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Lou Dobbs Tonight

October Already A Bloody Month For U.S. Forces In Iraq; North Korea Publicly Declares Plans To Conduct Nuclear Weapons Test; Growing Number of House Republicans Increasingly Critical Of Leadership; John Bolton Interview; Venezuela Buying Millions of Dollars of Weapons From Russia and Developing Closer Ties With Communist China

Aired October 03, 2006 - 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, insurgents are killing our troops in Iraq at the fastest rate in months. We'll have a report from Baghdad and the Pentagon. We'll also examine the Bush administration's failure to anticipate the escalating insurgency in Iraq.
And the United States now faces dangerous new threats in Latin America. Leftist regimes and their sponsors in Russia and communist China are driving an arm's race that could sweep across the entire hemisphere. We'll have that special report and a great deal more, straight ahead here tonight.

ANNOUNCER: This is LOU DOBBS TONIGHT. News, debate and opinion for Tuesday, October 03. Live in New York, Lou Dobbs.

DOBBS: Good evening, everybody. Insurgents in Iraq have killed seven more of our troops. Twelve of our troops have been killed in the three days so far this month. 2,727 Americans have been killed in Iraq since the beginning of the war.

The war is now a central issue in the upcoming elections in this country. Another major election issue will likely be the scandal over former Congressman Mark Foley's explicit Internet messages to congressional pages.

Tonight there appear to be growing divisions within the Republican Party over the way in which the House leadership has responded. Michael Ware reports tonight from Baghdad on the worsening violence in Iraq. Three and a half years after the beginning of the war.

Jamie McIntyre reports from the pentagon on another escalating threat to this country. Communist North Korea's nuclear blackmail. And Andrea Koppel reports from Capitol Hill on Republican leader's efforts to defend their handling of the Foley scandal. We turn first to Michael Ware in Baghdad. Michael?

MICHAEL WARE, CNN CORRESPONDENT: Lou, with only three days gone, October is already a bloody month for U.S. forces here in Iraq. Twelve U.S. servicemen have died, all but one from hostile fire.

This is on the back of the previous month when 73 U.S. servicemen were killed, soldiers, marines and sailors. This is coming at a time of increased violence during the traditional Ramadan offensive. During the Muslim holy month. This is the fourth Ramadan offensive since the fall of Saddam's regime. We are seeing attacks on the rise across the board, suicide bombings are at high levels.

Last week U.S. military general spokesman -- Major General William Caldwell described it as a tough week. We're waiting to see how he describes this week. Meanwhile, violence against Iraqi civilians continues unabated. We have been seeing Iraqis dying at the rate of 2,000 or 3,000 a month on average. Today in the capital alone, 30 more executed and tortured bodies were found. Seven other civilians were wounded in bombings.

That does not include figures from the rest of the country. In the meantime, the prime minister, Nouri al-Maliki announced a four point plan to bring security, however much of it we have seen before. The essence of the prime minister's plan is the establishment of committees on three levels.

At a local level, a city level and a media monitoring committee. The politicians likely to be involved in these committees do not represent the Sunni insurgency and in fact many of them represent the militias which are currently embedded within this government and who are responsible for many of the death squads creating much of the violence. Lou?

DOBBS: Michael Ware reporting from Baghdad.

A dangerous new threat from communist North Korea today. For the first time, North Korea publicly declared it plans to conduct a nuclear weapons test. The State Department said a North Korean test would pose what it called an unacceptable threat to peace and stability without saying how the United States would respond.

Jamie McIntyre reports from the Pentagon.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice-over): The U.S. has spy satellites trained on several potential North Korean nuclear test sites including this one on the eastern coastline and Pentagon sources confirm there has suspicious movement of people, equipment and vehicles that would tend to buttress North Korea's claim it is preparing for an underground nuclear test. It's a threat the U.S. is taking seriously.

CONDOLEEZZA RICE, SECRETARY OF STATE: It would be a very provocative act by the North Koreans. They've not yet done it, but I think it would be a very provocative act.

MCINTYRE: While the U.S. considered a pre-emptive strike against North Korea's Yungbeung (ph) nuclear plant in 1994, Pentagon officials tell CNN there is no planning for a military option this time.

JOHN BOLTON, U.S. AMBASSADOR TO UN: It seems to me, if there were possible test case for the council to engage in preventative diplomacy, considering this threat by North Korea would be an excellent example.

MCINTYRE: North Korea claims to have nuclear weapons and wants to be dealt with as a nuclear power. According to a just released House Intelligence Committee report. The 8,000 spent fuel rods North Korea removed from its Yungbeung nuclear plant in 2003, could produce enough plutonium for about five nuclear weapons. The report also says while North Korea is not believed to have conducted any underground tests so far, some experts believe it has tested non-nuclear high explosives as part of its nuclear weapons research.

But the reality is, when it comes to the hyper-secretive North Koreans, no one knows for sure if they're serious or just bluffing for political advantage.

JOHN PIKE, GLOBALSECURITY.ORG: They either will or won't test. My concern is that North Korea may want to convince everybody beyond a shadow of a doubt that they are a nuclear weapons state and the only way they can do that is by testing.

MCINTYRE: North Korea's test of a long range Taepodong-2 missile failed within seconds of its launch last July but eventually it may be able to threaten the U.S. with nuclear armed intercontinental ballistic which North Korea sees as key to preventing any future U.S. attack.

(END VIDEOTAPE)

MCINTYRE: Another big fear is that North Korea will do with their nuclear weapons what they have done with other weapons technology, namely sell them for hard cash. And that could result in the nightmare scenario of nuclear weapons in the hands of terrorists. Lou?

DOBBS: Jamie, thank you very much. Jamie McIntyre reporting from the Pentagon.

Iran's nuclear weapons program is another dangerous threat to this country and the rest of the world. The United States and Britain today Iran could soon face international sanctions over Tehran's refusal to give up its nuclear weapons program.

U.S. and British diplomats say Iran is showing no signs of suspending uranium enrichment, a key step in the manufacture of nuclear weapons.

President Bush today focused on domestic issues during his visit to California. The president strongly defended speaker Dennis Hastert's handling of the Foley scandal on Capitol Hill. The president says he's shocked and dismayed about the messages sent by the former congressman. The president called Foley's behavior unacceptable.

(BEGIN VIDEO CLIP) GEORGE W. BUSH, U.S. PRESIDENT: I fully support Speaker Hastert's call for an investigation by law enforcement into this matter. This investigation should be thorough and any violations of the law should be prosecuted.

(END VIDEO CLIP)

DOBBS: The president praised Speaker Hastert's leadership, describing him as a father, a teacher and a coach. Speaker Hastert today rejected calls to resign after suggestions Republican leadership may have tried to cover up the Foley scandal. The "Washington Times", a leading conservative newspaper in the nation' capital today called for Congressman Hastert's immediate resignation. The newspaper said Congressman Hastert has forfeited the confidence of the public and his party.

Andrea Koppel reports from Capitol Hill.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN CORRESPONDENT (voice-over): It was the most explicit criticism of Speaker Dennis Hastert to date and the opening salvo came from a most unlikely source, an editorial in a leading conservative newspaper called on Hastert to "do the only right thing" and "resign his speakership at once."

The paper accused Hastert of being either "grossly negligent for not taking the red flags fully into account" in the Foley case or said he "deliberately looked the other way."

Meanwhile, in Cincinnati, Ohio ...

UNIDENTIFIED MALE: John Boehner, welcome to the program.

KOPPEL: The second ranking Republican in the House got in a few shots of his own.

REP. JOHN BOEHNER (R-OH), MAJORITY LEADER: I believe I talked to the speaker and he told me it had been taken care of and in my position it's in his corner. It's his responsibility."

KOPPEL: Appearing on a syndicated radio show and in a startling move, Boehner broke ranks with Speaker Hastert.

BOEHNER: The clerk of the House who runs the page program, the Page Board, all report to the Speaker, and I believe that it had been dealt with."

KOPPEL: But at the same time, Boehner said he disagreed Hastert should resign. In a letter to the editor of the "Washington Times," Boehner suggested, whoever leaked this sexually explicit instant messages exchanged between Congressman Foley and an underage page had a political agenda.

Speaker Hastert agreed and in a separate radio interview, warned, if he's forced to step aside, the Republican Party could suffer. REP. DENNIS HASTERT, (R) SPEAKER OF THE HOUSE: There's some people that try to tear us down. We are the insulation to protect this country and if they get to me -- it looks like that they could affect our election as well.

KOPPEL: In fact the Foley scandal is now ammunition in at least one Democrat's campaign ad. Minnesota Democrat Patty Wetterling rolled out this ad today.

ANNOUNCER: It shocks the conscience. Congressional leaders have admitted covering up the predatory behavior of a congressman who used the Internet to molest children.

(END VIDEOTAPE)

KOPPEL: Now, just to be clear, even though there are a growing number of House Republicans who are increasingly critical of their leadership, including Speaker Hastert, no one is calling for speaker Hastert to resign.

In fact his spokesman today, Lou, said that is absolutely off the table and late today, we did hear from the number three House Republican leadership member, Missouri Republican, Roy Blunt, who offered very strong support for Speaker Hastert, Lou?

DOBBS: Andrea, thank you very much. Andrea Koppel reporting from Capitol Hill.

In just the last few minutes, former Congressman Foley's attorney has stepped out in front of the cameras and microphones and said that Foley had been molested by clergymen when Foley was a teenager. His attorney, David Roth also tonight said Foley is gay. Brian Todd has the latest for us from Washington. Brian?

BRIAN TODD, CNN CORRESPONDENT: Lou, that was quite a bomb shell from Mr. Foley's attorney, David Roth, in addition what you just said that he claimed to have been molested between the ages of 13 and 15 by what he termed a clergyman. Mr. Roth said that Mr. Foley said he wanted to reveal the name and the church affiliation of that clergyman but was advised against it. Let's take a listen to what Mr. Roth said about Mr. Foley.

(BEGIN VIDEO CLIP)

DAVID ROTH, MARK FOLEY'S ATTORNEY: There was absolutely never any inappropriate sexual contact with any minor. He has acknowledged full responsibility for the inappropriate e-mails and inappropriate IMs. There never has been any sexual contact with a minor and any suggestion that Mark Foley is a pedophile is false, categorically false.

(END VIDEO CLIP)

TODD: Mr. Roth did reiterate that Mr. Foley is a gay man and again to also emphasize basically the lead of that news conference, Mr. Roth said that Mr. Foley was molested between the ages of 13 and 15 by what he termed a clergyman.

Now this bomb shell follows other surprises about Mark Foley's alleged contacts with former pages. According to ABC News, Foley had Internet sex with a former page just before going to vote on the House floor in 2003. ABC says its transcripts of those exchanges were provided by former pages, a different former House page tells CNN he was warned early on about Foley. This gentleman's name is Mark Beck- Heymen (ph). He did not want to go on camera.

He says the first warnings about Foley were general in nature and he says it wasn't long in that summer of 1995 before Foley introduced himself and got friendly. Foley asked the page, quote, "Do you want to go out for some ice cream?" Beck-Heymen says that he turned that down because he was working and says Foley later told him they should get together in San Diego the following summer. Beck-Heymen says they never did that.

Beck-Heymen was a Republican then but is now a Democrat. He says he did not think much about Foley's approaches to him at the time but they seem more significant now in retrospect. CNN also contacted several other former pages to ask if they got any warning about Foley or other congressmen.

(BEGIN VIDEO CLIP)

KARA FRANK, FORMER CONGRESSIONAL PAGE: He was very nice to us. Again, I never got that creepy feeling from him or anything and I never heard any stories. So to hear this, it's just very shocking.

(END VIDEO CLIP)

TODD: Also we did hear just a few moments ago from Mr. Foley's attorney. It's important to note that a senior federal law enforcement official tells CNN that FBI agents are trying to track down former pages to question them about Foley and to make sure those electronic communications attributed to him are authentic. Lou?

DOBBS: Brian, thank you very much, Brian Todd with the very latest for us on the Foley scandal from Washington. And much more on that ahead here tonight.

Should Speaker Dennis Hastert resign? One of the founders of the nation's conservative movement, Richard Viguerie will be here to discuss that issue.

Also tonight a district attorney in Pennsylvania, he's showing the federal government how to tackle our illegal immigration crisis -- he's arresting employers who hire illegal aliens. We'll have that special report tonight for you from eastern Pennsylvania.

And as the United States faces rising North Korean nuclear threats, the U.S. ambassador to the United Nations, John Bolton, will join us here.

And leftist regimes and their sponsors in Russia and communist China are driving what appears to be a dangerous new arms race in Latin America. That special report and a great deal more coming right up.

(COMMERCIAL BREAK)

DOBBS: For the first time, North Korea has publicly threatened to conduct a nuclear weapons test. The U.S. ambassador to the United Nations, John Bolton, said the United Nations must develop a coherent strategy to convince North Korea that a nuclear test is not in its interests. The ambassador joins us here tonight. Good to have you here.

JOHN BOLTON, U.S. AMBASSADOR TO U.N.: Glad to be here.

DOBBS: This is a ratchet up in what has been a long series to create a dialogue and some solution. What's the next step?

BOLTON: I think what the North Koreans have in mind here is to show that they're fully prepared to go ahead and test the weapon to show that they have it and that they can transfer it to somebody else. Some people interpret this kind of behavior by North Korea as kind of an attention-getting device. But I think it's more serious than that. That's why we take it as such as provocative act.

DOBBS: It seems that so many want to rationalize the statements from the North Korean government as attention-grabbing devices, seeking political advantage. Yet it is never clear, at least to me, what possible political advantage they could achieve. Could you instruct us on that?

BOLTON: Well, I think they view the use of this kind of pressure, the firing of ballistic missiles in July, threatening to or perhaps even conducting a nuclear test as a way to intimidate their neighbors. And that if they can do that, we can be made to give in on our opposition to their continuing to pursue nuclear weapons. That's why this is potentially so important.

DOBBS: You have to be extraordinarily disappointed with the ability of communist China through the six party talks to have any significant influence on North Korea. Is there any -- what is the next best approach, six party talks have failed, to this juncture. What happens next?

BOLTON: Well, it would be nice if North Korea would come back to the six party talks. It's now the one-year anniversary of the last meeting. They don't show any inclination to do that. China has a very substantial interest by they own admission in stability and northeast Asia for their own economic development, which they take to be their highest priority. So the Chinese I think have really the only bilateral relationship with North Korea that could turn this off. And that's certainly something we're going to suggest they work on.

DOBBS: But the United States is not going to advance a unilateral strategy in this area?

BOLTON: There may be all kinds of plans because as you know we never take anything off the table. What we're going to try and do here in the Security Council is see whether the council can really engage in what the academicians call preventative diplomacy. We talk a lot about it here in New York, to do things before a crisis.

DOBBS: I've noticed that.

BOLTON: We talk about a lot of things here in New York. But we're going to see if it can work here and the council will take this up tomorrow.

DOBBS: Preventative diplomacy in the case of North Korea with those threats, a clear statement by its actions that Iran is going to succumb in to international pressure, whether it be that of the United Nations, the United States or Europe. What is next in that instance?

BOLTON: Well, I think there is just a very, very short amount of time to play out here to hear from the Iranians definitively that they're not going to give up the enrichment of uranium. And if that's the case, we will be in the Security Council very, very soon there seeking sanctions against the government of Iran.

DOBBS: Ambassador John Bolton, good to have you with us.

BOLTON: Glad to be here.

DOBBS: Bring us to the subject of our poll tonight. The question is, Do you believe the United Nations Security Council or the six party talks will be successful in ending North Korea's nuclear program. Ambassador Bolton may want to stick around the see the results of this poll tonight. Yes or no. Please cast your vote at loudobbs.com. We'll have the results here later in the broadcast.

DOBBS: Up next, Venezuela's Hugo Chavez fueling a dangerous new arms race across much of Latin America and he also may be willing to funnel arms to terrorists. We'll have that special report and a report on U.S. responses.

Also tonight, illegal alien amnesty supporters, there are many of them. They're being discredited once again after their alarmist statements on what happens when we put border security forward on our border with Mexico.

Should Dennis Hastert resign as House speaker? Richard Viguerie, one of the founders of this country's conservative movement will be here to tell us what he thinks. All of that and a great deal more coming up next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: The United States faces a rising threat to our interests in Latin America from terrorists, leftist governments and communist governments. Defense Secretary Donald Rumsfeld said many Latin American countries are now concerned Venezuela will be supplying weapons to terrorists.

Venezuela is buying millions of dollars of weapons from Russia and is developing ever closer ties with communist China. Christine Romans reports.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): Thirty-three Western Hemisphere defense ministers meeting in Managua, Nicaragua as tensions rise over an arms buildup at the United States' doorstep. Venezuela's defense minister.

GENERAL RAUL ASAIAS BADUEL, VENEZUELAN DEFENSE MINISTER (through translator): It is not our intention to have any aggressive attitude towards our brother nations.

ROMANS: His neighbors aren't so sure. Hand shakes with Russia over a deal to buy fighter jets, military helicopters and 100,000 Russian rifles.

As leftist leader Hugo Chavez says, he's preparing for an imminent U.S. invasion. There are growing concerns those rifles are ending up in hands of Marxist guerrillas in Colombia.

Venezuela also sponsoring radical regimes and forging close ties with communist China.

WILLIAM HAWKINS, U.S. BUSINESS AND INDUSTRY COUNCIL: It is a strategic agenda which is to spread of course Chinese influence in the region and to essentially support governments in Latin America which are antagonistic to the United States.

ROMANS: China's influence felt well beyond Venezuela. Brazil's space program, peacekeepers in Haiti, training militaries and controlling both ends of the Panama Canal. To say nothing of numerous deals for natural resources. No doubt, opening future markets for Chinese military influence.

RICHARD FISHER, INTERNATIONAL ASSESSMENT AND STRATEGY CENTER: China is on the cusp of being able offer the military markets of the world new, very sophisticated and price-competitive weaponry. And we should expect that in the next five to 10 years that China will become a significant source of military technology.

ROMANS: All against the backdrop of frustration at U.S. policy in the region.

HARLEY SHAIKEN, UC BERKELEY: I don't think the U.S. has been particularly effective in Latin America. It's been either ignoring the continent or when it pays attention, concentrating on the border with Mexico or on engaging Hugo Chavez.

ROMANS: The Defense Department said its participation in the Managua meeting underscores a "long standing" commitment to the region.

(END VIDEOTAPE)

ROMANS: The Bush administration is expected to sign waivers to restart some weapon sales and training to its Latin American neighbors after complaints that the U.S. has been losing influence in the region. Lou, Venezuela will not be on that list. DOBBS: As one would perhaps expect. This idea that this country does not have a forcible, visible, effective foreign policy for our own hemisphere is just, again, incomprehensible. Christine, thank you very much. Christine Romans.

Time now to take a look at some of your thoughts. Maxine in Texas said, "Thank God the Congress is about to go in recess. The less amount of time it spends in session, the less damage those clowns can do. It has completely shirked its responsibility to be a check on the executive branch."

Bob in Texas, "If it's called corruption in other countries, why is it called lobbying in the United States."

And Chuck in California. "Lou, am I to understand that if I want Congress to respond to my concerns I need to become a Mexican citizens."

Send us your thoughts at loudobbs.com. We'll have more of your thoughts coming up here later.

Next, the U.S. Supreme Court about to hear a case that could send thousands of illegal aliens back where they came from, or it could bring thousands upon thousands of illegal aliens back from where we sent them. We'll have that astounding story for you next from the high court.

And one local community fed up with Washington's lack of action on illegal immigration launches a crackdown of its own and they're serious. We'll be live with a report from Easton, Pennsylvania.

And a leading conservative weighs in on call for House Speaker Dennis Hastert to resign. Richard Viguerie among our guests coming up here next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: The death toll in the Amish school shooting now stands at five. Two more girls have died from their wounds. Five girls remain hospitalized. Pennsylvania police had more on a possible motive for those killings today, saying today that before he shot himself, the gunman admitted to molesting young relatives 20 years ago and dreamed of doing so again.

A Turkish plane was hijacked today by two unarmed Turks, protesting the Pope's planned trip to Turkey. Their flight took off from Albania, bound for Turkey, but ended up in Italy. Passengers and crew escaped safely. The two hijackers were taken into custody, saying they were angry about the Pope's recent remarks about Islam.

The Dow Jones Industrial average hit a new all-time high today, 11,758. The Dow slipped a little before its close, with slumping oil prices propelling the stock market recently. The Dow, its record close, 11,722.

Housing costs are putting the squeeze on American home owners. Nationwide home owners now spend more than 1/5 of their income, on average, on housing costs, up several percentage points in just the past six years. Economists say it's much more difficult now for first-time buyers to get into the market and existing homeowners are fighting to maintain their homes.

New outbreaks of violence reported in the lawless Mexican city of Oaxaca and that province. Protesters, demanding the resignation of local government officials, throwing bombs into local bank buildings. This comes amid speculation that the Mexican military may soon be called upon to crush the protest. Mexican military aircraft have been flying over Oaxaca since last week. Mexican President Fox is promising to quickly end the localized rebellion that's been spiraling out of control ever since May.

Tonight, local prosecutors are trying to punish employers hiring illegal aliens and doing the job federal prosecutors refuse to do. The U.S. Mexican Open Borders Movement is being discredited once again, after its alarmist statements on what would happen with heightened border security. And the Supreme Court is poised to hear important cases dealing with our illegal immigration crisis.

Casey Wian tonight reports on the discredited statements of the Open Borders Movement. Bill Tucker reports on a significant new local crackdown on employers hiring illegal aliens and Lisa Sylvester reports on the cases before the Supreme Court that could affect U.S. immigration law. We begin with Casey Wian, Casey.

CASEY WIAN, CNN CORRESPONDENT: Lou, for years, advocates of open borders have maintained that increased border security is responsible for more deaths of illegal aliens. Here's what activist Enrique Marones (ph) of the Hente Unida Coalition (ph) said earlier this year, the militarization of the border is causing death and destruction. But there's new evidence the exact opposite is true.

According to the Border Patrol, deaths of illegal crossers along the entire southern borders are down 7 percent this year, compared to the same period in 2005. And in Arizona, where most illegal alien deaths take place, they're down an astounding 23 percent, the first time they've fallen in at least seven years.

The Border Patrol attributes the drop to the deployment of more agents and the presence of the National Guard. Another factor, agents say, the Arizona desert wasn't quite as hot this summer. This afternoon, we spoke with activists Marones, who says he doesn't believe the Border Patrol's numbers.

Even with the progress, more than 400 illegal aliens have died trying to cross the southern border this year, Lou.

DOBBS: Casey, thank you very much. Casey Wian.

The U.S. government's refusal to prosecute employers of illegal aliens is now forcing local prosecutors to take action. A district attorney in Pennsylvania tonight announced his very own crack down on employers violating this nation's immigration laws and he's now arresting employers of illegal aliens. Bill Tucker has the report from Easton, Pennsylvania.

(BEGIN VIDEOTAPE)

JOHN MORGANELLI, D.A. NORTHAMPTON, P.A.: Today we now move forward and send a message to all employers and businesses that they cannot hire, harbor and aid illegal foreign criminals for the purpose of obtaining cheap labor.

BILL TUCKER, CNN CORRESPONDENT (voice-over): Morganelli says he's taking the action because the federal government isn't. The district attorney relying on existing state law to do it.

MORGANELLI: This could be a test case in some respects. But the basis of the charge is this, our state crimes code says that it is a crime to hinder the apprehension of people who are wanted by the law. Illegal aliens are wanted by the law. They're deportable.

TUCKER: Morganelli is also using a section of the state law which makes obstruction of justice punishable, saying employers hiring illegal aliens are obstructing justice by giving them the appearance of being legal. The action Tuesday was taken against a company ironically named Right Way Construction. The charges carry a maximum fine of $5,000 and two years in jail. Local labor supports the action, noting that the jobs being taken by illegal aliens are not jobs Americans don't want to do.

MIKE GALIO, CARPENTERS UNION: They're taking the work because they're willing to do it for much less and they're doing it outside the legal system. They're circumventing labor laws, wage and hour laws, overtime laws.

TUCKER: And when you're competing on those grounds, he says, you can't compete.

(END VIDEOTAPE)

TUCKER: Now Morganelli says that Right Way Construction is only the first, that other investigations are under way with the results expected soon. Meanwhile, Morganelli seems to be gaining allies here in the state of Pennsylvania, Lou. Tomorrow, when the city of Allentown, which is just west of here, there will be a resolution read in the City Council calling on the city of Allentown to begin enforcing immigration law locally. Lou?

DOBBS: Bill, thank you very much. Bill Tucker reporting from Easton, Pennsylvania. And as Bill suggested, communities all across the country are joining the fight against illegal immigration and employers of illegal aliens.

Oologah, Oklahoma has just passed an ordinance that makes it illegal for employers to hire illegal aliens within the city limits. The ordinance takes effect in the next 30 days. And Carpentersville, Illinois tonight discussing a proposed ordinance that would fine employers and landlords for hiring and housing illegal aliens. The ordinance would also make English the official language of Carpentersville. Tonight the Supreme Court has agreed to hear arguments in two important cases dealing with illegal immigration. The cases could ultimately make it easier to deport illegal aliens convicted of drug crimes. Lisa Sylvester has the story. Lisa?

LISA SYLVESTER, CNN CORRESPONDENT: Lou, one case involves an illegal alien from Texas. The other, a legal permanent resident in South Dakota. Both men were convicted of Cocaine possession and found guilty of aggravated felonies under their state laws. Federal law, however, treat simple possessions of a controlled substance as a misdemeanor. The distinction is important because under U.S. immigration laws, any immigrant, legal or illegal, can be deported if convicted of an aggravated felony.

The U.S. Supreme Court is being asked which applies here, the state or federal interpretation. Now, a couple of things to note here. Both men entered the United States illegally, one man married a U.S. citizen and gained permanent residency. The second case involves a Mexican national, who entered illegally at least 15 times. His lawyers note the felony charge carries stiffer penalties and could prevent him from being eligible for future citizenship.

(BEGIN VIDEO CLIP)

MARJORIE MEYERS, FEDERAL PUBLIC DEFENDER: For immigrants, and our case is consolidated with an immigrant case, it means automatic deportation for life is probably the most serious. In the criminal context, it can mean a sentencing enhancement from two years up to 20 years.

(END VIDEO CLIP)

SYLVESTER: The Federation for American Immigration Reform says illegal aliens are abusing the American legal system even as they continue to break the law.

(BEGIN VIDEO CLIP)

DAN STEIN, FEDERATION FOR AMERICAN IMMIG. REFORM: I mean here you've got an illegal alien who's reentered 15, 18 times. Obviously the law means nothing. So unless he's going to be deported after the conviction under the aggravated felony deportation clause, he's just going to go back doing the same thing he's done before.

(END VIDEO CLIP)

SYLVESTER: And this ruling could impact other cases. Last year, 7,000 people were deported for drug-related crimes. Lou?

DOBBS: The Supreme Court will be hearing a case, it will be fascinating to watch with the full absurdity of the U.S. immigration law on full display in the highest court of the land. Lisa, thank you very much. Lisa Sylvester from Washington.

Still ahead here tonight, corruption on Capitol Hill. The Jack Abramoff case may be only the tip of the iceberg. Bill Moyers has a special report coming up this week. He joins us to talk about that.

And a sharp critic of the Bush administration talking about the widening scandal involving former Congressman Foley. All that and more still ahead. Stay with us.

(COMMERCIAL BREAK)

DOBBS: President Bush today expressed full confidence in Speaker Hastert's ability to end the scandal over former Congressman Foley's Internet messages. Earlier, "The Washington Times," a leading conservative newspaper in Washington, demanded Congressman Hastert resign as speaker.

Joining me now is Richard Viguerie, one of the founders of the American conservative movements, author "Conservatives Betrayed: How George W. Bush and Other Big Government Republicans Hijacked the Conservative Cause." Richard, it is good to have you with us.

Should Hastert resign?

RICHARD VIGUERIE, AUTHOR, "CONSERVATIVES BETRAYED": Absolutely. As well as any of the other leaders in the House, the Republicans, who knew of this. This is an outrage. You know, when you see e-mails that say, when's your birthday, what would you like for your birthday, how old are you, can I have a picture of you? These are classic moves by a sexual predator. And there's clearly smoke, and Denny Hastert's the chief fireman in the House of Representatives, and he should have taken action. If that had happened with his children or grandchildren, I guarantee you he would not have turned away and walked away.

DOBBS: Congressman Boehner making it very clear he's distancing himself right now from the speaker. Your reactions and thoughts on Boehner?

VIGUERIE: Well, anybody that was aware of these emails should resign. In the book that you referred to, "Conservatives Betrayed," I call for the resignation of all of the leaders in the House and the Senate. They've betrayed their conservative voters, they have abandoned them, they have greatly expanded government, betrayed them on issue after issue. And conservatives are not going to get to the conservative promised land with this leadership. This leadership needs to go. They've been here too long. And I think all of them -- Roy Blunt, John Boehner, Denny Hastert and the others should leave. If not now, certainly they should announce that in a special session to begin shortly after the election in November, that they will resign and hold new elections.

DOBBS: Well, we have put that up as the subject of our poll here. And the response was overwhelmingly in line with what you're saying, Richard Viguerie. You also said Republicans are headed for a political tsunami in the upcoming midterm elections. What does this scandal mean in your judgment to the Republican chances to hold power in Washington this November?

VIGUERIE: Lou, Karl Rove said over and over after the 2000 election that there were 4 million value voters that did not show up. Well, they begged and pleaded and cajoled these voters, and they did show up in 2004.

But I think now, we're going to see a lot more than 4 million stay home. And it has nothing to do with what any conservative leader or leaders feel. I hope the Republicans win. I hope they prevail. I'd like to see them return. I don't want Nancy Pelosi as speaker.

But it has nothing to do with me, I think -- or other conservative leaders. The voters have tuned this president and his leadership out. They have heard rhetoric for six years. They've seen very little in the delivery of promises, and I think that they have lost the ability to communicate with the voters. And I think that they're going to get their head handed to them, and they should.

And conservatives should not fear, Lou, defeat. I don't advocate it, I don't want it, but our best victories come after losses. Ronald Reagan after Ford's loss in '76, and Bush the 41st lost in '92, leading to the Republican takeover of Congress. So if the worst happening, we'll be fine as conservatives.

DOBBS: Richard Viguerie, thanks for being here.

DOBBS: My pleasure.

A reminder now to vote in our poll. Do you believe the U.N. Security Council or the six-party talks will be successful in ending North Korea's nuclear program? Yes or no? Please cast your vote at loudobbs.com. Results coming up here in just a little while.

Next up, the author of "Blind Into Baghdad" says long before Bob Woodward or very many other people that the Bush Iraq policy was wrongheaded and incompetent. James Fallows joins us. And journalist Bill Moyers, investigating lobbying corruption and hypocrisy on Capitol Hill. A special report on PBS, "Capitol Crimes." He's up next. Stay with us.

(COMMERCIAL BREAK)

DOBBS: James Fallows is the author of "Blind Into Baghdad: America's War in Iraq." And for the past three years, Fallows has been writing and writing with great prescience about the problems facing United States in Iraq. I asked him how the Bush administration could avoided many of the problems we're facing in Iraq. And this is what he had to say.

(BEGIN VIDEOTAPE)

JAMES FALLOWS, ATLANTIC MONTHLY: So you would think, and I published that originally two years ago. And in the intervening time, I sent emails and phone calls to almost everybody who would have known, including only last week, asking somebody who was present for a lot of these discussions, and he said, again, there was never any such meeting.

Immediately after 9/11, there was a problem to deal with. A solution was proposed, which is going into Iraq, and there was never the discussion, what are we going to gain, what are we going to risk by doing this.

DOBBS: You have to be scratching your head just a bit as Bob Woodward's book just came out, as we're looking at the national intelligence estimate, suggesting that 2007 will be an even worse year in Iraq than this or previous years. How do you react to that?

FALLOWS: Well, it does on the one hand make you puzzled about the nature of news, because the last three or four years, a lot of people, including me, have been saying exactly the same thing, that there were all these dissensions within the administration and people not making the right kinds of judgments, and that the invasion of Iraq was the main thing the terrorists have going for them now.

So it's interesting on a news management question. Also, I think it suggests we're shifting the tide and beginning to try to understand what we've done and where it's going to lead.

DOBBS: Even this broadcast, we have been pointing out that the strategy, as best we can discern it taken by these generals, is not working and hasn't for some time. Our Pentagon correspondents, Barbara Starr and Jamie McIntyre, have been reporting about the upsurge in violence, as have our correspondents in Baghdad. Yet there is this reaction in the national media as if, my God, this is a revelatory exclamation point on what President Bush unfortunately has called a comma in history.

Let me go to declaring victory. You said in your issue -- in this issue of "Atlantic Monthly," you wrote -- "Americans still face dangers as they always have. They have recently lacked leaders to help keep those dangers in perspective." Proportion, perspective, reality. These are three words that seem to be eluding, at least in practice, so many of our national leaders, whether they be Democrat or Republican, but certainly in this administration.

FALLOWS: I would agree with that. And if you think of the great iconic figures of American history, think of who represents America in the world. It's people like Jimmy Stewart and Humphrey Bogart and Gary Cooper, people who are calm when there is adversity and don't get all flustered. And I think the flusteredness, the ineffective flusteredness of the last five years is something that's not American and we need to evolve from.

DOBBS: It's interesting, as you talk about the cowboy reflex, if you will. The cowboys that I've always kind of been partial to, John Wayne, Gary Cooper, those folks, there was nothing hysterical about them, and they certainly maintained their proportion, but those are just childhood fictional heroes.

What we need are very real adult heroes in this day and age as you so well point out in "Blind Into Baghdad." James Fallows, terrific journalism over the years. It's been a privilege to know you for all these years. We won't say how many. A wonderful book, and I couldn't recommend it higher. "Blind Into Baghdad," James Fallows. Thanks for being here, Jim. FALLOWS: Thank you, Lou.

DOBBS: Coming right up, distinguished journalist Bill Moyers investigating the culture of corruption in our nation's capital. Bill Moyers, our guest here next. Stay with us.

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DOBBS: Bill Moyers is certainly one of this country's most respected journalists, one of its most distinguished, and he takes an in-depth look at Washington corruption in his new special on PBS, "Capitol Crimes." It airs tomorrow 9 p.m. Eastern. I talked with Moyers earlier.

(BEGIN VIDEOTAPE)

DOBBS: Let's hear what one of the people you chronicle and hear from in the special says, R.G. Ratcliffe (ph), the "Houston Chronicle" reporter.

(BEGIN VIDEO CLIP)

R.G. RATCLIFFE, "HOUSTON CHRONICLE": Just the kinds and ways that dollars have flowed into the system in recent years have led to something of a form of institutional corruption. And the kind of thing that you want to watch for, it is not a very big step from a campaign contribution to a bribe.

(END VIDEO CLIP)

DOBBS: Not a very big step at all. And, obviously, Tom DeLay took that step in many respects. So did Jack Abramoff and some of his associates.

BILL MOYERS, HOST, "MOYERS ON AMERICA": And Ralph Reed and others. Jeffrey Birnbaum, who's is the very talented, experienced reporter, follows the money for the "Washington Post," used to do it for the "Wall Street Journal." He says, let's strip off the illusion.

This is not legal bribery. This is bribery in which campaign contributions, which are at the heart of this scandal, are given to a slush fund for incumbents who in turn do favors or the contributors. And you can trace it, the cause and effect right through this story.

DOBBS: In the same breath as we talk about Tom DeLay, let's listen to what Tom DeLay had to say on the day he announced he would resign from Congress.

(BEGIN VIDEO CLIP)

TOM DELAY (R), FORMER TEXAS CONGRESSMAN: I am sustained by my lord and savior. When you go through this kind of adversity, I've got to tell you, if you know him and he's on your side, there ain't nothing but joy.

(END VIDEO CLIP) DOBBS: Nothing but joy.

MOYERS: You know, Lou, if you had invested in hypocrisy eight or nine years ago, you would have retired and given it away like Warren Buffett is doing. I have never seen such rank hypocrisy as I saw in reporting this documentary on the part of Tom DeLay, pious Christian; Ralph Reed, the right hand of god on the cover of "Time" magazine back in the 1980s; and Jack Abramoff, who, you know, talked about being a good Orthodox Jew, and used religion as the cloak for their plunder.

DOBBS: I've got a business friend of mine who says when a man tells you what a good Christian he is -- talking about Christians in this case -- it's time to reach for you wallet. He's talking about it in business terms, but as a nation, the influence of money and power in Washington, corporate power. But in this case, the corruption that has been seeded, it makes McCain-Feingold campaign finance reform look like child's play.

MOYERS: It's just a fig leaf. The fact of the matter is at the heart of this entire scandal is campaign contributions. It's greed but it's the way our system works in which campaign contributions have become an accepted form of bribery.

DOBBS: Last week, the House Government and Reform Committee released a report showing Jack Abramoff's lobbying team had 485 contacts with White House officials, 80 of those were Karl Rove's office. This from a White House that said that they -- for awhile, didn't even know who he was.

MOYERS: Yes, time and again the White House press secretary -- then Scott McClellan -- would say, oh, no, you know, we've looked at it. There's nothing really going on there. But we'll get to the bottom of it. They never got to the bottom of it.

No, it's all -- these are the fellows, by the way -- Reed, Abramoff, Norquist, Rove. They came to Washington to run a revolution in the 1980s and they wound up running a racket, and they were all tied together. Now, Reed and Norquist have not been indicted for anything, not been accused of anything illegal. But that is, in fact, the heart of the scandal is that you can get away with it without actually committing a crime.

DOBBS: Well, on Capitol Hill, crimes and the -- we know Bill Moyers will get to the bottom of it. The special is "Capitol Crimes." We thank you for being here, Bill.

MOYERS: My pleasure. Thanks for having me.

(END VIDEOTAPE)

DOBBS: "Capitol Crimes," 9:00 p.m. Eastern on PBS tomorrow evening.

The results of our poll. Ninety-four percent of you do not believe the United Nations Security Council or the six-party talks will be successful in ending North Korea's nuclear program. Let's take a quick look at some of your thoughts.

Dan in New York wrote in to say, "Hi, Lou. Taking everything into account, I just don't feel like I'm in my own country anymore."

And Mike in Arizona: "It's nice to hear that Congressman Foley has decided to check into a rehab center. However, he has checked into the wrong one. It's not 16-year-old scotch that is the problem for him. It's 16-year-old boys."

And Chee in Georgia: "Pedophiles belong in jail, not rehab."

Gale in Illinois: "As an elementary principal, I was required by law to report any suspected child abuse to the Department of Child and Family Services. I guess Congress makes the laws but does not have to follow them."

Joe in Indiana: "Lou, it is unbelievable that we do not have adequate supplies for our troops, but we can afford to support large numbers of illegals from the cradle to the grave."

And Charlene in Massachusetts: "Just passing on an e-mail I received. Wouldn't it be pretty wonderful if this caught on all over the country? Good morning, welcome to the United States. Press one if you speak English. Press two to disconnect until you can."

And John in Florida: "Lou, will it be possible for American citizens that commit crimes to flee to a sanctuary city and not be held accountable for breaking laws as well? If so, I may decide to quit paying taxes."

We love hearing from you. Send us your thoughts to LouDobbs.com. Each of you whose e-mail is read here receives a copy of Senator Byron Dorgan's new book "Take This Job and Ship It."

We thank you for being with us tonight, and invite you to join us here tomorrow. For all of us, thanks for watching and good night from New York city. THE SITUATION ROOM begins right now with John King sitting in for Wolf Blitzer -- John.

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