the White House in good times and bad.

GERGEN: A lot of bad ones.

KING: If you look at the polls right now, you see 60 percent of the people in the Gallup poll saying they're dissatisfied with the direction of the country. They're split just about evenly when they ask if the economy is getting better or worse.

What can the president do?

GERGEN: Well, the truth of the matter is, it's not easy. I mean, you know, he's poured about as much gasoline into this economy as anybody can possibly could do. I've never seen a time when Washington has provided more stimulus to the economy. They've -- you know, the big deficits, the big spending, the tax cuts, the lowest interest rates in 40 years and a falling dollar, all of that should be a tonic for the economy. And the economy indeed is growing. But I think what's different, and what all of us are grappling are, where are the darn jobs. You and Lou Dobbs have been focusing on this migration.

That is a piece of it. I think what the president is now facing is a fear factor over this loss of jobs. We haven't lost as many, but the trend line is bad. And the fear factor is shooting up. I think, John, he has to stop cheerleading the economy, and come up with a program to deal with this migration of jobs. He doesn't seem to have a strategy beyond tax cuts to deal with a long-term economic future. He needs a job strategy now, and frankly, John Kerry hasn't come up with one either. So, here's an opening for the president, but he needs something that says, here's what we're going to do with what is now a rapidly exploding issue, and that this migration of jobs.

KING: Let me ask you quickly in closing, then if you say he needs a new program, can he come up with a program and sell it to the American people at a time he's being hammered by the Democrats for the record deficits?

GERGEN: Well, you know, it's not easy being president. And, yes, I think he can. I think it's far better -- it's far better to have a program that you're going to be hammered on than to be silent and appear like you don't understand or you're not listening. What happened to his father, of course, was his father got hammered by Democrats for seemingly being inattentive to an onset of a recession, and that's partly how he lost his job. The son, who was working so hard on -- seemed to be so attentive to the economy I think has been caught offguard by the rising fear about the migration of jobs. I do think he has to come up with a program. He has to come up with -- and it has to be a tough program. Everybody has seen that when George W. Bush wants bold, decisive action, he's willing to take it. He has shown that in Iraq. He now has to convince the country he is equally concerned about the jobs as he is concerned about Saddam Hussein, and come up with a program that's bold, decisive.

Will it be expensive, yes. Will it be a problem for him in his tax cuts, yes. But he's going to have to -- but he still has to figure out, how do you make sure that Americans don't get caught in the crunch here with the job migration. There is so much fear out there, that I think the fear could ripple back into the consumer confidence as we're now seeing, and that in itself could stall out the recovery. That will be a real double whammy for him.

KING: A challenge to the president tonight. David Gergen, we thank you for your time.

GERGEN: Thank you, John.

KING: Take care.

And we would like your thoughts on "Tonight's Poll" question. How will the change of government in Spain affect the coalition in Iraq? Spain will withdraw, Spain and other countries will withdraw, or the United Nations will reenter Iraq?

Cast your vote at cnn.com/lou. We'll bring the results later in the show.

And just ahead, he says his decision was purely economic. We'll have the story of one Wisconsin manufacturer who made the tough decision to send work to China.

And finding Sedna. The discovery of a planetoid eight billion miles away. I'll be joined by Astrophysicist Charles Liu.

(COMMERCIAL BREAK)

KING: Tonight in our continuing look at the exportation of U.S. jobs overseas, we bring you the story of one die-hard American who says his decision to outsource became a matter of survival. And as Lisa Sylvester reports, it was a decision that did not come easily.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Don Frantz is an all-American guy. He drives a Harley. The family vehicles are a Ford pickup truck and a Buick. And at his factory, Frantz Machine Products, in New Berlin, Wisconsin, all of the equipment is American made. But while Frantz believes in buying American, his distributors don't feel the same way.

DON FRANTZ, OWNER, FRANTZ MACHINE PRODUCTS: When we went to the distributors, we found our foreign competition was much less. And they wouldn't even talk to us. We were too expensive.

SYLVESTER: Frantz Machine Products makes precision parts for other manufacturers, including trailer locks. The company's locks sold for $17. The Chinese competitors were retailing the locks for $12. With those numbers, it was hard to find any willing buyers. The company faced a difficult decision.

FRANTZ: It forced us to go to China. Very tough for me to do that. But it was either go to China, or quit the business. Stop the business.

SYLVESTER: Frantz Machines ended up compromising starting a production line in China while still producing some of the locks in the United States. If the company had its way, all of its products would be made in America. But it's hard when you're up against foreign manufacturers who can tap into cheap labor. Kathy is Don Frantz's daughter. She believes if American consumers were willing to pay more for American products, it would save manufacturing jobs.

CATHY KRAATZ, FRANTZ MACHINE PRODUCTS: If they could just try to make a conscious effort every time to purchase American-made products and take a stand against what's happening in the manufacturing industry in America, it could make a huge difference.

SYLVESTER: The way the Frantz family sees it, it may cost more to buy American, but there are hidden costs when you don't. In the form of more pink slips and job layoffs.

(END VIDEOTAPE)

SYLVESTER: Don Frantz is not only loyal to the American brand, he's also loyal to his workers. More than half of them have been with him from the very beginning when he started his company 25 years ago -- John.

KING: Lisa, the owner spoke of a painful compromise. What was the impact on the workforce here in the United States?

SYLVESTER: Well, what he had to do, and this was very difficult, because as I said, you know, many of these workers had been with him for a very long time, he did have to let go some of the workers. They had 37 workers, they're now down to 26. It really shows you there's a lot of pain going around at that corporation -- John.

KING: Lisa Sylvester live for us in Washington, thank you.

Martha Stewart resigned today from the board of the company she built. She also gave up her role as chief creative officer, but will remained active as, quote, "founding editorial director of Martha Stewart Living Omnimedia." Stewart is currently awaiting sentencing on four charges. If she is sentenced to serve time in prison, she will be only the fourth corporate executive to go to jail out of 115 charged with crimes in the past two and a half years.

We have a cartoon to share tonight that we think captures the Martha Stewart conviction quite well. It shows two fishermen, one of whom is bragging to the other that he caught a Martha Stewart, and its a good-sized little fish. But not much when they compare it to the shark over their heads with the label, corporate crooks. Our thanks to Mike Ramirez (ph) of the "Los Angeles Times."

It's a whole new world in outer space. A NASA funded team today announced the discovery of a planetoid located a mere 8 billion miles from Earth. The object, named Sedna, is about 3/4 the size of Pluto and it is the largest object found orbiting the sun since the discovery of Pluto back in 1930. Joining me with more is our good friend astrophysicist Charles Liu. Is this just a gee, whiz moment or is there some significance to this?

PROF. CHARLES LIU, ASTROPHYSICS, CUNY: There's actually some significant scientific activity here. We've always thought there was something called an Oort cloud that surrounds our solar system at distances of trillions of miles. This object Sedna may be the first object ever discovered of that cloud further by far than Pluto and the outer planets.

KING: Does the cloud serve a purpose, do we think or is it just there?

LIU: It's probably the leftovers from when the sun formed over 4 1/2 billion years ago. If the sun formed as we think it did from a cloud of gas surrounded by other stars, then the leftover bits form the planets, formed the asteroids, and formed the comets and objects like Pluto, like Sedna. We just don't know exactly where they are. This discovery gives us new insight into the entire structure of the solar system.

KING: New insight. How do you build on the discovery? It's not exactly in the neighborhood. How do you learn from what you've found?

LIU: It's true, it's long, long, long far away. We won't be able to send ships out there for decades. 8 billion miles is more than twice the distance to Pluto. So the best we can do right now is aim our telescopes, such as the Hubble space telescope, such as the Spitzer space telescope and sophisticated systems HERE on the ground to try to characterize its orbit, its composition. We can learn a lot just by looking at the light that's reflected off of it from the sun.

KING: And tell us about this discovery in terms of why now? Is this because of some advanced technologies? Because of some look in that direction?

LIU: It's really technology. We've made such great strides. Think about, for example, the difference between the instamatic cameras we used to use and the digital cameras that are available today. The same strides in technology are now allowing us astronomers to survey areas of the sky with unprecedented detail and depth. So we're expecting not just this one discovery, but many more to come. We think there may be many other objects like Sedna hiding out in the solar system.

KING: When we find them, we will bring you back to help us introduce it. 8 billion miles away. LIU: Very, very far.

KING: Thank you.

LIU: Always a pleasure.

KING: And just ahead, the lower Colorado river is being threatened by a toxic plume. And centuries old lead pipes carry water in our nation's capital. These are just two of the hazards facing the country's drinking. We'll have a special report.

And America's bright future. We'll have the amazing story of one 14-year-old who is studying for her PH.D. in electrical engineering.

(COMMERCIAL BREAK)

KING: This week, Pacific Gas and Electric is scheduled to begin trucking thousands of gallons of contaminated water away from a toxic site near the Colorado river. It's just one example of the growing number of threats to the nation's drinking water supply. Casey Wian has the story from Parker Dam, Arizona.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): The lower Colorado supplies drinking water to more than 20 million people in southern California and Arizona. It's now being threatened by an underground toxic plume that seeped to within 150 feet of the river. In the 1950s and sixties, this Pacific Gas and Electric plant dumped millions of gallons of waste water into unlined pits near the Colorado. It contained high levels of chromium 6, the toxic chemical made infamous by the movie Erin Brockovich. Now the race is on to stop the plume before it reaches the river and these intake valves that service homes from Tucson to L.A.

UNIDENTIFIED MALE: It's serious enough to warrant immediate action. We are concerned that this plume reaches the river, we want to do everything we can to make sure it doesn't happen.

WIAN: California ordered PG&E to build extraction wells to remove the tainted water from the area. A 2,000 foot-long permanent barrier is planned. In Washington, D.C. this month, residents sued the city over lead contamination of their drinking water.

ERIK OLSEN, NATURAL RESOURCES DEFENSE COUNCIL: That's just one example. There are actually problems across the country, thousands of violations that occur of the basic health standards every year. We're seeing hundreds of thousands of water main breaks. All of these are indications that our water treatment plants and pipes are starting to fall apart.

WIAN (on camera): Two years ago, the Congressional Budget Office estimated it would cost between $250 and $400 billion over the next 20 years to repair and upgrade the nation's drinking water facilities. Environmental groups say even that may not be enough.

(voice-over): So who will pay to clean up contaminated water?

RON CASTELUM, CEO, METROPOLITAN WATER DISTRICT: It takes tremendous financial resources to identify and to correct the problem, and neither the state nor the federal government have those resources applied today. So that means that you end up relying upon the responsible parties, and it's not always clear exactly who those responsible parties are.

WIAN: Castelum says new laws and a national strategy to protect water quality are needed.

Casey Wian, CNN, Parker Dam, Arizona.

(END VIDEOTAPE)

KING: Renewed fears about terrorism sent stocks sharply lower today on Wall Street. The Dow skidded 137 points. The Nasdaq shed 45 points, or more than 2 percent. The S&P 500 lost 16. Christine Romans is here now with a complete wrap of the market -- Christine.

CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: John, more than a few mentions of the Ides of March on the floor of the New York Stock Exchange today. Another brutal session. The selling brought three stocks down for each that rose. The Dow is now down more than 500 points just this month. The S&P has now sliced 5 percent off its high. The Dow is down 6 percent. And the Nasdaq, almost in textbook correction mode, down 9 percent. Major averages are all negative for the year, and Smith Barney today says you could see the selling stretch another 10 percent by summer. If you believe that, think 9,200 on the Dow.

Three problems, Smith Barney says. A renewed concern about terrorism, high crude prices and the election season, believe it or not.

Crude today rallied another 3 percent, back above $37 a barrel. Smith Barney says, John, caution here is appropriate.

KING: Christine, I spent six years at Boston Labs, so I'm going to put it to use right here. Veritas means truth, but?

ROMANS: It does, but Veritas, the software storage company, is restating, at least delaying some earnings, and it's going to restate several years. It's not the only one in the earnings at least mistakes, at worst shenanigans file today. Nortel Networks, two executives on leave, John, and Bristol-Myers still restating its books, five years of earnings it has been restating, back and forth. All of these stocks lower today. Investors, you know, they don't like it when you mess around with your stated earnings.

KING: Occasionally have to amend the truth. Christine Romans, thank you very much.

And now for a look at some of your thoughts.

Don in Virginia: "Here's a thought for retraining America's unemployed. Why don't we retrain them as good politicians? Or since the government is so good at creating jobs, maybe they could just hire 15 million more."

William from Indiana. "One thing that I have learned is if you do not protect what you have, you will soon have nothing left to protect. I, for one, am not interested in freely trading a high- paying job for a low-paying job, or none at all."

Stephanie of Florida: "I believe it's time to outsource CEOs. Just think of the money saved."

Don of Ohio: "I'm tired of hearing the unemployment rate is 5.6 percent. When are they going to start reporting the real numbers, by adding in those of us who have been out of work for a year or more?"

James of Tennessee. "Haven't we been exporting America for a while now? Factories have been closing down and moving off-shore for years. But now that it's hitting middle upper-middle class, it's outsourcing. And everyone is talking about it."

Lothar of Wisconsin: "The real Patriot Act would be to put American workers first instead of big business."

We love hearing from you. Please send us your thoughts at loudobbs@cnn.com.

And this reminder to check our Web site for the complete list of companies we've confirmed to be exporting America. That's at cnn.com/lou.

And still to come, "America's Bright Future." Tonight a young woman striving for a goal that would be impressive at any age, let alone 14. We'll have her remarkable story when we return. Stay with us.

(COMMERCIAL BREAK)

KING: Now the results of tonight's poll. Thirty-eight percent of you said the change of government in Spain will lead to Spain's withdrawal from the coalition in Iraq; 48 percent of you said Spain and other countries will withdraw. Just 14 percent of you said the United Nations will re-enter Iraq.

And finally tonight, our series of special features on some of this country's most promising young people. We call it "America's Bright Future," and Alia Sabur is a shining example. Just 14 years old, she has accomplished far more than what many will accomplish in a lifetime. Bill Tucker has her story.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Most 14-year-old girls are worried about their social calendar, the latest fashions and their middle school. Alia Sabur is 14 and working on her doctorate in electrical engineering, more specifically nanophotonics. ALIA SABUR, DOCTORAL STUDENT: Nanophotonics is study and the creation of electronic devices using optics at the nano scale, or if you prefer, at the atomic scale.

TUCKER: Not that Alia is above living in the metaatomic scale, it's just that she has a gift.

PROF. MUN YOUNG CHOI, DREXEL UNIVERSITY: She is a person that really thinks in concepts. So when she tries to learn a mathematical formula, to her it's not just numbers and formulas, but she visualizes the solution, and that's what makes her unique and special.

TUCKER: Alia puts it another way.

SABUR: See, this is the thing. I just do everything faster. It's not that I know things, or I can just pick up the clarinet and start playing it, but everything happens faster.

TUCKER: She started reading at eight months, went from fourth grade to college at State University of New York, Stunbrook (ph), and graduated summa cum laude with a degree in applied math.

She's a concert-level clarinetist, makes origami, and has a black belt in Tae Kwon Do. But she's not a geek.

SABUR: I've never been one to study all day, you know. I have a life. I mean, I like having a life, you know. I would not want to spend the entire day doing one thing.

TUCKER: Despite being the youngest female Ph.D. candidate in the country and looking forward to lecturing undergraduate classes at Drexel University, she's also refreshingly 14.

SABUR: I don't clean my room and I don't go to sleep on time, and I'm always listening to music in my headsets.

TUCKER: And when it came time to move from her home town of Northport, Long Island to Philadelphia, her friends surprised her with a party.

SABUR: It was all my family and friends, all of them, all like 12 of them, they all got together and organized it and had a surprise party for me. I couldn't believe they did that. I have nice friends.

TUCKER: Alia's goal? To be a professor and researcher by day, and a professional clarinetist at night.

Bill Tucker, CNN, Philadelphia.

(END VIDEOTAPE)

KING: A remarkable young lady.

And that's our show tonight. Thanks for being with us. For all of us here, good night from New York. Anderson Cooper is next.

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





Make Huge Discovery>


Aired March 15, 2004 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
JOHN KING, CNN ANCHOR (voice-over): Tonight: a crack in the coalition. President Bush congratulates Spain's newly elected prime minister. Jose Luis Rodriguez Zapatero calls the war in Iraq a disaster and vows to bring Spanish troops home. White House Communications Director Dan Bartlett will be our guest.

New links to radical Islamic terrorists. Investigators in Madrid say there's growing evidence that al Qaeda was behind the train bombings that killed 200 people. We'll have a live report from Madrid.

"Exporting America." A growing number of American companies say the wave of offshore outsourcing has left them with few options.

UNIDENTIFIED MALE: I had to go to China or close the business.

KING: And a whole new world in outer space. Astronomers say they've made their biggest discovery since they spotted Pluto more than 70 years ago. Astrophysicist Charles Liu will be our guest.

(END VIDEOTAPE)

ANNOUNCER: This is LOU DOBBS TONIGHT for Monday, March 15. Sitting in for the vacationing Lou Dobbs for an hour of news, debate and opinion, John King.

KING: Good evening.

Tonight, the United States-led coalition in Iraq is in danger of losing one its strongest allies. Spain's newly elected Socialist prime minister said he will draw his country's support for the war. Jose Luis Rodriguez Zapatero said Spanish troops should come home from Iraq and he called the war and the occupation disastrous.

White House correspondent Dana Bash is live at the White House now with the latest on how the Bush administration is facing this new challenge -- Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): Well, John, the Bush administration's strained today to accentuate the positive on the situation.

Mr. Bush did made a brief congratulatory call to the new prime minister-elect to Spain. We're told that the call was limited to discussing the war on terrorism. And we're also told from a senior official that the president, although he didn't himself speak about this issue today, his message to his top aides was that he wants to make clear that just because a key ally in the war on terror and the war in Iraq was defeated, it should not be said or shown that terrorists have won.

(BEGIN VIDEO CLIP)

J. ADAM ERELI, STATE DEPARTMENT SPOKESMAN: The party leader, Mr. Zapatero Rodriguez, has said his first priority would be fighting terror and that Spain will continue to fight groups that direct violence towards other countries. We stand ready to support his government and Spain's people in that effort.

(END VIDEO CLIP)

BASH: Now, Jose Maria Aznar, the outgoing prime minister of Spain, was a very important -- has been an important ally of Mr. Bush. He stood side by side with him almost exactly a year ago in the Azores. He sent troops, of course, into Iraq, those troops that the incoming prime minister wants to take back.

And the White House, though, has been insisting all day today, though, John, that just because this -- Aznar was defeated, because there are so many complicating factors on the ground, because of the terrorist attacks last week, you cannot draw any conclusions about what this election means in terms of Mr. Bush's policies, whether or not it was actually a slap at Mr. Bush.

KING: And, Dana, the administration has -- the administration responding aggressively today in this entire controversy over Senator John Kerry, the president's Democratic opponent, who, of course, has been saying that foreign leaders around the world have bee telling him that they want the president defeated, so they get a new strategy in the war on terrorism. What was the new approach from the White House today and why?

BASH: Well, clearly, the White House understands that John Kerry is trying to paint the president as a unilateralist.

And they also understand that the fact that Jose Maria Aznar's successor failed in the election could help that argument by John Kerry. Today, Scott McClellan, the White House spokesman, answered questions about John Kerry's comments just a week ago that foreign leaders were talking him that Mr. Bush should be defeated. What Scott McClellan said is that John Kerry, if he has these allegations that he knows these leaders, he should say them.

And if he doesn't say who they are, then it should be clear to the American people that John Kerry simply made those leaders up, made this information up. And the Kerry campaign is responding that, if Scott McClellan wants to talk about the campaign, perhaps he shouldn't be doing it on the White House payroll -- John.

KING: Dana Bash at the White House, thank you very much. And the governments of other coalition countries are not siding with Spain's newly elected prime minister. Poland is leading the international coalition. And its prime minister today said pulling troops out at this point -- quote -- "would be to admit that the terrorists are stronger and that they are right."

There are 120,000 U.S. forces, 9,000 British troops and 23,000 international forces in Iraq. The Spanish troops may leave Iraq on June 30. Spain had been due to take over command of that international division on July 1.

There's mounting evidence tonight linking al Qaeda conducting to the massacre in Spain. CNN has learned that one of the five men arrested in the Madrid bombings has ties to an al Qaeda-linked bombing in Morocco last year.

Brett Sadler is live in Madrid and joins us now with the latest -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Thanks, John.

Pretty soon after last Thursday 's bomb blasts, Spanish investigators here picked up a total of five individuals, including three Moroccans. Now, one of those Moroccans, a 30-year-old male, has connections, say investigators here, to an al Qaeda chief now in jail. He was picked up after the 9/11 attacks on America, the chief of al Qaeda, it's alleged, who was also indicted, along with Osama bin Laden two years ago, as part of those two-year-old investigations.

Also, the Spanish are now working with Moroccan investigators, because that same individual allegedly had ties to the suicide bombers who delivered devastating attacks last May against two targets, Jewish and Spanish, in Casablanca. CNN has also obtained documents from al Qaeda posted on the Internet last December that really paints a very detailed strategy, a violent agenda to force a change of government here in Spain. That could possibly lead, says al Qaeda, to the removal of Spanish troops in Iraq. That was with hindsight a telling message -- John.

KING: And, Brent, are we seeing ramifications across Europe, or are the political ramifications limited to Spain at the moment?

SADLER: Well, vast political fallout here in Spain, and the new designate prime minister has made quite clear, not mincing his words at all today, that he will change Spain's policies, look for Spain now moving away from the close proximity we saw with Spain and the United States and Great Britain vis-a-vis the war on Iraq. Look for Spain turning to more traditional allies, France and Germany, two countries that also oppose the war.

The Spanish here certainly appear to have punished heavily the outgoing government by going over the heads of as many of 90 percent of Spaniards who were dead against that conflict last year -- John.

KING: Brent Sadler live for us in Madrid -- Brent, thank you very much. And joining me now to discuss how Spain's dramatic election results will impact U.S. strategy in Iraq and perhaps play out in the campaign here at home is White House Communications Director Dan Bartlett. He joins us now from the White House.

Dan, let me begin with the ramifications with the U.S.-led coalition. Is Spain the only country that will pull out or will others get a political message and follow suit, in your view?

DAN BARTLETT, WHITE HOUSE COMMUNICATIONS DIRECTOR: Well, John, I think it's important, first and foremost, to again express our sympathies for the people in Spain, but also resolve and determination the United States and other coalition partners have when it comes to helping Spain find who's responsible for these terrorist attacks.

I think it's very important to understand that al Qaeda has proven once again that they are willing to indiscriminately kill innocent people regardless of their affiliation, regardless of their ethnicity, regardless of their participation. And I think it shows once again that the civilized world must come together and defeat terrorism. And we think that the coalition in the war on terror will remain strong.

KING: But, Dan Bartlett, Romano Prodi, the former prime minister of Italy, now a senior official in the European Union, he said today that the Spain attack is proof to him that force is not working as a tactic against terrorists. He said there are more terrorists today than there were a year ago. Is that a repudiation of President Bush's strategy?

BARTLETT: I don't think so. I think it's a fundamental misunderstanding of how the war on terror is being fought and won, for that matter.

The war on terror has been successful. More than two-thirds of the al Qaeda leadership that is known has been rounded up or otherwise dealt with. We're rolling back the financing of terrorists. Intelligence and law enforcement agencies throughout the world are doing a good job busting up cells. But it was all very clear and a grim reminder last week that we have more work to do. But that can't stop our determination or our resolve to fight the terrorists.

KING: A tragedy abroad, Dan Bartlett, but also ramifications in the presidential campaign here at home.

I want you to listen to something Senator John Kerry said today, the president's Democratic rival, in a speech in which he also said that this administration is -- quote -- "big on bluster, short on action" when it comes to homeland security. Listen to Senator Kerry.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: This administration has put a tax giveaway for the very wealthiest of our nation over making sure that we do all that we can to win the war on terror here at home. They have no problem giving Halliburton a fat no-bid contract, while only soldiers and firefighters and police officers are asked to give their sacrifice. I think this administration has it just plain backwards. President Bush says we can't afford to fund homeland security. I say we can't afford not to.

(END VIDEO CLIP)

KING: Dan Bartlett, a chance for you to respond.

BARTLETT: Well, Senator Kerry has some nice sound bites during the presidential campaign. But when Senator Kerry had an opportunity as senator to show his support for creating a Department of Homeland Security, he voted against it not one time, not two times, but six different times he voted against the creation of the Department of Homeland Security. So his rhetoric is not really matching his record.

And we have found that to be the case in many different areas. Look, President Bush and Senator Kerry have a fundamental different approach to fighting and winning the war on terror. It's a choice that the American people have to make. The president's going to remain on offense. He's going to remain protecting the homeland. We've had a four-fold increase in homeland security funding. So I think the sound bites are catching up with Senator Kerry's record.

KING: Why did the White House today essentially say put up or shut up to Senator Kerry on this whole issue of his comments that other foreign leaders have told him they want him to win so that President Bush is essentially evicted from the White House? Why that strategy from the White House?

BARTLETT: Well, Senator Kerry has a choice here. He either comes clean with these sources, so-called sources, or it's very clear that the fact of it is, is that he's making it up.

And this is a very serious charge. It's a very serious accusation to make, or an opportunity for him to attack the president. And you can't just be quoting unknown sources from foreign governments. And this is not the first time he has done this. He's done this when it comes to saying that he heard from sources about claiming that we held a deal with Libya for political gain. That wasn't the case.

He says he has sources saying that we could have gotten France on board before the Iraq war, despite the fact that Chirac and Villepin were saying that there was no way they were going to participate. He now has sources telling him, in this case, that he has foreign leaders supporting his candidacy. That's a very serious charge. And the fact that he can't back it up only can let you come to the conclusion that he's making it up. So he ought to come clean or admit that he's making it up.

KING: And, Dan Bartlett, let me ask you in closing about a new number in the Gallup poll today that has to be troubling to the president; 60 percent of the people surveyed in the new national Gallup poll say they are dissatisfied with the direction of the country. If you are an incumbent, that has to scare you a bit.

BARTLETT: Well, I think the poll said dissatisfied with where we are today.

And, in fact, just for a little bit of a history lesson, when President Clinton was voted into office for a second time in 1996, that same number was at 39 percent. So I don't think -- I think that's more a snapshot of what people might feel about a certain issue. But that doesn't mean that they necessarily agree that the president is not the right person to solve that issue.

So the president's going to keep focusing on the policies that's helping turn our economy around, that's winning the war on terror and protecting the homeland. And those are the issues in which he will be reelected on.

KING: White House Communications Director Dan Bartlett, we thank you for your time tonight.

BARTLETT: Thanks, John.

KING: Thank you.

And still ahead, train stations around the country are on a higher state of alert tonight after the Madrid attacks. Former New York City Police Commissioner Bernard Kerik will be our guest next.

Plus, the White House today unveiled boxes and boxes of materials collected in Libya that it says could have been used to build a nuclear bomb. We'll have a special report.

And then new evidence tonight that Americans are less than convinced the economy is improving.

That and much more just ahead. Stay with us.

(COMMERCIAL BREAK)

KING: State and local officials across this country are on a heightened state of alert in the wake of the Madrid bombings. Security has been increased at train stations and mass transit hubs from New York to San Francisco. Homeland Security Undersecretary Asa Hutchinson today outlined some of the increased security measures.

(BEGIN VIDEO CLIP)

ASA HUTCHINSON, UNDERSECRETARY FOR HOMELAND SECURITY: We've increased the explosive detection teams that are present in the stations. We're increasing our deterrence. And the public announcements are very important, alerting the public that you need to look for unattended bags, for suspicious items to report to law enforcement. They're our greatest tool.

(END VIDEO CLIP)

KING: My next guest says everything that can be done to secure the mass transit system is already being done. But he says there are no guarantees.

Joining me now, Bernard Kerik, the former New York City police commissioner.

There are no guarantees. Anything else that could be done to step up, anything that you can learn just from watching what you've seen in Madrid the last few days that can be translated here at home?

BERNARD KERIK, FORMER NEW YORK CITY POLICE COMMISSIONER: Honestly, John, you have to be realistic.

You can bring CTX scanners and scan every piece of cargo or every bag or briefcase or suitcase going onto a train in the mass transit system, for example, but you wouldn't get -- for example, in New York City, you wouldn't get the million people that ride that system on a daily basis through the system. So you have to be realistic.

I think, for the most part, we're doing everything we can physically. But you have to keep in mind, you're not going to prevent every attack.

KING: For better or worse, this debate is playing out in this country in the middle of a presidential campaign. Senator Kerry today saying that President Bush has shortchanged the first-responders, the folks you used to represent, the policemen, the firefighters. He says they're not getting the money they need to help prevent attacks like this. Fair?

KERIK: No, I don't think it's fair.

And I think you have to go back to September 10, 2001. What we have today in the creation of Homeland Security and the merging of the 22 agencies and the creation of the central clearinghouse for information, and the Patriot Act that today allows the CIA to talk to the FBI and helps that coordination of communication, we are far better today than we were in September of '01. And it's getting better on a daily basis.

KING: In the interest of full disclosure, you worked for the administration in Iraq, so I should make that clear. You're a fan of this president.

KERIK: Absolutely.

KING: Fair enough.

I want to ask you a tactical question. When you see the bombing in Madrid so close to the election, one has to assume that was done on purpose.

KERIK: Absolutely.

KING: Any sense that that is a tactic we could see, God forbid, here in the United States or perhaps elsewhere in the world? Is that a new tactic, if you will?

KERIK: It's not a new tactic and it's something that people should not be surprised about. You know, this is a religious war. This is -- and I agree with the president wholeheartedly. This is not a law enforcement matter. This is a war. This is a religious war. The people that hit us on September 11 are the same that hit us in '93. They are the same that hit Madrid five days ago. They see the reaction and the response from Spain. If they believe that that could happen here, they'll be here to do it as well. And we have to be prepared for that.

KING: I want to shift our focus a bit. You went to Iraq on behalf of this president to help train and bring up to speed the Iraqi police force.

KERIK: Right.

KING: Last week, there were reports and accusations from the United States military that Iraqi police forces had been infiltrated and that some of those infiltrators were in fact responsible for murders. What is your sense of the depth of the problem, if you will, and what can be done?

KERIK: Well, I think it still hasn't been determined whether that's true or not. But we have to keep in mind, it all stems on the leadership in Iraq.

We have to make sure that the leaders in the Iraqi police, the Iraqi military and the Iraqi civil defense forces are the right people, because, if they're not, if they're going to bring back Saddam loyalists, if they're going to bring back the Baathists, then we're going to have continued problems. So it really stems on the leadership.

KING: And if there's a question today, perhaps it's an allegation, but a question today of corruption and infiltration in the Iraqi police force, is June 30 still a realistic date for the United States to say, here, this is your country now; you're in charge?

KERIK: Well, I think we've seen three or four examples of problems like this over the last week or two.

I think, you know, it's farfetched to say it's a systemic problem and it's something that would prevent us on June 30 from moving forward, but it has to be looked at.

KING: Bernard Kerik, former New York City police commissioner, thank you, sir, very much for your time.

KERIK: Thanks, John.

KING: Thank you.

And still to come, nuclear show and tell. The Bush administration draws back the curtain on Libya's confiscated weapons of mass destruction.

And "Exporting America" tonight, inside one small business that says the decision to outsource came down to do or die. (COMMERCIAL BREAK)

KING: Three American civilian workers were killed and two wounded in a drive-by shooting in Iraq. The attack took place in the northern city of Mosul.

The military said the five civilians were members of a private volunteer organization and they were in Iraq to deliver relief supplies. An Iraqi police officer found the bullet-riddled car shortly after the shooting and transported the two wounded civilians to an Iraqi hospital. They have since been moved to a U.S. Army field hospital in Mosul.

Pakistani police in Karachi defused a large bomb left in a stolen minivan outside the walls of the U.S. consulate today. The consulate was closed as a result of that threat. The U.S. State Department praised law enforcement and security personnel for -- quote -- "detecting and responding to what could have been a horrific explosion." U.S. Secretary of State Powell is expected to visit Pakistan's capital, Islamabad, on Wednesday.

The Bush administration today played host to an unusual display of show and tell. A planeload of reporters traveled to the federal nuclear weapons complex in Tennessee to view equipment retrieved from Libya late last year.

David Ensor was among that group and has this report.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): Behind lines of security men with M-4 assault rifles, the Bush administration unveiled some of the fruits of its successful diplomacy with Libya, 48 crates and boxes of sensitive nuclear weapons program components loaded into a C-17 transport plane in Libya and delivered to Oak Ridge, Tennessee.

SPENCER ABRAHAM, ENERGY SECRETARY: All of the ingredients were available for a weapons program to be developed.

ENSOR: On show in a tent were gas centrifuge casings sold as part of a $100 million deal to Libya by the black market network of Pakistani scientist Dr. A.Q. Khan. Inside the crates are the rotors and other key parts. In all, 4,000 centrifuges are coming out of Libya, officials say, along with Scud missiles.

JAMES WILKINSON, DEPUTY NATIONAL SECURITY ADVISER FOR COMMUNICATIONS: There's a lot more that's on a ship on the way over here right now that is due to dock at an East Coast port in the coming days.

ENSOR: Colonel Moammar Gadhafi apparently decided to come clean on his WMD programs in the hopes of getting American oil companies back into his country. While the secret diplomacy leading to the breakthrough started well before the Iraq war, Energy Secretary Abraham Spencer argues, the war must have been a factor. ABRAHAM: I think he recognized the United States was unwavering in our willingness to do what we have to do to protect this country just world from rogue nations or people obtaining weapons of mass destruction.

ENSOR (on camera): The show-and-tell was notable for what we're not setting as well as what was shown. Officials assure us that inside these crates are critical components of gas centrifuges for making bomb-grade uranium. Secretary Abraham says they're not revealing for fear of helping others to figure out more about how to make a bomb.

David Ensor, CNN, at the national security complex in Oak Ridge, Tennessee.

(END VIDEOTAPE)

KING: In Haiti, gunmen ambushed a group of U.S. Marines and shot one in the arm. It's the first casualty in Haiti since the Marines landed there two weeks ago. Also for the first time in two weeks, ousted Haitian President Jean-Bertrand Aristide returned to the Caribbean. Aristide today arrived in Jamaica, where he's expected to stay for several weeks to visit family. Haiti's new interim leader responded to the visit by recalling Haiti's ambassador to Jamaica.

When we return, growing anxiety over the state of the economy and the staggering lack of new jobs, a special report tonight.

Then, a crack in the U.S.-led coalition in Iraq. Spain's new leadership vows to pull out. Former presidential adviser David Gergen will be my guest.

And a national water hazard, contaminated water supplies across the country and the hundreds of billions of dollars it will cost to clean it up.

(COMMERCIAL BREAK)

KING: Fresh evidence today that Americans are feeling anxious about the economy despite a pickup in economic growth.

Peter Viles has more on the latest Gallup poll.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): President Bush campaigning in Pennsylvania arguing that the economy has turned the corner.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The economy is strong and getting stronger. The manufacturing report today was very positive, another indication of the economy strengthening. Unemployment's dropping here in the state of Pennsylvania. There's still people looking for work, make no mistake about it. But it's getting better.

VILES: His commerce secretary today making the same point, that things are looking up.

DON EVANS, COMMERCE SECRETARY: Look, you have to stay very focused on the trends. And the trend of this economy is very, very strong.

VILES: But a new Gallup poll says many Americans believe otherwise. Only 44 percent believe the economy is -- quote -- "getting better." And that's down from 66 percent just two months ago. Behind that steep drop-off in optimism, anemic job creation, a spike in gas prices, rising concerns about outsourcing.

Another Gallup poll earlier this month found 41 percent of Americans are very concerned that their job could be exported, another 20 percent somewhat concerned -- and another factor, months of relentless Democratic attacks on the president's economic policies.

KERRY: Here in Ohio, where people have lost so many jobs in manufacturing, so many jobs in steel, so many jobs in labor, this president hasn't even used the mechanisms available in the trade laws to stand up to other countries and fight for the American worker. I will.

VILES: A political argument, but underneath is an economic question -- is the global economy really working for American workers. And will President Bush continue to defend globalization.

CHRIS EDWARDS, CATO INSTITUTE: He's got to go to the factories that are exporting goods. He's got to go to some of those companies that are not outsourcing, but some of the companies that are insourcing. Some of the companies that are getting more jobs from abroad.

(END VIDEOTAPE)

VILES: The administration has been touting the benefits of trade recently, but has also backed off its own analysis that outsourcing is just another kind of trade, and probably a good thing for the economy -- John.

KING: So, Pete, the president says the economy is coming back and that his tax cuts are one big reason Senator Kerry appears to be winning the debate by saying, no, look, where are the jobs.

Any chance for the president to turn the tide?

VILES: Sure. In April we always talk more taxes in this country. We'll here more reports in the media, and the tax refunds this big, will be bigger because of the tax cuts. Certainly in April we'll have more discussion of taxes and tax cuts than we've had in the past couple of months.

KING: The president you can bet will talk about the refunds.

Peter Viles, thank you very much.

KING: Economic anxiety is not the only challenge President Bush faces as the November election draws closer. Former I'm joined by David Gergen, former adviser to four presidents with over 30 years of political service. He joins me now from Cambridge, Massachusetts.

David Gergen, thank you for joining us. I want to begin with your thoughts on what happened over the weekend in Spain. Obviously the tragic bombing, but then the political fallout from it.

Is that a in part a repudiation of President Bush's leadership in on war on terrorism?

And if you believe it to be, does it have any impact on the political climate here at home?

DAVID GERGEN, FORMER PRESIDENTIAL ADVISER: John, it's clear that there was a major reversal in Spanish opinion, Just before the elections the conservative party, which was in power, was ahead in the poll by 3 to 5 points, and the opposition party won by 5 to 6 points. So, you've got a major swing there. I think in reality, part of that swing is due to the fact that the conservative government after the bombings essentially was seen as lying or trying to cover up who was responsible. They tried to point the finger at internal Basque terrorists as responsible as opposed to al Qaeda. And I think the country, a lot of voters were very angry at them.

The problem for the Bush administration is, while that may have been a major factor in what turned the tide to the other party. The perception is taking hold very rapidly. There's a real rush to judgment on the part of the media, not only in this country, but overseas. That in fact this was -- that the out party won because they were so angry at the al Qaeda terrorists and thought the government had been too close to the Bush administration. So it's being interpreted -- the interpretation it's a rejection of the Bush policy in Iraq. And that is damaging to the Bush administration and to keeping unity among the allies in Iraq.

KING: David, it comes on the wake -- in the wake of Senator Kerry saying that other foreign leaders have told him that they want Bush out of the White House. They want him to win. The White House essentially today and over the weekend said, put up or shut up. Name names.

Is this silly season or does this matter in the campaign debate?

GERGEN: It's one of those -- John Kerry, who's run a pretty flawless campaign since Iowa, I think on this one instance he really made a mistake. And the Bush administration sees an opening here and they're pounding him on it. It's very unconventional, in fact it's ill advised to try to say, well, overseas, here's what they want. That's exactly what Americans don't like to hear. They don't like to have their votes dictated by foreign public opinion. And the Bush administration is going to whack him on it.

But will this be a lasting issue? No, I don't think so. I think the issue of jobs is far more important. The story of what's happening on the unemployment side. The jobs not coming back is a -- becoming a transcended issue. And increasingly, though, this situation in Iraq, which once looked like it was going to be very much in the president's favor, there's a sense, John, not only that it's turning sour, but what we all assumed was that the president would be able to be in charge of events. He would shape the landscape going into this election on both economy, that he would peak economically, and in Iraq, that he would be able to turn over power smoothly. Increasingly, it looks like he is becoming hostage to events he's not controlling. And that is not -- that's not a pleasant place to be if your in the White House. You want to be in control, not a hostage to events.

KING: You say not a pleasant place to be. You have served in the White House in good times and bad.

GERGEN: A lot of bad ones.

KING: If you look at the polls right now, you see 60 percent of the people in the Gallup poll saying they're dissatisfied with the direction of the country. They're split just about evenly when they ask if the economy is getting better or worse.

What can the president do?

GERGEN: Well, the truth of the matter is, it's not easy. I mean, you know, he's poured about as much gasoline into this economy as anybody can possibly could do. I've never seen a time when Washington has provided more stimulus to the economy. They've -- you know, the big deficits, the big spending, the tax cuts, the lowest interest rates in 40 years and a falling dollar, all of that should be a tonic for the economy. And the economy indeed is growing. But I think what's different, and what all of us are grappling are, where are the darn jobs. You and Lou Dobbs have been focusing on this migration.

That is a piece of it. I think what the president is now facing is a fear factor over this loss of jobs. We haven't lost as many, but the trend line is bad. And the fear factor is shooting up. I think, John, he has to stop cheerleading the economy, and come up with a program to deal with this migration of jobs. He doesn't seem to have a strategy beyond tax cuts to deal with a long-term economic future. He needs a job strategy now, and frankly, John Kerry hasn't come up with one either. So, here's an opening for the president, but he needs something that says, here's what we're going to do with what is now a rapidly exploding issue, and that this migration of jobs.

KING: Let me ask you quickly in closing, then if you say he needs a new program, can he come up with a program and sell it to the American people at a time he's being hammered by the Democrats for the record deficits?

GERGEN: Well, you know, it's not easy being president. And, yes, I think he can. I think it's far better -- it's far better to have a program that you're going to be hammered on than to be silent and appear like you don't understand or you're not listening. What happened to his father, of course, was his father got hammered by Democrats for seemingly being inattentive to an onset of a recession, and that's partly how he lost his job. The son, who was working so hard on -- seemed to be so attentive to the economy I think has been caught offguard by the rising fear about the migration of jobs. I do think he has to come up with a program. He has to come up with -- and it has to be a tough program. Everybody has seen that when George W. Bush wants bold, decisive action, he's willing to take it. He has shown that in Iraq. He now has to convince the country he is equally concerned about the jobs as he is concerned about Saddam Hussein, and come up with a program that's bold, decisive.

Will it be expensive, yes. Will it be a problem for him in his tax cuts, yes. But he's going to have to -- but he still has to figure out, how do you make sure that Americans don't get caught in the crunch here with the job migration. There is so much fear out there, that I think the fear could ripple back into the consumer confidence as we're now seeing, and that in itself could stall out the recovery. That will be a real double whammy for him.

KING: A challenge to the president tonight. David Gergen, we thank you for your time.

GERGEN: Thank you, John.

KING: Take care.

And we would like your thoughts on "Tonight's Poll" question. How will the change of government in Spain affect the coalition in Iraq? Spain will withdraw, Spain and other countries will withdraw, or the United Nations will reenter Iraq?

Cast your vote at cnn.com/lou. We'll bring the results later in the show.

And just ahead, he says his decision was purely economic. We'll have the story of one Wisconsin manufacturer who made the tough decision to send work to China.

And finding Sedna. The discovery of a planetoid eight billion miles away. I'll be joined by Astrophysicist Charles Liu.

(COMMERCIAL BREAK)

KING: Tonight in our continuing look at the exportation of U.S. jobs overseas, we bring you the story of one die-hard American who says his decision to outsource became a matter of survival. And as Lisa Sylvester reports, it was a decision that did not come easily.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Don Frantz is an all-American guy. He drives a Harley. The family vehicles are a Ford pickup truck and a Buick. And at his factory, Frantz Machine Products, in New Berlin, Wisconsin, all of the equipment is American made. But while Frantz believes in buying American, his distributors don't feel the same way.

DON FRANTZ, OWNER, FRANTZ MACHINE PRODUCTS: When we went to the distributors, we found our foreign competition was much less. And they wouldn't even talk to us. We were too expensive.

SYLVESTER: Frantz Machine Products makes precision parts for other manufacturers, including trailer locks. The company's locks sold for $17. The Chinese competitors were retailing the locks for $12. With those numbers, it was hard to find any willing buyers. The company faced a difficult decision.

FRANTZ: It forced us to go to China. Very tough for me to do that. But it was either go to China, or quit the business. Stop the business.

SYLVESTER: Frantz Machines ended up compromising starting a production line in China while still producing some of the locks in the United States. If the company had its way, all of its products would be made in America. But it's hard when you're up against foreign manufacturers who can tap into cheap labor. Kathy is Don Frantz's daughter. She believes if American consumers were willing to pay more for American products, it would save manufacturing jobs.

CATHY KRAATZ, FRANTZ MACHINE PRODUCTS: If they could just try to make a conscious effort every time to purchase American-made products and take a stand against what's happening in the manufacturing industry in America, it could make a huge difference.

SYLVESTER: The way the Frantz family sees it, it may cost more to buy American, but there are hidden costs when you don't. In the form of more pink slips and job layoffs.

(END VIDEOTAPE)

SYLVESTER: Don Frantz is not only loyal to the American brand, he's also loyal to his workers. More than half of them have been with him from the very beginning when he started his company 25 years ago -- John.

KING: Lisa, the owner spoke of a painful compromise. What was the impact on the workforce here in the United States?

SYLVESTER: Well, what he had to do, and this was very difficult, because as I said, you know, many of these workers had been with him for a very long time, he did have to let go some of the workers. They had 37 workers, they're now down to 26. It really shows you there's a lot of pain going around at that corporation -- John.

KING: Lisa Sylvester live for us in Washington, thank you.

Martha Stewart resigned today from the board of the company she built. She also gave up her role as chief creative officer, but will remained active as, quote, "founding editorial director of Martha Stewart Living Omnimedia." Stewart is currently awaiting sentencing on four charges. If she is sentenced to serve time in prison, she will be only the fourth corporate executive to go to jail out of 115 charged with crimes in the past two and a half years.

We have a cartoon to share tonight that we think captures the Martha Stewart conviction quite well. It shows two fishermen, one of whom is bragging to the other that he caught a Martha Stewart, and its a good-sized little fish. But not much when they compare it to the shark over their heads with the label, corporate crooks. Our thanks to Mike Ramirez (ph) of the "Los Angeles Times."

It's a whole new world in outer space. A NASA funded team today announced the discovery of a planetoid located a mere 8 billion miles from Earth. The object, named Sedna, is about 3/4 the size of Pluto and it is the largest object found orbiting the sun since the discovery of Pluto back in 1930. Joining me with more is our good friend astrophysicist Charles Liu. Is this just a gee, whiz moment or is there some significance to this?

PROF. CHARLES LIU, ASTROPHYSICS, CUNY: There's actually some significant scientific activity here. We've always thought there was something called an Oort cloud that surrounds our solar system at distances of trillions of miles. This object Sedna may be the first object ever discovered of that cloud further by far than Pluto and the outer planets.

KING: Does the cloud serve a purpose, do we think or is it just there?

LIU: It's probably the leftovers from when the sun formed over 4 1/2 billion years ago. If the sun formed as we think it did from a cloud of gas surrounded by other stars, then the leftover bits form the planets, formed the asteroids, and formed the comets and objects like Pluto, like Sedna. We just don't know exactly where they are. This discovery gives us new insight into the entire structure of the solar system.

KING: New insight. How do you build on the discovery? It's not exactly in the neighborhood. How do you learn from what you've found?

LIU: It's true, it's long, long, long far away. We won't be able to send ships out there for decades. 8 billion miles is more than twice the distance to Pluto. So the best we can do right now is aim our telescopes, such as the Hubble space telescope, such as the Spitzer space telescope and sophisticated systems HERE on the ground to try to characterize its orbit, its composition. We can learn a lot just by looking at the light that's reflected off of it from the sun.

KING: And tell us about this discovery in terms of why now? Is this because of some advanced technologies? Because of some look in that direction?

LIU: It's really technology. We've made such great strides. Think about, for example, the difference between the instamatic cameras we used to use and the digital cameras that are available today. The same strides in technology are now allowing us astronomers to survey areas of the sky with unprecedented detail and depth. So we're expecting not just this one discovery, but many more to come. We think there may be many other objects like Sedna hiding out in the solar system.

KING: When we find them, we will bring you back to help us introduce it. 8 billion miles away. LIU: Very, very far.

KING: Thank you.

LIU: Always a pleasure.

KING: And just ahead, the lower Colorado river is being threatened by a toxic plume. And centuries old lead pipes carry water in our nation's capital. These are just two of the hazards facing the country's drinking. We'll have a special report.

And America's bright future. We'll have the amazing story of one 14-year-old who is studying for her PH.D. in electrical engineering.

(COMMERCIAL BREAK)

KING: This week, Pacific Gas and Electric is scheduled to begin trucking thousands of gallons of contaminated water away from a toxic site near the Colorado river. It's just one example of the growing number of threats to the nation's drinking water supply. Casey Wian has the story from Parker Dam, Arizona.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): The lower Colorado supplies drinking water to more than 20 million people in southern California and Arizona. It's now being threatened by an underground toxic plume that seeped to within 150 feet of the river. In the 1950s and sixties, this Pacific Gas and Electric plant dumped millions of gallons of waste water into unlined pits near the Colorado. It contained high levels of chromium 6, the toxic chemical made infamous by the movie Erin Brockovich. Now the race is on to stop the plume before it reaches the river and these intake valves that service homes from Tucson to L.A.

UNIDENTIFIED MALE: It's serious enough to warrant immediate action. We are concerned that this plume reaches the river, we want to do everything we can to make sure it doesn't happen.

WIAN: California ordered PG&E to build extraction wells to remove the tainted water from the area. A 2,000 foot-long permanent barrier is planned. In Washington, D.C. this month, residents sued the city over lead contamination of their drinking water.

ERIK OLSEN, NATURAL RESOURCES DEFENSE COUNCIL: That's just one example. There are actually problems across the country, thousands of violations that occur of the basic health standards every year. We're seeing hundreds of thousands of water main breaks. All of these are indications that our water treatment plants and pipes are starting to fall apart.

WIAN (on camera): Two years ago, the Congressional Budget Office estimated it would cost between $250 and $400 billion over the next 20 years to repair and upgrade the nation's drinking water facilities. Environmental groups say even that may not be enough.

(voice-over): So who will pay to clean up contaminated water?

RON CASTELUM, CEO, METROPOLITAN WATER DISTRICT: It takes tremendous financial resources to identify and to correct the problem, and neither the state nor the federal government have those resources applied today. So that means that you end up relying upon the responsible parties, and it's not always clear exactly who those responsible parties are.

WIAN: Castelum says new laws and a national strategy to protect water quality are needed.

Casey Wian, CNN, Parker Dam, Arizona.

(END VIDEOTAPE)

KING: Renewed fears about terrorism sent stocks sharply lower today on Wall Street. The Dow skidded 137 points. The Nasdaq shed 45 points, or more than 2 percent. The S&P 500 lost 16. Christine Romans is here now with a complete wrap of the market -- Christine.

CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: John, more than a few mentions of the Ides of March on the floor of the New York Stock Exchange today. Another brutal session. The selling brought three stocks down for each that rose. The Dow is now down more than 500 points just this month. The S&P has now sliced 5 percent off its high. The Dow is down 6 percent. And the Nasdaq, almost in textbook correction mode, down 9 percent. Major averages are all negative for the year, and Smith Barney today says you could see the selling stretch another 10 percent by summer. If you believe that, think 9,200 on the Dow.

Three problems, Smith Barney says. A renewed concern about terrorism, high crude prices and the election season, believe it or not.

Crude today rallied another 3 percent, back above $37 a barrel. Smith Barney says, John, caution here is appropriate.

KING: Christine, I spent six years at Boston Labs, so I'm going to put it to use right here. Veritas means truth, but?

ROMANS: It does, but Veritas, the software storage company, is restating, at least delaying some earnings, and it's going to restate several years. It's not the only one in the earnings at least mistakes, at worst shenanigans file today. Nortel Networks, two executives on leave, John, and Bristol-Myers still restating its books, five years of earnings it has been restating, back and forth. All of these stocks lower today. Investors, you know, they don't like it when you mess around with your stated earnings.

KING: Occasionally have to amend the truth. Christine Romans, thank you very much.

And now for a look at some of your thoughts.

Don in Virginia: "Here's a thought for retraining America's unemployed. Why don't we retrain them as good politicians? Or since the government is so good at creating jobs, maybe they could just hire 15 million more."

William from Indiana. "One thing that I have learned is if you do not protect what you have, you will soon have nothing left to protect. I, for one, am not interested in freely trading a high- paying job for a low-paying job, or none at all."

Stephanie of Florida: "I believe it's time to outsource CEOs. Just think of the money saved."

Don of Ohio: "I'm tired of hearing the unemployment rate is 5.6 percent. When are they going to start reporting the real numbers, by adding in those of us who have been out of work for a year or more?"

James of Tennessee. "Haven't we been exporting America for a while now? Factories have been closing down and moving off-shore for years. But now that it's hitting middle upper-middle class, it's outsourcing. And everyone is talking about it."

Lothar of Wisconsin: "The real Patriot Act would be to put American workers first instead of big business."

We love hearing from you. Please send us your thoughts at loudobbs@cnn.com.

And this reminder to check our Web site for the complete list of companies we've confirmed to be exporting America. That's at cnn.com/lou.

And still to come, "America's Bright Future." Tonight a young woman striving for a goal that would be impressive at any age, let alone 14. We'll have her remarkable story when we return. Stay with us.

(COMMERCIAL BREAK)

KING: Now the results of tonight's poll. Thirty-eight percent of you said the change of government in Spain will lead to Spain's withdrawal from the coalition in Iraq; 48 percent of you said Spain and other countries will withdraw. Just 14 percent of you said the United Nations will re-enter Iraq.

And finally tonight, our series of special features on some of this country's most promising young people. We call it "America's Bright Future," and Alia Sabur is a shining example. Just 14 years old, she has accomplished far more than what many will accomplish in a lifetime. Bill Tucker has her story.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Most 14-year-old girls are worried about their social calendar, the latest fashions and their middle school. Alia Sabur is 14 and working on her doctorate in electrical engineering, more specifically nanophotonics. ALIA SABUR, DOCTORAL STUDENT: Nanophotonics is study and the creation of electronic devices using optics at the nano scale, or if you prefer, at the atomic scale.

TUCKER: Not that Alia is above living in the metaatomic scale, it's just that she has a gift.

PROF. MUN YOUNG CHOI, DREXEL UNIVERSITY: She is a person that really thinks in concepts. So when she tries to learn a mathematical formula, to her it's not just numbers and formulas, but she visualizes the solution, and that's what makes her unique and special.

TUCKER: Alia puts it another way.

SABUR: See, this is the thing. I just do everything faster. It's not that I know things, or I can just pick up the clarinet and start playing it, but everything happens faster.

TUCKER: She started reading at eight months, went from fourth grade to college at State University of New York, Stunbrook (ph), and graduated summa cum laude with a degree in applied math.

She's a concert-level clarinetist, makes origami, and has a black belt in Tae Kwon Do. But she's not a geek.

SABUR: I've never been one to study all day, you know. I have a life. I mean, I like having a life, you know. I would not want to spend the entire day doing one thing.

TUCKER: Despite being the youngest female Ph.D. candidate in the country and looking forward to lecturing undergraduate classes at Drexel University, she's also refreshingly 14.

SABUR: I don't clean my room and I don't go to sleep on time, and I'm always listening to music in my headsets.

TUCKER: And when it came time to move from her home town of Northport, Long Island to Philadelphia, her friends surprised her with a party.

SABUR: It was all my family and friends, all of them, all like 12 of them, they all got together and organized it and had a surprise party for me. I couldn't believe they did that. I have nice friends.

TUCKER: Alia's goal? To be a professor and researcher by day, and a professional clarinetist at night.

Bill Tucker, CNN, Philadelphia.

(END VIDEOTAPE)

KING: A remarkable young lady.

And that's our show tonight. Thanks for being with us. For all of us here, good night from New York. Anderson Cooper is next.

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