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Lou Dobbs Tonight

Bush Talks About Bold Second-Term Agenda, Cabinet Changes Ahead; Interview with Michael DeLong

Aired November 04, 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.


LOU DOBBS, CNN ANCHOR: Tonight, President Bush's bold second- term agenda. His top priority: simplifying the tax code and reforming Social Security.
(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I earned capital in the campaign, political capital, and now I intend to spend it.

(END VIDEO CLIP)

DOBBS: Big Cabinet changes ahead. Attorney General John Ashcroft may be the first to leave his post. Who's in line for the new Bush Cabinet? We'll have the special report.

American aircraft and artillery are blasting Fallujah. A U.S. and Iraqi assault may be imminent.

(BEGIN VIDEO CLIP)

SGT. JOSE DUCASSE, U.S. MARINES: We're going to be looking for, you know, RPG fire from the rooftops.

(END VIDEO CLIP)

DOBBS: How are we doing in Iraq? General Michael DeLong and Ambassador Peter Galbraith have differing views. They're my guests tonight.

And Yasser Arafat is critically ill tonight. Palestinian adviser Ed Abbington joins me live from the West Bank.

ANNOUNCER: This is LOU DOBBS TONIGHT for Thursday, November 4. Here now for an hour of news, debate and opinion is Lou Dobbs.

DOBBS: Good evening.

President Bush today declared that he will push forward with a bold agenda of reforms in his second term. President Bush said he will use the political capital from his decisive election victory to simplify the tax code and overhaul Social Security. Among other priorities, the president also declared he will defeat terrorists.

Senior White House Correspondent John King reports on the president's new agenda, National Security Correspondent David Ensor reports on the foreign policy challenges he faces in the months and years ahead, and Justice Correspondent Kelli Arena reports on the likely departure of Attorney General John Ashcroft from the Bush Cabinet.

We begin with John King -- John.

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Lou, a very upbeat, energized, confident, optimistic president held forth today 40 minutes, a post-election news conference here on the White House complex.

The president in high spirits. He says he believes he comes away from this election with the good will of the American people, the support of the American people, and he's predicting a period of goodwill here in Washington.

That, of course, will be tested when he sends that second-term agenda up to Capitol Hill beginning in January, but the president making emphatically clear today that he believes he comes away from this election with more than a mandate.

(BEGIN VIDEO CLIP)

BUSH: When you win, there is a feeling that the people have spoken and embraced your point of view, and that's what I intend to tell to Congress, that I made it clear what I intend to do as the president. Now let's work -- and the people made clear what they wanted. Now let's work together.

And that's one of the wonderful -- it's one of the -- it's like earning capital. You asked do I feel free. Let me put it to you this way. I earned capital in the campaign, political capital, and now I intend to spend it.

(END VIDEO CLIP)

KING: He intends to spend it on an agenda that has many controversial items that will quickly test the good will of the Democrats in this president's ability to get things through Congress.

He wants, for example, those private accounts for younger Americans in Social Security. Democrats don't like that. Mr. Bush also has some health-care changes the Democrats don't like.

And he also will ask early in the new term for tax reforms, simplification. The president wants the tax code to have a flatter, simpler system, to keep the deductions for home mortgage interest and charitable contributions.

But he says one thing he will be emphatic about is if Congress agrees to change the system, it must not bring the government anymore money.

(BEGIN VIDEO CLIP)

BUSH: If there was a need to raise taxes, I'd say let's have a tax bill that raises taxes as opposed to let's simplify the tax code and sneak a tax increase on the people. That's just not my style. I don't believe we need to raise the taxes. I've told -- said that to the American people, and so the simplification would be the goal.

(END VIDEO CLIP)

KING: Now Mr. Bush also voicing optimist he could put past differences with other world leaders, especially over the Iraq war, behind him.

You see the president here leaving here for Camp David. First Lady Laura Bush with him. A long weekend up at Camp David. A birthday celebration for the first lady.

But Mr. Bush also says he will turn his thoughts in more detail to a second term. He says there will be substantial turnover perhaps in the Cabinet in the senior staff. The president says he hasn't thought much about that yet, but will begin to set his mind to that this weekend, and, Lou, senior administration officials tell us they do expect significant turnover, but they expect it will be gradual -- Lou.

DOBBS: John, thank you very much.

John King, our senior White House correspondent.

The president faces, of course, continuing tough challenges overseas during what will be a second term, not just in Iraq, but also in Iran and North Korea. The White House say both Iran and North Korea are now trying to build up a stockpile of nuclear weapons.

Our National Security Correspondent David Ensor has the report.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): With U.S. forces preparing an assault on Fallujah and other Sunni insurgency strongholds and with Iraqi elections scheduled for January, President Bush's toughest immediate effort, Iraq, appears to have some new momentum after his election victory.

RICHARD FALKENRATH, FORMER WHITE HOUSE AIDE: It helps the morale of the administration and the troops, and it may help them with the international partners who need to contribute to that effort in various ways.

ENSOR: For his part, the president made clear he will reach out to other nations, whether they agreed with the Iraq war or not, asking for much more help building democracy in Iraq.

BUSH: But I understand that in certain capitals in certain countries, those decisions were not popular.

ENSOR: But critics say, in a second term, the greatest challenge for Mr. Bush may be to repair the damage to America's credibility over the last few years. JESSICA MATHEWS, CARNEGIE ENDOWMENT: Confidence in our leadership was replaced by resentment and bafflement about what we -- our intentions were and even fear of what we would do next. The question is: Does the president recognize that? If he does, he'll take steps to fix it. If he doesn't, I think we're in deep trouble.

ENSOR: Even before the month is over, the administration must grapple, too, with how to thwart Iran's nuclear ambitions at a meeting of the International Atomic Energy Agency.

FALKENRATH: We have lead, but we have to recognize, in this case as much as almost any other, we need to lead a multilateral coalition to stop that country from acquiring these weapons.

ENSOR: And, again, events may drive the agenda. The likely end of Yasser Arafat's leadership may oblige Mr. Bush to wade further into the Middle East conflict between Israel and the Palestinians.

MATHEWS: If that happens, it is of overwhelming importance for the United States to seize that opportunity and make progress happen.

(END VIDEOTAPE)

ENSOR: On top of all that, there's the need to challenge North Korea on nuclear weapons and concerns about a more autocratic Russia. Now, historically, presidents tend to focus more time on foreign policy than domestic matters in a second term, but, as we saw in his news conference today, Mr. Bush is hoping to do both -- Lou.

DOBBS: Obviously, an ambitious both domestic and international agenda, David. You mention an autocratic Russia, and, indeed, that's exactly correct, but it also a Russia that with Vladimir Putin in charge, he has signaled time and time again his confidence in President Bush. Is there hope for a cooperation there in foreign policy?

ENSOR: I think there is a hope that there will be increased and continuing cooperation in the war against terrorism, a sense that some of the terrorists in Russia have also got ties to al Qaeda and other groups and that there may be overlap where the two side can cooperate, but, also, a real concern about the -- some of steps that President Putin has taken recently reducing freedom in his country in ways that really should trouble Americans in the view of many both in the administration and outside of it -- Lou.

DOBBS: David, thank you very much.

David Ensor, our national security correspondent.

President Bush says changes in his Cabinet are inevitable as he begins a second term, as they are in any president's Cabinet. Attorney General John Ashcroft is among the Cabinet members most likely to leave his post.

Justice Correspondent Kelli Arena reports -- Kelli. KELLI ARENA, CNN JUSTICE CORRESPONDENT: Lou, sources close to the attorney general tell us that John Ashcroft is expected to soon let the president know that he will be resigning, but they caution that nothing official has taken place and that any announcement would be handled by the White House.

Now he attorney general has had some health issues, which sources say is a factor, and he certainly has served as a lightning rod for this administration, but it's interesting because some of his aides say that Ashcroft was actually energized by the election results and feels somewhat vindicated by them.

But that's not to say that they believe he'll stay for another four years, and, of course, the betting on who will replace him has already begun. The president today in his press conference said that he warned his Cabinet members about this period of speculation.

(BEGIN VIDEOTAPE)

BUSH: But let me just help you out with the speculation right now. I haven't thought about it. I'm going to start thinking about it. I'm going to Camp David this afternoon with Laura, and I'll begin the process of thinking about the Cabinet in the White House staff, and we'll let you know at appropriate time.

(END VIDEO CLIP)

ARENA: Among the names that are being batted around, former Deputy Attorney General Larry Thompson. Now he's very well liked, an odds-on favorite, but he just took a job with PepsiCo. So some question whether he'd be interested in coming back to government.

The second most mentioned name seems to be White House Counsel Alberto Gonzalez. The chair of the Bush-Cheney campaign Marc Racicot has also come up. His name surfaced four years ago, too, though, Lou. And Rudy Giuliani, former New York mayor, also comes up as a possible replacement. Again, all of this mere speculation at this point -- Lou.

DOBBS: And as the president pointed out, a favorite Washington sport, but what impresses me is each of those names, eminently qualified, a first-class group from which to draw.

ARENA: This is true -- Lou.

DOBBS: Kelli, thank you very much.

Kelli Arena from Washington.

President Bush says he wants to work with Democrats to push his reforms through Congress, but the Democrats have a problem. They still have not officially selected a new Senate leader.

Congressional Correspondent Ed Henry reports -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good evening, Lou. That's right. There are signs tonight, though, that in the wake of the Republican gains in Tuesday's elections, both parties are trying to extend some olive branches, trying to break the gridlock that has been gripping Capitol Hill, and I spoke by telephone today to Senator Harry Reid.

He's in line to replace Tom Daschle as the Senate Democratic leader, and Reid said he received a call yesterday from President Bush. They pledged to work together, and this may be more than just talk. Reid is very well-respected among his Democratic colleagues for being a skilled operator, but he's also trusted by Republicans.

He's known for reaching across the aisle, cutting deals, and he hails from a red state, Nevada, and, after his conversation with the president, Reid said he will try to find common ground.

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SEN. HARRY REID (D), NEVADA: It was a nice discussion, and, as you know, yesterday, I was working against him. Today, I'm working with him. That's part of my responsibilities.

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HENRY: The president said that at his own press conference today, he will consult with Democrats. That's what president the said. And he was asked about criticism, though, that he tends to just pick off a few Democrats to narrowly pass tax cuts and other legislation, but does not forge broader consensus on key issues. The president pointed to his No Child Left Behind legislation which passed three years ago.

(BEGIN VIDEO CLIP)

BUSH: I laid out agenda for reforming our public schools. I worked with both Republicans and Democrats to get that bill passed, and a new term will continue to make sure we do not weaken the accountability standards that are making a huge difference in people's lives, in these kids' lives, but that's the model I'd look at it if I were you.

(END VIDEO CLIP)

HENRY: And some Republicans are saying the president has a mandate now in the wake of the election. So it's Democrats who are going to have to do most of the compromising on the tax cuts, the Social Security reform and tort reform that the president wants to push through, but Democrats are insisting they will not be rolled here.

In fact, Senator Reid was an amateur boxer, and he told me tonight he will work with the president a bit, but he'll also fight back if Republicans overreach on any of these issues -- Lou.

DOBBS: Senator Reid, as you point out, has a record as a compromiser, as being a rational, not partisan participant in Washington. At the same time, his party's going to be looking to him to show some -- if you will, some resistance, some -- play the role, obviously, of the loyal opposition. What is his thinking on those issues?

HENRY: You're right. It's a great divide within the entire Democratic Party right now, and I think there will be a lot of pressure on Senator Reid because, while his instinct is to try to work together with President Bush, you're right, there's going to be a lot of heat on him within his own party from the people more on the left who think that maybe they lost the election because Senator Kerry did not fight back hard enough on some issues.

You're going to see a lot of Democrats pushing Reid to be more partisan perhaps than is his nature, and it's going to be a fine balancing act. Tom Daschle had that same problem sometimes. He hailed from a red state, obviously. He was caught between trying to fight back against President Bush and trying to work with him on other issues. Harry Reid is going to have that balancing act as well-- Lou.

DOBBS: OK. Ed Henry, thank you very much.

Coming up next here, Arafat on the edge. The Palestinian leader could be near death tonight. We'll have a live report for you.

And the fight for Fallujah. American forces tonight appear to be ready for an all-out assault on a city overrun by insurgents.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: That's what's kind of scary. You're rolling right by thinking it's secured, and then they pop up off that rooftop behind you, and then here comes the RPG.

(END VIDEO CLIP)

DOBBS: We'll have that report and a great deal more still ahead here tonight.

(COMMERCIAL BREAK)

DOBBS: Senior Palestinian officials tell CNN tonight that Yasser Arafat is in critical condition after falling in and out of consciousness. All day long, there have been conflicting reports about the Palestinian leader's health. CNN's Fionnuala Sweeney is outside the hospital in Paris and has the very latest for us -- Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Fighting the battle of his life tonight, Lou Dobbs. Inside here, Yasser Arafat is actually in critical condition, as you said. He is in and out of consciousness, according to Palestinian sources here, and also has been moved to an intensive care unit.

Now he had been here for the better part of a week undergoing medical tests to determine a blood disorder condition, and, indeed, a medical statement last Tuesday evening said that his condition had improved to the point where doctors felt they were able to actually carry out further tests on a digestive disorder.

It was known that he had a low platelet count and, also, that he had high white cell count, but his condition had so improved and his demeanor and his ability to converse with his doctors and those around him that doctors decided on Wednesday that they could continue with further tests.

It would appear that once those tests were carried out, the 75- year-old Palestinian Authority president fell ill. His condition continued to deteriorate, and speculation has been rife throughout the day, not just here, but also in Israel and in the West Bank as to the exact nature of his condition.

Unfortunately, a very short statement from the hospital officials failed to shed any light on his condition, other than it is now more complicated than it was before, but "Yasser Arafat is not dead" -- Lou.

DOBBS: Fionnuala Sweeney.

We thank you very much.

We'll have much more, of course, ahead here on Yasser Arafat's condition and the likely prospects for a change of leadership in the Palestinian Authority. Palestinian Authority Adviser Ed Abbington will join me from the West Bank.

That brings us to the subject of tonight's poll. The question: Do you believe the creation of a Palestinian state will occur sooner without Yasser Arafat? Yes or no. Cast your vote at cnn.com/lou. We'll have the results for you later here in the broadcast.

In Iraq, American aircraft launched new strikes against insurgent positions in Fallujah. American troops are preparing with Iraqi troops for a massive assault against the city. South of Baghdad, insurgents killed three British soldiers and a civilian translator. The British soldiers were redeployed from Basra in order to -- for American troops to prepare to attack the insurgent strongholds in Fallujah and possibly Ramadi.

U.S. Marines are stepping up their training in urban warfare tactics as well. Karl Penhaul is now embedded with the U.S. Marines near Fallujah and has the report.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hey, Doug, make sure you hang out behind me a little bit so I can give you some cover.

KARL PENHAUL, CNN CORRESPONDENT (voice-over): Getting ready to storm out of the desert and into an urban jungle. An assault on Fallujah promises to be a close-quarters street fight. Marine infantry men in tanks will have to work in harmony against rebel fighters in buildings and hidden allies.

UNIDENTIFIED MALE: That's what's kind of scary. You're rolling right by think it's secured, and then they pop up off that rooftop behind you, and then here comes an RPG.

PENHAUL: Remote-controlled explosives and suicide car bombs are likely to be major threats.

CAPT. TOM TENNENT (ph), U.S. MARINES: Urban warfare is a dirty business. The defender initially has the advantage because he knows the terrain much better you know than the attacker. If the defender's able it use the defense to his advantage, the attacker will be slowed and have to reorient his offense.

PENHAUL: When the Marines roll in, insurgent gunmen could be lurking in any window or doorway. Armored vehicles and tanks will become magnets for attack.

DUCASSE: We're going to be looking for, you know, RPG fire from the rooftops and errant sections and stuff like that, make sure we don't hit any tank mine.

UNIDENTIFIED MALE: Charge three!

PENHAUL: Mortar crews run through drills.

UNIDENTIFIED MALE: Elevation!

UNIDENTIFIED MALE: Elevation!

PENHAUL: Inside the city, they could, if needed, lob charges over buildings or on to rooftops to destroy concealed insurgent positions. This explosives team is measuring out detonation cord. Depending on how they tie the knots, they can blow out doors and race in to clear potential insurgent hideouts.

Intelligence suggests Fallujah's defenders may have rigged buildings with homemade bombings.

LANCE CPL. WILLIAM SABIN (ph), U.S. MARINES: Will it cause us to maybe slow down our attack a little bit because we have to take into account all these kind of obstacles so far as booby traps, yes. But will it -- will it will cause us to not be able to complete mission? Absolutely not.

PENHAUL: U.S. commanders say the keys to victory in Fallujah are moving fast in coordinating their weapons on the ground and in the air, a battlefield where Marine and machine works as one.

Karl Penhaul, CNN, near Fallujah.

(END VIDEOTAPE)

DOBBS: More coverage on Iraq coming up later in this broadcast. I'll be joined by former CENTCOM Deputy Commander General Michael DeLong and Ambassador Peter Galbraith. We'll be talking about the situation in Iraq and whether or not, in their views, that we're winning the war in Iraq.

Coming up next, an ailing chief justice, a new term for President Bush and a warning from a moderate Republican. We'll have a special report on what it could all mean for the U.S. Supreme Court.

And then, Political Capital. How much President Bush's decisive victory has created in the way of political capital and what impact it will have on the next four years. Pulitzer Prizewinning political columnist David Broder of "The Washington Post" will join me. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Chief Justice William Rehnquist is suffering from thyroid cancer. He did not return to work this week as scheduled and expected, raising the possibility that he may soon step down, and now there's every expectation that other justices will also be retiring over the next four years, giving President Bush the opportunity to shape the Supreme Court.

Bob Franken reports from Washington.

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BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): While it is premature to assume Chief Justice Rehnquist would not be there to swear in President Bush.

BUSH: I, George Walker Bush, do solemnly swear...

WILLIAM REHNQUIST, CHIEF JUSTICE, U.S. SUPREME COURT: ... that I will faithfully execute the office of President of the United States.

FRANKEN: Given Rehnquist's illness and absence from this week's arguments, the president was asked whether to bring the nation together, he would seek a consensus candidate, if there was an opening.

BUSH: ... judges I'll pick. Look at the record. I've sent up a lot of judges, well-qualified people who know the law, who represent a judicial temperament that I agree with and who are qualified to hold the bench.

FRANKEN: That record will show 10 of his judicial nominees were blocked by Senate Democrats as too conservative. The president resorted to temporary recess appointments for two of the judges. The incoming Judiciary Committee Chairman, a Republican, who supports abortion rights, warns of another Democratic effort to block a nomination.

SEN. ARLEN SPECTER (R), PENNSYLVANIA: And you can expect them to filibuster if the nominees are not within the broad range of acceptability, and I think there is a very broad range of presidential discretion. But there is a range.

FRANKEN: But many of Specter's more conservative Republican colleagues in this more Republican Senate might not settle for anything less than fellow conservatives.

Liberal groups are already preparing for a fight. RALPH NEAS, PRESIDENT, PEOPLE FOR THE AMERICAN WAY: And my guess is there will be a long confrontation that will be really at the highest levels in terms of the issues at stake.

FRANKEN: If Rehnquist were to step down, Bush would almost certainly nominate another conservative to replace him, but the oldest justice, John Paul Stevens, is the court's leading liberal.

Ruth Bader Ginsburg, also considered liberal, has had health problems, as has Sandra Day O'Connor, the powerful so-called swing vote. There's speculation she might retire, but also speculation she'd be a consensus candidate for chief justice. Expect a court tilt, in any case, to the right.

THOMAS GOLDSTEIN, SUPREME COURT APPELLATE ATTORNEY: There's likely to be more restriction on abortion. There's likely to be less affirmative action. There's likely to be more involvement with the government in religion.

(END VIDEOTAPE)

FRANKEN: So any nomination battle could drag on for months, but judicial appointments, after all, are considered to be a president's most lasting legacy -- Lou.

DOBBS: And there's little question here, Bob, that he would have an opportunity to move forward with greater strength given the number of U.S. senators now who are Republicans.

FRANKEN: There is that, but, as Arlen Specter makes clear, not all Republicans are necessarily going to accept somebody who is exceedingly conservative, and it is not yet a filibuster-proof Senate.

DOBBS: And we thank you.

Bob Franken reporting from Washington.

Coming up next, Latinos voted in record numbers in this election, and Republicans won a large number of those new votes. In fact, more than ever in history. We'll have a special report.

And President Bush setting an ambitious agenda for his second term. I'll be joined by "Washington Post" columnist David Broder.

And the fight for Iraq. Two starkly different views on this war. Former Ambassador Peter Galbraith, former CENTCOM Deputy Commander General Michael DeLong joining me next.

(COMMERCIAL BREAK)

DOBBS: Latino voters came out in large, in record numbers to vote in this election. In fact, more than 7-1/2 million Latinos cast a ballot. That's 1-1/2 million more Hispanic voters than in 2000, and that large turnout was a welcome surprise for Republicans all across the country and in particular for President Bush.

Ed Lavendera reports from Albuquerque, New Mexico.

(BEGIN VIDEOTAPE)

ED LAVENDERA, CNN CORRESPONDENT (voice-over): As ballots were counted on election night, a disturbing trend for Democrats emerged: more and more Hispanic votes falling in the Republican column. Like David Quintanilla's vote. He used to support Democrats, but now volunteers with the Bush campaign in New Mexico.

DAVID QUINTANILLA, BUSH SUPPORTER: It is because of family values, faith, honor, respect, integrity.

LAVENDERA: CNN exit poll numbers show President Bush made a significant gain among Latino voters nationwide from 35 percent in the 2000 election to 44 percent this year. In Texas and Florida, he won a majority of the Hispanic vote.

Even in states where Bush lost the Hispanic vote, he still made gains. In New Mexico, Bush improved 12 points. In Arizona, 9. In California, plus 4 among Latinos, and in New York, plus 6. Republicans say a conservative social agenda is winning over Hispanic voters.

SEN. PETE DOMENICI, (R) NEW MEXICO: Values, value, values, that's what happened. And I mean by values, I mean the things I've been talking about. Marriage, family, they became issues.

LAVENDERA (on camera): Many Hispanic Democrats across the southwest grumbled quietly during this campaign that John Kerry simply had a hard time connecting with Hispanic voters. As compared to George Bush who is often perceived as a good old boy from Texas.

(voice-over): Ramond Sanchez is a veteran of New Mexico politics. He served as the Democratic speaker of house in the state legislature for 18 years. He says these poll numbers should serve as a wake-up call to his party.

RAMOND SANCHEZ, NEW MEXICO DEMOCRAT: Do not take this group of people for granted. Their values as the same as everyone else's values. So start talking about values that we have.

LAVENDERA: The Latino Republican battle cry on the campaign trail has been Viva Bush. That motto appears to have taken a little bit of life out of the Democratic Party this year. Ed Lavender CNN, Albuquerque, New Mexico.

(END VIDEOTAPE)

DOBBS: Joining me now to assess at least in part this election and the prospects of President Bush's second term, Washington Post columnist David Broder from Washington. David, good to have you with us.

DAVID BRODER, WASHINGTON POST: Glad to be here.

DOBBS: You just heard Ed Lavandera's report from New Mexico in which one of the broad surprises, I think, for many people, even Republicans, was the amount of support that candidates, Republican candidates received from Latino voters, and in particular on the issue of values. Can you put that in some context for us?

BRODER: Well, I think, first thing that has to be said is that there's some dispute. and it'll take some time resolve it, about where the Latino vote actually went. I was speaking yesterday to Henry Cisneros, the former HUD secretary in the Clinton administration. He has a different set of numbers that he's talking about. But there's no question that that vote, that group of voters will become increasingly important and that the competition will create -- will increase with both the values issues and the economic issues being very much at the center of the debate.

DOBBS: And looking across the map, as we just reported it, those numbers, as best we can assess them, David, Henry Cisneros notwithstanding, is that Latino voters are focusing on core values. Values that President Bush and other Republicans were talking about. Values frankly that many of us in the media were ignoring during the run-up in this campaign. What is the potential there in your judgment for the impact on the Democratic Party, which has sort of taken the Latino voter for granted?

BRODER: Well I don't think it can take them for granted any longer. And I think the fact that you see this kind of competition. There is a lot of happiness among the Democrats that they have elected a Latino senator from the state of Colorado.

DOBBS: Right.

BRODER: Because they believe that both that victory on their side and the Mel Martinez victory on the Republicans' side in Florida tells them one basic thing, which is, that if you want to win Latino votes, it's pretty smart to run Latino or Hispanic candidates.

DOBBS: Yes. I would hope they would draw something more than that direct line, because Latinos obviously supporting a host of candidates.

Let's turn to the issue of this mandate that the president claimed -- Vice President Cheney, point in fact, articulated as he introduced the president for his victory speech. The president has since claimed that mandate. Is his mandate such in your judgment, first is there a mandate your judgment? And secondly, how can he use that to the advantage of his agenda?

BRODER: The majority that he won in a very high turnout election is as close to a mandate as you're going to find in a Democratic election. I think he has every right to claim that the voters knew what he was running on and that they gave him their support.

DOBBS: And with that mandate, across the country, 11 states passing ballot initiatives to ban gay marriage. You pointed out in a recent column just a couple of days ago, I believe, that all of this was started by the Massachusetts Supreme Court. What did you mean? BRODER: Well, the irony is that I think the triggering event for all of these initiatives in the 11 states was that Massachusetts court decision to legalize gay marriages. And what I was told by the people who put those initiatives on the ballots in states, such as Ohio, was that was an event that simply -- I think one of the phrases was, hit like a bombshell in the pulpit and went right through the congregation.

DOBBS: And the result, extraordinary. Those ballot initiatives winning by a tremendous, tremendous margins. Do you think, David, we've made enough of the fact that this election, not only resulted in the first majority popular vote for a candidate in 16 years, but that this election actually came off with a very, very few problems nationwide?

BRODER: I think we can pat ourselves on the back a little bit for the way this election was managed, particularly in contrast to 2000. Some of my friends who occupy the jobs as secretary of state were very worried about whether the administrative structure in their states would be up to it. And almost without exception turn out that they could do the job.

DOBBS: David Broder, as always, it's great to talk to you. Thank you for being here.

BRODER: Thank you, Lou.

DOBBS: Tonight's thought is on democracy. "It is time to provide a smashing answer for those cynical men who say that a democracy can not be honest, can not be efficient. We have in the darkest moments of our national trials retained our faith in our own ability to master our own destiny." Those the words of Franklin D. Roosevelt.

My next guest served as deputy commander of U.S. central command under General Tommy Franks during the wars in Afghanistan and Iraq. Lieutenant General Michael Delong says the United States absolutely did the right thing in attacking Iraq, because it made America and the world safer.

General DeLong is also the author of "Inside Centcom: The Unvarnished Truth About the Wars in Afghanistan and Iraq." General DeLong, good to have you with us.

LT. GEN. MICHAEL DELONG, U.S. ARMY (RET): Lou, thanks for having me on.

DOBBS: General, a lot -- before we move to some of the other very important issues, let's deal with a few things that have been in focus during in the latter pat of this campaign, specifically the missing munitions, the reports of widespread looting at Al Qa Qaa and other places as well. What are your thoughts?

DELONG: Well, when that came out, I went back and researched my notes, looked through what happened in Afghanistan and Iraq around the middle of April at that time. We had multiple caches everyday that were found in both places, that were reported. The tactical manners in the field took care of most of them. We've got very few reports of anything that was different than normal. So to the best of my knowledge and the best of my notes, some of these were interesting, but not very.

DOBBS: The idea that the coalition forces did not secure a number of these sites, and we've talked with a number of U.N. weapons inspectors, many of whom you know, who say absolutely the U.S. military failed in some cases and in part they blame the CIA for not giving the U.S. military specific instructions or communicating it, the sensitive areas, including Al Qa Qaa. Do you believe that you had sufficient intelligence and direction and guidance to these sites that should have been perhaps better secure?

DELONG: Well, we did know where a lot of sites were, or at least we thought we knew. We didn't know much about Iraq as we would have liked to have known. But I tell you in the beginning of the war, because we weren't allowed to have Turkey, we came through a small little opening there in Kuwait up through from going from Kuwait up to Baghdad, and we had fighting troops there. We found out that we probably needed more military police. We didn't more military police, so if we -- and we couldn't beam them in.

DOBBS: What do you think are the biggest mistakes in what was -- in point in fact, and it's easy given all that has transpired since, the many mistakes made following May 1, if I may say in my judgment at least, I won't put that on anyone else. What do you think were the biggest mistakes from that period in the way in which the way we have administered Iraq and manages our military effort there?

DELONG: Well, again, these are just personal judgments that I saw. I think we probably should have had a Gerry Bremer in earlier. I think we should have -- when we disbanded the Ba'ath Party, we probably should have kept some of the lower ranking people there to help turn on the facilities, and we probably should have kept some of the Iraqi military around. Which ones don't know. And it's easy for me to say this now in retrospect. I was part of it then. But that would be some of the things that I'd recommend.

DOBBS: Give us your assessment perspectively as to whether or not we have sufficient troops or capable now of moving ahead with elections in Iraq in January.

DELONG: Well, I've talked to General John Abizaid who was sort of my co-deputy commander during the war and I have talked to the Iraqis over there. I have been there six times the last four months. They're comfortable right now that they have enough people over there. If during January, the elections start becoming an issue, they'll probably ask for more troops. But right now, they haven't.

DOBBS: It appears tonight, as you and I are talking, that the marines outside Falluja with continued bombardment and air strikes are preparing to assault Falluja and Ramadi. Do you think that is absolutely critical in order to establish security that anti-Iraqi forces be eliminated in the weeks or months before those elections? DELONG: The Iraqis I have talked to over there, the senior Iraqis, they like the authority the U.S. is using now. They like the force. They also like that the U.S. and the coalition are talking to the Iraqi people and the Iraqi leadership are making the call on whether we go in or not. So, yes, I think it's good. It's being done correctly, according to the Iraqis I've talked to, which is kind of who we want to please over there.

DOBBS: General Mike DeLong, we thank you for being with us.

DELONG: Thank you, Lou. Thanks for having me on.

DOBBS: Yes, sir. When we continue Ambassador Peter Galbraith will be here to talk about what he calls the catastrophic aftermath of the U.S. invasion in Iraq and what we can expect in his judgment in the months ahead.

And another dramatic development that could shape the future of the Middle East. We'll have the latest for you on the health of ailing Palestinian leader Yasser Arafat. I'll be joined by Palestinian Authority adviser Ed Abington from the West Bank.

And then President Bush talks about his bold plans for a second term. And some of the country's top political journalists will be here to play what the president calls Washington's favorite sport. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Palestinian leader Yasser Arafat tonight is in critical condition in intensive care in a French hospital and joining me now is a leading adviser to the Palestinian authority. He's Ed Abington. He's a former U.S. Counsel General in Jerusalem and he joins us tonight from Ramallah in the West Bank and I would like to ask all of you watching and listening to be patient with us as there is a slight delay because of the distances involved. Ed, what is the latest you hear on Arafat's condition?

ED ABINGTON, PALESTINIAN ADVISER: That he's gravely ill. That within the last 24 hours, his condition has deteriorated considerably. He's still alive. The reports that he had died are not true. I spoke to someone in Paris who's very close to him and the person I spoke to assured me that he's still alive but he's greatly ill.

DOBBS: Those reports as you say, contradictory, conflicting throughout the day from Europe. What is...

ABINGTON: Right.

DOBBS: ...the situation with the Palestinian Authority? What is being done to prepare of what is an obvious need for succession and a consolidation of power at the P.A.?

ABINGTON: There have been numerous meetings going on here in Ramallah today. Meetings of the Fatah Central Committee, meetings of the PLO executive committee. Prime Minister Ahmed Qorei Abu-Allah is chairing the cabinet and Mahmoud Abbas Abu Mazen is acting as head of the PLO executive committee. Should Arafat die, I think they will have to decide how to pick successors and how to do it in a way that legitimizes the process. The basic law calls for the speaker of the parliament acting for 60 days as president and then elections are to be held. But I'm not sure how that can be done given the current situation between the Israelis and the Palestinians.

DOBBS: So there would be new elections called in your judgment?

ABINGTON: Well, in theory, but as I said, given the four years of the Intifada, given the violence that's been going on, I don't -- the Israelis would have to allow elections to be held. And I don't believe that there have been any discussions with the Israelis about doing this.

DOBBS: And let's talk about what seems to be a likely prospect, that is the death of Yasser Arafat. What is your expectation of the reaction among Palestinians as well as the Palestinian institutions that you've just named including the PLO, the Palestinian Authority?

ABINGTON: I think among Palestinians and also among the institutions that we've been discussing, his death would be a tremendous blow. He has been the symbol of Palestinian nationalism for 30 or 40 years. Palestinians who complain about his style of ruling, who complained about corruption in the Palestinian Authority, they still describe Arafat as their father. And they say, sometimes the father doesn't act the way you want to but he's still our father. I think that this will have a real psychological impact upon Palestinians, but people I've talked to say that there is a sense of unity, a sense that Palestinians have to stand together during this period and people do not expect violence among Palestinians to break out.

DOBBS: Ed Abington, we thank you very much. Adviser to the Palestinian Authority. Staying up very late to talk to us from Ramallah on the West Bank. Thank you.

Still ahead, President Bush lays out his plans for his second term. We'll hear from two of the nation's leading political journalists when we continue. Stay with us.

(COMMERCIAL BREAK)

DOBBS: We had hoped, of course, to bring you former ambassador Peter Galbraith to discuss the situation in Iraq. However, he was unable to make it, given rain and traffic and in New York. We hope he'll be able to join us on another occasion.

Joining me now from Washington, Roger Simon of "U.S. News & World Report." Karen Tumulty of "Time" magazine. And John King will be here shortly, our White House correspondent.

Let me start with you, Karen. The apparent eminent passing of Yasser Arafat before us, the president today, although he was misinformed by a journalist at that news conference that Arafat had died, made clear that he wants to push ahead with the creation of a new Palestinian state.

Do you see the likelihood of greater success without Arafat?

KAREN TUMULTY, "TIME" MAGAZINE: Well, I do think so. However the president -- this is you know, at a time when he is trying to get so much done in Iraq, I think having to reinsert himself into the Middle East peace process is just about the last thing the White House wanted to see happen right now. The president's plate is plentiful in that part of the world. He's been trying to not get as far down in the weeds as of the negotiations as for instance Bill Clinton was. And I think in most respects this is terrible news for the White House.

DOBBS: Do you concur, Roger?

ROGER SIMON, "U.S> NEWS & WORLD REPORT": I'm not so sure. I think Karen's point are well taken, but I also think the White House recognizes as previous administrations, that Arafat for a long time has been a road block to peace. Has given aid and comfort to suicide bombers within Israel. It's certainly true, he is the father of the Palestinian movement and he's the George Washington of that movement, and he has made a significant contribution to that movement. But that time has come and gone. And I think the white house now sees him as an impediment and not someone whole help them on the Middle -- in the Middle East. But I also have to say that George Bush has been largely disengaged from that area of the world, except for basically green lighting whatever Prime Minister Sharon wants to do.

TUMULTY: It was interesting, though, the president put just a tiny bit of distance between himself and Tony Blair on this issue. When he was asked at the news conference today, whether he agreed with Tony Blair's assessment that the Middle East peace process is the foremost concern right now at the moment. He said it was one of the top concerns. And so, again I do think that this does show some reluctance on the part of the White House to have to steep itself in this at this the moment.

DOBBS: And John King, he made it very clear today that winning the war on terrorism is still his top priority. It seemed to me at least as I listened to you and your colleagues in the White House Press Corp ask him. Was that your sense?

JOHN KING, CNN WHITE HOUSE CORRESPONDENT: It is my sense, Lou, and it may be an important part of it. He knows winning the war on terrorism also includes winning the war of public opinion in the Arab and Islam world. And to get a Palestinian leadership they could engage with, I think this president could prove his commitment tomacacy (ph) -- to democracy across the Middle East, but that's a giant "if." The reason he had that tiny space with Tony Blair as Karen just rightly noted, is that he's very skeptical he will get a responsible Palestinian leadership that he can work with.

DOBBS: Roger, on the issue of Justice Rehnquist's health. It looks like this president is going to have a significant opportunity to shape the Supreme Court in the second term. The reports that Arlen Spector, the head of the Judiciary Committee, a newly reelected to the Senate from Pennsylvania, it seemed like cautioning the president.

Is that the way you took it?

SIMON: I did, but then Specter sent out an E-mail saying basically that was not his intention. I think your point is well taken, Lou, that George Bush may have the opportunity shape the court, but it's a lot easier said than done. William Rehnquist is a conservative. And if he retires, he's going to be replaced by another conservative, but that doesn't change the makeup of the court. What George Bush needs to change the makeup of the court for moderates and liberals to retire to place them with conservatives. He needs John Paul Stevens or Ruth Bader Ginsburg to retire. And in fact, the court maybe more moderate after Rehnquist leaves because I think the U.S. Senate would be unlikely to approve a nominee to the court as far to the right as Rehnquist is.

DOBBS: To what degree, Karen, do you believe that the U.S. Senate, which I think has to be -- can be safely described as certainly right of center, will embrace more conservative constructionist candidates to the court?

TUMULTY: Well, I think the president's task on getting conservative nominees onto the bench is a lot easier now, thanks to the fact that the numbers of Republicans and specifically conservative Republicans in the Senate is now -- is now higher than it was three days ago, or will be soon. And he's that much closer to those 60 votes that he needs to block a filibuster.

DOBBS: John King, I was interested in the reaction to the president to one your questions, specifically, about the stroll across the White House lawn that you were talking about the president and his father. And you asked what he was thinking. It's very clear that that father/son bond is very strong for this president. And he's very proud of the accomplishment of Tuesday evening.

KING: He is very close to his father, yet he's very different from his father. He learned a lot from his father's losses not only about, as he said today, not to take politics too seriously, but his father was liked by just about everyone, not loved by the conservative base of the Republican Party. Go it a George Bush rally during this election and you saw the difference. This president, his conservative supporters love him, and the White House believes that was the difference in the election.

DOBBS: And Roger Simon, the number of people to be moved around in this court, what's your judgment about in this court -- in this cabinet?

What's your judgment about how significant the changes will be?

SIMON: I think we're going to see significant changes. I think Colin Powell will go. I think Donald Rumsfeld will go. I think Ashcroft, as rumored today, is already planning on leaving. That's not unusual for a second term. Some people in the case of Colin Powell, I think is tired of being the odd man out. Rumsfeld is going to be blamed of the architect of a not terrible successful war. Ashcroft has managed to do what not presidential candidate did, was united the left and right of the countries, but unfortunately they're both united against him. So I think there'll be quite a bit of turnover.

DOBBS: Roger Simon, Karen Tumulty, John King, thank you very much. All of you. We'll talk soon. Still ahead, we'll have the results of the "Poll Tonight" and a preview of what's ahead tomorrow. Stay with us.

(COMMERCIAL BREAK)

DOBBS: They're still counting the results of "Tonight's Poll." We'll have it tomorrow and we promise. That's it -- oh, actually there it is and we thank you for being with us.

We'll see you tomorrow night. For all us here good night from New York. ANDERSON COOPER 360 is next.

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Aired November 4, 2004 - 18:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Tonight, President Bush's bold second- term agenda. His top priority: simplifying the tax code and reforming Social Security.
(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I earned capital in the campaign, political capital, and now I intend to spend it.

(END VIDEO CLIP)

DOBBS: Big Cabinet changes ahead. Attorney General John Ashcroft may be the first to leave his post. Who's in line for the new Bush Cabinet? We'll have the special report.

American aircraft and artillery are blasting Fallujah. A U.S. and Iraqi assault may be imminent.

(BEGIN VIDEO CLIP)

SGT. JOSE DUCASSE, U.S. MARINES: We're going to be looking for, you know, RPG fire from the rooftops.

(END VIDEO CLIP)

DOBBS: How are we doing in Iraq? General Michael DeLong and Ambassador Peter Galbraith have differing views. They're my guests tonight.

And Yasser Arafat is critically ill tonight. Palestinian adviser Ed Abbington joins me live from the West Bank.

ANNOUNCER: This is LOU DOBBS TONIGHT for Thursday, November 4. Here now for an hour of news, debate and opinion is Lou Dobbs.

DOBBS: Good evening.

President Bush today declared that he will push forward with a bold agenda of reforms in his second term. President Bush said he will use the political capital from his decisive election victory to simplify the tax code and overhaul Social Security. Among other priorities, the president also declared he will defeat terrorists.

Senior White House Correspondent John King reports on the president's new agenda, National Security Correspondent David Ensor reports on the foreign policy challenges he faces in the months and years ahead, and Justice Correspondent Kelli Arena reports on the likely departure of Attorney General John Ashcroft from the Bush Cabinet.

We begin with John King -- John.

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Lou, a very upbeat, energized, confident, optimistic president held forth today 40 minutes, a post-election news conference here on the White House complex.

The president in high spirits. He says he believes he comes away from this election with the good will of the American people, the support of the American people, and he's predicting a period of goodwill here in Washington.

That, of course, will be tested when he sends that second-term agenda up to Capitol Hill beginning in January, but the president making emphatically clear today that he believes he comes away from this election with more than a mandate.

(BEGIN VIDEO CLIP)

BUSH: When you win, there is a feeling that the people have spoken and embraced your point of view, and that's what I intend to tell to Congress, that I made it clear what I intend to do as the president. Now let's work -- and the people made clear what they wanted. Now let's work together.

And that's one of the wonderful -- it's one of the -- it's like earning capital. You asked do I feel free. Let me put it to you this way. I earned capital in the campaign, political capital, and now I intend to spend it.

(END VIDEO CLIP)

KING: He intends to spend it on an agenda that has many controversial items that will quickly test the good will of the Democrats in this president's ability to get things through Congress.

He wants, for example, those private accounts for younger Americans in Social Security. Democrats don't like that. Mr. Bush also has some health-care changes the Democrats don't like.

And he also will ask early in the new term for tax reforms, simplification. The president wants the tax code to have a flatter, simpler system, to keep the deductions for home mortgage interest and charitable contributions.

But he says one thing he will be emphatic about is if Congress agrees to change the system, it must not bring the government anymore money.

(BEGIN VIDEO CLIP)

BUSH: If there was a need to raise taxes, I'd say let's have a tax bill that raises taxes as opposed to let's simplify the tax code and sneak a tax increase on the people. That's just not my style. I don't believe we need to raise the taxes. I've told -- said that to the American people, and so the simplification would be the goal.

(END VIDEO CLIP)

KING: Now Mr. Bush also voicing optimist he could put past differences with other world leaders, especially over the Iraq war, behind him.

You see the president here leaving here for Camp David. First Lady Laura Bush with him. A long weekend up at Camp David. A birthday celebration for the first lady.

But Mr. Bush also says he will turn his thoughts in more detail to a second term. He says there will be substantial turnover perhaps in the Cabinet in the senior staff. The president says he hasn't thought much about that yet, but will begin to set his mind to that this weekend, and, Lou, senior administration officials tell us they do expect significant turnover, but they expect it will be gradual -- Lou.

DOBBS: John, thank you very much.

John King, our senior White House correspondent.

The president faces, of course, continuing tough challenges overseas during what will be a second term, not just in Iraq, but also in Iran and North Korea. The White House say both Iran and North Korea are now trying to build up a stockpile of nuclear weapons.

Our National Security Correspondent David Ensor has the report.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): With U.S. forces preparing an assault on Fallujah and other Sunni insurgency strongholds and with Iraqi elections scheduled for January, President Bush's toughest immediate effort, Iraq, appears to have some new momentum after his election victory.

RICHARD FALKENRATH, FORMER WHITE HOUSE AIDE: It helps the morale of the administration and the troops, and it may help them with the international partners who need to contribute to that effort in various ways.

ENSOR: For his part, the president made clear he will reach out to other nations, whether they agreed with the Iraq war or not, asking for much more help building democracy in Iraq.

BUSH: But I understand that in certain capitals in certain countries, those decisions were not popular.

ENSOR: But critics say, in a second term, the greatest challenge for Mr. Bush may be to repair the damage to America's credibility over the last few years. JESSICA MATHEWS, CARNEGIE ENDOWMENT: Confidence in our leadership was replaced by resentment and bafflement about what we -- our intentions were and even fear of what we would do next. The question is: Does the president recognize that? If he does, he'll take steps to fix it. If he doesn't, I think we're in deep trouble.

ENSOR: Even before the month is over, the administration must grapple, too, with how to thwart Iran's nuclear ambitions at a meeting of the International Atomic Energy Agency.

FALKENRATH: We have lead, but we have to recognize, in this case as much as almost any other, we need to lead a multilateral coalition to stop that country from acquiring these weapons.

ENSOR: And, again, events may drive the agenda. The likely end of Yasser Arafat's leadership may oblige Mr. Bush to wade further into the Middle East conflict between Israel and the Palestinians.

MATHEWS: If that happens, it is of overwhelming importance for the United States to seize that opportunity and make progress happen.

(END VIDEOTAPE)

ENSOR: On top of all that, there's the need to challenge North Korea on nuclear weapons and concerns about a more autocratic Russia. Now, historically, presidents tend to focus more time on foreign policy than domestic matters in a second term, but, as we saw in his news conference today, Mr. Bush is hoping to do both -- Lou.

DOBBS: Obviously, an ambitious both domestic and international agenda, David. You mention an autocratic Russia, and, indeed, that's exactly correct, but it also a Russia that with Vladimir Putin in charge, he has signaled time and time again his confidence in President Bush. Is there hope for a cooperation there in foreign policy?

ENSOR: I think there is a hope that there will be increased and continuing cooperation in the war against terrorism, a sense that some of the terrorists in Russia have also got ties to al Qaeda and other groups and that there may be overlap where the two side can cooperate, but, also, a real concern about the -- some of steps that President Putin has taken recently reducing freedom in his country in ways that really should trouble Americans in the view of many both in the administration and outside of it -- Lou.

DOBBS: David, thank you very much.

David Ensor, our national security correspondent.

President Bush says changes in his Cabinet are inevitable as he begins a second term, as they are in any president's Cabinet. Attorney General John Ashcroft is among the Cabinet members most likely to leave his post.

Justice Correspondent Kelli Arena reports -- Kelli. KELLI ARENA, CNN JUSTICE CORRESPONDENT: Lou, sources close to the attorney general tell us that John Ashcroft is expected to soon let the president know that he will be resigning, but they caution that nothing official has taken place and that any announcement would be handled by the White House.

Now he attorney general has had some health issues, which sources say is a factor, and he certainly has served as a lightning rod for this administration, but it's interesting because some of his aides say that Ashcroft was actually energized by the election results and feels somewhat vindicated by them.

But that's not to say that they believe he'll stay for another four years, and, of course, the betting on who will replace him has already begun. The president today in his press conference said that he warned his Cabinet members about this period of speculation.

(BEGIN VIDEOTAPE)

BUSH: But let me just help you out with the speculation right now. I haven't thought about it. I'm going to start thinking about it. I'm going to Camp David this afternoon with Laura, and I'll begin the process of thinking about the Cabinet in the White House staff, and we'll let you know at appropriate time.

(END VIDEO CLIP)

ARENA: Among the names that are being batted around, former Deputy Attorney General Larry Thompson. Now he's very well liked, an odds-on favorite, but he just took a job with PepsiCo. So some question whether he'd be interested in coming back to government.

The second most mentioned name seems to be White House Counsel Alberto Gonzalez. The chair of the Bush-Cheney campaign Marc Racicot has also come up. His name surfaced four years ago, too, though, Lou. And Rudy Giuliani, former New York mayor, also comes up as a possible replacement. Again, all of this mere speculation at this point -- Lou.

DOBBS: And as the president pointed out, a favorite Washington sport, but what impresses me is each of those names, eminently qualified, a first-class group from which to draw.

ARENA: This is true -- Lou.

DOBBS: Kelli, thank you very much.

Kelli Arena from Washington.

President Bush says he wants to work with Democrats to push his reforms through Congress, but the Democrats have a problem. They still have not officially selected a new Senate leader.

Congressional Correspondent Ed Henry reports -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good evening, Lou. That's right. There are signs tonight, though, that in the wake of the Republican gains in Tuesday's elections, both parties are trying to extend some olive branches, trying to break the gridlock that has been gripping Capitol Hill, and I spoke by telephone today to Senator Harry Reid.

He's in line to replace Tom Daschle as the Senate Democratic leader, and Reid said he received a call yesterday from President Bush. They pledged to work together, and this may be more than just talk. Reid is very well-respected among his Democratic colleagues for being a skilled operator, but he's also trusted by Republicans.

He's known for reaching across the aisle, cutting deals, and he hails from a red state, Nevada, and, after his conversation with the president, Reid said he will try to find common ground.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D), NEVADA: It was a nice discussion, and, as you know, yesterday, I was working against him. Today, I'm working with him. That's part of my responsibilities.

(END VIDEO CLIP)

HENRY: The president said that at his own press conference today, he will consult with Democrats. That's what president the said. And he was asked about criticism, though, that he tends to just pick off a few Democrats to narrowly pass tax cuts and other legislation, but does not forge broader consensus on key issues. The president pointed to his No Child Left Behind legislation which passed three years ago.

(BEGIN VIDEO CLIP)

BUSH: I laid out agenda for reforming our public schools. I worked with both Republicans and Democrats to get that bill passed, and a new term will continue to make sure we do not weaken the accountability standards that are making a huge difference in people's lives, in these kids' lives, but that's the model I'd look at it if I were you.

(END VIDEO CLIP)

HENRY: And some Republicans are saying the president has a mandate now in the wake of the election. So it's Democrats who are going to have to do most of the compromising on the tax cuts, the Social Security reform and tort reform that the president wants to push through, but Democrats are insisting they will not be rolled here.

In fact, Senator Reid was an amateur boxer, and he told me tonight he will work with the president a bit, but he'll also fight back if Republicans overreach on any of these issues -- Lou.

DOBBS: Senator Reid, as you point out, has a record as a compromiser, as being a rational, not partisan participant in Washington. At the same time, his party's going to be looking to him to show some -- if you will, some resistance, some -- play the role, obviously, of the loyal opposition. What is his thinking on those issues?

HENRY: You're right. It's a great divide within the entire Democratic Party right now, and I think there will be a lot of pressure on Senator Reid because, while his instinct is to try to work together with President Bush, you're right, there's going to be a lot of heat on him within his own party from the people more on the left who think that maybe they lost the election because Senator Kerry did not fight back hard enough on some issues.

You're going to see a lot of Democrats pushing Reid to be more partisan perhaps than is his nature, and it's going to be a fine balancing act. Tom Daschle had that same problem sometimes. He hailed from a red state, obviously. He was caught between trying to fight back against President Bush and trying to work with him on other issues. Harry Reid is going to have that balancing act as well-- Lou.

DOBBS: OK. Ed Henry, thank you very much.

Coming up next here, Arafat on the edge. The Palestinian leader could be near death tonight. We'll have a live report for you.

And the fight for Fallujah. American forces tonight appear to be ready for an all-out assault on a city overrun by insurgents.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: That's what's kind of scary. You're rolling right by thinking it's secured, and then they pop up off that rooftop behind you, and then here comes the RPG.

(END VIDEO CLIP)

DOBBS: We'll have that report and a great deal more still ahead here tonight.

(COMMERCIAL BREAK)

DOBBS: Senior Palestinian officials tell CNN tonight that Yasser Arafat is in critical condition after falling in and out of consciousness. All day long, there have been conflicting reports about the Palestinian leader's health. CNN's Fionnuala Sweeney is outside the hospital in Paris and has the very latest for us -- Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Fighting the battle of his life tonight, Lou Dobbs. Inside here, Yasser Arafat is actually in critical condition, as you said. He is in and out of consciousness, according to Palestinian sources here, and also has been moved to an intensive care unit.

Now he had been here for the better part of a week undergoing medical tests to determine a blood disorder condition, and, indeed, a medical statement last Tuesday evening said that his condition had improved to the point where doctors felt they were able to actually carry out further tests on a digestive disorder.

It was known that he had a low platelet count and, also, that he had high white cell count, but his condition had so improved and his demeanor and his ability to converse with his doctors and those around him that doctors decided on Wednesday that they could continue with further tests.

It would appear that once those tests were carried out, the 75- year-old Palestinian Authority president fell ill. His condition continued to deteriorate, and speculation has been rife throughout the day, not just here, but also in Israel and in the West Bank as to the exact nature of his condition.

Unfortunately, a very short statement from the hospital officials failed to shed any light on his condition, other than it is now more complicated than it was before, but "Yasser Arafat is not dead" -- Lou.

DOBBS: Fionnuala Sweeney.

We thank you very much.

We'll have much more, of course, ahead here on Yasser Arafat's condition and the likely prospects for a change of leadership in the Palestinian Authority. Palestinian Authority Adviser Ed Abbington will join me from the West Bank.

That brings us to the subject of tonight's poll. The question: Do you believe the creation of a Palestinian state will occur sooner without Yasser Arafat? Yes or no. Cast your vote at cnn.com/lou. We'll have the results for you later here in the broadcast.

In Iraq, American aircraft launched new strikes against insurgent positions in Fallujah. American troops are preparing with Iraqi troops for a massive assault against the city. South of Baghdad, insurgents killed three British soldiers and a civilian translator. The British soldiers were redeployed from Basra in order to -- for American troops to prepare to attack the insurgent strongholds in Fallujah and possibly Ramadi.

U.S. Marines are stepping up their training in urban warfare tactics as well. Karl Penhaul is now embedded with the U.S. Marines near Fallujah and has the report.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Hey, Doug, make sure you hang out behind me a little bit so I can give you some cover.

KARL PENHAUL, CNN CORRESPONDENT (voice-over): Getting ready to storm out of the desert and into an urban jungle. An assault on Fallujah promises to be a close-quarters street fight. Marine infantry men in tanks will have to work in harmony against rebel fighters in buildings and hidden allies.

UNIDENTIFIED MALE: That's what's kind of scary. You're rolling right by think it's secured, and then they pop up off that rooftop behind you, and then here comes an RPG.

PENHAUL: Remote-controlled explosives and suicide car bombs are likely to be major threats.

CAPT. TOM TENNENT (ph), U.S. MARINES: Urban warfare is a dirty business. The defender initially has the advantage because he knows the terrain much better you know than the attacker. If the defender's able it use the defense to his advantage, the attacker will be slowed and have to reorient his offense.

PENHAUL: When the Marines roll in, insurgent gunmen could be lurking in any window or doorway. Armored vehicles and tanks will become magnets for attack.

DUCASSE: We're going to be looking for, you know, RPG fire from the rooftops and errant sections and stuff like that, make sure we don't hit any tank mine.

UNIDENTIFIED MALE: Charge three!

PENHAUL: Mortar crews run through drills.

UNIDENTIFIED MALE: Elevation!

UNIDENTIFIED MALE: Elevation!

PENHAUL: Inside the city, they could, if needed, lob charges over buildings or on to rooftops to destroy concealed insurgent positions. This explosives team is measuring out detonation cord. Depending on how they tie the knots, they can blow out doors and race in to clear potential insurgent hideouts.

Intelligence suggests Fallujah's defenders may have rigged buildings with homemade bombings.

LANCE CPL. WILLIAM SABIN (ph), U.S. MARINES: Will it cause us to maybe slow down our attack a little bit because we have to take into account all these kind of obstacles so far as booby traps, yes. But will it -- will it will cause us to not be able to complete mission? Absolutely not.

PENHAUL: U.S. commanders say the keys to victory in Fallujah are moving fast in coordinating their weapons on the ground and in the air, a battlefield where Marine and machine works as one.

Karl Penhaul, CNN, near Fallujah.

(END VIDEOTAPE)

DOBBS: More coverage on Iraq coming up later in this broadcast. I'll be joined by former CENTCOM Deputy Commander General Michael DeLong and Ambassador Peter Galbraith. We'll be talking about the situation in Iraq and whether or not, in their views, that we're winning the war in Iraq.

Coming up next, an ailing chief justice, a new term for President Bush and a warning from a moderate Republican. We'll have a special report on what it could all mean for the U.S. Supreme Court.

And then, Political Capital. How much President Bush's decisive victory has created in the way of political capital and what impact it will have on the next four years. Pulitzer Prizewinning political columnist David Broder of "The Washington Post" will join me. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Chief Justice William Rehnquist is suffering from thyroid cancer. He did not return to work this week as scheduled and expected, raising the possibility that he may soon step down, and now there's every expectation that other justices will also be retiring over the next four years, giving President Bush the opportunity to shape the Supreme Court.

Bob Franken reports from Washington.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): While it is premature to assume Chief Justice Rehnquist would not be there to swear in President Bush.

BUSH: I, George Walker Bush, do solemnly swear...

WILLIAM REHNQUIST, CHIEF JUSTICE, U.S. SUPREME COURT: ... that I will faithfully execute the office of President of the United States.

FRANKEN: Given Rehnquist's illness and absence from this week's arguments, the president was asked whether to bring the nation together, he would seek a consensus candidate, if there was an opening.

BUSH: ... judges I'll pick. Look at the record. I've sent up a lot of judges, well-qualified people who know the law, who represent a judicial temperament that I agree with and who are qualified to hold the bench.

FRANKEN: That record will show 10 of his judicial nominees were blocked by Senate Democrats as too conservative. The president resorted to temporary recess appointments for two of the judges. The incoming Judiciary Committee Chairman, a Republican, who supports abortion rights, warns of another Democratic effort to block a nomination.

SEN. ARLEN SPECTER (R), PENNSYLVANIA: And you can expect them to filibuster if the nominees are not within the broad range of acceptability, and I think there is a very broad range of presidential discretion. But there is a range.

FRANKEN: But many of Specter's more conservative Republican colleagues in this more Republican Senate might not settle for anything less than fellow conservatives.

Liberal groups are already preparing for a fight. RALPH NEAS, PRESIDENT, PEOPLE FOR THE AMERICAN WAY: And my guess is there will be a long confrontation that will be really at the highest levels in terms of the issues at stake.

FRANKEN: If Rehnquist were to step down, Bush would almost certainly nominate another conservative to replace him, but the oldest justice, John Paul Stevens, is the court's leading liberal.

Ruth Bader Ginsburg, also considered liberal, has had health problems, as has Sandra Day O'Connor, the powerful so-called swing vote. There's speculation she might retire, but also speculation she'd be a consensus candidate for chief justice. Expect a court tilt, in any case, to the right.

THOMAS GOLDSTEIN, SUPREME COURT APPELLATE ATTORNEY: There's likely to be more restriction on abortion. There's likely to be less affirmative action. There's likely to be more involvement with the government in religion.

(END VIDEOTAPE)

FRANKEN: So any nomination battle could drag on for months, but judicial appointments, after all, are considered to be a president's most lasting legacy -- Lou.

DOBBS: And there's little question here, Bob, that he would have an opportunity to move forward with greater strength given the number of U.S. senators now who are Republicans.

FRANKEN: There is that, but, as Arlen Specter makes clear, not all Republicans are necessarily going to accept somebody who is exceedingly conservative, and it is not yet a filibuster-proof Senate.

DOBBS: And we thank you.

Bob Franken reporting from Washington.

Coming up next, Latinos voted in record numbers in this election, and Republicans won a large number of those new votes. In fact, more than ever in history. We'll have a special report.

And President Bush setting an ambitious agenda for his second term. I'll be joined by "Washington Post" columnist David Broder.

And the fight for Iraq. Two starkly different views on this war. Former Ambassador Peter Galbraith, former CENTCOM Deputy Commander General Michael DeLong joining me next.

(COMMERCIAL BREAK)

DOBBS: Latino voters came out in large, in record numbers to vote in this election. In fact, more than 7-1/2 million Latinos cast a ballot. That's 1-1/2 million more Hispanic voters than in 2000, and that large turnout was a welcome surprise for Republicans all across the country and in particular for President Bush.

Ed Lavendera reports from Albuquerque, New Mexico.

(BEGIN VIDEOTAPE)

ED LAVENDERA, CNN CORRESPONDENT (voice-over): As ballots were counted on election night, a disturbing trend for Democrats emerged: more and more Hispanic votes falling in the Republican column. Like David Quintanilla's vote. He used to support Democrats, but now volunteers with the Bush campaign in New Mexico.

DAVID QUINTANILLA, BUSH SUPPORTER: It is because of family values, faith, honor, respect, integrity.

LAVENDERA: CNN exit poll numbers show President Bush made a significant gain among Latino voters nationwide from 35 percent in the 2000 election to 44 percent this year. In Texas and Florida, he won a majority of the Hispanic vote.

Even in states where Bush lost the Hispanic vote, he still made gains. In New Mexico, Bush improved 12 points. In Arizona, 9. In California, plus 4 among Latinos, and in New York, plus 6. Republicans say a conservative social agenda is winning over Hispanic voters.

SEN. PETE DOMENICI, (R) NEW MEXICO: Values, value, values, that's what happened. And I mean by values, I mean the things I've been talking about. Marriage, family, they became issues.

LAVENDERA (on camera): Many Hispanic Democrats across the southwest grumbled quietly during this campaign that John Kerry simply had a hard time connecting with Hispanic voters. As compared to George Bush who is often perceived as a good old boy from Texas.

(voice-over): Ramond Sanchez is a veteran of New Mexico politics. He served as the Democratic speaker of house in the state legislature for 18 years. He says these poll numbers should serve as a wake-up call to his party.

RAMOND SANCHEZ, NEW MEXICO DEMOCRAT: Do not take this group of people for granted. Their values as the same as everyone else's values. So start talking about values that we have.

LAVENDERA: The Latino Republican battle cry on the campaign trail has been Viva Bush. That motto appears to have taken a little bit of life out of the Democratic Party this year. Ed Lavender CNN, Albuquerque, New Mexico.

(END VIDEOTAPE)

DOBBS: Joining me now to assess at least in part this election and the prospects of President Bush's second term, Washington Post columnist David Broder from Washington. David, good to have you with us.

DAVID BRODER, WASHINGTON POST: Glad to be here.

DOBBS: You just heard Ed Lavandera's report from New Mexico in which one of the broad surprises, I think, for many people, even Republicans, was the amount of support that candidates, Republican candidates received from Latino voters, and in particular on the issue of values. Can you put that in some context for us?

BRODER: Well, I think, first thing that has to be said is that there's some dispute. and it'll take some time resolve it, about where the Latino vote actually went. I was speaking yesterday to Henry Cisneros, the former HUD secretary in the Clinton administration. He has a different set of numbers that he's talking about. But there's no question that that vote, that group of voters will become increasingly important and that the competition will create -- will increase with both the values issues and the economic issues being very much at the center of the debate.

DOBBS: And looking across the map, as we just reported it, those numbers, as best we can assess them, David, Henry Cisneros notwithstanding, is that Latino voters are focusing on core values. Values that President Bush and other Republicans were talking about. Values frankly that many of us in the media were ignoring during the run-up in this campaign. What is the potential there in your judgment for the impact on the Democratic Party, which has sort of taken the Latino voter for granted?

BRODER: Well I don't think it can take them for granted any longer. And I think the fact that you see this kind of competition. There is a lot of happiness among the Democrats that they have elected a Latino senator from the state of Colorado.

DOBBS: Right.

BRODER: Because they believe that both that victory on their side and the Mel Martinez victory on the Republicans' side in Florida tells them one basic thing, which is, that if you want to win Latino votes, it's pretty smart to run Latino or Hispanic candidates.

DOBBS: Yes. I would hope they would draw something more than that direct line, because Latinos obviously supporting a host of candidates.

Let's turn to the issue of this mandate that the president claimed -- Vice President Cheney, point in fact, articulated as he introduced the president for his victory speech. The president has since claimed that mandate. Is his mandate such in your judgment, first is there a mandate your judgment? And secondly, how can he use that to the advantage of his agenda?

BRODER: The majority that he won in a very high turnout election is as close to a mandate as you're going to find in a Democratic election. I think he has every right to claim that the voters knew what he was running on and that they gave him their support.

DOBBS: And with that mandate, across the country, 11 states passing ballot initiatives to ban gay marriage. You pointed out in a recent column just a couple of days ago, I believe, that all of this was started by the Massachusetts Supreme Court. What did you mean? BRODER: Well, the irony is that I think the triggering event for all of these initiatives in the 11 states was that Massachusetts court decision to legalize gay marriages. And what I was told by the people who put those initiatives on the ballots in states, such as Ohio, was that was an event that simply -- I think one of the phrases was, hit like a bombshell in the pulpit and went right through the congregation.

DOBBS: And the result, extraordinary. Those ballot initiatives winning by a tremendous, tremendous margins. Do you think, David, we've made enough of the fact that this election, not only resulted in the first majority popular vote for a candidate in 16 years, but that this election actually came off with a very, very few problems nationwide?

BRODER: I think we can pat ourselves on the back a little bit for the way this election was managed, particularly in contrast to 2000. Some of my friends who occupy the jobs as secretary of state were very worried about whether the administrative structure in their states would be up to it. And almost without exception turn out that they could do the job.

DOBBS: David Broder, as always, it's great to talk to you. Thank you for being here.

BRODER: Thank you, Lou.

DOBBS: Tonight's thought is on democracy. "It is time to provide a smashing answer for those cynical men who say that a democracy can not be honest, can not be efficient. We have in the darkest moments of our national trials retained our faith in our own ability to master our own destiny." Those the words of Franklin D. Roosevelt.

My next guest served as deputy commander of U.S. central command under General Tommy Franks during the wars in Afghanistan and Iraq. Lieutenant General Michael Delong says the United States absolutely did the right thing in attacking Iraq, because it made America and the world safer.

General DeLong is also the author of "Inside Centcom: The Unvarnished Truth About the Wars in Afghanistan and Iraq." General DeLong, good to have you with us.

LT. GEN. MICHAEL DELONG, U.S. ARMY (RET): Lou, thanks for having me on.

DOBBS: General, a lot -- before we move to some of the other very important issues, let's deal with a few things that have been in focus during in the latter pat of this campaign, specifically the missing munitions, the reports of widespread looting at Al Qa Qaa and other places as well. What are your thoughts?

DELONG: Well, when that came out, I went back and researched my notes, looked through what happened in Afghanistan and Iraq around the middle of April at that time. We had multiple caches everyday that were found in both places, that were reported. The tactical manners in the field took care of most of them. We've got very few reports of anything that was different than normal. So to the best of my knowledge and the best of my notes, some of these were interesting, but not very.

DOBBS: The idea that the coalition forces did not secure a number of these sites, and we've talked with a number of U.N. weapons inspectors, many of whom you know, who say absolutely the U.S. military failed in some cases and in part they blame the CIA for not giving the U.S. military specific instructions or communicating it, the sensitive areas, including Al Qa Qaa. Do you believe that you had sufficient intelligence and direction and guidance to these sites that should have been perhaps better secure?

DELONG: Well, we did know where a lot of sites were, or at least we thought we knew. We didn't know much about Iraq as we would have liked to have known. But I tell you in the beginning of the war, because we weren't allowed to have Turkey, we came through a small little opening there in Kuwait up through from going from Kuwait up to Baghdad, and we had fighting troops there. We found out that we probably needed more military police. We didn't more military police, so if we -- and we couldn't beam them in.

DOBBS: What do you think are the biggest mistakes in what was -- in point in fact, and it's easy given all that has transpired since, the many mistakes made following May 1, if I may say in my judgment at least, I won't put that on anyone else. What do you think were the biggest mistakes from that period in the way in which the way we have administered Iraq and manages our military effort there?

DELONG: Well, again, these are just personal judgments that I saw. I think we probably should have had a Gerry Bremer in earlier. I think we should have -- when we disbanded the Ba'ath Party, we probably should have kept some of the lower ranking people there to help turn on the facilities, and we probably should have kept some of the Iraqi military around. Which ones don't know. And it's easy for me to say this now in retrospect. I was part of it then. But that would be some of the things that I'd recommend.

DOBBS: Give us your assessment perspectively as to whether or not we have sufficient troops or capable now of moving ahead with elections in Iraq in January.

DELONG: Well, I've talked to General John Abizaid who was sort of my co-deputy commander during the war and I have talked to the Iraqis over there. I have been there six times the last four months. They're comfortable right now that they have enough people over there. If during January, the elections start becoming an issue, they'll probably ask for more troops. But right now, they haven't.

DOBBS: It appears tonight, as you and I are talking, that the marines outside Falluja with continued bombardment and air strikes are preparing to assault Falluja and Ramadi. Do you think that is absolutely critical in order to establish security that anti-Iraqi forces be eliminated in the weeks or months before those elections? DELONG: The Iraqis I have talked to over there, the senior Iraqis, they like the authority the U.S. is using now. They like the force. They also like that the U.S. and the coalition are talking to the Iraqi people and the Iraqi leadership are making the call on whether we go in or not. So, yes, I think it's good. It's being done correctly, according to the Iraqis I've talked to, which is kind of who we want to please over there.

DOBBS: General Mike DeLong, we thank you for being with us.

DELONG: Thank you, Lou. Thanks for having me on.

DOBBS: Yes, sir. When we continue Ambassador Peter Galbraith will be here to talk about what he calls the catastrophic aftermath of the U.S. invasion in Iraq and what we can expect in his judgment in the months ahead.

And another dramatic development that could shape the future of the Middle East. We'll have the latest for you on the health of ailing Palestinian leader Yasser Arafat. I'll be joined by Palestinian Authority adviser Ed Abington from the West Bank.

And then President Bush talks about his bold plans for a second term. And some of the country's top political journalists will be here to play what the president calls Washington's favorite sport. Stay with us.

(COMMERCIAL BREAK)

DOBBS: Palestinian leader Yasser Arafat tonight is in critical condition in intensive care in a French hospital and joining me now is a leading adviser to the Palestinian authority. He's Ed Abington. He's a former U.S. Counsel General in Jerusalem and he joins us tonight from Ramallah in the West Bank and I would like to ask all of you watching and listening to be patient with us as there is a slight delay because of the distances involved. Ed, what is the latest you hear on Arafat's condition?

ED ABINGTON, PALESTINIAN ADVISER: That he's gravely ill. That within the last 24 hours, his condition has deteriorated considerably. He's still alive. The reports that he had died are not true. I spoke to someone in Paris who's very close to him and the person I spoke to assured me that he's still alive but he's greatly ill.

DOBBS: Those reports as you say, contradictory, conflicting throughout the day from Europe. What is...

ABINGTON: Right.

DOBBS: ...the situation with the Palestinian Authority? What is being done to prepare of what is an obvious need for succession and a consolidation of power at the P.A.?

ABINGTON: There have been numerous meetings going on here in Ramallah today. Meetings of the Fatah Central Committee, meetings of the PLO executive committee. Prime Minister Ahmed Qorei Abu-Allah is chairing the cabinet and Mahmoud Abbas Abu Mazen is acting as head of the PLO executive committee. Should Arafat die, I think they will have to decide how to pick successors and how to do it in a way that legitimizes the process. The basic law calls for the speaker of the parliament acting for 60 days as president and then elections are to be held. But I'm not sure how that can be done given the current situation between the Israelis and the Palestinians.

DOBBS: So there would be new elections called in your judgment?

ABINGTON: Well, in theory, but as I said, given the four years of the Intifada, given the violence that's been going on, I don't -- the Israelis would have to allow elections to be held. And I don't believe that there have been any discussions with the Israelis about doing this.

DOBBS: And let's talk about what seems to be a likely prospect, that is the death of Yasser Arafat. What is your expectation of the reaction among Palestinians as well as the Palestinian institutions that you've just named including the PLO, the Palestinian Authority?

ABINGTON: I think among Palestinians and also among the institutions that we've been discussing, his death would be a tremendous blow. He has been the symbol of Palestinian nationalism for 30 or 40 years. Palestinians who complain about his style of ruling, who complained about corruption in the Palestinian Authority, they still describe Arafat as their father. And they say, sometimes the father doesn't act the way you want to but he's still our father. I think that this will have a real psychological impact upon Palestinians, but people I've talked to say that there is a sense of unity, a sense that Palestinians have to stand together during this period and people do not expect violence among Palestinians to break out.

DOBBS: Ed Abington, we thank you very much. Adviser to the Palestinian Authority. Staying up very late to talk to us from Ramallah on the West Bank. Thank you.

Still ahead, President Bush lays out his plans for his second term. We'll hear from two of the nation's leading political journalists when we continue. Stay with us.

(COMMERCIAL BREAK)

DOBBS: We had hoped, of course, to bring you former ambassador Peter Galbraith to discuss the situation in Iraq. However, he was unable to make it, given rain and traffic and in New York. We hope he'll be able to join us on another occasion.

Joining me now from Washington, Roger Simon of "U.S. News & World Report." Karen Tumulty of "Time" magazine. And John King will be here shortly, our White House correspondent.

Let me start with you, Karen. The apparent eminent passing of Yasser Arafat before us, the president today, although he was misinformed by a journalist at that news conference that Arafat had died, made clear that he wants to push ahead with the creation of a new Palestinian state.

Do you see the likelihood of greater success without Arafat?

KAREN TUMULTY, "TIME" MAGAZINE: Well, I do think so. However the president -- this is you know, at a time when he is trying to get so much done in Iraq, I think having to reinsert himself into the Middle East peace process is just about the last thing the White House wanted to see happen right now. The president's plate is plentiful in that part of the world. He's been trying to not get as far down in the weeds as of the negotiations as for instance Bill Clinton was. And I think in most respects this is terrible news for the White House.

DOBBS: Do you concur, Roger?

ROGER SIMON, "U.S> NEWS & WORLD REPORT": I'm not so sure. I think Karen's point are well taken, but I also think the White House recognizes as previous administrations, that Arafat for a long time has been a road block to peace. Has given aid and comfort to suicide bombers within Israel. It's certainly true, he is the father of the Palestinian movement and he's the George Washington of that movement, and he has made a significant contribution to that movement. But that time has come and gone. And I think the white house now sees him as an impediment and not someone whole help them on the Middle -- in the Middle East. But I also have to say that George Bush has been largely disengaged from that area of the world, except for basically green lighting whatever Prime Minister Sharon wants to do.

TUMULTY: It was interesting, though, the president put just a tiny bit of distance between himself and Tony Blair on this issue. When he was asked at the news conference today, whether he agreed with Tony Blair's assessment that the Middle East peace process is the foremost concern right now at the moment. He said it was one of the top concerns. And so, again I do think that this does show some reluctance on the part of the White House to have to steep itself in this at this the moment.

DOBBS: And John King, he made it very clear today that winning the war on terrorism is still his top priority. It seemed to me at least as I listened to you and your colleagues in the White House Press Corp ask him. Was that your sense?

JOHN KING, CNN WHITE HOUSE CORRESPONDENT: It is my sense, Lou, and it may be an important part of it. He knows winning the war on terrorism also includes winning the war of public opinion in the Arab and Islam world. And to get a Palestinian leadership they could engage with, I think this president could prove his commitment tomacacy (ph) -- to democracy across the Middle East, but that's a giant "if." The reason he had that tiny space with Tony Blair as Karen just rightly noted, is that he's very skeptical he will get a responsible Palestinian leadership that he can work with.

DOBBS: Roger, on the issue of Justice Rehnquist's health. It looks like this president is going to have a significant opportunity to shape the Supreme Court in the second term. The reports that Arlen Spector, the head of the Judiciary Committee, a newly reelected to the Senate from Pennsylvania, it seemed like cautioning the president.

Is that the way you took it?

SIMON: I did, but then Specter sent out an E-mail saying basically that was not his intention. I think your point is well taken, Lou, that George Bush may have the opportunity shape the court, but it's a lot easier said than done. William Rehnquist is a conservative. And if he retires, he's going to be replaced by another conservative, but that doesn't change the makeup of the court. What George Bush needs to change the makeup of the court for moderates and liberals to retire to place them with conservatives. He needs John Paul Stevens or Ruth Bader Ginsburg to retire. And in fact, the court maybe more moderate after Rehnquist leaves because I think the U.S. Senate would be unlikely to approve a nominee to the court as far to the right as Rehnquist is.

DOBBS: To what degree, Karen, do you believe that the U.S. Senate, which I think has to be -- can be safely described as certainly right of center, will embrace more conservative constructionist candidates to the court?

TUMULTY: Well, I think the president's task on getting conservative nominees onto the bench is a lot easier now, thanks to the fact that the numbers of Republicans and specifically conservative Republicans in the Senate is now -- is now higher than it was three days ago, or will be soon. And he's that much closer to those 60 votes that he needs to block a filibuster.

DOBBS: John King, I was interested in the reaction to the president to one your questions, specifically, about the stroll across the White House lawn that you were talking about the president and his father. And you asked what he was thinking. It's very clear that that father/son bond is very strong for this president. And he's very proud of the accomplishment of Tuesday evening.

KING: He is very close to his father, yet he's very different from his father. He learned a lot from his father's losses not only about, as he said today, not to take politics too seriously, but his father was liked by just about everyone, not loved by the conservative base of the Republican Party. Go it a George Bush rally during this election and you saw the difference. This president, his conservative supporters love him, and the White House believes that was the difference in the election.

DOBBS: And Roger Simon, the number of people to be moved around in this court, what's your judgment about in this court -- in this cabinet?

What's your judgment about how significant the changes will be?

SIMON: I think we're going to see significant changes. I think Colin Powell will go. I think Donald Rumsfeld will go. I think Ashcroft, as rumored today, is already planning on leaving. That's not unusual for a second term. Some people in the case of Colin Powell, I think is tired of being the odd man out. Rumsfeld is going to be blamed of the architect of a not terrible successful war. Ashcroft has managed to do what not presidential candidate did, was united the left and right of the countries, but unfortunately they're both united against him. So I think there'll be quite a bit of turnover.

DOBBS: Roger Simon, Karen Tumulty, John King, thank you very much. All of you. We'll talk soon. Still ahead, we'll have the results of the "Poll Tonight" and a preview of what's ahead tomorrow. Stay with us.

(COMMERCIAL BREAK)

DOBBS: They're still counting the results of "Tonight's Poll." We'll have it tomorrow and we promise. That's it -- oh, actually there it is and we thank you for being with us.

We'll see you tomorrow night. For all us here good night from New York. ANDERSON COOPER 360 is next.

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