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Lou Dobbs Tonight
Bush Pushing for New Lebanon Peacekeeping Force; Iran's Defiance; Bush's Poll Boost; Richard Viguerie Discusses New Book; John Barrow Interview
Aired August 24, 2006 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KITTY PILGIRM, CNN ANCHOR: Tonight, President Bush holds urgent talks with European leaders about the nuclear showdown with Iran. Iran could face international sanctions if Tehran does not stop enriching uranium.
And new evidence tonight of the slump in the nation's housing market. A new front in the war on the middle class. Sales of new homes have dropped by the largest amount since February.
ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate and opinion for Thursday, August 24th.
Sitting in for Lou Dobbs, Kitty Pilgrim.
PILGRIM: Good evening, everybody.
The White House today insisted that Iran must end its nuclear defiance. The White House says Iran must reverse course and stop enriching nuclear fuel by the end of this month.
Meanwhile, there are new concerns that Iran is challenging U.S. policy in Iraq. Military commanders say Iran is funding, training and equipping terrorists in Iraq.
Elaine Quijano, traveling with the president, reports on U.S. determination to stop Iran's nuclear weapons program.
Aneesh Raman reports from Tehran on Iran's refusal to back down in this nuclear confrontation.
And Jamie McIntyre reports from the Pentagon on Iran's apparent effort to destabilize Iraq.
We turn to Elaine Quijano first -- Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hello to you, Kitty.
Well, President Bush engaged in some telephone diplomacy on his way here to Kennebunkport, calling the leaders of Italy and Germany to talk about the latest diplomatic efforts with Iran. Essentially, the Bush administration reiterating that August 31st deadline for Iran to stop its uranium enrichment program. A State Department spokesman also saying today that if Iran fails to comply, the United States will push for sanctions. Now, another topic, Lebanon. The president today congratulated the Italian prime minister for his country's efforts -- his pledge, rather, earlier this week for some 3,000 troops for that expanded international force, peacekeeping force for Lebanon.
At the same time, a major development. France announcing today it will up its commitment to some 2,000 troops, up from a few hundred that originally pledged for that same international peacekeeping force.
The White House, of course, pleased by that. In fact, in a written statement, the president saying today, that "The move is an important step towards finalizing preparations to deploy the United Nations interim force of Lebanon. I applaud the decision of France, as well as the significant pledges from Italy and our other important allies."
So Kitty, even if the president spends a long weekend here in Kennebunkport at the family compound, where he'll be attending a family wedding later this weekend, also showing that he is fully engaged. The White House making those -- the president making those calls, rather, on his way here -- Kitty.
PILGRIM: Thanks very much.
Elaine Quijano.
Well, Iran today strongly defended its nuclear policies and its refusal to stop enriching uranium. Tehran says its response to the United Nations was positive. The top Iranian negotiator insisted Iran wants to solve all outstanding issues.
Aneesh Raman reports from Tehran.
(BEGIN VIDEOTAPE)
ANEESH RAMAN, CNN CORRESPONDENT: From Iran, the answer is no. It will not suspend its nuclear program by the end of the month, as the U.N. Security Council has mandated.
So why then did Iran offer a new round of negotiations, a new formula to resolve the crisis? The Iranian strategy, it seems, is to present itself as eager for compromise, eager to find a diplomatic solution. And we have seen a softening of Iran's stance.
First, it says it's willing to slow down its nuclear program to appease international concerns. And there are suggestions Iran could with the negotiations talk about suspending its nuclear program.
We've heard up until now every Iranian official say suspension and any talk of it isn't on the negotiating table. But in a larger sense, this is Iran showing itself as a rising power in the region.
Saddam Hussein's Iraq was really the only balancing power here. With Saddam gone, Iran has grown stronger by the day. And with support for Hezbollah and Lebanon against Israel, and with support among the Shia militias in Iraq, Iran sees itself as having influence throughout the region. And it wants respect, and it feels that it deserves the right to pursue what it has maintained is a peaceful civilian nuclear program.
Where this leaves the world now is a diplomatic standoff that now is set to take place at the U.N. in early September.
Aneesh Raman, CNN, Tehran.
(END VIDEOTAPE)
PILGRIM: Well, the United Nations Security Council tonight is still demanding that Iran suspend its nuclear enrichment activities by the end of the month. The United States and Europe say Iran should face sanctions if it does not comply. But China and Russia say they want to continue negotiations with Iran. China and Russia, of course, have close economic ties with Iran, and they're also strong opponents of U.S. policy in the Middle East.
Well, as the nuclear showdown with Tehran escalates, the United States and Britain are accusing Iran of fueling violence in Iraq. One U.S. general said the government of Iran is trying to destabilize Iraq.
Jamie McIntyre reports from the Pentagon.
(BEGIN VIDEOTAPE)
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice over): While the Pentagon still blames al Qaeda terrorists and Sunni insurgents for most of the violence in Iraq, the U.S. military is increasingly pointing the finger at Iran for behind-the-scenes meddling that is destabilizing Iraq.
UNIDENTIFIED MALE: I think it's irrefutable that Iran is responsible for training, funding and equipping some of these Shia extremist groups, and also providing advanced IED technology to them. And there's clear evidence of that.
MCINTYRE: A report issued by the House Intelligence Committee concludes, "Iranian involvement in Iraq is extensive, and poses a serious threat to U.S. national interests and U.S. troops." The report, written mostly by R republican staffer, is based on unclassified sources, including public testimony by top U.S. intelligence and military officials, as well as media accounts. For example, it cites a 2005 Knight Ridder newspaper report that the 20,000-strong Badr organization had infiltrated elite commando units in the Iraqi interior ministry and become what amounted to an Iranian fifth column inside the U.S.-backed Iraqi government.
Outside experts say, while it's clear Iran is buying influence in Iraq, it's harder to prove Iran's government is directing the attacks.
KEN POLLACK, BROOKINGS INST.: It's much less clear that they actually are deliberately trying to have these groups go after the United States because, in fact, the groups that they have the closest ties have actually been the ones that have been most restrained and least active in targeting coalition personnel.
(END VIDEOTAPE)
MCINTYRE: The House Intelligence Committee report expresses frustration that the U.S. doesn't have a clearer picture of Iran's activities in Iraq. And it calls for better intelligence collection and analysis to determine the nature and extent of Iranian ties to Iraqi insurgents -- Kitty.
PILGRIM: It seems very necessary at this point.
Thanks, Jamie.
Jamie McIntyre.
Well, insurgents have killed four more of our troops in Iraq. Three soldiers were killed in separate incidents in the Baghdad area. And a sailor serving with the U.S. Marines was killed by a roadside bomb.
2,617 of our troops have been killed in Iraq since the war began.
President Bush appears to be convincing more Americans that his policies in the war on terror are the right track. The latest opinion polls show the president has succeeded in lifting his poll numbers from the lows of this spring.
Bill Schneider has our report.
(BEGIN VIDEOTAPE)
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice over): Three polls out this week. How is President Bush doing? Forty-two percent job approval in two polls, 36 percent in a third. The average, 40 percent.
In April, the president's job ratings averaged 34 percent. They've been slowly rising over the past four months.
Why? The White House has been using the terrorism issue to rally the Republican base, just as it did in 2002 and 2004.
KARL ROVE, PRESIDENTIAL ADVISER: If leading Democrats had their way, our nation would be weaker and the enemies of our nation would be stronger. And that's a stark fact of modern life.
SCHNEIDER: President Bush's biggest gains have been on the issue of terrorism, particularly since the arrests in London earlier this month. And most of those gains have been among Republicans and conservatives, his base.
Will the terrorism issue save the Republican majorities in Congress this year? This week's polls all showed Democrats in the lead by an average of nine points when registered voters nationwide are asked how they'll vote for Congress. Some polls show the race getting closer. The "USA Today"-Gallup poll has the Democratic lead at just two points. Just after the 2002 midterm, Bill Clinton offered this advice to his fellow Democrats.
WILLIAM JEFFERSON CLINTON, FMR. PRESIDENT OF THE UNITED STATES: When people feel uncertain, they'd rather have somebody that's strong and wrong than somebody who is weak and right.
SCHNEIDER: Some Democrats are determined not to make the same mistake a third time.
UNIDENTIFIED MALE: Once again, terrorists tried to take down passenger planes. This time with liquid explosives. Thank god the British stopped them.
SCHNEIDER: In his new ad, Democratic Senate candidate Harold Ford of Tennessee refuses to concede the terrorism issue.
UNIDENTIFIED MALE: It's time to put aside politics. Adopt the commission's 41 recommendations and get tough on controlling our borders.
(END VIDEOTAPE)
SCHNEIDER: Our poll of polls shows that while Republicans may be losing many middle-of-the road voters, they still know how to rally the base -- Kitty.
PILGRIM: Interesting stuff. Thanks very much.
Bill Schneider.
Well, top Palestinian officials today strongly criticized the kidnapping of two FOX News journalists in Gaza. They said the abductions do not help the Palestinian cause.
Gunmen took Olaf Wiig and Steve Centanni prisoner 10 days ago. The terrorists are demanding the release of Muslim prisoners in the United States. The State Department says the United States will not make any concessions to terrorists.
Still to come, a new weapon in the battle against employers that hire illegal aliens and drive Americans out of work.
We'll have a special report.
Also, this country faces the worst housing slump in years. We'll tell you why middle class Americans are suffering the most.
And a leading conservative accuses President Bush of hijacking the conservative cause. Richard Viguerie, author of "Conservatives Betrayed," joins us.
Stay with us.
(COMMERCIAL BREAK) PILGRIM: Tonight, a U.S. company is going to court to stop its competitors from hiring illegal aliens. At the same time, the federal government refuses to put workable programs in place to make sure that only legal residents are hired for U.S. jobs.
Casey Wian reports on the California firm suing competitors for allegedly hiring hundreds of illegal aliens.
And Lisa Sylvester reports on new concerns over the biometric I.D. program. It was supposed to be the answer to the illegal alien labor crisis.
We begin with Casey Wian in Los Angeles -- Casey.
CASEY WIAN, CNN CORRESPONDENT: Kitty, there's a new weapon in the battle against employers of illegal aliens. Companies with legal workforces are now suing under state laws prohibiting unfair competition.
(BEGIN VIDEOTAPE)
WIAN (voice over): Global Horizons is a Los Angeles-based farm labor contractor struggling to stay in business because so many of its competitors rely on low-cost illegal aliens. It's now suing a central California grower and two other labor contractors under California's Unfair Competition Law.
Global Horizons says it had a contract with grower Munger Brothers to provide 600 legal foreign worker to pick blueberries this spring. But the lawsuit alleges Munger terminated the deal halfway through the contract and hired other companies that use illegal aliens.
MORDECHAI ORIAN, PRESIDENT, GLOBAL HORIZONS: This farmer decided to stop using us. And we just saw other people coming in. And we have -- believe that those guys are just local with not the right documents and that they will be taking those jobs.
WIAN: An attorney for Munger Brothers says Global Horizon was terminated because its laborers were not working as fast as expected under the contract, not because the grower wanted to hire lower-cost illegal aliens.
THEODORE HUPPE, MUNGER BROTHERS ATTORNEY: Their employees just couldn't do it. They didn't have proper supervision and they didn't have the proper employees out there to do the type of work that they warranted.
WIAN: Munger, like most big growers, uses labor contractors to supply produce pickers. Its contractors say they follow all worker documentation laws. But attorneys for both acknowledge many farm workers are illegal aliens using phony documents.
Global Horizons says it has received hundreds of calls and e- mails supporting its lawsuit. National border security groups say they plan to file dozens of other unfair competition suits against businesses hiring illegal aliens.
MIKE HETHMON, IMMIGRATION REFORM LAW INST.: If this case goes anywhere, I think we're going to see a great deal of interest in the plaintiffs nationwide. And if that happens, I will -- I will be delighted. And I think our country will be the better for it.
WIAN: There is now a Web site, illegalemployers.org, offering help to companies losing business to competitors that hire illegal aliens. Through the first eight months of this year, federal immigration officials made about 2,500 worksite arrests. Nearly double the number for all of 2005.
But that's a tiny fraction of the estimated five million illegal alien workers in the United States.
(END VIDEOTAPE)
WIAN: It's clear businesses are now joining the fight against employers of illegal aliens because the federal government, Kitty, has obviously failed to do the job.
PILGRIM: That's fairly organized to have a Web site.
Thanks very much.
Casey Wian.
Thanks, Casey.
Well, high-tech biometric cards were supposed to offer employers a foolproof way to check worker immigration status, but evidence is growing tonight that this program is completely unworkable in its current form. This, as the government pushes for new guest worker programs using these new biometric cards.
Lisa Sylvester reports.
(BEGIN VIDEOTAPE)
WALTER HAMILTON, BIOMETRIC INDUSTRY ASSOC.: I place my finger on the censor.
LISA SYLVESTER, CNN CORRESPONDENT (voice over): Instead of typing a password, Walter Hamilton with the Biometric Industry Association uses his fingerprint to access his computer. Biometric identification relies on voice, eyes or other unique physical characteristics to identify an individual.
HAMILTON: This is a typical smart card. It contains a microchip which has a memory where you can store biometric information or biographical data.
SYLVESTER: The Bush administration is counting on this technology to help develop a temporary guest worker program.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: One of the temporary parts of a temporary worker program would be to give people a tamper-proof temporary worker card that they can say I'm legal. I'm here to do the job.
SYLVESTER: But the reality is the federal government is a long way off from developing a workable system. The technology is not the issue. It's the administrative logistics.
STEVE CAMAROTA, CENTER FOR IMMIGRATION STUDIES: It isn't enough just to have a good biometric card. You need a system in place that actually tracks people when they come and records their departure from the United States so that we can make sure the system truly is temporary.
SYLVESTER: There are many unanswered questions. Who will run the background checks on the foreign workers? If it's private companies, the system becomes more vulnerable to fraud. The federal agency the U.S. Citizenship and Immigration Services is already overburdened.
What about privacy and discrimination concerns? And there's a major loophole. Illegal aliens already in the United States could simply claim to be legal workers. A point raised at a recent congressional hearing.
SEN. JON KYL (R), ARIZONA: A lot of people may continue to say, "I'm not a temporary worker. I'm entitled to be here." And they don't have that card. They still have their counterfeit driver's license or Social Security card. And how is the employer to make the distinction?
SYLVESTER: A biometric tamper-proof identification card in recent days has been used to try to sell comprehensive immigration reform to the American people. But so far the White House has been heavy on rhetoric, light on the details.
(END VIDEOTAPE)
SYLVESTER: Members of the House Immigration Reform Caucus have offered a different solution. They say instead of creating a new system for temporary workers, the U.S. government should develop a tamper-resistant Social Security card -- Kitty.
PILGRIM: It seems like that system's already in place, Lisa.
SYLVESTER: Indeed, it is, Kitty. And this is one of the advantages of this. They already have the existing resources. It would be much easier for them to roll out a program like this, and it would be all inclusive. You wouldn't have a situation where aliens were presenting counterfeit documents claiming to be legitimate workers -- Kitty.
PILGRIM: Thanks very much.
Lisa Sylvester.
Well, Governor Arnold Schwarzenegger of California still can't seem to make up his mind on the issue of the nation's border security crisis. Governor Schwarzenegger tonight is sending letters to Congress demanding that the Border Patrol hire thousands of new agents. And he's demanding that the federal government criminalize the construction of border tunnels.
Well, this is the same Arnold Schwarzenegger who once equated border security with racial prejudice and continues to push for illegal alien amnesty.
The U.S. Border Patrol tonight is considering expanding the role of its heavily armed BORTAC units with the -- on the border with Mexico. These elite units have been deployed only on the remote parts of this border.
The Border Patrol says BORTAC agents could soon play a more prominent role in the effort to secure our borders, but tonight Border Patrol agents are still being pulled off duty to protect unarmed National Guard troops. And these are the same National Guard troops placed on the border to back up the Border Patrol. Hundreds of Border Patrol agents who should be protecting the border have been assigned to what some have called the nanny patrol instead.
Still ahead, war on the middle class. The housing market cooling off as the cost of energy soars.
We'll have a special report.
Plus, the Marines are in need of a few good men and women. Thousands of Marines are being called back to serve in Iraq and Afghanistan.
General David Grange joins us on this new recall.
And one of the nation's most outspoken critics of the Bush administration today is a fellow conservative. I'll speak to Richard Viguerie, the author of the new book "Conservatives Betrayed."
(COMMERCIAL BREAK)
PILGRIM: Middle class Americans hurt by soaring energy costs are also being hit by rising mortgage payments. New data tonight proves the housing market is slumping as interest rates rise. It's a one-two punch for this nation's struggling middle class.
Christine Romans reports.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT (voice over): In much of the country, home prices are falling. It's taking longer to sell a house. As to the hot markets of the past few years, it's feeling downright chilly.
LAWRENCE YUN, NATIONAL ASSOCIATION OF REALTORS: Certainly the pace of the activity that occurred in 2005, the U.S. frenzy, unsustainable. So surely it had to come down. And now we are getting a reality check.
ROMANS: Reality check for most, and for the millions of families with adjustable rate mortgages, rate shock. Half a trillion dollars in adjustable rate mortgages adjust to higher interest rates this year. Another $700 billion in mortgages readjust next year. And those Americans who have been tapping the equity in their home may be tapped out.
DEAN BAKER, ECONOMIC POLICY INST.: The American middle class is being hit really hard by this. People had not seen rises in wages really since the 2001-2002 recession. And they've been making up for that, to a very large extent, by borrowing against their home.
Now that home prices have stopped rising, the ability to borrow is going away rapidly. And on top of that, they're still not seeing rising wages, and they're seeing this big hit in gas prices. So people are really squeezed right now.
ROMANS: Truly squeezed, the millions with so-called exotic mortgages, no money down, interest only. There are even loans out there where the monthly payment doesn't even cover the interest. If prices fall, it could be catastrophic for these homeowners.
(END VIDEOTAPE)
ROMANS: Those mortgages make up a record 40-some percent of new loans for homes. In a buyer's market, that could mean a real wake-up call for the millions of Americans who are house rich but cash poor -- Kitty.
PILGRIM: Very frightening numbers.
Thanks very much.
ROMANS: You're welcome.
PILGRIM: Christine Romans.
Well, that brings us to the subject of tonight's poll.
Which of the following places the greatest burden on your family? The cost of housing, the cost of gas, the cost of healthcare, the cost of education?
Cast your vote at LouDobbs.com and we'll bring you the results a little bit later in the broadcast.
Now it's time for some of your thoughts.
Judy in Kentucky writes, "I've had it up to here with the talk of how expensive it will be to secure our borders. We should be talking about how expensive it will be if we don't."
And Mary in New Jersey writes, "Maybe the drop in home sales was caused by the realization that people are paying half a million dollars for houses built by $7 an hour labor." Terry in Illinois, "Isn't it a sad travesty that our men and women are fighting and dying for America's freedom, traditions, values and the country, while our politicians sell our country to the highest foreign bidder, while it sells our language, values and traditions to Mexico?"
E-mail us at LouDobbs@CNN.com. We'll have more of your thoughts a little bit later in this show.
Coming up, the worst wildfire crisis in the Northwest. It's getting worse. We'll have the latest.
Plus, it's being called nothing less than a backdoor draft for the U.S. Marines. The surprise call-up of thousands of Marine reservists.
General David Grange will be here.
And conservative leader Richard Viguerie has a warning for every GOP candidate who supports amnesty for illegal aliens. He's the author of a provocative new book, "Conservatives Betrayed." He'll be my guest coming up next.
(COMMERCIAL BREAK)
PILGRIM: In a moment I'll be speaking with General David Grange about the recall of U.S. Marine reservists in Iraq and Afghanistan, but first these headlines.
The Food and Drug Administration has approved the so-called morning-after pill for sale without a prescription. Now, the Plan B emergency contraceptive will now be available over the counter to consumers 18 years of age and older.
Presidential adviser Karl Rove criticizing a federal judge's decision to block the warrantless wiretapping program. Rove says a similar program might have prevented September 11th.
And the crew of the space shuttle Atlantis today arrived at the Kennedy Space Center to prepare for Sunday's launch. The six-person crew will build an addition on to the International Space Station.
Violent weather tonight wreaking havoc across the country. Wildfires continue to burn across the western United States, 800,000 acres burning in Washington, Idaho, Nevada and Oregon.
In Washington, the governor has declared a state of emergency. This is the most intense fire season in six years, according to federal fire officials.
Heavy rains today caused severe flooding in parts of Phoenix, Arizona. Rescuers waded through high waters to rescue several stranded motorists after a torrent of water flooded an intersection.
Electricity has been restored to residents of Dallas county, Texas, after a powerful storm last night. High winds knocked out power for thousands of residents, uprooted trees and damaged roofs.
And the fifth tropical storm of the season has formed over the Windward Islands of the Caribbean. Tropical Storm Ernesto has already damaged several homes in the southeastern Caribbean.
The U.S. Marine Corps this week announced it's recalling as many as 2,500 reservists, some of them on an involuntary basis. The recall demonstrates that the Marine Corps, like other branches of the military, is short of critically important specialists to fight in Iraq and Afghanistan.
Joining me now is General David Grange. He served with distinction in the infantry, special operations and anti-terrorist units throughout the world. Thanks for being with us.
GEN. DAVID GRANGE (RET), CNN MILITARY ANALYST: Thank you.
PILGRIM: Let's start with this recall. How do you assess it?
GRANGE: Well, first of all, the recall is not to obtain sheer numbers from the ready reserve of the Marines, but to fill these specialties, as you mentioned, in conflicts in Afghanistan and Iraq, that need these certain specialties in order to be successful. So it's a requirement with troops at task. In other words, it's shaped for that particular mission. And by the way, the contract does state, when you sign it, that you will serve in this category for several years after active service.
PILGRIM: Another question on Afghanistan, General Grange, we've seen a resurgence of the Taliban activity in the south. Is this a surge in Taliban activity or is this a year by year strengthening of the Taliban and wouldn't that require different strategies?
GRANGE: Well I think it is year by year. It's the time of the year, because of the seasons, the ability for them to move. And it's going to continue. I mean, they have their strategy, just like the coalition forces has theirs. They're going to continue to push to obtain their objectives and they're going to do it relentlessly because that's the type of enemy that we face in Afghanistan.
PILGRIM: Let's talk about Iraq. We've had a statement and an editorial from the U.S. ambassador to Iraq, Zalmay Khalilzad. He has said that the security crisis in Baghdad has people enduring unacceptable levels of violence. And I'd like to read to you just a quote from his editorial, "The battle of Baghdad will determine the future of Iraq, which will itself go a long way to determining the future of the world's most vital region.
Although much difficult work still remains to be done, it is imperative that we give the Iraqis the time, material and support necessary to see this plan through and to win the battle of Baghdad." This comes in a political climate of many people questioning the commitment to this effort. Where do we stand on this so-called battle of Baghdad? I know there's an effort to secure it zone by zone. How is that going. GRANGE: Well, first of all, the commitment to the conflict in Iraq, I mean, I just don't see a way out of that. We are committed and we ought to follow through with our commitments. I do think though and I haven't said this before, but just because of what happened in Lebanon, with the Hezbollah, what's going on with the exposure of a very comprehensive and savvy strategy by Iran, influencing not only in Lebanon but the entire region to include Iraq with the Shia militias and the use of IEDs against our troops and everywhere else, I think that it's time to maybe reshape our strategy.
You know, there's an old saying, when the terrain varies from the map, you got to go with the terrain. So if the plan must change because of conditions, then you have to adjust. It doesn't mean that you give up commitment. It means you adjust to win the fight. I think it may be time for that in order to be successful. Baghdad is key politically, not maybe for the entire Iraq, some other critical areas, but for the long term very critical.
PILGRIM: You know, this stretches on what Brigadier General Michael Barbero had to say about Iran's influence. Let's listen to it for a moment.
(BEGIN VIDEO CLIP)
BRIG. GEN. MICHAEL BARBERO, JOINT STAFF DEP. DIRECTOR: Iran is definitely a destabilizing force in Iraq. I think it's irrefutable that Iran is responsible for training, funding and equipping some of these Shia extremist groups and also providing advanced IED technology to them.
(END VIDEO CLIP)
PILGRIM: So there's the illustration of your terrain changing, general. What should be our strategic response?
GRANGE: Well, again, we need to truly re-look at a comprehensive strategy for this region which solves problems not only in Iraq but also in the aggressiveness of Iran. And you don't have to do this, everybody thinks of just about kinetic solutions, dropping bombs, but that's not necessarily the comprehensive solution.
It involves many elements of combat power, many of them what they call soft, S-O-F-T, soft elements that are quite effective, that can make Iran very uncomfortable. I think we have to get on this immediately or we're going to see some terribly deteriorating circumstances, not only in the region, but for sure in Iraq.
PILGRIM: Let's move to Lebanon for one quick question. And that is France's commitment seems weak initially. How do you assess the force that's being built?
GRANGE: You know, we said on the programs many, many times in the past that to set up this peacekeeping force, I'd rather call it peace enforcement force, on the border with this situation, is going to take a lot of troops with power. And this cannot be a docile force. It has to have the big stick to back up what it says. Otherwise it's just people laugh at it, they ignore it, just like they did to UNIFIL. We also said it is going to take a long time.
You can see it right now. Finally France has come around, after they committed early on and many other countries haven't followed through with even suggesting any kind of support. It's easy to talk about global affairs, but unless you can do something about it, you are really a nonplayer. It is time for the world community to stand up and do something with the situation in Lebanon.
PILGRIM: Thanks very much, General David Grange. Thank you, sir.
GRANGE: My pleasure.
PILGRIM: Still ahead, states across the country are responsible for the integrity of electronic voting machines. Tonight, a special report on just how greatly standards can vary from state to state.
And then conservative leader Richard Viguerie is dedicated to defeating any presidential candidate who supports the Senate amnesty plan. He joins me.
And Congressman John Barrow of Georgia says CAFTA has failed his state. He joins me to discuss the consequences of the so-called free trade agreement next.
(COMMERCIAL BREAK)
PILGRIM: Tonight we report on two states and their completely different approaches to electronic voting. California and Maryland will both use electronic voting machines in the upcoming midterm elections. Now one state is taking important steps to stop voter fraud and the other is making little effort to ensure a fair vote.
(BEGIN VIDEOTAPE)
PILGRIM (voice-over): California, Maryland, different states with electronic voting. Different rules.
PROF. DAN WALLACH, RICE UNIVERSITY: What we have today is every state doing its own thing. Some states are very aggressive in requiring newer and better technologies. Other states are holding back, waiting for more guidance and waiting for vendors to implement things. It is really all over the map what different states are doing.
PILGRIM: In Maryland the governor became worried about voting security and electronic voting machines. The House in Maryland voted to switch from a Diebold all electronic, touch screen system to a system with a paper trail. The governor set aside $20 million to fund the switch, but the measure was killed by the state Senate, so Diebold electronic voting machines will be used for all 24 districts in Maryland in November.
In 2004, California officials decertified all electronic voting machines unless they had a paper trail. The measure was signed into law. This past June, 30 counties used electronic voting under the new requirements. Senator Bowen helped write the legislation that requires a one percent audit of the vote compared to the paper trail, but she wants even more safeguards.
DEBRA BOWEN (R), CA. STATE SENATE: First thing we need to be doing is beefing up our audit requirements. And I think it's instructive to look at how the slot machines are audited. Casinos in Vegas are far better audited than electronic voting machines.
PILGRIM: Twenty-seven states now have either a law or a requirement for voter-verified paper trail of all elections. And in eight more states, the paper trail is not required but is used statewide. But 15 states still have no requirements for those safeguards.
(END VIDEOTAPE)
PILGRIM: Voter activists say it's high time Congress considers a federal law to tighten up security. Congressman Rush Holt has 209 co- sponsors in a bipartisan bill pending in committee with a hearing scheduled soon. And it would require a voter-verified paper trail and a mandatory recount of two percent of the vote, randomly selected to make sure the results are legitimate on any election.
Well, my next guest is issuing a dire warning to Republicans as Election Day approaches. Richard Viguerie is one of the leaders of the U.S. conservative movement and says the GOP officials will be hit with, quote, "a political tsunami" if they don't change tactics immediately.
Now Viguerie is the author of a new book, "Conservatives Betrayed: How George W. Bush and Other Big Government Republicans Hijacked the Conservative Cause." And he joins me tonight. Thanks for being with us.
RICHARD VIGUERIE, AUTHOR, "CONSERVATIVES BETRAYED": My pleasure.
PILGRIM: This is a lot of tough stuff, and a litany of complaints. What's the biggest betrayal, in your mind, of the conservative cause?
VIGUERIE: Gosh, as the song says, "let me count the ways." I could come up with 20 or 30. Probably at the end of the day, it's the growth of government, discretionary spending. Had nothing to do with national defense, has increased 47 percent under this president. He campaigned as a conservative. He promised us he was conservative.
And government has grown larger than any president since L.B.J., and by the time his eight years are over with, he'll probably exceed Lyndon Johnson in terms of growing the government, new government programs. We're just burdening America down with rules and regulations, more government.
PILGRIM: What happened to the class of 1994? I mean, what happened?
VIGUERIE: Well, it goes back further than that, Kitty. We -- 1960, Goldwater takes the Republican Party over. Lo and behold, four years we did. We had it for three or four months, and then in 1980, we thought we had taken it over with the election of Ronald Reagan, and we did for a few months until the big government Republicans got to the White House.
And then in 1994, we knew we had taken it over for sure this time and it probably went on for maybe 18 months until the Republican leaders went eyeball to eyeball with the president of the United States on shutting down the government. And they blinked, and we've been out in the wilderness ever since. Hope springs eternal. I think the conservatives can take this party back over again if we put our mind to it.
PILGRIM: Well, let's talk about the upcoming election. And in your book, you send a warning to the Republican Party and the conservatives and you pose the question -- and let's take this quote from your book. "How many times does the GOP have to be hit on the head before it learns not to take conservatives for granted?" What do you think is going to happen in the races coming up?
VIGUERIE: Well, the same thing that's happened, and I'm old enough to remember 1948 when Dewey ran a liberal campaign, had Earl Warren, a liberal governor from California on his ticket there, lost an election they were supposed to win. Nixon lost an election he was supposed to win. This president's father lost an election he was supposed to win, et cetera, et cetera. There are lots of other examples.
Whenever the Republicans take the conservatives for granted and betray their trust, they lose an election. And they just seem never to learn. And unless this president nationalizes selection around conservative issues, they'll take a bath, I'm afraid, this November.
And, you know, it doesn't have to be. If they would just turn directions in a conservative way they can save this election for this country, and it doesn't look like it's going to happen, though.
VIGUERIE: Some may say it's a little bit too late. We had Bill Schneider on earlier in the program, and the Democrats are up by nine points in congressional races already. It is too late? Can they do it?
PILGRIM: No, it's not too late, but it's difficult. The stretch is clearly two points, Kitty, I think one, to frighten the voters on national defense. And they tried that in 2002 and 2004 with success. And they've got a legitimate a case there that they're going to be much stronger on terrorism than the Democrats are. I think that's legitimate.
The second one is they've tried that for 50 years and it's always failed. The Bogeyman is going to get you. Look out, the liberals are coming. And they're going to try to scare the conservatives with rhetoric, and rhetoric will no longer cut it. We need programs and policies and personnel. There are very few conservatives in this administration. You cannot have conservative programs and policies without conservative personnel. PILGRIM: That makes perfect sense to me. Now, should the Republicans strategically be running for election distancing themselves from President Bush? Would that be a smart move?
VIGUERIE: On appropriate issues. I don't think anybody can defend the spending that this president and this Congress have engaged in. It's immoral. It's corrupt. We knew about a few examples of corrupt Congressmen.
That's not the problem, quite frankly. It doesn't affect my children or grandchildren's life. But the immoral corruption of legal theft that's going on where they're spending money for the sole immoral purpose of holding on to power, reelection, that is immoral and that has to change.
PILGRIM: That can't be condoned by any party. One last question and we really do have to get in it, given the drift of this program and the importance we've put on this. Border security -- it's a big campaign issue. And what's the conservative position and do you agree with it?
VIGUERIE: Well, the conservative position is the position that Americans support, which is secure the borders first. We don't need new laws. There's plenty of laws in place to secure the borders. And that's what America wants.
We're not going to trust the president or any politician to say, OK, I'll secure the borders but let's have amnesty and let's bring all these guest workers in here. That's just not going to trust. America no longer has confidence in the politicians.
PILGRIM: Big litmus test on the Senate bill, correct?
VIGUERIE: Absolutely, and the Mike Pence bill. That's just amnesty in another cover. No amnesty where there is a Senate bill or the Mike Pence bill. Secure the borders and the American people will reward you at the ballot box.
PILGRIM: We vote for that. Richard Viguerie, thanks very much for being with us.
VIGUERIE: My pleasure.
PILGRIM: OK, coming up at the top of the hour here on CNN, "THE SITUATION ROOM" with Wolf Blitzer -- Wolf.
WOLF BLITZER, CNN ANCHOR: Thanks, Kitty.
Nuclear reaction -- North Korea raising alarm bells right now. Find out why some say an underground test may be imminent.
Also, on the trail of Osama bin Laden. We'll find out how trees and tapes may offer key clues. The Pakistani ambassador here in "THE SITUATION ROOM." Is the world's most wanted man hiding out along his border? I'll ask him.
Plus New Orleans Mayor Ray Nagin appears to take a swipe at New York City and the rebuilding efforts at Ground Zero.
And the politics of the so-called morning-after pill. We'll find out how Senator Hillary Clinton managed to outmaneuver the White House. All that, Kitty, coming up right here in "THE SITUATION ROOM."
PILGRIM: Thanks, Wolf.
A reminder now to vote in tonight's poll. Which of the following places the greatest burden on your family? The cost of housing, the cost of gas, the cost of healthcare or the cost of education? Cast your vote at LouDobbs.com and we'll bring you the results in just a few minutes.
Also ahead, Congressman John Barrow of Georgia lost his battle to stop CAFTA from becoming law. And now he says his state is suffering because of that free trade agreement. Congressman Barrow joins me.
The solar system is shrinking. Find out why Pluto no longer belongs. That's next.
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PILGRIM: President Bush signed the Central American Free Trade Agreement into law one year ago. And Congressman John Barrow of Georgia fought the president every step of the way. He remains a fierce opponent of CAFTA.
Tonight, John Barrow says the "so-called free trade agreement is now triggering job losses in his state and across the country." Congressman Barrow joins me tonight from Augusta, Georgia. Thanks for being with us, sir.
REP. JOHN BARROW, (D) GEORGIA: Thank you, Kitty. It's good to be with you.
PILGRIM: You take issue with Jockey International. It's based in Millen, Georgia. And they laid off 203 of its employees. You blame CAFTA for this, don't you?
BARROW: Well, what happened in my district is really -- it really demonstrates two things that are wrong with our failed trade policy in this country.
First, bad trade deals like NAFTA and CAFTA continue to ship out and export good manufacturing jobs overseas. And second, some employers who stand to gain an awful lot from CAFTA have actually misled their employees into believing that trade deals like CAFTA will be good for them.
In my district, for example, Jockey led a campaign through their employees to try and blanket my office with letters to urge me to support CAFTA. We got over 100 letters. They all said the same thing. And no surprise, because they're all copies of a sample letter that we got after the fact from Jockey management. And the letters all say things like CAFTA is good for me, it's good for Jockey and it's good for Georgia. Well the 203 people who lost their jobs as a result of CAFTA may think it's good for Jockey, but it's certainly not good for the workers for Jockey.
PILGRIM: Yes, let's get into this paper. We have a bit of a paper trail here. We a statement to us from Jockey International. I'd like to read it to you. "Congressman Barrow's assertion that CAFTA caused the elimination of 203 sewing jobs at the Jockey mill in Georgia plant is flat wrong. With or without CAFTA, underwear made in the Caribbean and Central American region can be imported duty-free."
So they say CAFTA or no CAFTA, they would be moving these jobs offshore anyway. What do you have to say about that?
BARROW: Well, what they said to CAFTA employees, and what the -- the promise they made to their employees and the promise that their employees repeated to me in their letters was that CAFTA was going to keep their jobs here.
What they're failing to point out is that while there is a duty- free market for jobs in Millen, Georgia, in Canada, the savings from shipping those jobs overseas down to the CAFTA outweighs the savings we get under NAFTA. So what they're not pointing out is that while they kept the jobs here fore a while until they had CAFTA in the bag, once CAFTA was in the bag, then they had to compare the money they would save by shipping jobs down to the CAFTA countries as opposed to the duty-free sales it would make to Canada.
So when they point out that things have changed, nothing has changed between now and CAFTA except the fact that the deal with the CAFTA countries is now locked in. And now they get to compare the cost of doing business with Canada from the CAFTA countries as opposed to the cost of doing business with Canada from here in Jenkins Country.
And we lose, because we're not playing on a level playing field.
PILGRIM: Well, we cut to the chase, the job are still gone.
Let me read you a letter from Jockey management dated May 2003. It was used internally at Jockey to conduct meetings on CAFTA, as you have mentioned it. And it says, "CAFTA is good for Georgia because Georgia exported $664 million in merchandise to the region, the fifth largest total among the 50 states. And the export volume will grow under CAFTA. CAFTA is good for me, it's good for Jockey and it's good for Georgia."
So they're embracing CAFTA. They like the Caribbean Trade Agreement. And yet those jobs are still gone.
BARROW: The reason is because we've exported our jobs in manufacturing these products down to the CAFTA countries already. They're not pointing that out. We have also got under a CAFTA arrangement where now we used to have duty-free imports into this country from CAFTA country, but only if the products that they incorporated in their manufacturing process started out in this country.
That's been wiped out under CAFTA. That was a further incentive to move not just the jobs they were already shipping down there, but new jobs in the processing of raw materials into the basic building blocks of finished products.
PILGRIM: What's to be done there?
BARROW: So textiles and yarn, that's all going -- well, what we need to do is recognize, the American workers are getting squeezed at both ends. Illegal immigration is hitting us in the service sector and selling out jobs to the lowest bidder. In the manufacturing end of things, bad trade deals like CAFTA and NAFTA are shipping out manufacturing jobs overseas. It's time to stand up for American workers for a change.
In order to do that, we need to fix these pad trade deals, we need to raise the minimum wage and we need to secure our borders.
PILGRIM: All right. Thank you very much, sir. Congressman John Barrow.
Still ahead, your e-mails on the Bush administration and our solar system is one planet smaller. And we'll tell you why.
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PILGRIM: After 76 years as a full fledged planet, Pluto has been downgraded to a dwarf planet. Leading astronomers have redefined planetary guidelines, and Pluto just doesn't measure up. The International Astronomical Union voted to remove Pluto's status as a planet, downgrading it to dwarf and shrinking the solar system from nine planets to eight.
Well, now the results of tonight's poll. Fifty percent of you say the cost of healthcare places the greatest burden on your family.
And time now for more of your thoughts.
Charlie in North Carolina writes, "we need to better assess Iran's intentions. Just how many times does the leader of a country have to say he wants Israel wiped out and infidels all dead before we get it?"
Dan in California, "I've finally figured out why President Bush is against securing the border, he can't run for another term here, so he wants it as easy as possible to come and go from his new office in Mexico as El Presidente."
And Diane in California, "I've been sitting here trying to think back at just one decision the Bush administration has made that has been good for the American people and by god, I can't come up with one thing. That's scary."
Kiera in North Carolina, "isn't it wonderful, the economy is booming, the border is secure, and we are winning in Iraq, and everything else is peachy keen, too. It looks like we can now all relax doesn't it?"
Send us your thoughts, LouDobbs@CNN.com. Each of you whose e- mail is read here will receive a copy of the financial report of the United States with a forward by Congressman Jim Cooper of Tennessee and a copy of Senator Byron Dorgan's important book, "Take This Job and Ship It."
Well, thanks for being with us tonight. God night from New York. "THE SITUATION ROOM" starts right now with Wolf Blitzer -- Wolf.
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