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Lou Dobbs Tonight
Bush Commutes Libby's Prison Sentence; British Police Arrest Another Terror Suspect
Aired July 02, 2007 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KITTY PILGRIM, CNN ANCHOR: Tonight President Bush abruptly commutes the prison sentence of former White House aide Scooter Libby. We'll have complete coverage. Also, British police arrest another terror suspect. Did Britain's immigration system fail to prevent terrorist from entering the United Kingdom? We'll have a special report. Demands in this country that the federal government enforce our immigration laws. We'll have that story. All that and much more straight ahead tonight.
Good evening, President Bush tonight commuted the 30-month prison sentence of Vice President Dick Cheney's former chief of staff Scooter Libby. Now Libby was sent to prison for obstructing the investigation into the leak of a CIA agent's identity. President Bush tonight called the sentence "excessive." We begin our coverage with the White House correspondent Ed Henry, who is in Kennebunkport, but first let's go to Bill Schneider in Washington for the very latest. Bill, tell us the significance of this.
BILL SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, this is a commutation, it's not quite a pardon. The president clearly sees this as a kind of compromise. The conviction stands. Mr. Libby will be on probation. The president says his reputation will be permanently damaged, he'll be in disgrace but he will not have to serve time in prison. This is the prerogative of the president of the United States. He's acted in this case. We recently did a poll and asked people do you think that the president should pardon, now that's not what he did, but the poll asks should he pardon Scooter Libby, 72 percent of Americans said no, 19 percent supported a pardon, but the president was under heavy pressure to do something to get Mr. Libby out of prison by a lot of conservatives and Republicans and colleagues in his administration, probably including members of the vice president's staff, who believed that this conviction was wrong, that there was no underlying crime involved. And therefore, there was a lot of pressure from Republicans on the White House to keep Mr. Libby out of prison. But make no mistake, there will be a very serious backlash and a lot of criticism of this decision on the part of this president.
PILGRIM: The political fallout is just starting I'm sure. Bill, talk to us a little bit about the timing of this announcement, as Ed Henry remarked a little bit earlier, a thunderbolt, correct?
SCHNEIDER: It is a thunderbolt. A lot of people expected a pardon or a commutation, perhaps, but not until after the election, well over a year from now. The problem was that Mr. Libby would go to prison before that. The judge in the case has said that Mr. Libby should go to prison as soon as possible. He did not want him out on bail or out pending the appeal process. The judge seemed determined to send him to jail, to prison immediately, so the president felt he had to act to keep him out of prison immediately, did not want to wait until it was politically safer, which would have been after next November's election, almost about a year and four months away.
PILGRIM: Thanks very much, Bill Schneider.
Let's join Ed Henry in Kennebunkport, Maine, who was actually covering the president all day. Ed, tell us a little bit how this rolled out.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Fascinating, Kitty, because as you know, the president leaves before the press does. We're finishing filing our stories. This was a thunderbolt. President already back via "Air Force One." He's at the White House, all of the sudden this statement crosses from White House staff. As you know, Scooter Libby was sentenced to 30 months in prison, two years of probation and a $250,000 fine. Since his appeals appeared to be exhausted, he was now likely going to jail rather quickly.
All of a sudden with the appeals appearing to be exhausted the president deciding to act after waiting and waiting and he said in a statement that just came out, "I respect the jury's verdict but I have concluded that the prison sentence given to Mr. Libby is excessive. Therefore I am commuting the portion of Mr. Libby's sentence that required him to spend 30 months in prison. My decision to commute his prison sentence leaves in place a harsh punishment for Mr. Libby." Again, that's referring back to that he's still on two years of probation, still has to pay a $250,000 fine.
But of course, many conservatives who have rallied around Mr. Libby, they've raised a lot of money for him, that fine is obviously not going to be that big of a deal to him but his reputation has already obviously been damaged. This is still going to be very controversial as Bill Schneider was saying. Democrats will be pouncing on this immediately, some Republicans as well.
But as we saw in the recent CNN Republican presidential debate, when Wolf Blitzer asked the Republican candidates if they would pardon Scooter Libby, go a step further, most or all, as I recall, said they would, they raised their hands. And so this was becoming and Scooter Libby had become a cause celebre in the conservative community, a feeling that he had taken the fall and that it was unfair, and that the punishment did not fit the crime. So the president is acting now. He's obviously very low in the polls and there was a sense among conservatives, pressure being put on the White House saying that the conservatives were the ones who were keeping him at 30 percent in the polls, that he had already lost the Democrats. He had lost independents because of the war in Iraq and other issues and conservatives have been pressuring the White House saying that the president had to get involved here, he had to act. Kitty?
PILGRIM: All right, thanks very much, Ed Henry. Joining me now for the legal implications, is CNN's senior legal analyst Jeffrey Toobin. Jeff, sort out for us just legally what is still in effect, what is not in effect. Where does Scooter Libby stand legally?
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Kitty, he stands convicted of the crimes, the convictions remain. The fines remain. The $250,000 fine. The probation remains. What does not remain is, of course, the most important thing of all, which is the two and a half-year prison sentence. The important point to emphasize here is the president has an absolute right under the constitution to commute this sentence. It can't be challenged by Congress. It can't be appealed by Patrick Fitzgerald and the courts. It is a total right of the president. The other point that needs to be made is this is an extraordinarily rarely granted privilege. This is a complete departure from the usual procedures for pardons. Scooter Libby is getting something that prisoners would die for. There are hundreds, if not thousands of people, in the prison system, for obstruction of justice. Only one of them, I believe, got commuted and that's Scooter Libby.
PILGRIM: What is the differential Jeffrey between this and a pardon? Is it de facto the same thing or not really?
TOOBIN: No it's not the same thing. A pardon is a much more complete wiping of the slate. A pardon puts the person in the position as if they'd never been charged before. There's no fine. There's no probation. When asked on a form, are you a convicted felon, if you've been pardoned, you can honestly say no. Commutation is different in that respect, but let's not kid ourselves, the real issue here is prison. So in terms of prison, a pardon and a commutation, work exactly the same way. The president, through an act of grace, wipes that part of the slate clean.
PILGRIM: All right, Jeff, I'm going to bring in Bill Schneider here for a moment. Bill, what is the wider political fallout of this action? Coming the Monday before basically a holiday week for many Americans --
SCHNEIDER: Well, this will be noticed. There's no question about it. There will be a lot of anger about this. Democrats will be very harshly critical. It will really poison I think the political environment for the remainder of the Bush term. As Jeff said, obstruction of justice is a serious crime. There are lots of people in jail for obstruction of justice who have not received commuted sentences. It is the kind of crime for which the Republican Congress impeached President Clinton, and Democrats are not going to forget that, even though he was ultimately acquitted. Another point I made earlier but should be stressed, only 19 percent of Americans said they would support a pardon. I'm not sure what the figure would be about a commutation, because I don't know that people know the difference, but I assume it would be something like 19 percent would support keeping him out of prison, even if the conviction remains. If that's the case, then it means that there's not going to be a lot of widespread support for this. I would venture to say most Republicans would probably not be in favor of what the president did today.
PILGRIM: Perhaps on the part of the Bush administration, the estimation that there was no political capital to be lost because of the polls already, Bill. SCHNEIDER: Well, the polls are low and the view is that the conservatives who are supporting the president, who are these die-hard base supporters would probably continue to support him because of this. I just have my doubts. I can't be certain. We don't know at this point, it just happened. But I would have my doubts that aside from a small group of conservatives in Washington, who are very big enthusiasts of this move, I'm not sure around the country it will meet with a very welcome reception.
PILGRIM: Jeff Toobin I'd like to bring you in, President Bush has said that this sentence is excessive. Can you put that in context for us, and do you believe that basically in the broader political context, this is excessive?
TOOBIN: Well, let's talk about the legal context. There is something called the federal sentencing guidelines, which establish what the appropriate sentences are for each crime. The judge in this case, sentenced Libby, precisely within the sentencing guidelines. The Congress set a punishment for this crime, and the crime -- and two and a half months was precisely within the normal range for this crime. So it's certainly the president's right to call it excessive in his opinion. But by any legal standard, this was not at all excessive. And in fact it was precisely within the range that Congress established and the president has abided by in every other criminal conviction in the six and a half years he's been president, except for Scooter Libby.
PILGRIM: But you point out that it's well within the rights of the president to do this?
TOOBIN: This is over. This commutation cannot be challenged, cannot be appealed. The president is completely within his rights.
PILGRIM: Thanks very much, Jeffrey Toobin and Bill Schneider, thank you. We'll have much more on this story about Scooter Libby later.
Let's turn to our other news now. Police in Britain tonight are stepping up their hunt for more suspected al Qaeda terrorists. Police have already arrested eight people after three attempted car bomb attacks, two in London, one in Glasgow. Two foreign-trained doctors from Jordan and Iraq are among those in custody. Police have searched the home of a third doctor as well. British police have raided at least 19 locations. They believe at least one of the terrorists planted the car bomb in London, also carried out the failed attack at the Glasgow airport. Paula Newton reports from London. Paula?
PAULA NEWTON, CNN CORRESPONDENT: Kitty, another day of big developments here. As you mentioned, more arrests but really what this is shaping up to be is a much bigger challenge for security officials here.
(BEGIN VIDEOTAPE)
NEWTON (voice-over): A very different kind of trauma for this Scottish hospital. Police trigger two controlled explosions, checking for bombs. They investigate what could have been a sleeper cell of foreign doctors. Of those under arrest, at least two of them are believed to be foreign-trained doctors, working in Britain. A third foreign physician is also being closely investigated. One of the doctors in custody is believed to be Iraqi physician Balal Abdullah. He was arrested in the car bombing attack at Glasgow airport. Another now in custody, Dr. Mohammed Asha, a Jordanian doctor, cornered and arrested along with his wife on a highway in northern England on Saturday, and now being questioned in connection with the bomb plot. His father in Jordan says there is no way his son is involved. "I'm sure of it," he says, "not only because I'm his father but because Mohammed was coming back here after specializing in Britain."
Police and security sources have told CNN they believe at least one of the men, who launched the attack at Glasgow airport, was involved in planting the Mercedes car bomb in central London.
TOM MCNULTY, COUNTERTERRORISM MINISTER: Looks as though the three events are linked. People can be reassured by the speed and efficiency of professionalism of the police throughout the country in the way they've responded to these matters.
NEWTON: In fact even before the Glasgow attack, authorities were tightening the noose, calling this real estate agent's office in Glasgow to ask about a potential suspect, who was renting a house from them.
DANIEL GARDINER, RENTED HOUSE TO SUSPECT: We found that one of the names that we had corresponded with the name of one of our tenants.
NEWTON: All of this points to a terrorist cell structure, like no other. A group of medical professionals, usually above suspicion, charged to help, not hurt, but planted in Britain and apparently being used as the newest weapon in al Qaeda's human arsenal.
CHRIS BELLAMY, SECURITY EXPERT: It's extremely difficult to bust a group like this, or groups like this, for the security services, simply because of their cellular structure. They are small groups of people, who may not be in regular contact with a controller abroad, who are, don't talk to other cells, necessarily, are motivated by some broad sympathy with the overall objectives of al Qaeda.
NEWTON: Intelligence officials worry that training videos like this posted on jihadi websites showing propane cylinders being loaded and then apparently delivered and detonated by a vehicle will resonate with al Qaeda operatives, now content with less ambitious acts of terror.
(END VIDEOTAPE)
NEWTON: And what is really concerning security officials here is the fact that they have a whole new type of plot to worry about, and that's on top of the proven threat, that proven threat that already exists here from homegrown terror. Kitty?
PILGRIM: Thanks very much, Paula Newton. Suspected al Qaeda terrorists in Yemen today killed six Spanish tourists. Seven other tourists were wounded. The attack took place in a remote area of eastern Yemen near an archaeological site. Reports say a suicide bomber drove a car into a convoy carrying the tourists. Yemen officials blamed al Qaeda for the attack. Those officials say at least two Yemen citizens were also killed in the bombing.
Coming up, we'll have much more on the al Qaeda threat to this country and how the United States should respond.
Also ahead, we'll have the latest on President Bush's decision to commute the prison sentence of Scooter Libby.
Also, President Bush squares off with President Putin of Russia. Did they resolve their differences over anti-missile defenses and other issues?
Also, Senator John McCain's presidential campaign faces a new major challenge. We'll have the story. A rising number of lawmakers demand enforcement of our immigration laws after the collapse of the senate's amnesty deal. We'll have a special report.
(COMMERCIAL BREAK)
PILGRIM: Homeland Security Secretary Michael Chertoff is blaming the senate for making his job more difficult. Chertoff says the senate's failure to pass the amnesty bill means his department won't have the ability to effectively enforce the law. He says the bill's opponents deprived his department of the ability to tighten workplace enforcement of immigration laws. There was no mention by the secretary of how ineffective his department is at enforcing existing immigration laws.
The lack of enforcement of our immigration laws is raising concern among the public and Congress and now some members of the House want assurances that the Bush administration will enforce existing laws to protect our borders. Lisa Sylvester reports.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): President Bush signed a border bill last year that called for more than 700 miles of fencing along the southern border. Yet only 13 miles of new fencing have been built. It's not the only deadline the Department of Homeland Security is having trouble reaching. The same law required for new cameras in place along the border. That deadline was blown.
REP. DUNCAN HUNTER, (R) CALIFORNIA: It's mandated that the administration have interlocking cameras in place before May 30th, which now has come and gone. They don't have them in place where they could see people coming across into that desert.
SYLVESTER: The senate comprehensive immigration approach that coupled border security with legalizing 12 million-plus illegal aliens failed last week. Now as Congress tries to figure out what's next, some lawmakers say it's time to return to the drawing board and start compelling DHS to fully implement existing law.
REP. MARSHA BLACKBURN, (R) TENNESSEE: The House position has been secure that border first. You have to secure the border. You have to know who is coming into the country, who is exiting the country. You have to know why they come. You have to know why they exit.
SYLVESTER: DHS is also having trouble meeting deadlines with the U.S. visit program that tracks foreigners entering and leaving the country. According to a GAO report released last week, the Department has spent $1.3 billion over four years, but has delivered only half of the program. The report states "the longer the department goes without exit capabilities, the more its ability to effectively and efficiently perform its border security and immigration enforcement missions will suffer."
(END VIDEOTAPE)
SYLVESTER: In response to the criticism, DHS acknowledges it has its work cut out for it implementing the exit program. The statement said quote, "We have conducted significant testing on U.S. visit biometric exit requirements. That technology works, but traveler compliance needs to be improved. And as for missing the deadline for the interlocking border cameras, Representative Duncan Hunter sent a letter to the president inquiring on the status he has not yet received a response. Kitty?
PILGRIM: Thanks very much, Lisa Sylvester.
Now tonight's poll. Do you think the U.S. government lacks the political will to enforce existing border security laws? Yes or no? Cast your vote at loudobbs.com and we'll bring you the results a little bit later in the broadcast.
In San Antonio, Texas Saturday, supporters of two former border patrol agents protested their imprisonment and demanded their release. About 200 people gathered outside the office of U.S. Attorney Johnny Sutton. Sutton prosecuted former agents Ignacio Ramos and Jose Compean. Now the two were convicted of shooting and wounding an illegal alien drug dealer. Sutton gave the drug dealer immunity for his testimony against the two agents. Ramos and Compean are serving 11 and 12 year sentences. The case has outraged members of the public and federal lawmakers. Over 100 congressmen, nearly all Republicans, have signed a proposed bill calling for a congressional pardon for the two men.
Coming up, we'll have more on President Bush's commuting of the sentence of Scooter Libby.
And President Bush and Putin on a fishing trip that dealt with more than just catch of the day. We'll have the latest on that, stay with us.
(COMMERCIAL BREAK)
PILGRIM: President Bush and Russian President Putin took time out from a fishing trip in Maine today to discuss the proposed U.S. missile shield. And the Russian president had some suggestions for President Bush. Ed Henry has our report.
(BEGIN VIDEOTAPE)
ED HENRY, CNN WHITE HOUSE CORRESPONDENT (voice-over): After more than an hour of fishing near the Bush family compound, Vladimir Putin was the only president to catch anything. A 30-inch striped bass.
BUSH: It's a fine catch.
HENRY: But President Bush reeled in a surprise. A promise from Putin for enhanced cooperation on a controversial U.S. missile defense shield in Europe.
PRESIDENT VLADIMIR PUTIN, RUSSIA: We do support the idea of the continued consultations on the score.
HENRY: Mr. Bush called the proposal to work through NATO and set up an information sharing center in Moscow sincere and innovative. But he would not budge on basing the radar and missiles with two European allies.
BUSH: I think that the Czech Republic and Poland need to be an integral part of the system.
HENRY: Putin also stuck to his guns saying he wants the system based in Azerbaijan and southern Russian, on his turf and terms. There were other impasses like Putin not supporting tough new sanctions against Iran to stop its nuclear enrichment program. And no progress on independence for Kosovo. But both leaders eager to tamp down talk of a new cold war put on a happy face at the end of two days of talks.
BUSH: Do I trust him? Yeah, I trust him. Do I like everything he says? No. And I suspect he doesn't like everything I say.
HENRY: Former President Bush, host of the so-called lobster summit, looked on glowingly and Putin even tried to deflect credit for hooking the bass. Saying it was a team effort, and spoke of a new partnership.
PUTIN: The relations between our two countries would be raised to an entirely new level.
HENRY (on camera): Mr. Bush is back at the White House now, but on his way home he took care of some other business, placing a phone call to British Prime Minister Gordon Brown, commending his performance in the wake of the terror incidents. A White House official says Mr. Brown told the president he believes the British people will not be intimidated. Ed Henry, CNN, Kennebunkport, Maine.
(END VIDEOTAPE)
PILGRIM: Coming up, the very latest on the president's decision to commute the prison sentence of Scooter Libby. Also, the rising threat from radical Islamist terrorists after the attempted terror attacks in Britain. A leading authority on national security issues will join us.
And presidential candidates report the results of their latest fundraising. We'll tell you the winners and the losers.
(COMMERCIAL BREAK)
PILGRIM: More now on President Bush's abrupt decision to commute Scooter Libby's 30-month prison sentence. Former White House aide Libby was sent to prison for obstructing an investigation into the leak of a CIA's operative's identity. Now in a statement President Bush said quote, "I have concluded that the prison sentence given to Mr. Libby is excessive. Therefore I am commuting the portion of Mr. Libby's sentence that required him to spend 30 months in prison." Joining me now with reaction to the president's decision is Democratic strategist Robert Zimmerman and Republican strategist and former White House political director Ed Rollins and they both join me by phone. Ed, let's start with you. What's your reaction to this and the timing of this is pretty precipitous, took everyone by surprise.
ED ROLLINS, FORMER WHITE HOUSE POLITICAL DIRECTOR: Certainly I think the president had planned this, depending on what the reaction of the appeals court, which basically said he had to go to jail today. I think conservatives will be happy. I think the bottom line -- and the president is pretty much down to -- conservatives are the only ones supporting him any more and I think he made a decision that he thought Libby had given a long service to the country and that commuting the sentence obviously is better than -- than pardoning him because he still is going to lose his law license and he still has a penalty of $250,000. There will be people who will be very unhappy with it and I think to a certain extent it will damage somewhat the credibility of this administration, which already has faced a long, hard battle on their credibility.
PILGRIM: And, Ed, in some respects, some action was expected, wasn't it?
ROLLINS: I think -- I think anyone who knew the president and knew, obviously, the relationship that Cheney and Libby had anticipated that something would happen. And I think that -- I don't think anyone that knows the game is totally shocked.
ZIMMERMAN: That's exactly...
PILGRIM: Robert Zimmerman, let's get your thoughts on this.
ZIMMERMAN: Thank you. I think Ed was very well -- Ed put it on target when he said anyone who knows the president knows the game, knows his relationship to Dick Cheney and Scooter Libby.
But I also add anyone who knows this administration's lack of regard for the law and for our system of justice is not surprised by this decision.
Jeffrey Toobin's analysis was really dead on when he said that the judge who was a Republican conservative judge made this decision within the sentencing guidelines. And every standard for conducting presidential pardons was totally disregarded by this administration.
This was an effort by the Bush administration to try to save what they have left of their credibility with the conservative base. At the expense, of course, of preserving any credibility for supporting law and order and our criminal justice system.
PILGRIM: Robert, you know, we do have some political reaction already. Let me read you something that was put out by Senator Charles Schumer through his spokesman.
And this is the comment: "As Independence Day nears, a reminder that one of the principles our forefathers fought for was equal justice under the law. This commutation completely tramples on that principle."
We're seeing already a rush to the microphones. What kind of momentum might this gain with the Democrats?
ZIMMERMAN: Well, I think what it does, is this decision by President Bush really does cross party lines. Bill Schneider pointed out that over 70 percent of Americans were opposed to this type of action the president took.
And so clearly, it does give Democrats momentum in terms of pointing out that this administration, besides its lack of competence, does not demonstrate a respect for the law and our system of justice.
And I think it also drives home the point that, ultimately, this administration has no respect for the rule of law. And I mean that very specifically and deliberately.
This was a decision made be a jury of Mr. Libby's peers, supported by a Republican conservative judge. Scooter Libby was found guilty of obstruction of justice, lying to an FBI agent, lying to a grand jury. A
And while no one -- no one rejoices in this chapter or in anyone facing this fate, there's a much bigger issue here, and maybe it's important to remember this as we approach the July 4 holiday.
PILGRIM: You know, Ed Rollins, President Bush has called this excessive. What's your reaction to Charles Schumer's comments?
ROLLINS: Well, I think obviously -- I wouldn't expect anything less from the senator. I think at the end of the day, you know, I think putting a man like him in jail is a very difficult -- but needless to say it is a Republican judge, and it's his prerogative.
I think equally as important, it is the president's prerogative to do this.
I think that the critical thing is that he left the fine in place and he left the felony in place. This is a man who gave a lot of his years to public service. He's going to pay a price. He's not going to get to practice law again. I mean, it's not just a slap on the wrist. He still has to serve probation, what have you.
Obviously, at the end of the day this is an administration that's going to face a lot of criticism on this issue. And added to everything else that they've taken over the last several months, it doesn't -- it's not helpful.
The only guy who benefits from this is John McCain, who had to fire 50 staff people, and this may knock his story off the front page.
Also, the other person who's breathing a sigh of relief tonight besides Scooter Libby is Vice President Dick Cheney. Because this story ends today. And the true facts of this case will never truly be told to the American people.
PILGRIM: Well, let me get into this. Seventy-two percent of the American people did not favor any kind of pardon.
And by -- and here's our poll. Should President Bush pardon Scooter Libby? No, 72 percent. Yes, 19 percent. Seventy-two percent.
Is the timing of this an attempt to get this off the table in advance of the campaign season? Let me start first with Ed Rollins -- Ed.
ROLLINS: Well, I think he made the decision based -- I mean, he stepped all over his meeting with Putin today, which obviously has gone semi-well. He stepped all over the -- obviously, the McCain story is another story.
I think -- I think they made a decision that if the appeals court ruled that he was going to go to jail, they were going to make this decision. I think the bottom line here is, as I said, I don't think this is a total cleansing, but I certainly think it's -- it's going to give the president's enemies, who are many, and certainly, the country that's not very happy about this another opportunity to take shots at him. And I think that's -- I think that's unfortunate at this point in time.
PILGRIM: All right, Bob. We have just a minute more. Any thoughts?
ZIMMERMAN: Yes, I just want to say that, granted, we're going to see Democrats step up to the podium and make an issue of this.
I think you'll be surprised to see how many Republicans will also speak up, as well, because this issue really does rise above partisan politics. And it does reflect an administration that chose, ultimately, to make a very political decision based upon the court of appeals' decision today, the appeals court decision today.
This really does reflect the administration's standards. And it's politics. It's trying to save its conservative base, and it's ultimately putting that first, at the expense of our criminal justice system. PILGRIM: All right. Robert Zimmerman and Ed Rollins, thank you very much for joining us on the spur of the moment for this discussion. And we will continue to follow this throughout the night and bring you all the very latest on the reaction and news as it comes to us.
Now, in other news, after the terror alert in Britain, Homeland Security Secretary Michael Chertoff today declared al Qaeda has been trying to raise its profile.
But Chertoff said U.S. officials are not aware of any specific plot to attack the United States. Nevertheless, he said law enforcement agencies are stepping up security at airports, train stations and other transportation facilities.
Jeanne Meserve has our report.
(BEGIN VIDEOTAPE)
JEANNE MESERVE, CNN CORRESPONDENT (voice-over): Car bombs in London and Glasgow, just the latest in a series of summertime threats.
Last August, authorities uncovered a plot to blow airliners out of the sky with liquid explosives.
In July of 2005, the London transit system was bombed. Nine- eleven took place at the tail end of summer.
MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: All of those things put together do cause us to be concerned going into the summer. But we do not have any specific information about a particular attack at this point.
ADAM GADAHN, SUSPECTED AL QAEDA OPERATIVE: We shall continue to strike back hard.
PILGRIM: Although recent messages from al Qaeda have threatened attacks on the U.S., counterterrorism officials have not seen a significant spike in chatter or uptick in intelligence.
London and Glasgow, however, were a surprise to British authorities. And U.S. officials know there may be something afoot here beneath their radar.
A former top homeland security official says terrorists may see summer as offering opportunity. Heavy travel and vacations by people in law enforcement could make it easier to slip through security. A purchase of fertilizer, a potential bomb component, might not raise suspicion during the growing season.
GEORGE FORESMAN, FORMER HOMELAND SECURITY UNDERSECRETARY: There are different patterns during the summertime that could potentially mask some of the preparations for a terrorist attack.
PILGRIM: Summer also means big public gatherings, which could be tempting targets. But in the nation's capital, where hundreds of thousands will gather for the Fourth, security this year will be like last year.
CHIEF DWIGHT PETTIFORD, U.S. PARK POLICE: There's nothing changed since the London bombings that affects us in the United States.
(END VIDEOTAPE)
MESERVE: Security has, however, been ramped up around airports and mass transit to protect against what might not be known -- Kitty.
PILGRIM: Thanks very much, Jeanne Meserve.
Well, joining us now is Frank Gaffney, president of the Center for Security Policy. He's a former assistant secretary of defense for international security policy.
And, Frank, always a pleasure.
FRANK GAFFNEY, PRESIDENT, CENTER FOR SECURITY POLICY: Thank you.
PILGRIM: First, let's bring it home. Here's what Homeland Security Secretary Michael Chertoff had to say about the threat that al Qaeda poses in the United States.
(BEGIN VIDEO CLIP)
CHERTOFF: We know al Qaeda is still very interested in carrying out attacks against the United States and Western Europe. We know that there have been an increase in public statements by al Qaeda leaders recently, which suggest that they are raising some of their profile, but we do not have any specific information about a particular attack at this point.
(END VIDEO CLIP)
PILGRIM: Big travel week, Frank. Big -- the start of the summer travel season. I'm sure every American is wondering, "How do I adjust? How do I make accommodations to what's just happened?" What do you think?
GAFFNEY: I think, frankly, the most important thing for Americans to take away from this latest reminder from the United Kingdom of the abiding hostility and determination of our enemies to hurt us is how important it is for all of us to be on alert.
You know, the job of protecting a -- an open and free society like that of the United States or the United Kingdom or others in western democracies is so problematic that the only hope we really have is if the millions of eyes and ears of -- of public spirited citizens participate in and assist the law enforcement authorities in providing protection to these mass transit facilities and other places that people congregate or, for that matter, vital pieces of our infrastructure. PILGRIM: Frank, British Home Secretary Jacqui Smith says they have eight suspects under arrest. What's your assessment of how quickly the British have moved on this?
GAFFNEY: Well, it's impressive. You don't know whether they've got the right people. You don't know whether the people they've got represent a fraction or the totality of a group that is behind this particular set of plots.
One of the things that I have been impressed by, though, is that the British are tracking something over 1,000 different terrorist cells or members thereof and are trying very hard to stay ahead of their actions.
And in this case, thankfully, there was no death to date as a result of these incipient attacks, but it is a reminder, again, of what I said earlier. That even where you have people doing an intensive job of trying to monitor and trying to mitigate the danger posed by determined adversaries like the terrorists -- Islamofascists, I think, is the best way to describe them -- you need help from the public at large. And I think that's -- that's especially true here in the United States.
PILGRIM: You know, Frank, as you point out, the details are very short on the suspects, but we do know that three of the suspects are medical doctors. Could you sort of tell us what you think about the changing nature of terrorism. What does this suggest to you?
GAFFNEY: Well, I use this term Islamofascist to determine peep -- between people of Muslim faith who wish no harm to others and people who pursue this ideological, totalitarian objective of a world dominated by Sharia, this religious theocratic code.
The reality is that we're seeing at least one, maybe even two, generations now that have been subjected to indoctrination and recruitment, principally by the Saudis; to some extent by the Iranians on a global basis.
And you will see the demographic of people who are prepared to act on these terrorist objectives in pursuit of this Islamofascist agenda changing. Rich people, poor people, people who are from the Middle East and South Asia, but people who are not. People who are perhaps converts to the Muslim faith, not people who were born into it.
This is one of the things that's going to make it very challenging for law enforcement and why, as I say, I think all of us need to recognize we've got to be on a war footing to deal with people who are trying desperately to destroy us all.
PILGRIM: Thanks very much, Frank Gaffney.
GAFFNEY: Thank you, Kitty.
PILGRIM: Still ahead, we'll have more on the president's decision to commute Scooter Libby's sentence and the political fallout of that. We'll also have the very latest reaction tonight from Capitol Hill.
And President Bush's authority to push through trade deals without congressional approval expired this weekend. But not before the president approved four more trade agreements. We'll examine how fast track has hurt middle class workers.
Also, up next, Republican presidential candidate Senator John McCain fighting an uphill battle in the polls when it comes to raising money. What does this mean for his campaign? We'll have a live report.
(COMMERCIAL BREAK)
PILGRIM: Congressional Democrats tonight are blasting President Bush for his decision to commute the 30-month prison sentence of former White House aide Scooter Libby. Senate Majority Leader Harry Reid said, quote, "History will judge President Bush harshly."
Andrea Koppel reports from Washington -- Andrea.
ANDREA KOPPEL, CNN CORRESPONDENT: Kitty, press secretaries all over Washington are scrambling tonight, trying to get their talking points down on paper. And so the e-mails are coming to us intermittently.
You just referred to one by Senator Harry Reid, the Democratic majority leader, saying, quote, "The Constitution gives President Bush the power to commute sentences, but history will judge him harshly for using that power to benefit a White House insider convicted of such serious violation of law."
Now, according to an e-mail I just got from Harry Reid's office, it says that "the president's decision to commute Mr. Libby's sentence is disgraceful. Libby's conviction was the one faint glimmer of accountability for White House efforts to manipulate intelligence and silence critics of the Iraq war."
We have another statement from the top Democrat in the House Judiciary Committee, John Conyers, saying, quote, "Until now it appears that the president merely turned a blind eye to high-ranking administration leaking classified information. The president's action today makes it clear that he condones such activity."
He says, "This decision is insistent with the rule of law and sends a harsh signal to the American people and our intelligence operatives who place their lives at risk every day."
Needless to say, for Democrats this is more red meat, more hard evidence that they can use, fresh ammunition, to bash the Bush White House and Republicans.
The question, Kitty, will be how will this play among Republicans, among the Republican base? Will there be blow-back for Republicans, especially for candidates like John McCain, who's already seen as being in lock-step with the White House on Iraq and on immigration, which just failed in the Senate last week? What will the impact be on him in the days and weeks to come -- Kitty.
PILGRIM: Well, very interesting. Andrea, you know, you talk about the sort of reaction. What actually could congressional Democrats do at this point?
KOPPEL: Nothing. And, in fact, one Democratic aide I spoke with, Senate Democratic aide, was saying just that. Saying that Democrats' hands are tied. President Bush, under the Constitution, has every legal right to pardon Scooter Libby.
But they can certainly use this as ammunition to attack the White House, certainly in campaign ads once we get closer to the next -- the '08 campaign season. And certainly they'll be using it, I'm sure, on the floor of the Senate and in press conferences once they get back from the July 4 break.
PILGRIM: Thanks very much, Andrea Koppel. We'll have a lot more on this story. We'll be following it throughout the evening with the details.
Some surprises today in the new campaign fundraising numbers. Now, there's a new money-raising leader for the Democrats, and a leading Republican finds his financial support slipping away.
Bill Schneider has all that.
(BEGIN VIDEOTAPE)
BILL SCHNEIDER, CNN CORRESPONDENT (voice-over): Obama is up, McCain is down. That's the message of the first reports to come out on second quarter fundraising.
Barack Obama raised an eye-popping $31 million for the primaries, half again more than Hillary Clinton.
On the Republican side, John McCain raised a disappointing $13 million in the first quarter. McCain's second quarter take, worse.
It's an anti-establishment year. Obama is running as an outsider. Here's how he's introducing himself to Iowa voters.
UNIDENTIFIED MALE: Barack went to Harvard law but returned to the community to lead a voter registration drive in defense of civil rights.
SCHNEIDER: Obama is raising money from small contributors.
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: We've got 250,000 people who have donated to our campaign. That we've got people who have been giving $5 and $10 and $25 because we don't take PAC money and we don't take federal lobbyists' money.
SCHNEIDER: That's an indicator of real grass roots support.
SHEILA KRUMHOLZ, CENTER FOR RESPONSIVE POLITICS: It is likely that the majority of these donors are lining up, not just to give him money but also to volunteer on his behalf and to vote for him.
SCHNEIDER: McCain started out as the establishment candidate, running in a party that usually nominates the establishment candidate. McCain made peace with his old rival, George W. Bush. He lashed himself to the mast of Bush's ship, just as that ship was starting to go down.
Supporting President Bush on immigration reform was particularly costly.
MARK PRESTON, CNN POLITICAL EDITOR: The McCain people acknowledged that immigration has been the Achilles heel for the senator in this election.
SCHNEIDER: Where does McCain go from here? Back to the future.
PRESTON: He's going back to what he did in 2000. He realizes that the way he's going to win this nomination is not by the -- by getting the establishment votes, but rather a grassroots campaign.
SCHNEIDER: A grassroots campaign, like Obama's.
(END VIDEOTAPE)
SCHNEIDER: McCain used to have broad bipartisan appeal. Now Democrats a rangy at him because of his support for the war in Iraq, and Republicans are angry at him because of his stand on immigration. Well, there's bipartisanship for you -- Kitty.
PILGRIM: Maybe not what they all pictured, though. Thanks very much, Bill Schneider.
A reminder now to vote in tonight's poll. Do you think the U.S. government lacks the political will to enforce existing border security laws? Yes or no. Cast your vote at LouDobbs.com. We'll bring you the results in just a few minutes.
And coming up, we'll have reaction to the Libby sentence commutation from the Democratic Senator Sherrod Brown. We'll also talk to him about the Democrats taking back their constitutional authority to negotiate trade deals.
Stay with us.
(COMMERCIAL BREAK)
PILGRIM: For more on the Scooter Libby case and the end of President Bush's fast track trade authority, two very different subjects, we're joined by Democratic Senator Sherrod Brown. And Senator Brown joins us now from Columbus, Ohio.
And thanks for joining me.
SEN. SHERROD BROWN (D), OHIO: Sure. Thank you, Kitty.
PILGRIM: We didn't -- we didn't expect this news. But what is your -- what is your reaction to the Scooter Libby commutation?
BROWN: Well, disappointment. This is a -- Scooter Libby was convicted of lying on a national security matter, prosecuted by a Republican prosecutor, sentenced by a Republican judge. And the president doesn't seem to want to be held accountable or hold his people accountable. And that's a tragedy.
And I'm not a lawyer, but I think it's a travesty of justice, and the president owes us a little better than that.
PILGRIM: Let's move on to some trade issues, which I know are very near and dear to your heart and also to your jurisdiction, your district.
The fast track authority for President Bush expired this past weekend, and that allowed him to push through quite a few trade deals. And he did quite a few at the last -- at the last minute, including the largest since NAFTA, the South Korean free trade deal.
Now, I have a comment by House Speaker Nancy Pelosi along with other members of the Democratic leadership. They released a statement just ahead of the fast track expiration date, which I'd like to read to you.
And this is what it is: "We will continue working to improve our trade policy, while at the same time addressing the increased economic insecurity faced by American families. Our legislative priorities do not include the renewal of fast track authority. Before that debate can even begin, we just expand the benefits of globalization to all Americans."
Is your chief beef with fast track that -- that American workers were hurt?
BROWN: Yes. I was -- today I spent the day in three medium- sized cities in Ohio, Mansfield, Marion and Lima, cities of 30 to 50,000 people. Cities that have been devastated because of these trade agreements. Lost industrial -- literally tens of thousands of lost industrial manufacturing jobs in these communities, hundreds of thousands in my state.
Yet, the president continues to insist on these job-killing trade agreements that have no real labor standards or environmental standards, have no food safety standards. Look at what's happened with China. Have no protections for the middle class.
And I -- the death of fast track two days ago, Saturday, the expiration of fast track is good news, similar to how the election in November was good news, and it shifted the power in November to the Senate and the House. And this is a further shifting, if you will, of -- of trade negotiating authority to the Senate and the House, which will represent workers in communities and the middle class much better than I think this White House has done.
PILGRIM: You know, we don't have much time, but how can a trade agreement be mutually beneficial? Because it seems the American worker has definitely been short-changed in recent agreements.
BROWN: Yes, a trade agreement can be written. We're doing that, and we're going to introduce model trade agreements in the upcoming months. It can be written for labor standards, environmental standards. It can have benchmarks. If it's -- if it's reducing our trade deficit, if it's creating jobs, we go forward with it.
It can have protections for food safety. It can have all kinds of protections for the middle class. Currency standards, unlike what we've seen in China now. There are a whole host of things we can do to bring up worker standards in Mexico and Latin America and China, instead of pulling our standards down. And that's really why these trade agreements in the end are job-killing trade agreements.
PILGRIM: Thanks very much for being with us, Senator Sherrod Brown.
BROWN: Thank you.
PILGRIM: Thank you, sir.
Still ahead, the results of tonight's poll. Stay with us.
(COMMERCIAL BREAK)
PILGRIM: The results of tonight's poll. Ninety-six percent of you say the U.S. government lacks the political will to enforce existing border security laws.
We have time for one e-mail tonight. Ted in California wrote to us, "After listening to Bush and the Senate trying to turn the United States into Northern Mexico, I will be the next Democrat in line to join the Independent Party."
We love hearing from you. Send us your thoughts at LouDobbs.com.
Thanks for being with us tonight. Please join us tomorrow. And among our guests, Congressman Steve King of Iowa. He's demanding the federal government ensure all its employees are legally working in the United States.
For all of us here, good night from New York. "THE SITUATION ROOM" starts right now with Suzanne Malveaux -- Suzanne.
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